UK house prices continue their long, slow drift lower

triathlon

Zero_Sum wrote: »

Outside of the London & SE bubble, house values are being eroded due to inflation
Here's the truth on housing
https://mynest.online/2017/10/17/887/

I really wish the media & politicians stop going on about the housing crisis lie.

Now do something for renting and lets see which one is the no brainer to have done, rents have gone up massively due to lack of stock. The last decade has been a small downward blip at worst and due to the 2008 financial crisis which some suggested would crash the UK property market, never happened.

It,s all perspective, to me I witnessed rocketing house pre 2008 and a leveling off post 2008, to be honest I even had slightly rising property prices post 2008, just did not want to rub it in

SouthLondonUser

What many comments seem to miss is there is a difference between buying another property as an investment (in which case you must compare it to other investments you can make) and buying the house to live in, in which case you must compare the cost of buying vs the cost of renting.

For long enough periods, buying tends to be cheaper than renting, even if house prices stay nominally flat (ie go down in real terms, which means net of inflation) or go down a bit..

I wonder how many posters actually understand how to compare the cost of buying vs that of renting and can run a comparison in a spreadsheet.

lisyloo

SouthLondonUser wrote: »

I wonder how many posters actually understand how to compare the cost of buying vs that of renting and can run a comparison in a spreadsheet.

I did that myself for a 2nd property and with CGT plus extra stamp duty I found the cut off point was 9 years (I believe for a 1st home it would be closer to 5 years).
I had a good deal on salary sacrifice at the time as my employer passed on their 13.8% employers NI giving me total relief of 45.8% on pension contributions.

We decided to rent a bolt hole and put the remaining in a pension.

My assumptions were
3% rent increases - it’s been 0%
3% hpi - London prices are going down
3% pension increases - it varies a lot but I think it’s been higher

I wouldn’t find it difficult at all but I can’t say my assumptions wou”d be any better than anyone else’s.
The advantage of a spreadsheet is that you can change those assumptions to get a feel for a range of outcomes.

I think we made the right decision especially when considering the non quantitive element I.e. not knowing how long the contract will be in London.

Zero_Sum

triathlon wrote: »

Now do something for renting and lets see which one is the no brainer to have done

What are you even talking about? It makes no sense in relation to my post.

And anyway, rents pretty much mirror the geographical divide. Outside the London & SE bubble I dont think they have gone up that much. Not that I pay too much attention to rents.

societys_child

Originally Posted by Zero Sum
Outside of the London & SE bubble, house values are being eroded due to inflation
Here's the truth on housing
https://mynest.online/2017/10/17/887/

According to that link, average prices in <my area> are £152k
which seemed low.
A quick search shows average sold prices in <my area> to be more in the region of £243k


I know you can't believe everything you read on the net, so you don't have to believe my figures, as long as I don't have to believe your My Nest link.

Zero_Sum

societys_child wrote: »

According to that link, average prices in <my area> are £152k
which seemed low.
A quick search shows average sold prices in <my area> to be more in the region of £243k


I know you can't believe everything you read on the net, so you don't have to believe my figures, as long as I don't have to believe your My Nest link.

What are you defining as your area?
Those prices are at LA level. So if you take somewhere like Durham, the area covered is massive & vastly varied. Central Durham city is quite expensive yet 2 miles down the road in an ex pit village its dirt cheap.

societys_child

What are you defining as your area?

The council ward, as used for voting for your local councillor. Can't get nearer LA level than that.

snowqueen555

Prices are still going up where I am (in the SW), we are getting a lot of people from London, and it has two big universities.

f.castle

Hi all,

Would you be able to say the market for new build houses is different to the general market?
I am considering a help to buy mortgage but as brexit is around the corner was just wondering if that would mean I’m going to pay an inflated price and it suddenly lose value. To be honest it’s a home I plan to live in long term but obviously don’t want to feel like I’m losing (significant) value over the first few years.

Am considering Wakefield, West Yorkshire and based on the mynest article provided earlier in this thread it seems prices has fallen since 2007 adjusting for inflation. But would the same apply for new builds, and would their value likely fall too?
Thanks,
FC

RelievedSheff

snowqueen555 wrote: »

Prices are still going up where I am (in the SW), we are getting a lot of people from London, and it has two big universities.

Prices are still rising in the area we have recently sold, Sheffield and the area we have just bought Bassetlaw.

Despite what people would like to lead you to believe there are still areas where house prices are on the up.