Today's Bear food

mwpt

Eric_the_half_a_bee wrote: »

Houses are unaffordable for a huge section of society. Why is an increase in affordability "negative"?

Where do you live?

Could you please post an example of houses that are unaffordable in your local area.

westernpromise

Eric_the_half_a_bee wrote: »

Houses are unaffordable for a huge section of society. Why is an increase in affordability "negative"?

Are you assuming that a house price crash will improve affordability?

Mortgagefreeman

I don't think they'll be a crash, but certainly due a correction. A 20% reduction here in the SE would be virtually nothing, bearing in mind how much prices have moved in the last few years.

My first property bought 20 years ago is now on the market for over five times what I paid for it, so hardly a rational market. How much have salaries increased in that time? Doubled?

Properties done me well this last 20 years, and I now own four, my last being purchased 10 years ago.

Crashy_Time

AFF8879 wrote: »

Why would you hope for a house price crash? Do you think it would suddenly mean all lower income people will suddenly be able to buy a home?

An economic shock severe enough to cause a house price crash in the UK will almost inevitably cause mass redundancies, pay cuts, and rises in rent....so not much chance of HPC = being able to get on the property ladder.

Mass redundancies and pay cuts won`t cause rises in rent, stop posting this silliness. The BTL sell off will be even bigger as people scrabble about to raise funds.

theEnd

It might actually happen this time.

I know of two people trying to rent out flats in fairly good parts of London and they're having to drop prices a lot.

Crashy_Time

theEnd wrote: »

It might actually happen this time.

I know of two people trying to rent out flats in fairly good parts of London and they're having to drop prices a lot.

Good stuff.

Thrugelmir

request_made_to_change_username wrote: »

My first property bought 20 years ago is now on the market for over five times what I paid for it, so hardly a rational market. How much have salaries increased in that time? Doubled?

With technology many roles have diminished in value. So in real terms pay far less than 20 years ago. Call centre / volume processing type operations require no great skill either. With a basic education anybody can follow a script or online instructions to perform a function.

cells

Crashy_Time wrote: »

Mass redundancies and pay cuts won`t cause rises in rent, stop posting this silliness. The BTL sell off will be even bigger as people scrabble about to raise funds.

Why do you want or expect mass redundancie and pay cuts?

Just to put things into perspective there are about 2.5 million more jobs and workers in the UK than five years ago. Let's hope there is an additional 2.5 million jobs created in the next 5 years.

wymondham

AFF8879 wrote: »

Why would you hope for a house price crash? Do you think it would suddenly mean all lower income people will suddenly be able to buy a home?

An economic shock severe enough to cause a house price crash in the UK will almost inevitably cause mass redundancies, pay cuts, and rises in rent....so not much chance of HPC = being able to get on the property ladder.

Property is vastly overpriced. If it can go down slowly then great, but Government policy does not allow this, so we're stuck in the boom/bust cycle...

Electrum

It is too early to tell, but we will soon know whether this is the start of a crash. All I can advise is, do not believe the predictions – just watch the prices.