If this Property bubble BURSTS! what will happens to house prices?

Fella

Thrugelmir wrote: »

Not all of them.

But a big enough chunk that lenders profiting is not something taxpayers will pay for, rather something they'd benefit from.

gemmaking

Blacklight wrote: »

So, it's 2005 all over again. .

Will we see a collapse of another bank, like L'Brothers, in 3 year ?

Good_Goose

The UK has gone from the brink of financial collapse to "bubble" very quickly.

Or more likely there is no bubble, just a reflection of supply and demand.

I dont see any lenders offering 125% mortgages, even 90%+ mortgages are rare and only obtainable by the most credit worthy of borrowers.

When average house prices hit £400000 we will be in a bubble, until then we are still very much in the recovery stage.

All in my very humble opinion of course.

Fella

whether you're in a bubble or not is effectively academic. Even if you know you are it doesn't help you because a bubble can go on a lot longer than you think. So the only 2 things you can really say for certain is:

1. No-one knows if this is a bubble
and
2. Even if they did no-one would have any more idea of what would be the best thing to do.


That's why you diversify.

dryhat

Good_Goose wrote: »

The UK has gone from the brink of financial collapse to "bubble" very quickly.

You say "brink of collapse" I say "brink of reform"

TruckerT

Fella wrote: »

But a big enough chunk that lenders profiting is not something taxpayers will pay for, rather something they'd benefit from.

Mmmm - feel the faith...

TruckerT

Loughton_Monkey

Good_Goose wrote: »

The UK has gone from the brink of financial collapse to "bubble" very quickly.

Only because "bubble" has become a buzz-word and publicity-seeking politicians & journalists like to use it.

Good_Goose wrote: »

Or more likely there is no bubble, just a reflection of supply and demand.

You've got it.

Good_Goose wrote: »

I dont see any lenders offering 125% mortgages, even 90%+ mortgages are rare and only obtainable by the most credit worthy of borrowers.

How it should be.

Good_Goose wrote: »

When average house prices hit £400000 we will be in a bubble, until then we are still very much in the recovery stage.

Only 25% more to go in London. Probably by Christmas 2014.

Good_Goose wrote: »

All in my very humble opinion of course.

If you put two economists in a room, you get two opinions, unless one of them is Lord Keynes, in which case you get three opinions.
[SIZE=-1][/SIZE]
[SIZE=-1]Winston Churchill[/SIZE]

Fella

TruckerT wrote: »

Mmmm - feel the faith...

TruckerT

Or just understand economics. The taxpayer owns massive slabs of banks that they need to sell for as much as possible and in order to do so we need banks to be profitable.