House prices to keep rising and building more won't be enough

mystic_trev

2015 annual house price growth forecast revised up from 4.7% in June to 5.6% this month

Average price of a UK property to stand at a record high of £263,000 this year.

Prices to rise by a further 3.5% in 2016 and 4.2% in 2017.

The lack of properties coming onto the market is one of the reasons behind the upward revision to the forecast.

The price gap between a terraced house and a purpose-built flat in London has nearly quadrupled from £46,000 in 2000 to £176,000 in 2014.

http://www.cebr.com/house-prices-to-keep-rising-and-building-more-wont-be-enough/

GunJack

I'd love to live in one of the areas which are driving this "average" price growth....it's more a case of "Stagnation, Stagnation, Stagnation" around here and many many other areas.... another south-east bubble I think....

mystic_trev

GunJack wrote: »

I'd love to live in one of the areas which are driving this "average" price growth....it's more a case of "Stagnation, Stagnation, Stagnation" around here and many many other areas.... another south-east bubble I think....

Where I live, three years ago, you could buy a three bed semi with a Garage for £250,000. Now you couldn't even buy a two bed terrace for that :eek: Prime SE

lisyloo

I'd love to live in one of the areas which are driving this "average" price growth

You wouldn't if you were buying/renting there.
The flat I live in is worth £450K and that's a 1-bed ex-LA. I like the flats but it's fair to say they are the cheapest in the area. A Barratt studio is £975K.
The people that live in my block are either - on housing benefit or highly paid professionals. A lot of flats are empty.

So - be careful what you wish for.

GunJack

lisyloo wrote: »

You wouldn't if you were buying/renting there.
The flat I live in is worth £450K and that's a 1-bed ex-LA. I like the flats but it's fair to say they are the cheapest in the area. A Barratt studio is £975K.
The people that live in my block are either - on housing benefit or highly paid professionals. A lot of flats are empty.

So - be careful what you wish for.

but if I was already living there and had bought, I would be sitting pretty on a load of equity at least and have options, round here prices haven't got back to pre-2008 crash and don't look much like doing so.......

dinkylink

mystic_trev wrote: »

Where I live, three years ago, you could buy a three bed semi with a Garage for £250,000. Now you couldn't even buy a two bed terrace for that :eek: Prime SE

I would concur. I bought a 2 bed semi which I live in for approx. £200k earlier this year. My friend paid £2.5k less for his 3 bed detached house on the same estate only two and a half years ago...

wymondham

that's great news... high house prices is good for everyone! (oops, sorry thought I was a Tory for a minute!

lisyloo

but if I was already living there and had bought, I would be sitting pretty on a load of equity at least and have options

I think we'd all like the equity in isolation, but thinking past the individual gain it's causing a lot of misery - both in terms of the people who have to live futher out and have awful commutes and those mortgaging themselves to the hilt.
I don't think I do want excessive personal gain at the expense of others misery TBH - in particular future generations.

I'm not sure what options you want but if you mean moving then it looks like you'll have to do it the old fashioned way and gain equity by paying down the mortgae each month. Exceptionally low interest rates should help.

MPD

mystic_trev wrote: »

Where I live, three years ago, you could buy a three bed semi with a Garage for £250,000. Now you couldn't even buy a two bed terrace for that :eek: Prime SE

Where I live you could buy a 4 bed detached for £220,000 5 years ago, now you can buy a 4 bed detached for £220,000. Stagnating EM.

On the other hand I bought a home, not an investment.

Mistermeaner

The only reason my home has increased in value is cos I've done stuff to it. Stagnation here in northern hell hole.

I browse right move because im sad like that and unless priced noticeably 'cheap' stuff just doesn't move for months. Clearly gap in buyers and sellers expectations and alot of sellers appear happy to sit.

sebadee

We bought our place this summer, and I have to say, I would much rather have far more sober market. I can't see what good this does anyone, apart from someone with a big portfolio to sell off.