"No House Price Bubble in UK" - says top economist....

Generali

Graham_Devon wrote: »

Same as every bubble in history. Including the poppy boom.

Houses are nothing special when it comes to talk of bubbles or booms.

Poppy boom?

Graham_Devon

Generali wrote: »

Poppy boom?

Tulips....

IveSeenTheLight

shortchanged wrote: »

How does he explain the huge increase in property developers in the previous decade.

As an investor, I can see that a gap was created in the rental market after the previous Conservative Government introduced the Right To Buy, selling off council homes.

Even now, with the increase in property investors, the percentage of rented homes is still lower than in the 80's when RTB came into effect.

BTL has only partially filled the gap created by RTB.

Where there is a gap in the market, there will be an investor looking to fulfill.

shortchanged wrote: »

Shows how clueless he is. This is exactly what was going on in the UK in the previous decade.

I hope the above helped to clue you in

Percy1983

Not Turnips? seems a boom on here...

IveSeenTheLight

Generali wrote: »

Poppy boom?

HeHe, They must be seasonally affected.
Demand must be far greater in November

Seriously though. Can you really compare tulips to houses?
If push comes to shove, I'm pretty confident people could curtail their desire for tulips, but there will still be a necessity for a roof over their heads.

CLAPTON

Graham_Devon wrote: »

Same as every bubble in history. Including the poppy boom.

Houses are nothing special when it comes to talk of bubbles or booms and are the same as any other commodity.

do give us a clear prediction about when you expect the 'bubble' to burst and to what price you expect houses to reduce to.

DervProf

Graham_Devon wrote: »

Tulips....

No Graham, you were right first time..........

http://www.independent.co.uk/news/world/asia/the-poppy-harvest-burmas-boom-industry-8269981.html

shortchanged_2

CLAPTON wrote: »

so no bubble then; just a few amateurs making a nice living out of being landlords and with the prospects of capital gains too?

I wasn't really referring to BTL as such. I was referring more to the property flippers. You know, lick of magnolia and all that jazz.

IveSeenTheLight

shortchanged wrote: »

I wasn't really referring to BTL as such. I was referring more to the property flippers. You know, lick of magnolia and all that jazz.

I once bought a property off plan.
Marketed it with no work so the buyers could put their own stamp on it.
Struggled for a couple of weeks as people couldn't envisage how they could live there, so put in some cheap carpets, staged the home with furniture and received an offer at the next viewing (at the increased market price which covered the additional costs).
This came with the builders standard magnolia type paint.

My last home I sold, I wall papered the vestibule and downstairs toilet with some fancy wallpaper, dressed the home like a showroom and it sold at the first viewing.

Some people really don't have the vision and want a home the feel they can walk in and sit down without needing to put in any work.

theEnd

HAMISH_MCTAVISH wrote: »

Eh?

Rents soared to all time record highs in the last few years.

In a recession, with rising unemployment, falling real incomes, and the worst financial crisis in a century.

Rents (and of course they can't be fuelled by mortgage lending) rose to record highs.

How is that remotely conceivable if there isn't a shortage of housing?

But rents rising nominally by tiny amounts. Falling in real terms.
(won't let me post the link, but google ONS rental index)

England +8.6% over 8 years.
London +11.1% over 8 years (that's 1.35% per year).

If there was a housing shortage these numbers should be much higher.

House prices have risen in line with credit availability. Maybe good, maybe bad.

The banking bailout, SLS, FLS, HTB etc, etc suggest it wasn't naturally sustainable.