Nice little ONS animation showing the change in house prices

[The_Abyss]

http://www.ons.gov.uk/ons/rel/regio...nding-q4-1995-to-year-ending-q2-2015/sty.html

Crude but effective. Some areas seem stubbornly immune to price inflation.

 

[taB]

Thanks, interesting graphic. Holiday house in Snowdonia one day still looks like a plausible aim .

 

[Caged]

It's easy to think that house prices are a 'problem' specific to London and the surrounding counties, but that graphic makes it quite clear that isn't the case.

 

[robj20]

Fingers crossed house prices continue to rise.

 

[wilber]

Thanks, interesting graphic. Holiday house in Snowdonia one day still looks like a plausible aim .

Next to door to Trawsfynydd by the looks

 

[roadie]

Or Liverpool!

 

[Caged]

I'd actually like to see the graphic redone to show average house price as a percentage of average salary (per region) over time. Just knowing that prices rise is not in itself hugely helpful.

 

[kinobestew123]

Fingers crossed house prices continue to rise.

Do you own multiple houses?

 

[robj20]

Do you own multiple houses?

Nope just the one.

 

[kinobestew123]

Nope just the one.

So are you planning on downsizing any time soon?

Otherwise, any future house you want to buy is only going to be rising at the same(ish) level as the house you have now and you're actually going to be in a worse position.

I.e. if your house you own now is £200k and you want to upgrade to a £400k house, if house prices rise 10%, your house will be worth £220k (whoop) but the dream house is now £440k! So you're now £20k worse off because of house price rises.

 

[Skeeter]

So are you planning on downsizing any time soon?

Otherwise, any future house you want to buy is only going to be rising at the same(ish) level as the house you have now and you're actually going to be in a worse position.

I.e. if your house you own now is £200k and you want to upgrade to a £400k house, if house prices rise 10%, your house will be worth £220k (whoop) but the dream house is now £440k! So you're now £20k worse off because of house price rises.

True, but when you have one house your also keen to have the gap between value and what you owe grow quickly as a lower LTV means lower rates on your mortgage which means lower payments and more ability to save and/or overpay, which increases your ability to keep up with the growing price of future house moves.

There is a massive difference between >90% LTV and <80% LTV.

Obviously if your just stick to the same mortgage and don't move about then you are in the position you describe. But if your on top of it and moving around to get the best rate and overpaying as much as possible, you can make the most of price rises on a single house. After all, its not worth having money in a savings account at the moment, so the best place for it is in your property.

 

[MatteH Oxford]

It still means you're getting into more debt by moving up, just because the finance is cheaper it doesn't change the fact of you being more vulnerable should rates start to rise again either. And from the risk of rising from such a low base, going from say 2-4% is a doubling on the interest portion of the mortgage.

My first rate was around 8%, it would have had to rise to 16% to double. You are in a crap position to be honest

 

[Kemik]

True, but when you have one house your also keen to have the gap between value and what you owe grow quickly as a lower LTV means lower rates on your mortgage which means lower payments and more ability to save and/or overpay, which increases your ability to keep up with the growing price of future house moves.

There is a massive difference between >90% LTV and <80% LTV.

Obviously if your just stick to the same mortgage and don't move about then you are in the position you describe. But if your on top of it and moving around to get the best rate and overpaying as much as possible, you can make the most of price rises on a single house. After all, its not worth having money in a savings account at the moment, so the best place for it is in your property.

The difference really isn't as big as requiring a much bigger mortgage to begin with...

 

[OracIe]

I live in North Kent and just come to the end of a 5 year fixed deal, they didn't come out and value it when doing a new fixed deal but they gave a "guide value" based on local prices - apparently.

We bought our house 5 years ago for £170k (Was up for 180) - now they reckon it's £230k

Assume they're right for a moment, that's 50~60k increase in 5 years - crazy!

 

[DarrenM343]

Fingers crossed house prices continue to rise.

But if you ever want to up size it'll cost you more and you won't get as much when you downsize as you once did either, unless you downgrade on the area too.

I own more than one but the unselfish part of me wants prices to be affordable to average income earners without them having to go stupid to afford - it's only somewhere to live after all. Shame people end up buying a house then not having much left for fuuunnnn.

In an ideal world house prices should really rise no more than incomes

 

[robj20]

No up sizing needed first house is our last house we waited until we could have a family size house first time.

 

[Kemik]

I live in North Kent and just come to the end of a 5 year fixed deal, they didn't come out and value it when doing a new fixed deal but they gave a "guide value" based on local prices - apparently.

We bought our house 5 years ago for £170k (Was up for 180) - now they reckon it's £230k

Assume they're right for a moment, that's 50~60k increase in 5 years - crazy!

Try Reading - £225k in January 2014. £295k in October 2015!

Everyone says it's great but all I can think of is being stuck in this tiny two bed for the next 10 years... think I'll probably move back home before I upgrade in Reading.

 

[thecremeegg]

Same here. Bought our flat in 2013 in Hampshire for 148k and now it's worth nearly 195k!