50% house price falls

lethal0r

does anyone know what % of uk properties are currently owned on a BTL basis?

Generali

According to the CML, 9.5% of mortgages by total value are owed by the BTL sector. Anecdotally, I would say that there are a lot of BTL properties on OO mortgages.

If memory serves, 11% of houses are rented privately.

Property is rented out for reasons other than BTL of course. Armed forces/clergy/pub landlords wanting a hedge against rising house prices, those wanting to buy that can't sell, 'Inherit to Let' etc.

Errata

dolce_vita wrote: »

How much did you pay for it?

Six grand :rotfl:

Doc_N

Generali wrote: »

According to the CML, 9.5% of mortgages by total value are owed by the BTL sector. Anecdotally, I would say that there are a lot of BTL properties on OO mortgages.

If memory serves, 11% of houses are rented privately.

Property is rented out for reasons other than BTL of course. Armed forces/clergy/pub landlords wanting a hedge against rising house prices, those wanting to buy that can't sell, 'Inherit to Let' etc.

That's a lot of people who are going to pretty hacked off over the next few months as they see their hedge going rapidly down the pan!

ivegotabig1

Ive been one of the hawks as far as house prices are concerned !!! However your opinion on where prices will go next is largely down to what you WANT them to do !!!
Owners hope / believe that prices will at the very least stabilise then continue there upward spiral, people trying to get on the property ladder hope they will crash i guess !!! I dont think either will happen !!
But they will start to fall back slowly but surely over the next few months & years ..Its simply a matter of how fast/ far they will fall...& no one really knows the answer to that ..Not even the Directors of Northern rock !!!

dolce_vita

Errata wrote: »

Six grand :rotfl:

then you were ripped off.

Generali

Doc_N wrote: »

That's a lot of people who are going to pretty hacked off over the next few months as they see their hedge going rapidly down the pan!

They shouldn't be. The point of a hedge like that is to put you in the same position as OO. They should only get annoyed if the rent isn't paid or something similar that increases the cost of the hedge.

jyonda

Errata wrote: »

Six grand :rotfl:

How much deposit did you put down? How much tax relief did you get on the mortgage? How much was the stamp duty? What were the interest rates? What multiples did they lend back then?

Just curious.....

before_hollywood

teabelly wrote: »

The crash proponents have been saying if FTBs wait just another year then houses will be affordable since 2001! It may be time for the less well off to realise that they just won't be able to afford their own home unless they move somewhere cheap eg Burnley. Also the current young generation are used to having exactly what they want so when they complain about not being able to afford a house they mean they can't afford a large house somewhere nice and can only afford something smaller and somewhere grotty. Well welcome to the real world where most of us can't have everything we want. I want a nice detached house in Cheshire but I can't afford it. I either have to get off my bum and increase my earnings until I can or accept I'll have to make do with what I have.

well thats settled then

try being a would be first time buyer in the REAL (mse) world, then you'll realise how little sense your post makes

i live in the north west (do you????) and i can tell you that burnley is cheap cos theres nothing there, i can't just move up near there with work, i have to be here, and no i can't do a 60 mile a day commute. i know what its like as a place, not just somewhere i saw once on 'homes under the hammer'

''i'll have to increase my earnings'' hey mate, some of us already have and we still can't get houses in apparently cheap northern towns, thats the reality of this country in 2007. what a lot of people don't realise is when they want their kids to leave home and buy their own place they will have to bail them out with *shock* their equity cos the prices are artificially inflated and then they'll all be moaning

golddustmedia

beingjdc wrote: »

Do you really believe that in a century houses will cost 100 million pounds each, on average? That's the implication of your maths.

How much do you think a 3 bed house cost a century ago?

I've done a quick check and a GOOD 3 bed house in 1907 was about £500.
If you now assume the same place to be worth about £200k to £250k. Lets average it at £225k, which is 450 time more than it was worth a century ago.

So, fastforward a century and assume the same growth, the value of a house in 100 years may be 450 times it's current price, which is a bit over £100M.

So yes, I do believe that in a century houses will cost that much, but remember everything else will go up too, including salaries.