Radio5 - houses to rise 40% in 4 years.

suffolkb

Some eggheads from the Oxford Forecasting group (something like that) are predicting this. Taking the average house price to £300,000. Seems unlikely, but I suppose their crystal ball is as good as anyone elses.

nelly_2

This just in from the Cambridge Forecasting group - Its ok cos wages are to rise by 4 million quid a month

spurs_nut

Only slightly more credible than those fools who think house prices will crash by 30%.

It's ok numpties, You just hang in there....... It will come, eventually.

Lol

Anoraks.

BettiePage

The cost of an average home in England is set to soar by 40% over the next five years, it has been claimed.
The National Housing Federation says the price of the average property will increase to £302,400 by 2012.

Meanwhile, a home in London will cost nearly £500,000, it has forecast.

The price of the average home in England is now £206,594 - nearly 11 times average earnings.

But despite its predictions, the NHF maintains a house price crash is unlikely.

This is despite first-time buyers finding it increasingly difficult to get on the property ladder.

The NHF says house prices have risen by 156% since labour came to power in 1997.

During the same period average incomes have gone up by just 35%.


Social housing waiting lists have grown by 57% during the past five years to 1.6 million households.

The NHF says its study reinforced the need for ministers to act on their recent pledge to build an additional three million homes by 2020.

Federation Chief Executive David Orr said: "Our report shows a growing number of parents will find themselves subsidising their sons' and daughters' mortgages.

http://news.sky.com/skynews/article/0,,30400-1278687,00.html

RHemmings

And how will these much more expensive houses be afforded?

No mention of how this prediction was obtained. I'm guessing it's another "continue the upwards line on the graph" exercise with no careful consideration of how such an overvalued market will work. Apart from a single claim that parents will finance their children's mortgages.

And of course, according to radio reports, it's all due to population demand, with not a single mention of speculative demand.

Guy_Montag

RHemmings wrote: »

And how will these much more expensive houses be afforded?

No mention of how this prediction was obtained. I'm guessing it's another "continue the upwards line on the graph" exercise with no careful consideration of how such an overvalued market will work. Apart from a single claim that parents will finance their children's mortgages.

House prices are currently rising at 10% pa, 4 x 10 = 40, therefore in four years house prices will have risen 40% innit.

barnaby-bear

Guy_Montag wrote: »

House prices are currently rising at 10% pa, 4 x 10 = 40, therefore in four years house prices will have risen 40% innit.

...and you didn't use geometric series, or compound interest...

at 8.8% HPI per annum we get 40% on todays values.

kingkano

average earnings has dropped to some 18,800 according to this report?? Or have they just taken the top avg. house price and the lowest avg. salary figures for shock value?

Guy_Montag

barnaby-bear wrote: »

...and you didn't use geometric series, or compound interest...

at 8.8% HPI per annum we get 40% on todays values.

the "innit" was supposed to imply an over-simplification (as might be used by some who finishes their sentences with "innit")

wannabedebtfree_2

The reason house prices will continue to rise for now because of the lucky people who got into the market early enough and have made a killing by selling it on and downsizing/moving area. And while builders and developers are buying up anything that needs a bit of work, us waiting to step onto the ladder have no chance!

I asked my dad if hes ever considered selling up (his house cost him £19k in about 1989, its now worth over £250k - 3 bed house in the midlands) and he said that the trouble was that for his money he'd only end up with a house like he's got now.....and whats the point? If he downsized he'd only have a little bit left over as the gaps between 2 and 3 beds and 3 and 4 bed houses are closing, ho hum, its off to make sure my lottery is paid for!

barnaby-bear

Guy_Montag wrote: »

the "innit" was supposed to imply an over-simplification (as might be used by some who finishes their sentences with "innit")

I know :cool: but couldn't miss the opportunity to have a dig at you rental serfs if you didn't use language like innit, you'd be able to get a job that pays twice as much and you young people spend all your cash on iPoDs and drinking vodka in Ibiza. Try using phrases like spiffing and tally ho and you'll soon be on your way to a lovely new build studio.