Do you want house price to rise or fall?

snowqueen555

phillw wrote: »

If property prices increase then it's because people have more money to spend, if there is more money to spend then lenders can afford to increase interest rates.

I don't think it's that people have more to spend, it's that people are spending more of their earnings (and in some cases taking on more debt) on housing as it is a priority for most.

phillw

snowqueen555 wrote: »

I don't think it's that people have more to spend, it's that people are spending more of their earnings (and in some cases taking on more debt) on housing as it is a priority for most.

You misunderstand, I accept that people are prioritising housing more and spending on other things less. But they still have that money, whether it's borrowed or not (affordability checks on borrowing are pretty tough).

It's survival of the fittest. You're competing against every other person on the planet.

Hectors_House

I’ve been watching the house price ‘crisis’ in Australia lately.

The problem, as far as I can see with a house price ‘correction’ is they’ve been so vastly overpriced for so long even a correction of 30-40% doesn’t make them any more affordable for the average earner.

phillw

Hectors_House wrote: »

I’ve been watching the house price ‘crisis’ in Australia lately.

The problem, as far as I can see with a house price ‘correction’ is they’ve been so vastly overpriced for so long even a correction of 30-40% doesn’t make them any more affordable for the average earner.

The properties in the UK that will drop that much are the same, I can't afford it when it's 10 million. I won't be able to afford at 6 million either.

MobileSaver

Hectors_House wrote: »

The problem, as far as I can see with a house price ‘correction’ is they’ve been so vastly overpriced for so long even a correction of 30-40% doesn’t make them any more affordable for the average earner.

No, there are loads of affordable houses in this country right now; the problem is that "average earner's" don't want those particular houses because they're either in the wrong location or need work doing to them.

My first house was maybe 50 years old, had no central heating, no double glazing, only a microwave for cooking and the only bathroom was accessed via the bedroom. Too many FTBs these days want a brand spanking new home with shiny new appliances in a desirable area but then complain about the price... you just couldn't make it up!

snowqueen555

MobileSaver wrote: »

No, there are loads of affordable houses in this country right now; the problem is that "average earner's" don't want those particular houses because they're either in the wrong location or need work doing to them.
up!

I could just about afford a studio/1 bed apartment for 120k, just because I can afford it, doesn't mean I would want to spend on it. Quality of life would not be any better then living where I am in a house share.

There is nothing in my area I can afford, so will have to leave my region eventually, somewhere north like Liverpool or Manchester. Again, really risky as no support network and no career as such.

ukcarper

MobileSaver wrote: »

No, there are loads of affordable houses in this country right now; the problem is that "average earner's" don't want those particular houses because they're either in the wrong location or need work doing to them.

My first house was maybe 50 years old, had no central heating, no double glazing, only a microwave for cooking and the only bathroom was accessed via the bedroom. Too many FTBs these days want a brand spanking new home with shiny new appliances in a desirable area but then complain about the price... you just couldn't make it up!

It depends where you are and what you call affordable but there are large parts of country where there are very few affordable homes.

AG47

I voted fall because it's in the interest of the majority

jimmyjammy001

Around a 30% fall will bring them more or less back into line where they should be around the prices in 2014/15, after 2014 prices have gone up stupid amounts in and around my area, since the various help to buy schemes have helped push prices up. Example starter home 2 bed semis selling for 150k in 2016, then selling for 210k in 2018. Nothing been done to them, still can't understand why people are happy to pay someone an extra 60k for owning a house for a couple of years, crazy!

Malthusian

snowqueen555 wrote: »

I could just about afford a studio/1 bed apartment for 120k, just because I can afford it, doesn't mean I would want to spend on it. Quality of life would not be any better then living where I am in a house share.

This just illustrates that it's about preference and nothing but preference. In your position I would have bought the studio flat. But I have always been willing to pay a premium to not have to live with other people. For me "quality of life would not be any better" does not compute, but we're all different.