BBC: Where property prices are set by what local people earn

Yellowsub2000

Gavin83 said:

House prices will never drop by any notable amount and in all honesty I’m glad of it.

You are already wrong as it’s now noticeable if you search right move there is a flood actually a tidal wave tsunami of reduced properties.

this is a noticeable drop and it’s only just starting

Yellowsub2000

Sarah1Mitty2 said:

MobileSaver said:

[Deleted User] said:

MobileSaver said:

Yellowsub2000 said:

If mortgage is set by 3.5X earnings then house prices need to get back down to there too

Over a million people in the UK manage to buy a property every single year, even in the current climate.

So the obvious answer for those complaining they can't afford to buy is for them to either buy something cheaper or instead better themselves to improve their earnings. Why should the rest of us be brought down to the lowest common denominator?

It's really sad that people think this is acceptable. ... It's not at all wrong to want the same opportunities your parents and grandparents had.

Young people have far more opportunities and a much easier and more comfortable life than their parents and grandparents ever had.

I find it really sad that some people just focus on high house prices and ignore everything else when they could be appreciating all the incredible benefits and improvements introduced by the hard work, tenacity and inventiveness of previous generations.

Up until the age of around 11 our home was one bedroom which was shared by us five children while our parents slept on a sofa bed in the lounge. Today's generation come on to this forum asking how they can get an extra bedroom because they have a newborn on the way, the sense of entitlement is palpable!

Both mostly due to cheap credit which wasn`t available to previous generations, and both going into reverse as interest rates rise.

We did have double digit inflation in the 1970s but back then there wasn’t the inflation of the currency supply that has happened today.

this time interest rates will have to go even higher because the inflation has been so much and all the strikes to raise wages just makes the inflation even worse which will have to mean even higher interest rates than the 1970s


its going to be ugly for property once interest rates go over 10%, lots of people wanting to sell but there will be few buyers and the property auctions will be full of repossessed properties 

jj_43

You will find in those places that need help these low incomes won’t support new house building. Simply the cost of materials and labour will be higher than value of homes. Not a good idea at all.

[Deleted User]

jj_43 said:

You will find in those places that need help these low incomes won’t support new house building. Simply the cost of materials and labour will be higher than value of homes. Not a good idea at all.

They used to practically give them away at well below cost. Google social housing and right to buy.

steve866

Yellowsub2000 said:

Sarah1Mitty2 said:

MobileSaver said:

[Deleted User] said:

MobileSaver said:

Yellowsub2000 said:

If mortgage is set by 3.5X earnings then house prices need to get back down to there too

Over a million people in the UK manage to buy a property every single year, even in the current climate.

So the obvious answer for those complaining they can't afford to buy is for them to either buy something cheaper or instead better themselves to improve their earnings. Why should the rest of us be brought down to the lowest common denominator?

It's really sad that people think this is acceptable. ... It's not at all wrong to want the same opportunities your parents and grandparents had.

Young people have far more opportunities and a much easier and more comfortable life than their parents and grandparents ever had.

I find it really sad that some people just focus on high house prices and ignore everything else when they could be appreciating all the incredible benefits and improvements introduced by the hard work, tenacity and inventiveness of previous generations.

Up until the age of around 11 our home was one bedroom which was shared by us five children while our parents slept on a sofa bed in the lounge. Today's generation come on to this forum asking how they can get an extra bedroom because they have a newborn on the way, the sense of entitlement is palpable!

Both mostly due to cheap credit which wasn`t available to previous generations, and both going into reverse as interest rates rise.

We did have double digit inflation in the 1970s but back then there wasn’t the inflation of the currency supply that has happened today.

this time interest rates will have to go even higher because the inflation has been so much and all the strikes to raise wages just makes the inflation even worse which will have to mean even higher interest rates than the 1970s


its going to be ugly for property once interest rates go over 10%, lots of people wanting to sell but there will be few buyers and the property auctions will be full of repossessed properties 

I’d be surprised if the current Gov let this happen but you never know…

Gavin83

[Deleted User] said:

The Everyone Wants A Degree myth.

Employers want degrees. Get one or take a low paid job. Employers aren't interested in training staff anymore.

You can't blame young people for taking their parent's and teacher's advice and looking to get a decent job.

There is a lot of importance placed on degrees but you can definitely get a decent job without one. There are only really a handful of jobs where degrees are that important.

Yellowsub2000 said:

Gavin83 said:

House prices will never drop by any notable amount and in all honesty I’m glad of it.

You are already wrong as it’s now noticeable if you search right move there is a flood actually a tidal wave tsunami of reduced properties.

this is a noticeable drop and it’s only just starting

Well at best it's area dependent. House prices don't seem to be dropping by any meaningful amount in my area. Our house has just been revalued and it's gone up by £50k in 18 months. I'll happily take that.

There is very little on the market in my area though, people just aren't selling. One of our neighbours is attempting to move at the moment and they've had to widen their search to other nearby towns as there's nothing for them in our local area. I wouldn't want to be a buyer at the moment.

Interestingly the neighbour didn't struggle to get an offer on their own property.

Yellowsub2000 said:

Sarah1Mitty2 said:

MobileSaver said:

[Deleted User] said:

MobileSaver said:

Yellowsub2000 said:

If mortgage is set by 3.5X earnings then house prices need to get back down to there too

Over a million people in the UK manage to buy a property every single year, even in the current climate.

So the obvious answer for those complaining they can't afford to buy is for them to either buy something cheaper or instead better themselves to improve their earnings. Why should the rest of us be brought down to the lowest common denominator?

It's really sad that people think this is acceptable. ... It's not at all wrong to want the same opportunities your parents and grandparents had.

Young people have far more opportunities and a much easier and more comfortable life than their parents and grandparents ever had.

I find it really sad that some people just focus on high house prices and ignore everything else when they could be appreciating all the incredible benefits and improvements introduced by the hard work, tenacity and inventiveness of previous generations.

Up until the age of around 11 our home was one bedroom which was shared by us five children while our parents slept on a sofa bed in the lounge. Today's generation come on to this forum asking how they can get an extra bedroom because they have a newborn on the way, the sense of entitlement is palpable!

Both mostly due to cheap credit which wasn`t available to previous generations, and both going into reverse as interest rates rise.

We did have double digit inflation in the 1970s but back then there wasn’t the inflation of the currency supply that has happened today.

this time interest rates will have to go even higher because the inflation has been so much and all the strikes to raise wages just makes the inflation even worse which will have to mean even higher interest rates than the 1970s


its going to be ugly for property once interest rates go over 10%, lots of people wanting to sell but there will be few buyers and the property auctions will be full of repossessed properties 

Are you the latest doom predictor on this forum?

Baring some huge unforeseen event interest rates won't get anywhere close to 10%, we're likely near the peak already. It's very telling that the banks are predicting interest rates to fall over the next 5 years and I expect they know more about this area than you or me.

Even if that unforeseen event does happen it would need to be bigger than Covid and Ukraine. It would need to be WW3 or a meteor impact level of event and frankly if we were at that stage the interest rates would be the least of our worries.

I expect properties may overall drop by single digit percentage figures. I've seen some on here (maybe even yourself) predicting 50%-80% drops. If that happened I'd eat my house.

Sunsaru

Yellowsub2000 said:

Gavin83 said:

House prices will never drop by any notable amount and in all honesty I’m glad of it.

You are already wrong as it’s now noticeable if you search right move there is a flood actually a tidal wave tsunami of reduced properties.

this is a noticeable drop and it’s only just starting

Welcome back Tony.

Sarah1Mitty2

Gavin83 said:

[Deleted User] said:

The Everyone Wants A Degree myth.

Employers want degrees. Get one or take a low paid job. Employers aren't interested in training staff anymore.

You can't blame young people for taking their parent's and teacher's advice and looking to get a decent job.

There is a lot of importance placed on degrees but you can definitely get a decent job without one. There are only really a handful of jobs where degrees are that important.

Yellowsub2000 said:

Gavin83 said:

House prices will never drop by any notable amount and in all honesty I’m glad of it.

You are already wrong as it’s now noticeable if you search right move there is a flood actually a tidal wave tsunami of reduced properties.

this is a noticeable drop and it’s only just starting

Well at best it's area dependent. House prices don't seem to be dropping by any meaningful amount in my area. Our house has just been revalued and it's gone up by £50k in 18 months. I'll happily take that.

There is very little on the market in my area though, people just aren't selling. One of our neighbours is attempting to move at the moment and they've had to widen their search to other nearby towns as there's nothing for them in our local area. I wouldn't want to be a buyer at the moment.

Interestingly the neighbour didn't struggle to get an offer on their own property.

Yellowsub2000 said:

Sarah1Mitty2 said:

MobileSaver said:

[Deleted User] said:

MobileSaver said:

Yellowsub2000 said:

If mortgage is set by 3.5X earnings then house prices need to get back down to there too

Over a million people in the UK manage to buy a property every single year, even in the current climate.

So the obvious answer for those complaining they can't afford to buy is for them to either buy something cheaper or instead better themselves to improve their earnings. Why should the rest of us be brought down to the lowest common denominator?

It's really sad that people think this is acceptable. ... It's not at all wrong to want the same opportunities your parents and grandparents had.

Young people have far more opportunities and a much easier and more comfortable life than their parents and grandparents ever had.

I find it really sad that some people just focus on high house prices and ignore everything else when they could be appreciating all the incredible benefits and improvements introduced by the hard work, tenacity and inventiveness of previous generations.

Up until the age of around 11 our home was one bedroom which was shared by us five children while our parents slept on a sofa bed in the lounge. Today's generation come on to this forum asking how they can get an extra bedroom because they have a newborn on the way, the sense of entitlement is palpable!

Both mostly due to cheap credit which wasn`t available to previous generations, and both going into reverse as interest rates rise.

We did have double digit inflation in the 1970s but back then there wasn’t the inflation of the currency supply that has happened today.

this time interest rates will have to go even higher because the inflation has been so much and all the strikes to raise wages just makes the inflation even worse which will have to mean even higher interest rates than the 1970s


its going to be ugly for property once interest rates go over 10%, lots of people wanting to sell but there will be few buyers and the property auctions will be full of repossessed properties 

Are you the latest doom predictor on this forum?

Baring some huge unforeseen event interest rates won't get anywhere close to 10%, we're likely near the peak already. It's very telling that the banks are predicting interest rates to fall over the next 5 years and I expect they know more about this area than you or me.

Even if that unforeseen event does happen it would need to be bigger than Covid and Ukraine. It would need to be WW3 or a meteor impact level of event and frankly if we were at that stage the interest rates would be the least of our worries.

I expect properties may overall drop by single digit percentage figures. I've seen some on here (maybe even yourself) predicting 50%-80% drops. If that happened I'd eat my house.

Last year they said inflation was "transitory", 2 years ago people said interest rates would never rise, today I saw a highly regarded money manager saying that the last time we saw anything like some of the technical aspects of money supply that we are seeing today was just after WW2, and he also said that central bank moves can take up to a year or longer to show up in the real economy, so we can`t really make predictions based on a neighbours house sale or what we would like to happen, it is very very volatile at the moment. 

Sarah1Mitty2

steve866 said:

Yellowsub2000 said:

Sarah1Mitty2 said:

MobileSaver said:

[Deleted User] said:

MobileSaver said:

Yellowsub2000 said:

If mortgage is set by 3.5X earnings then house prices need to get back down to there too

Over a million people in the UK manage to buy a property every single year, even in the current climate.

So the obvious answer for those complaining they can't afford to buy is for them to either buy something cheaper or instead better themselves to improve their earnings. Why should the rest of us be brought down to the lowest common denominator?

It's really sad that people think this is acceptable. ... It's not at all wrong to want the same opportunities your parents and grandparents had.

Young people have far more opportunities and a much easier and more comfortable life than their parents and grandparents ever had.

I find it really sad that some people just focus on high house prices and ignore everything else when they could be appreciating all the incredible benefits and improvements introduced by the hard work, tenacity and inventiveness of previous generations.

Up until the age of around 11 our home was one bedroom which was shared by us five children while our parents slept on a sofa bed in the lounge. Today's generation come on to this forum asking how they can get an extra bedroom because they have a newborn on the way, the sense of entitlement is palpable!

Both mostly due to cheap credit which wasn`t available to previous generations, and both going into reverse as interest rates rise.

We did have double digit inflation in the 1970s but back then there wasn’t the inflation of the currency supply that has happened today.

this time interest rates will have to go even higher because the inflation has been so much and all the strikes to raise wages just makes the inflation even worse which will have to mean even higher interest rates than the 1970s


its going to be ugly for property once interest rates go over 10%, lots of people wanting to sell but there will be few buyers and the property auctions will be full of repossessed properties 

I’d be surprised if the current Gov let this happen but you never know…

What power does the current government have that 1970`s governments didn`t have?

Sunsaru

Any chance we can get this thread back on topic now?

Thanks