Halifax UP 1.2% *gulp*

kinesin_2

Bestthingsinlifearefree wrote:

I agree with your post to. House prices are clearly by definition sustainable at current levels as they have held firm for over 12 months.

In terms of why the Halifax is up 3% I think these surveys are all up a bit some times, down a bit some times, which to me indicates stability / stagnation. I think Land Reg Q3 figures J/A/S are out in Ocotber and it will be interesting to see how the average house price is compared to earlier quarters in 2005 etc etc

Well we both agree after all Meanmachine.

I love a happy ending.

Lets just watch this space and see what happens.

I enjoyed the debate. Us British obssessed with house prices, the weather etc etc. etc

I really don't think house prices are sustainable at the current levels. The market requires FTB to feed at the lower end. All recent reports now suggest that FTBs are at there lowest level ever.
Without fresh buyers coming to the market chains get longer and longer, with more risk of collapse. At some point priced out FTB have to be allowed back in or the market stagnates to death.

meanmachine_2

But FTBers were priced out years back - in 2001.

Since then BTLers have taken over and now Gordon Brown is going to give the filthy rich a massive tax break so they can keep the whole pyramid scheme going.

If SIPPS doesn't work, then yes, the shock to the market could in itself trigger a slide.

FaTB

MattLG wrote:

LOL! Nice one :-D

MattLG

Ditto......... :rotfl:


I think the IR cut saved the average borrower about £15 a month, which is now going straight into their fuel tanks.

Lets be serious this aint gonna sustain or revitalise the housing market.

IN_LIKE_EVERYONE_ELSE!

The economy is in trouble.

John_M_Business

GDB2222 wrote:

Nevertheless, people are taking out 50 year mortgages based entirely on what they can afford given today's interest rate. No apparent thought about how interest rates have varied over the last 50 years and can presumably be expected to do so over the next 50.

Love posts like this... yes, some people are taking out 50 year mortgages... but how many? 3? 42? 140? Less than one percent?? Nothing like enough to have any real affect on these discussions.

This is only one step above the 'I was chatting to my neighbour who works in the 'city' (in the prawn cocktail sandwiches department) and HE thinks that property prices are going to take a pounding... '

Woby_Tide

nevermind that I was just speaking to someone in my office and they've apparently taken out a...wait for it...a 25 year mortgage :eek:

All based entirely on what they can afford given today's interest rate. No apparent thought about how interest rates have varied over the last 25 years and can presumably be expected to do so over the next 25.

spottydog

Woby_Tide wrote:

nevermind that I was just speaking to someone in my office and they've apparently taken out a...wait for it...a 25 year mortgage :eek:

All based entirely on what they can afford given today's interest rate. No apparent thought about how interest rates have varied over the last 25 years and can presumably be expected to do so over the next 25.

and probably no apparent thought about how wages have risen over the last 25 years and can presumably be expected to do so over the next 25.

meanmachine_2

And probably no apparent thought about whether it was a repayment or an interest only?

And no apparent thought about the fact that wages are rising at their slowest rate for donkeys years.

Face it, in a low inflation environment a massive 200K debt is still going to be massive in 25 years.

Or will they simply burst into tears, claim they were "missold" the mortgage and demand compensation?

JanCee

meanmachine wrote:

Face it, in a low inflation environment a massive 200K debt is still going to be massive in 25 years.

Or will they simply burst into tears, claim they were "missold" the mortgage and demand compensation?

In 25 years time a £200K repayment mortgage is going to be....repaid.

johna999

Trouble is, Halifax's 'view' this mth differs from nationwide which stated prices fell, and so did hometrack. I'm always suspicious of Halifax and nationwide, they have a huge vested interest in talking the market up, anaylysts can often fiddle certain figures with techniques