house price adjustment

bukup

macaque wrote: »

Economic conditions in the UK cannot sustain stable property prices. Prices have to rise or fall. There is no middle ground.

The reason for this is that the fortunes of the wider economy have now become intimately linked to house prices. If house prices stop rising, MEWing (and discretionary spending) will tail off very quickly (for obvious reasons). This will take over £50 billion of spending out of the economy and cost between 1 and 3 million jobs.

We have the choice of boom or bust. The UK is no longer a happy place for Goldilocks.

I agree.......here,here

Lotus-eater

For many years I've strove to get my mortgage lower, bought a house I could afford, only had expensive things when I'd saved up the money, had no extra money from the mortgage to improve my house................ and at last it looks like I did the right thing. I wish I could say the same for all my friends who have huge houses/cars/tv's etc etc.

bukup

Gorgeous_George wrote: »

Maybe it's an acronym? O.T.H.E.R.

Or maybe there'll be a severe case of Brick Flu that wipes out the UK's house population.

Well spotted, I wish I'd voted 'other' now.



GG

peoples personal circumstances really add to the equation,the amount of debt people carry-the amount of borrowing on mortgages to income
(up to 10 x ) people have been given,self-cert mortgages being available,sub-primers and interest rate rises.....the list goes on.So in a sense,when I gave other as an option,these and 'other' factors came into it,not just rise ,fall ,stable, crash....

bukup

....rise,

nearly 60% believe it will fall,

add the 20% who believe it will crash....

but for those of us who own a house as a home,

and not a profit tool,who cares.......?

pickles110564

[quote=bukup;6621390

but for those of us who own a house as a home,

who cares.......?[/quote]

First time you have written something that makes any sense

Gorgeous_George

***Chris Tarrant voice***

Question 1 of Who Wants To Be A Property Millionaire was:

What will happen to house prices over the next 12 months?

A. Rise......................................... B. Fall

C. Crash....................................... D. Remain the same

You took the 50/50 leaving just A. and B.

Still unable to make up your mind, you phoned a friend. SquatNow said that they would crash but, unfortunately, that was no longer an option.

So, you asked our fine looking MSE audience. 83% say that they will fall. I need an answer Mr bukup.

I'll take the money please Chris.

D'oh

GG

carolt

Gorgeous_George wrote: »

Still unable to make up your mind, you phoned a friend. SquatNow said that they would crash but, unfortunately, that was no longer an option.

:rotfl::rotfl::rotfl::rotfl::rotfl:

HugoSP

I've answered from a UK wide perspective. Over the last 10 years prices have risen all over the country. Some areas have enjoyed higher rises than others.

However prices are underpinned by different factors moving from area to area. For example, the South West values have always been partly underpinned by those buying holiday homes, however employment has changed here in recent years so the HH buyers' impact will now account for less pressure on prices in either direction.

Whereas areas such as London are affected largely by city earnings. The stockmarket crash of the 80s that caused devaluations of 30 to 50% in the city rippled to 10% in the midlands, and probably made no dent in Wales. However prices in the South West suffered more, probably due to holiday homes being put on the market.

I think what we have here is a cautioning of the market, The Rightmove index has shown an increase last month of 2.7% in contrast to a 2.6% fall during the previous month, but I don't think prices are on the way up, and RM is just one measure.

jyonda

I'm going for other. I think the UK will go communist in the next 12 months, maybe a bit longer.

pickles110564

jyonda wrote: »

I'm going for other. I think the UK will go communist in the next 12 months, maybe a bit longer.

Great even more money for those that have made it:j