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Debate House Prices


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All of a sudden "HPI" seems to be a bad thing.

245

Comments

  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    CLAPTON wrote: »
    so fewer people able to buy drives the prices higher than would otherwise be the case?

    so just 2 buyers could to the cause of nationwide HPI: what about buying them a nice place abroad, so HPI could be stopped here immediately?
    2 buyers for each place for sale is all it takes. And if they have access to a lot of cheap money it can force prices up further.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Bantex wrote: »
    2 buyers for each place for sale is all it takes. And if they have access to a lot of cheap money it can force prices up further.


    there were always more that 2 buyers for each house

    are you saying that after the credit crunch there was lots of money around.

    I was under the impression that house prices actually FELL after 2008 and in some places haven't yet got back to 2007/8 levels.
  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    edited 21 May 2014 at 10:39AM
    CLAPTON wrote: »
    there were always more that 2 buyers for each house

    are you saying that after the credit crunch there was lots of money around.

    I was under the impression that house prices actually FELL after 2008 and in some places haven't yet got back to 2007/8 levels.
    To be honest, I am thinking of where I live - London. There really is a lot of money sloshing about looking for a home.

    Many people who have been paying low rates for ages are now buying up 2nd, 3rd or 4th places as they cannot get a better return on the cash they have saved. This is driving up prices.

    Went to an "open house" thing a couple of weeks ago with a young couple who are looking to buy a 1 bed flat. Out of around 20 people there at least 75% were investors. My friends got outbid.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Bantex wrote: »
    To be honest, I am thinking of where I live - London. There really is a lot of money sloshing about looking for a home.

    yes, I agree that more money being available with limited extra supply, will lead to higher prices.

    London is very much in that situation.

    I don't think the same thing happened during the credit crunch however.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Bantex wrote: »
    Out of around 20 people there at least 75% were investors. My friends got outbid.

    This is the story I was getting when trying to arrange viewings where I live, in the South West.... BTLers crowding round every house. Most houses I've viewed have already appeared in the "To Rent" section on RM.
  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    PasturesNew wrote: »
    This is the story I was getting when trying to arrange viewings where I live, in the South West.... BTLers crowding round every house. Most houses I've viewed have already appeared in the "To Rent" section on RM.
    I do find it rather depressing. Anotehr downside is you end up with entire streets turning ghettos of tatty looking BTL places that nobody cares about.
  • MFW_ASAP
    MFW_ASAP Posts: 1,458 Forumite
    DervProf wrote: »
    How the media have changed their tune.

    Not so long back, I remember the monthly interviews on BBC Breakfast News with Nationwide's "Fiona La La" (or whatever her name was), grinning like a Cheshire cat, as she told us that house prices had risen >1% again over the last month. There was sometimes a suggestion that it might, just possibly, be bad news, but the general theme was "this is great". Sometimes they'd wheel in someone from Halifax to deliver the same brilliant news.

    Lots of new buyers were plunged into negative equity during the housing crash and so any HPI gains were good news for them. Once we are above pre-HPC levels then they will all be out of NE and so HPI is no longer a good thing.
  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    MFW_ASAP wrote: »
    Lots of new buyers were plunged into negative equity during the housing crash and so any HPI gains were good news for them. Once we are above pre-HPC levels then they will all be out of NE and so HPI is no longer a good thing.
    There never was a crash in London and many areas are now 50% plus above 2007 peak.
  • MFW_ASAP
    MFW_ASAP Posts: 1,458 Forumite
    Bantex wrote: »
    There never was a crash in London and many areas are now 50% plus above 2007 peak.

    Hence why it's no longer a good thing, for some people.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    PasturesNew wrote: »
    This is the story I was getting when trying to arrange viewings where I live, in the South West.... BTLers crowding round every house. Most houses I've viewed have already appeared in the "To Rent" section on RM.

    why is there such a shortage of housing in the SW?
    there is no shortage of land as is the case in London and to some extent the SE
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