House Prices

Minrich

Are they still overpriced ? I think so , but is there going to be a correction with all the cheap money avaialable at the moment it has falsely kept them up , in my opinion . Now the Help to buy scheme is here and likely to be around for some while the house prices are due for a correction , aren't they ?

Houses in our area have gone up around 8-10% in the last 2/3 months ! This can only be down to estate agents , can't it ? Incomes in our area have not gone up !

I ask on this part of the forum as a Mortgage is not obtainable by my daughter to buy a house without a drastic deposit like 40% plus due to the house prices , she is renting at the moment . I am going to help her , but do we wait for a correction in price and save for a bigger deposit ? I think mortgages will get more expensive guaranteed , alot of defaults i can see ahead .

kingstreet

If prices haven't significantly dropped across the whole UK during the longest recession in memory, it's unlikely they will do so in the future.

There is simply too much demand and not enough supply, particularly around Greater London.

Other areas have had their correction, with Northern Ireland, in particular, down around 50%.

ACG

Demand is still there. The only thing that stopped/slowed was the supply of money. Now that mortgage lenders are lending money again house prices are either staying the same or increasing in the main.

So, is property overpriced? Peoples opinions seem to be yes, but stats on house prices seem to say otherwise.

SG27

Minrich wrote: »

Are they still overpriced ? I think so , but is there going to be a correction with all the cheap money avaialable at the moment it has falsely kept them up , in my opinion . Now the Help to buy scheme is here and likely to be around for some while the house prices are due for a correction , aren't they ?

Houses in our area have gone up around 8-10% in the last 2/3 months ! This can only be down to estate agents , can't it ? Incomes in our area have not gone up !

I ask on this part of the forum as a Mortgage is not obtainable by my daughter to buy a house without a drastic deposit like 40% plus due to the house prices , she is renting at the moment . I am going to help her , but do we wait for a correction in price and save for a bigger deposit ? I think mortgages will get more expensive guaranteed , alot of defaults i can see ahead .

I had the same problem as your daughter me and my partner couldn't afford the mortgage unless we saved a huge deposit. So we took 7/8 years and saved it. It was very hard even living with our parents.

Our mortgage is now £500 per month. Comfortably affordable. If help to buy had been available when we started saving and we used it our mortgage would be costing £1100! Impossible!

opinions4u

In the short term the various government initiatives to subsidise mortgage lending combined with economic recovery can and will push house prices higher.

If that recovery goes into reverse things could change. But I think that's some time off.

SG27

opinions4u wrote: »

In the short term the various government initiatives to subsidise mortgage lending combined with economic recovery can and will push house prices higher.

If that recovery goes into reverse things could change. But I think that's some time off.

Economic recovery also brings higher interest rates which will make things interesting...

Minrich

SG27 wrote: »

Economic recovery also brings higher interest rates which will make things interesting...

That will be a very big issue , especially the many mortgages that are now linked to the base rate . What will happen then , how will people afford to continue .

I despise the buying of homes as investments . There should be a limit , shouldn't there ? Why are we selling our properties in London to foreign investors ? For many normal people a house is a a place to live with an outside space for our kids to play and hang our washing and to have friends round for bbqs etc , flats are for the rental market as there will always be who are not able to buy a house for whatever reason .

It is also about oneupmanship and having something better than the next person that has caused this and also "Mad Money" like Professional Footballers and other Celebrities having ten bed houses when they only have three people living in the house etc .

I hate what this country has become , i would have loved to have lived in much less affluent times , life would have been alot harder but , i think , alot more enjoyable.

SG27

Minrich wrote: »

That will be a very big issue , especially the many mortgages that are now linked to the base rate . What will happen then , how will people afford to continue .

I despise the buying of homes as investments . There should be a limit , shouldn't there ? Why are we selling our properties in London to foreign investors ? For many normal people a house is a a place to live with an outside space for our kids to play and hang our washing and to have friends round for bbqs etc , flats are for the rental market as there will always be who are not able to buy a house for whatever reason .

It is also about oneupmanship and having something better than the next person that has caused this and also "Mad Money" like Professional Footballers and other Celebrities having ten bed houses when they only have three people living in the house etc .

I hate what this country has become , i would have loved to have lived in much less affluent times , life would have been alot harder but , i think , alot more enjoyable.

There's going to be some massive problems when rates rise. I have a friend on similar income to me. He has a mortage almost double mine it's fixed for two years. I asked him what he would do when rates rise and he said he isn't worried as he will just fix again if they do. I told him if rates rise or even if they think they might be rising soon then fixed rates will go through the roof! He didn't seem to grasp that.

ScoobyZ

I have a buy to let and the prices have hardly moved in last 9 years. Any increase in value has been way below inflation. No one knows the future, but I would be surprised if prices do go up in next 12 months now that money is being made available.