House price crash news

JBeau

IF ANYONES INTERESTED

https://www.orange.co.uk/money/property/32632.htm?linkfrom=money_&link=box_main_post

mystic_trev

Her reason for thinking they'll be a "Crash" Everybodies talking about Property!

Sorry love, but you could have mentioned something about Interest rates or affordability.

Oh - and your websites crap too Alison!

chris83_2

The article spills over onto a few pages. She mentions interest rates etc on page 3.

Doozergirl

"Something’s definitely not right – I can just feel it in my waters."

:rotfl:

mystic_trev

chris83 wrote: »

The article spills over onto a few pages. She mentions interest rates etc on page 3.

Thanks Chris. She's just repeating what alot of us have been saying for the past couple of years. A nice finish to her article, though.

"I don’t care what drivel various house pundits utter about “relative” affordability – most people I know feel poorer now than they have for a long time. And that’s not right either"

pinkshoes

People like owning their own home. Most my friends who rent would LOVE to buy, and still plan to buy. Some can't afford it because they don't earn enough. Most can't save up any deposit because they're paying extortionate rents, and those that can afford it can't buy anything because all 1 or 2 bed properties within their price range are being snapped up by buy-to-letters, so they're pretty much being forced to rent.

So, why would the housing market crash when demand is still really high, and people still WANT to buy? we can't even build houses fast enough in this country to meet the populations needs!!

When interest rates rise, the people that suffer are those who borrowed too much (i.e. the poorer population who stretched their budget to buy a house), and if these people loose their homes, they will no doubt be snapped up by buy-to-letters who will rent them out to all those people who lost their home!!

In brief, we have a housing shortage, and alot of people who CAN afford to buy are being forced to rent as properties are being bough up by by-to-let investors, thus keeping the prices high.

The market will crash when demand drops, and demand will drop when we start building enough houses to meet the needs of the ever increasing UK population. Er... at the moment this is not physically possible!!

JBeau

pinkshoes wrote: »

People like owning their own home. Most my friends who rent would LOVE to buy, and still plan to buy. Some can't afford it because they don't earn enough. Most can't save up any deposit because they're paying extortionate rents, and those that can afford it can't buy anything because all 1 or 2 bed properties within their price range are being snapped up by buy-to-letters, so they're pretty much being forced to rent.

So, why would the housing market crash when demand is still really high, and people still WANT to buy? we can't even build houses fast enough in this country to meet the populations needs!!

When interest rates rise, the people that suffer are those who borrowed too much (i.e. the poorer population who stretched their budget to buy a house), and if these people loose their homes, they will no doubt be snapped up by buy-to-letters who will rent them out to all those people who lost their home!!

In brief, we have a housing shortage, and alot of people who CAN afford to buy are being forced to rent as properties are being bough up by by-to-let investors, thus keeping the prices high.

The market will crash when demand drops, and demand will drop when we start building enough houses to meet the needs of the ever increasing UK population. Er... at the moment this is not physically possible!!

There are plenty of houses for the uk population- there are not enough affordable ones. House prices have been driven up by low interest rates and cheap borrowing. As interest rates rise lenders tighten up on borrowing. This then impacts the housing market and starts to push prices down.

mystic_trev

pinkshoes wrote: »

In brief, we have a housing shortage, and alot of people who CAN afford to buy are being forced to rent as properties are being bough up by by-to-let investors, thus keeping the prices high.

You obviously weren't around during the last crash, same scenario, the great housing shortage of the late 80's with prices going through the roof. The market went from plenty of demand and a shortage of supply to no demand and falling prices in a matter of months.

As for BTL ,what idiots going to invest in a "negative geared" product? Well at the moments loads, and they're going to get badly burnt.I have two investment Properties bought 11 years ago, and an interest in two others. Only a fool would invest a todays prices. Many will lose their homes and end up going from Landlord to DSS Tenant in one easy move.

nollag2006

Having read the article, it could have been written five years ago, there’s absolutely nothing new in it. Without some sort of major economic shock, as happened when Sterling came out of the ERM, there is little likely to precipitate a fall in house prices.

While it might seem unfair to some, that’s life !

nollag2006

And what IS she wearing on the last page??

wibble68_2

pinkshoes wrote: »

In brief, we have a housing shortage, and alot of people who CAN afford to buy are being forced to rent as properties are being bough up by by-to-let investors, thus keeping the prices high.
The market will crash when demand drops, and demand will drop when we start building enough houses to meet the needs of the ever increasing UK population. Er... at the moment this is not physically possible!!

Are you saying that if interest rates move higher (8 - 10%), that house prices will still increase due to supply and demand caused by a housing shortage?