When will the correction come to house prices?

The-Joker

Graham_Devon wrote: »

The red herring in all this "the only way to reduce property prices is to build" is that property prices reduced in 2008. They stayed static 2011/12.

Hamish wasn't talking about building more back then. no, he was talking about mortgage rationing and how it's holding back the market.

Credit plays a huge part in house prices. We've seen the results of credit being reigned in and we've seen the results of it being ramped up.

Yes, building more would be great, but that's just ONE part of the solution. Identifying and dealing with the credit risks is another part. No looking at ALL the issues in the market will just have us panic reacting to everything and limping from boom to bust.

The only way to correct the market is to let interest rates correct back to normal. Interest rates will go back to normal.

Dan:_4

The-Joker wrote: »

The only way to correct the market is to let interest rates correct back to normal. Interest rates will go back to normal.

This is normal - your living in the past dude.

The-Joker

Hearing signs all over the long awaited correction is getting closer. And this is before interest rates go back up.

Imagine when base rate is back to 5%+ ;0

Bubble_and_Squeak

The-Joker wrote: »

Hearing signs all over the long awaited correction is getting closer. And this is before interest rates go back up.

Imagine when base rate is back to 5%+ ;0

if you wait for the correction to show up on the LR figures you get to spend a few more months in bubbleland

MRMX9

Pincher wrote: »

A guy bought a 1st floor flat nearby, declared it to be under renovation to the council, and unoccupied, which qualified for council tax exemption for at least one year. He lived in it while the building works were going on, so he was only half lying.


You also get a big discount if you declare the property unfurnished, and therefore unoccupied. It defies logic, you provide furniture, which costs more, and then the next tenant may not like them, and you lose on wear and tear, and then you get punished for having furniture if there is a void period. Why does anybody let furnished, I wonder?

You will find that as of 1 April 2013 most councils have got rid of that exemption (along with other discounts for second/empty homes) - so there is no discount - under new powers granted in the 2012 Local Government Finance Act. Most also impose a 50% premium for long term empty (unfurnished) properties.

So your neighbour may have benefitted - but this is no longer the case in the vast majority of England any more.

And too right - if you can afford to spend tens of thousands on renovating your home you can afford to pay council tax at the same time!

pop_gun

Too many derivatives tied to the housing market. When the CDO's of Fanny and Freddie went belly up the government was forced to nationalise the company or risk the collapse of derivatives held by other large financial institutions.
If we see the government (especially a conservative one) start another round of nationalisation, expect a house price correction. Although it will be short lived as the derivatives market is bigger than the entire global economy and governments need them to pay the bill on their borrowing.

Thrugelmir

pop_gun wrote: »

If we see the government (especially a conservative one) start another round of nationalisation, expect a house price correction.

Nationalisation of who?

Thrugelmir

AndyGuil wrote: »

It is a none issue. YoY the figures are up. January looks like an overspill from December. MMR wil impede the growth in mortgage approvals. Right now it is delaying approvals.

UK mortgage approvals fall as expected in July.

Downward trend continues.

http://uk.reuters.com/article/2014/09/01/uk-britain-lending-idUKKBN0GW1QI20140901

wotsthat

Thrugelmir wrote: »

Downward trend continues.

http://uk.reuters.com/article/2014/09/01/uk-britain-lending-idUKKBN0GW1QI20140901

Mortgage numbers down less than 0.1% MoM.

AndyGuil

Thrugelmir wrote: »

Downward trend continues.

http://uk.reuters.com/article/2014/09/01/uk-britain-lending-idUKKBN0GW1QI20140901

So higher than 2013 then..