Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
House prices: 50% falls before fair value

purch
Posts: 9,865 Forumite
.........says the Debt Advice Bureau
http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=301968
http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=301968
'In nature, there are neither rewards nor punishments - there are Consequences.'
0
Comments
-
100,000 mortgage for 25 years on repayment = about 670 a month for FTB according to my software (trigold)
1 bed flats here in Bournemouth are £140,000
I think prices need to come down about 35% to make purchasing a viable option0 -
I think a 50% fall is fair, thats what it would take to bring prices down to about 3.5 times salary here in London.
The way lending is going 50% is likely especially with far higher interest rates in the future due to massive worldwide inflation.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0 -
Likely? No chance - quality houses will never sell for anything like 50% of their current value (even if you really really want them to).18 May 2007 (start of Mortgage):
Coventry Offset Mortgage £220800
Offset Savings: £0
Mortgage Balance: £220,800
14 Jan 08
Coventry Offest Mortgage: 219002
Offset Savings: 28200
Mortage Balance: £190802
And still chucking every spare penny into it!0 -
HammersFan wrote: »Likely? No chance - quality houses will never sell for anything like 50% of their current value (even if you really really want them to).
Crunch is stalling, confidence coming back we'll be lucky to realise 5% drops before the upturn.0 -
this analysis is, by far, the most pessimistic I've read to date.
whilst I'm in no position to challenge the maths, 50%, on the face of it, does seem excessive.
I'll go with woolnough and call 25-30%.
although I could be wrong.
it has been known.miladdo0 -
No way house prices will fall by 50% in my opinion, though I'd be happy enough if they did.0
-
mr.broderick wrote: »Crunch is stalling, confidence coming back we'll be lucky to realise 5% drops before the upturn.
Apart from people can't borrow that much from lenders to buy at 5% less. Mr Broderick you have to realise that lenders aren't selling the mortgage debt off anymore, they are relying on their own savers. Hence their lending will reflect what they use to lend before selling off their debt. Higher deposits and lower salary multiples will be the norm again bringing prices down.
There is no money to allow house prices to rise or stay at this level.
I would like to see you argument on the reason for a upturn despite the serve shortage of lending money available?:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0 -
No way house prices will drop by 50%......they can rise by 100% though?
Same time span both sides maybe (5-6 years both ways).
Whats stopping the house price from falling? is it the same thing that pushed them up in the first place? (easy credit) because if so...Umm.. thats gone now. No one is saying it will be next month, or the month after, but in a few years? sure why not?Debt : 10500 MNBA CC =£3000 EGG CC =£1500 Overdraft = £1500 Loan = £6000LBM2 = May 08 - The internet is not serious business0 -
Apart from people can't borrow that much from lenders to buy at 5% less. Mr Broderick you have to realise that lenders aren't selling the mortgage debt off anymore, they are relying on their own savers. Hence their lending will reflect what they use to lend before selling off their debt. Higher deposits and lower salary multiples will be the norm again bringing prices down.
There is no money to allow house prices to rise or stay at this level.
I would like to see you argument on the reason for a upturn despite the serve shortage of lending money available?
Keep your knickers on ms ekland i think there is more chance of 5% drops than 50% don't you agree?0 -
Apart from people can't borrow that much from lenders to buy at 5% less. Mr Broderick you have to realise that lenders aren't selling the mortgage debt off anymore, they are relying on their own savers. Hence their lending will reflect what they use to lend before selling off their debt. Higher deposits and lower salary multiples will be the norm again bringing prices down.
There is no money to allow house prices to rise or stay at this level.
I would like to see you argument on the reason for a upturn despite the serve shortage of lending money available?
There's plenty of cash out there, it just costs more. I put my and my wife's income into the Nationwide "How much can I borrow calculator" and was surprised at how much they would lend us in the current climate.
Income per year = £58k
Willing to lend = £246.5k
What's that...4.25 times salary. Our mortgage is currently way below that figure, so I'm not worried about remortgaging in October. The rate will be higher, but you have to expect that over 25 years or paying a mortgage!
Stop scare mongering.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.3K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.9K Work, Benefits & Business
- 617.2K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards