Are house prices set to take a tumble?

Former_MSE_Archna

We're repeating this poll as we really want to see how views have changed over time.

Poll Title: Will house prices crash? What will happen to UK house prices over the next year?

A. Increase over 20%
B. Increase 10-20%
C. Increase 5-10%
D. Increase 2-5%
E. No real change
F. Decrease 2-5%
G. Decrease 5-10%
H. Decrease 10-20% (smaller crash)
I. Decrease over 20% (crash)
J. I really have no idea

Vote here. Click reply to discuss.

webwiz

Nobody knows but I hope they fall sharply. I am an owner but I get no pleasure from the value of my house going up. I cannot get at the value in any sensible way.Who gains from increases? Mostly people who inherit in their 60's and Gordon Brown. Who are the losers? Young couples trying to buy their first home. Which of these is more deserving?

madfrenchgirl

yep,

and if there is no first link in a property chain, the chain cannot exist...

the market needs FTB to feed itself but FTB cannot buy anything at the mo, unless they have been living at their parents rent-free for at least 3 years, or unless their parents are loaded and generous enough to pay their deposit!

well, i dont really think every potential FTB enters those 2 categories...

Phonix

Who gains from increases?

Private investors, most notobly housing developers.

It's a case of "I wonder how many box flats we can build with no garden in this space of time to maximise our profits".

"quickly let's get as many people severely in debt as possible by charging the earth (sorry market value) for a one or two bedroomed box flat"

I admit that housing developers probably don't think in terms of the above but that's often the result it seems. What I would like to see is the occasional housing developer bucking the trend and placing the asking price for their development reasonably below 'market value', an act that I can't see pushing house prices up, can you?

I mean it's not as though they can't make a profit by shaving a couple of tens of thousands off the market value, but alas they'd rather milk the market dry for all it's worth, the worth being how heavily indebted they can make people become.

So maybe the problem and answer lies in the hands of the housing developers? I'm curious if this might be the case if anyone can go someway into explaining whether this is or isn't possible?

How many housing developers are there out there that place social values in just as high a regard as the need to make a profit, social values that would include offering extremely affordable quality housing to people to ensure they are not adversely affected (possibly mentally) by the prospect of paying all this money back?

How much housing development takes place in a falling market, how much took place in the early to mid nineties when the housing market was at a low, as if the could build houses of the same quality then but for a much lower price, why can't they do this now?

surely an increase in house prices should reflect rising incomes not increased personal debt? What good is that to society?

I cannot get at the value in any sensible way.Who gains from increases? Mostly people who inherit in their 60's and Gordon Brown. Who are the losers? Young couples trying to buy their first home. Which of these is more deserving?

Precisely, the housing jungle that is out there doesn't seem to be doing society any favours. I would love to voice the opinion "hey regulate the market a shedload to solve this problem" but that would scare everyone off.
Maybe the answer lies in a growth in corporate social responsibility of housing developers who recognise the social responsibility in providing extremely affordable housing to the FTBs.

Andydarlo

Just a wild thought, and I don't suppose for a minute that any politicians get to hear of the chat here, but I think it would work......

If the government had a desire to support FTB, how about a deposit assistance scheme? A FTB could apply for a "voucher" for £XXXX (equalling deposit) on the conditions that the amount is repayed over X years. If not, some form of deduction could be levied at pay source by Revenue & Customs. There are obviously a number of holes, but it is just a first stage idea.

I like it anyway.......

emma2978

Let's hope they crash so I can buy my first property. Unfortunately I live in the most expensive part of the UK, Brighton and at the age of 27 and partner 32 we are unable to afford anything, not even a one bed flat and we both earn a good wage. A couple of years ago whenever a flat came onto the market that was just in our 'financial reach' property people (buy to let) got there with a better offer, which is so unfair. So we gave up looking as it was so depressing - all I want is a place of my own!

George_Bray

Why are house prices so high? Because there's a shortage meaning young people, in particular, find it difficult to afford a home. Why is there a shortage? Because there are too few houses to handle all the people flooding into the country from dozens of countries. It's a scandal. We can't house them all. The Government are responsible.

If there are 500,000 illegal immigrants ( a figure that seems generally accepted), how many legal+illegal arrivals have there been in total in recent years? 2 million or more? Well every 2 or 3 of those people need somewhere to live, whether it's a house, hotel or hostel. That's a huge number of beds needed, e.g about 250,000 new dwellings, just for the illegals alone. The numbers are frightening. So if they soon start building 1,000 new homes on a green field site near you, that's only 1/250th of the total need, just for the illegal immigrants!

Regards
George

mike_osullivan

Current house prices have only one cause...the price you the home owner were prepared to pay to buy your current home. If you were not prepared to pay and no one else was prepared to pay, prices would not rise they would fall, simple market forces not rocket science. Media & estate agent hype in the 80's & early 90's certainly helped, but at the end of the day it is down to what you are prepared to pay.

FTB are the lifeblood of the housing industry and market, something must be done to make housing more affordable at the lower end of the market. House prices may fall slightly, but I doubt it, I expect a small increase again this year.

rizla01

What I think is a sad side effect is people being priced out of THEIR town and having to move away from family & freinds.

The reverse of this should be encouraged. We are much better off when living with or close to our families. Look to the continent and pre-1960s Britain, for proof of that.


Riz

Former_MSE_Archna

Poll Title: Will house prices crash? What will happen to UK house prices over the next year?

E. No real change 20.8% (537 Votes)
D. Increase 2-5% 18.8% (486 Votes)
F. Decrease 2-5% 18.3% (472 Votes)
G. Decrease 5-10% 11.1% (287 Votes)
I. Decrease over 20% (crash) 7.9% (204 Votes)
H. Decrease 10-20% (smaller crash) 7.8% (203 Votes)
C. Increase 5-10% 7.8% (201 Votes)
J. I really have no idea 4.9% (127 Votes)
B. Increase 10-20% 1.2% (32 Votes)
A. Increase over 20% 0.9% (24 Votes)


Total Votes: 2575

maxman

webwiz wrote: »

Nobody knows but I hope they fall sharply. I am an owner but I get no pleasure from the value of my house going up. I cannot get at the value in any sensible way.Who gains from increases? Mostly people who inherit in their 60's and Gordon Brown. Who are the losers? Young couples trying to buy their first home. Which of these is more deserving?

Why would you want to lose the equity within your home?

I think house prices will fall sharply over the next year or so, but I certainly do not want to lose the growth in my property.

Don't know if you have looked into protecting your equity? I did and have now got it covered from all angles, its very easy to do and an amazing idea, even if there is a crash, you can still cover the gains you have made over the years
Key equity protector into google and its there.