House price inflation here to stay?

padington

More from the guy that's been getting it right for years. House price inflation
is here to stay ...

http://www.marketoracle.co.uk/Article55767.html

Thrugelmir

13 times average earnings. MMR caps affordabilty at a lot lower figure.

Jhoney_2

I was wondering if MMR is something that may be repealed as some of/ it was an EU directive.

Not sure it has much to do with this discussion, but thought i'd ask.

theEnd

I'm expecting big falls, especially London.

iantojones40

Genuine question (which I'm not clever enough to know the answer to)...
What do you think would have happened to house prices since 2008 in what is supposed to be a free market, if there had been:
No QE
No ZIRP
No HTB
No FFL

mystic_trev

Luckily Wood Green's declared UDI. :money:

theEnd

iantojones40 wrote: »

Genuine question (which I'm not clever enough to know the answer to)...
What do you think would have happened to house prices since 2008 in what is supposed to be a free market, if there had been:
No QE
No ZIRP
No HTB
No FFL

There was probably another 10 policies specifically designed to support house prices.

And we had money from EU on a flight to safety
And they bailed out the large UK mortgage lenders.
And we had large amounts of immigration.

A lot of these things won't happen this time. Could be a total disaster for property as everyone runs away from London.

cells

padington wrote: »

More from the guy that's been getting it right for years. House price inflation
is here to stay ...

http://www.marketoracle.co.uk/Article55767.html

The guy needs to at least look at the UK as regions not as one universal housing market. And the various regions have performed quite differently and will do again IMO.

Also he doesn't seem to understand or investigate why prices were so low in the mid 1990s especially for London. Without factoring in that he will over estimate the trends. I very much do not expect the next 20 years in London to be as strong as the last 20 years. If that happened the average price for a 3 bedroom ex council flat would be circa £3.5 million and with inflation so low that's close to about £2.5 million in today's money.
That's just plain stupid and crazy. It would also mean the value of just London residential property would be in the region of £12 trillion. That's just such a stupid figure its clearly not going to happen.

Simply put don't expect the same performance over the next 20 years.

cells

iantojones40 wrote: »

Genuine question (which I'm not clever enough to know the answer to)...
What do you think would have happened to house prices since 2008 in what is supposed to be a free market, if there had been:
No QE
No ZIRP
No HTB
No FFL

House prices are regional. Prices in the north east are lower than they were ten years ago.

Thrugelmir

Jhoney wrote: »

I was wondering if MMR is something that may be repealed as some of/ it was an EU directive.

Not sure it has much to do with this discussion, but thought i'd ask.

What do the failings at HBOS, Northern Rock, Chelsea Building Society, Alliance & Leicester, Bradford and Bingley, Dunfermline Building Society, Southern Pacific Mortgages (to name a few) all have in common ?

Find the answer to this and the reasons behind MMR are very apparent.

Crashy_Time

cells wrote: »

House prices are regional. Prices in the north east are lower than they were ten years ago.

And will be lower still when the props fall away.