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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 6th Nov 12, 9:38 AM
    • 2,324Posts
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    Former MSE Helen
    MSE News: House prices fell in October, says Halifax
    • #1
    • 6th Nov 12, 9:38 AM
    MSE News: House prices fell in October, says Halifax 6th Nov 12 at 9:38 AM
    "Prices dropped 0.7% month-on-month in October, taking average house prices to £158,426..."

    Read the full story:

    House prices fell in October, says Halifax




    This thread is not in the 'discuss house prices and economy board' as that is only open to those logged into the forum so anyone coming from the news story may not be able to see it.

Page 1
    • brit1234
    • By brit1234 6th Nov 12, 8:52 PM
    • 5,191 Posts
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    brit1234
    • #2
    • 6th Nov 12, 8:52 PM
    • #2
    • 6th Nov 12, 8:52 PM
    Good news. The sooner property prices fall back to 3.5 times salary the better for our economy and more importantly future generations.
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    • ukcarper
    • By ukcarper 6th Nov 12, 8:58 PM
    • 14,943 Posts
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    ukcarper
    • #3
    • 6th Nov 12, 8:58 PM
    • #3
    • 6th Nov 12, 8:58 PM
    Good news. The sooner property prices fall back to 3.5 times salary the better for our economy and more importantly future generations.
    Originally posted by brit1234
    I'm not sure if a big fall will be good for economy.
  • Turnbull2000
    • #4
    • 6th Nov 12, 9:02 PM
    • #4
    • 6th Nov 12, 9:02 PM
    Good news. The sooner property prices fall back to 3.5 times salary the better for our economy and more importantly future generations.
    Originally posted by brit1234
    Why do you still persist with this magical 3.5 times salary benchmark when it's quite clearly obsolete - and has been for some time.

    Two-full time earners, mortgage terms of 30 years and rates below 5%* are now pretty much standard, therefore the salary multiple has established itself at 5-6 and will remain there.

    *as opposed to a single earner, 25 years and 8% or higher rates in days gone by.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Turnbull2000
    • #5
    • 6th Nov 12, 9:02 PM
    • #5
    • 6th Nov 12, 9:02 PM
    I'm not sure if a big fall will be good for economy.
    Originally posted by ukcarper
    Yup, would be highly destructive in the short-term and will be avoided at all costs. In fact, you could argue they've already achieved this, with price stability currently being maintained until the credit taps open again.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
    • brit1234
    • By brit1234 6th Nov 12, 9:23 PM
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    brit1234
    • #6
    • 6th Nov 12, 9:23 PM
    • #6
    • 6th Nov 12, 9:23 PM
    Why do you still persist with this magical 3.5 times salary benchmark when it's quite clearly obsolete - and has been for some time.
    Originally posted by Turnbull2000
    Because it is the historical lending criteria.

    During the boom banks resulted in irresponsible lending to gain market share. Each bank tried to out do each other leading to a massive house price bubble and banking collapse. Now banks are back to responsible lending, people can't now afford inflated prices and values as well as transaction levels are falling.

    Turnball do the maths and you will see I am right.
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  • Turnbull2000
    • #7
    • 6th Nov 12, 9:37 PM
    • #7
    • 6th Nov 12, 9:37 PM
    Because it is the historical lending criteria.

    During the boom banks resulted in irresponsible lending to gain market share. Each bank tried to out do each other leading to a massive house price bubble and banking collapse. Now banks are back to responsible lending, people can't now afford inflated prices and values as well as transaction levels are falling.

    Turnball do the maths and you will see I am right.
    Originally posted by brit1234
    So you believe we'll revert to single earner buyers, 25 year terms and 8% interest rates? Think you'll find yourself in a very, very small minority with that one!

    The current biggest obstacle for most buyers are deposits. In terms of repayments, a £160,000 house is quite affordable on two salaries of £20,000. Once 95-100% mortgages make a comeback, the buyers will return.
    Last edited by Turnbull2000; 06-11-2012 at 9:45 PM.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
    • ukcarper
    • By ukcarper 6th Nov 12, 9:40 PM
    • 14,943 Posts
    • 19,384 Thanks
    ukcarper
    • #8
    • 6th Nov 12, 9:40 PM
    • #8
    • 6th Nov 12, 9:40 PM
    Because it is the historical lending criteria.

    During the boom banks resulted in irresponsible lending to gain market share. Each bank tried to out do each other leading to a massive house price bubble and banking collapse. Now banks are back to responsible lending, people can't now afford inflated prices and values as well as transaction levels are falling.

    Turnball do the maths and you will see I am right.
    Originally posted by brit1234
    That's not right is it the long term average for house prices is just over 4x male full time earnings it's now 4.22 or 5x depending on which figures you believe.
    • DRP
    • By DRP 7th Nov 12, 8:26 AM
    • 3,909 Posts
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    DRP
    • #9
    • 7th Nov 12, 8:26 AM
    • #9
    • 7th Nov 12, 8:26 AM
    month-on-month
    Originally posted by MSE Helen
    pffffff
    • brit1234
    • By brit1234 7th Nov 12, 9:16 AM
    • 5,191 Posts
    • 11,968 Thanks
    brit1234
    The current biggest obstacle for most buyers are deposits. In terms of repayments, a £160,000 house is quite affordable on two salaries of £20,000. Once 95-100% mortgages make a comeback, the buyers will return.
    Originally posted by Turnbull2000
    No the biggest obstacle is high prices. Those of us in the South East with big deposits are still priced out. The reason deposits are so big is due to the lenders expecting prices to fall. High deposits greater protection for them.

    Low deposits will only come back when the housing market has bottomed out.

    You stating property is affordable based on record low interest rates, both working on high wages and not ever having a family is hogwash. All you are trying to do is stoke the bubble and a bubble we have.

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    • mr_fishbulb
    • By mr_fishbulb 7th Nov 12, 11:08 AM
    • 5,067 Posts
    • 2,819 Thanks
    mr_fishbulb
    Why do you still persist with this magical 3.5 times salary benchmark when it's quite clearly obsolete - and has been for some time.

    Two-full time earners, mortgage terms of 30 years and rates below 5%* are now pretty much standard, therefore the salary multiple has established itself at 5-6 and will remain there.

    *as opposed to a single earner, 25 years and 8% or higher rates in days gone by.
    Originally posted by Turnbull2000
    And where does it go from there? Will my children need to live with 2 partners each so they can afford to buy a house?
    • brian_723
    • By brian_723 7th Nov 12, 6:44 PM
    • 314 Posts
    • 294 Thanks
    brian_723
    The problem is with the amount of people coming to the uk right now it is very hard for hosue sto fall much with interest rates and the current lows .the are people willing to pay good money just to rent a room .

    If i could get a mortgage ,which on my salary would need to be 4.5 my income which i am sure no lender will lend on despite the fact i have about 25% deposit .it is frustrating as i rent room right now and woul much rather own a house and rent the 2 spare rooms out when I want or need to .A good part of that income would be tax free also .I just want house to live in fall or go up not bothered but my life is on hold right now living in a room and getting very little for my money .
  • kathme
    house prices not falling in London
    there is no house price fall in London. Rent a room in East London for £700 or try to buy. London is full of buy- to- renters. The price is also being put up by Europeans who want to have money out of Euros and who may or not pay UK taxes.
    • geoffky
    • By geoffky 8th Nov 12, 4:23 PM
    • 6,600 Posts
    • 9,241 Thanks
    geoffky
    there is no house price fall in London. Rent a room in East London for £700 or try to buy. London is full of buy- to- renters. The price is also being put up by Europeans who want to have money out of Euros and who may or not pay UK taxes.
    Originally posted by kathme
    London is not immune..look back at the last crash and see what happened to London...
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
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