People will adjust their spending habits in order to afford their mortgage

ukcarper

Graham_Devon wrote: »

Oh come on carper. Please don't join in the others.

I said help to buy, QE, funding for lending, housing benefit budget increasing 35% in a few years, SMI. I said it ALL takes a part. I never singled out one area.

So we are back to things introduced for wider economy.

System

ukcarper wrote: »

They haven't the average price of property sold has increased by 15% because they are now selling more family homes that is not the same thing as increasing prices by 15%.

Try drawing it in crayon and putting a picture of that up. Or spelling it out in fridge magnet letters.

OffGridLiving

ukcarper wrote: »

Bovis haven't increased the price of their homes by 15% in the last 6 months as I showed yesterday.

http://www.sharecast.com/news/london-midday-upbeat-economic-data-lifts-stocks/21013406.html

"The house builder said it had achieved 1,389 private reservations in the period, marking a 40% increase on the first six months of 2012, and its average selling price on completion had risen 15% to £188,500 driven by a better mix of homes."

Graham_Devon

ukcarper wrote: »

So we are back to things introduced for wider economy.

Some for the wider economy yes. QE mainly. Funding for lending was directed at both business and mortgage lending, though business lending continues to decline.

The rest of the schemes and support schemes are directed specifically at the housing market in varying ways.

grizzly1911

ukcarper wrote: »

According to Graham the only reason prices are increasing is Help to Buy etc as that is not available on second hand properties how does that drag work.

If new houses are being priced more highly, for whatever reason it will, impact local prices.

Presumably valuers will take into account prevailing local market conditions when assessing the value of "used" properties in the same vicinity.

If similar properties by size, fittings, location are coming onto market at x% more then they will pull the other properties along. It may not be the same magnitude I accept.

It would make even more sense if properties were sold by relative size rather than number of rooms.

Graham_Devon

Joeskeppi wrote: »

Try drawing it in crayon and putting a picture of that up. Or spelling it out in fridge magnet letters.

It makes no difference, regardless of your attempted put downs.

If the average price rises 15%, the average price rises 15%.

It doesn't matter how many houses they sold or what type. The average price is still up 15%.

If you start breaking that figure down, as per the land registry into detached, semi detached etc, then it will make a difference there and in that case will drag up the average of older properties of the same makeup, but to the national overall figure, it makes no difference, no matter how many colour fridge magnets or crayons you use.

ukcarper

grizzly1911 wrote: »

Presumably valuers will take into account prevailing local market conditions when assessing the value of properties in the same vicinity.

If a similar properties by size, fiitings, location are coming onto market at x% more then they will pull the other properties along. It may not be the same magnitude I accept.

It would make even more sense if properties were sold by relative size rather than number of rooms.

If people couldn't buy at lower price how are they now it can't be help to buy as that is not available to them.

N1AK

Joeskeppi wrote: »

Try drawing it in crayon and putting a picture of that up. Or spelling it out in fridge magnet letters.

Still struggling to understand it all Joe still it's good that you can be so open about your limitations.

Graham_Devon

ukcarper wrote: »

If people couldn't buy at lower price how are they now it can't be help to buy as that is not available to them.

Both Halifax and RICS have reported in the last week that funding for lending is now playing a big part, mainly due to the changes to funding for lending earlier this year where banks can borrow £10 for every £1 lent. (i.e. more favorable conditions for the banks, therefore, extending lending)

wotsthat

grizzly1911 wrote: »

If new houses are being priced more highly, for whatever reason it will, impact local prices.

Presumably valuers will take into account prevailing local market conditions when assessing the value of "used" properties in the same vicinity.

There might be a correlation between new/ existing prices but there's no causation.

I don't pay more for a house just because a different house sold for more.