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'House Prices: Would you prefer them to rise or fall?' poll results/discussion

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Poll between 6-12 May 2008

House Prices: Would you prefer them to rise or fall?

For the first time in many years it's been reported there's been an annual fall in house prices (by 1%). For most things, falling prices benefit consumers. In house prices it helps first time buyers and upgraders, but it's worrying for those with little equity in their homes or planning to sell. But what's your instinct, that is, which of these would you prefer?

Big house price rises 5% (363 votes)
House prices rising but slowly 20% (1444 votes)
Stable house prices 24% (1737 votes)
Gradual lowering of house prices 20% (1500 votes)
Major crash in house prices 32% (2323 votes)


Voting has now closed, but you can still click 'post reply' to discuss below. :smiley:


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Comments

  • going2die_rich
    going2die_rich Posts: 1,378 Forumite
    B.

    Any fall would harm the economy. You also need some growth in order for owning your own home to have some value in it, as if it was just stable what would be the point, you might as well invest else where. Stable also tends to mean your below inflation in real terms.
  • canardo
    canardo Posts: 32 Forumite
    a period of -1% 0% or 1% which really means in real terms a lowering of 5-6% a year to give salaries a chance to catch up with an over inflated market

    For a lot of people prices have to fall a fair way before they are in negative equity, the media seems to forget that assuming all houses fall or rise at the same rate it all stays as an even field unless you need to get on or off the ladder which I think some people need reminding off, the banks such as Northern rock lending over 100% ltv obviously make this problem worse for some people who have borrowed large amounts

    In the Midlands its 400-600 to rent 500-700 a month to get a repayment mortgage so hardly see there being that much risk in having a mortgage for your primary residence, if you don't mind being tied in and have a relatively stable job and are not borrowing large multiples of your income.
    The value even in a flat market is not having to move every 6 months and pay associated estate agent fees (unfortunately longer rental terms seem hard to get in the UK compared to Germany etc where renting is a much more pleasant experience)

    Obviously for those investing in the property market this is bleak times, however we have had too many hero landlords who think adding a coat of magnolia is property development and rash of buy to leters which has pushed the cost of living up in the UK
  • Chef1980uk
    Chef1980uk Posts: 226 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Would love a crash in pricing tbh. My wife and I have been renting for 10 years now without a hope in hell of getting a mortgage as we only earn £24,000pa between us.
  • Dorrie
    Dorrie Posts: 66 Forumite
    Part of the Furniture Combo Breaker
    Would also prefer a big crash - I have three teenagers, what hope do they have at the moment of getting on the housing ladder? Not like there are loads of council houses/housing association places standing empty waiting for them. Where are they going to live? Even a one-bedroomed flat in my town costs over £100,000.
  • Candoguy
    Candoguy Posts: 4 Newbie
    I'd like to see a crash of about 40%.

    If house prices have risen by over 100% in ten years then wages obviously haven't. How is that good for the economy? It may be good for those who already own a house (or two, or three), but it's extremely unfair, unjust and immoral that it is now impossible for those who haven't managed to buy up to now to be able to own a home.

    There is a national obsession with owning your own home in the UK and I don't believe it leads to a very healthy and cohesive society.

    Of course, when asked, most people would prefer to buy, but how realistic is that? In a lot of European countries the majority of people rent and their overall standard of living is much better than here (just ask someone from Scandinavia, Germany or France) because they have more disposable income to spend on other things rather than just giving it to the banks which is what mortgage holders are effectively doing - the banks are increasingly controlling society.

    With prices allowed to keep on rising all that does is disenfranchise those that don't own one. Why are people so surprised that the gap between rich and poor is still widening when the feudal system is alive and well in this country?

    Bring on the mighty crash and lets have a major readjustment so that there's more of an equilibrium in society.

    If that sounds like the writings of someone who doesn't own their own home, then you'd be right. I have a housing association flat and consider myself to be very lucky. I've also just discovered that I am legally allowed buy on the open market without losing my existing flat (providing I still live in it) thereby making me into another buy-to-let profiteer.
  • 172
    172 Posts: 4 Newbie
    This is a difficult one... a house is not a business but a home - if its a business then it is not a discussion on home ownership but markets. The move from a home to a business has corrupted this arena of life. Of course solicitors, banks, estate agents, building societies, and this thieving government want house prices to increase as they can screw you for more of your hard earned money - people do not seem to realise that they are the ones who are losing out - whilst the aforementioned organisations hype the market in order to delude people that what their house is worth means something - it does not - at least not until you die or sell up and move to a developing country! Lower house prices would enhance every area of life whilst freeing millions to put into the economy - it a fallacy to imagine that soaring house prices help the economy. The misery generated by the manipulation of the public is huge and tragic. The public do not gain in any way. However, the difficulty in all of this is those who have been duped and have mortgages higher than the appropriate value - this is not an easy one to solve - but going further down the insanity of a market out of control (apart from the banks, government etc who love it) will only delay the day we correct the 'free hand gone mad'. It is a puzzle why people seem to believe those who gain by higher prices - i.e. aforementioned deceivers. There is no easy answer but lower prices is the only way to begin the correction and fight back against the swindlers.:mad:
  • PhilDS
    PhilDS Posts: 92 Forumite
    Candoguy wrote: »

    If that sounds like the writings of someone who doesn't own their own home, then you'd be right. I have a housing association flat and consider myself to be very lucky. I've also just discovered that I am legally allowed buy on the open market without losing my existing flat (providing I still live in it) thereby making me into another buy-to-let profiteer.

    If that is true, that is the real thing wrong with society (ie. Labour government). My taxes pay for you to live in a housing asscociation flat, but, if you can get a mortgage, you can buy another? Why couldn't you live in that place? I'm not having a go at you personally, just the rules that would allow you to do this.
  • Prickles
    Prickles Posts: 20 Forumite
    Do not need a fall at present as I have to sell a house to pay off ridiculous Inheritance Tax as didn't have time to get married when longterm partner got ill and died.
  • moggylover
    moggylover Posts: 13,324 Forumite
    PhilDS wrote: »
    If that is true, that is the real thing wrong with society (ie. Labour government). My taxes pay for you to live in a housing asscociation flat, but, if you can get a mortgage, you can buy another? Why couldn't you live in that place? I'm not having a go at you personally, just the rules that would allow you to do this.

    I repeatedly see comments like this - and fail to see how anyones taxes allow people to live in housing association properties! For many people who now own their own homes there was a long period of government subsidy when we got tax relief on our mortgage payments. My parents benefited from this when I persuaded them to BUY their council house (which my father dissaproved of) and their mortgage payment was lower than their rent would have been WITHIN TWO YEARS!

    Furthermore, since the "right to buy" fiasco - Councils and Associations have made enough money from people who have bought their houses that they ought to have been able to have bought or built further housing without any need to dip into our taxes.

    I personally see no difference in renting from a private landlord and renting from any association and, lets be honest folks, if you are buying on a mortgage you spend 25 years (or more) renting your house brick by brick from the Building Society!

    In our area, which is a very poorly paid one, people in council housing are paying far more in rent than anyone who has had their mortgage for three or four years - and those houses that they are renting are not exactly well maintained by the Council and most people end up spending their own money on maintenance that would be covered by the landlord in a private rental because it can take forever to wait on the council to do the repair - not much fun when you have no heating in the middle of winter and the Council tells you it could be three months before they can get your boiler repaired/replaced!

    I consider myself EXTREMELY lucky to own my own HOME - on a tiny mortgage of £20,000.00 now, and I worked two jobs (8.30 to 5.00 in one and 6.00 till 2.00 in another) in order to be able to raise a deposit and then to pay my bills when I borrowed 4 times income in my home town Slough originally(26 years ago). I do not feel it is necessary to knock those that for varying reasons do not climb on the housing ladder - nor do I begrudge them their Council/Association House. I would - if they then bought another house to rent out - that is not the moral behind social housing!

    My mortgage is now low - and thus my monthly mortgage outgoings are far, far lower than my rent would be (about £235 a month including my endowment payment) because I have now owned my own home here for 18 years - it was tough at the start - but for buyers it gets easier if you are actually buying a long term home not forever trading up - for renters the rent ALWAYS goes up.
    "there are some persons in this World who, unable to give better proof of being wise, take a strange delight in showing what they think they have sagaciously read in mankind by uncharitable suspicions of them"
    (Herman Melville)
  • Paul_N_4
    Paul_N_4 Posts: 344 Forumite
    B.

    Any fall would harm the economy. You also need some growth in order for owning your own home to have some value in it, as if it was just stable what would be the point, you might as well invest else where. Stable also tends to mean your below inflation in real terms.

    This is the typical warped attitude of people in this country. They see home ownership as something to profit from, and its their right to profit from.
    as if it was just stable what would be the point

    Here's an idea - TO LIVE IN !!!

    Since when has it been everybody's God given right to profit from their property. If you speculate in property, you take the falls with the gains, exactly like other investments. If you can't handle that, you're not an investor. Stick to savings accounts.
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