BBC house price report

ukcarper

GunJack wrote: »

I think that single people should aspire to buying a house...irrespective of relationship status they can't be expected to live in the parental home forever

I sat him down and worked through the total monthly costs with him, and he could afford the monthly mortgage/bills/transport, he just needs to save a bit more for buying costs (inc. deposit)...luckily where we are he will only need 4x salary mortgage so more do-able than a lot of places, but harder than in others, like the NE for example where he could buy at 2-3x salary.

The BTL scenario above I have put to him as a serious proposal..

I can't see anything wrong with that, but it is not possible everywhere or ever has been.

I think although it may be difficult but not impossible to buy in your area and many others. I don't think there is a housing crisis in the whole UK it's restricted to London, South East and a few other areas so any solution needs to be localised.

GunJack

ukcarper wrote: »

I can't see anything wrong with that, but it is not possible everywhere or ever has been.

I think although it may be difficult but not impossible to buy in your area and many others. I don't think there is a housing crisis in the whole UK it's restricted to London, South East and a few other areas so any solution needs to be localised.

Can't argue with that

TBH, I think the thrust of this thread has been somewhat lost through all this... the report highlighted the way people who had bought previously had been hit by prices not recovering in some areas.

One example on the news t'other day was in the NE, where they bought for £120k in 2007, but current valuation is only £80k...despite having a repayment mortgage they are in negative equity.

In some areas it helps the likes of my son to become able to buy, but only works if the current owners are in a position to sell...

ukcarper

GunJack wrote: »

Can't argue with that

TBH, I think the thrust of this thread has been somewhat lost through all this... the report highlighted the way people who had bought previously had been hit by prices not recovering in some areas.

One example on the news t'other day was in the NE, where they bought for £120k in 2007, but current valuation is only £80k...despite having a repayment mortgage they are in negative equity.

In some areas it helps the likes of my son to become able to buy, but only works if the current owners are in a position to sell...

I think the misleading part of BBC link is it's in real terms. If the price of house had remained the same it would have lost quite a bit in real terms since 2007.

GunJack

ukcarper wrote: »

I think the misleading part of BBC link is it's in real terms. If the price of house had remained the same it would have lost quite a bit in real terms since 2007.

Again, I think it depends where you are...we had to buy in 2007, and current value is still substantially below the 2007 value...how you work that into "real terms"...

ukcarper

GunJack wrote: »

Again, I think it depends where you are...we had to buy in 2007, and current value is still substantially below the 2007 value...how you work that into "real terms"...

If actual value is less than you paid it will be lower in real terms. I'm not sure in how many areas prices are lower than 2007 but on a repayment mortgage at lease you will have paid back 25% of your mortgage.

GunJack

ukcarper wrote: »

If actual value is less than you paid it will be lower in real terms. I'm not sure in how many areas prices are lower than 2007 but on a repayment mortgage at lease you will have paid back 25% of your mortgage.

exactly, and in positive equity, unlike some poor s0ds.....

ukcarper

GunJack wrote: »

exactly, and in positive equity, unlike some poor s0ds.....

That's why I don't want a property price crash like some posters want as far as I'm concerned that a stagnation in house prices is the best way forward.

According to Land registry worse performing area is NE down about 10% so if people had a repayment mortgage they should not be in negative equity.

Crashy_Time

ukcarper wrote: »

That's why I don't want a property price crash like some posters want as far as I'm concerned that a stagnation in house prices is the best way forward.

According to Land registry worse performing area is NE down about 10% so if people had a repayment mortgage they should not be in negative equity.

Is there a time in history when property prices stagnated instead of booming or busting?

ukcarper

Crashy_Time wrote: »

Is there a time in history when property prices stagnated instead of booming or busting?

There have been plenty of times when prices increased or fell slowly complete stagnation probably not.

GreatApe

Crashy_Time wrote: »

Is there a time in history when property prices stagnated instead of booming or busting?

Arguably 2007-2017 for most the country

Wales, Scotland, NE, NW, Y&H would fall into that in nominal terms

West & East Midlands also is close