Definitely not just the South East and East - though I guess if you are looking at it just as an average then there are factors that will put the South West closer to 2007 in real prices but that is due to things like prices tumbling in certain areas that have seen their local economy devastated since 2008 which isn't very helpful.
Does anyone still think the housing market isn't broken?
- Thread starter Uther
- Start date
Definitely not just the South East and East - though I guess if you are looking at it just as an average then there are factors that will put the South West closer to 2007 in real prices but that is due to things like prices tumbling in certain areas that have seen their local economy devastated since 2008 which isn't very helpful.
Well, there's currently two developments I can name off the top of my head that are going to give another 1,000ish new homes within the next couple of years. Soooo...
My postcode has gone up 60%
I don't quite know what to make of those stats. In my opinion "inflation" should include house prices and rent as that is the biggest outgoing for anyone. I think doing that would paint a completely different picture.
Soldato
- Joined
- 9 Nov 2005
- Posts
- 9,947
- Location
- Southampton, hopefully not too hot, or too cold
We've been renting the same place since 2007 and the rent has increased by ~24.5% over the last ten years. Other properties of a similar size have had their rent increased by more in the Southampton area, our landlord's lack of bringing the flat into 21st century standards has kept our increases more in check, a nicer place to live would be nice but we would have to downsize to pay the same rent elsewhere and still be able to keep saving for a deposit.
Soldato
- Joined
- 17 Jun 2012
- Posts
- 9,899
- Location
- South Wales
I found this quite interesting. I put my postcode in and apparently the price is down 6.3% from 2007. But our house has gained about 40% the past two years although that's quite a special case to do with the Severn Bridge and people coming over from Bristol.
Soldato
- Joined
- 27 Dec 2005
- Posts
- 17,317
- Location
- Bristol
Up 14% since 2007 here. That's much lower than in actuality though, it's way closer to 100% for some properties.
Says my area has come down by 20% adjusted - I find that hard to believe especially as we've had 3 huge developments of houses in the area which has actually pushed prices up rather than down. I moved back to my parents about 10 years ago partly so as to save for a house in the future and watched house prices go completely nuts in the next few years lol while it has eased off a bit the last couple of years the real situation is nothing like 20% down on 2007.
If I had a pound for every sweeping statement about the 'millennial' generation in this thread.
You can't excuse the fact that property prices compared to salary have increased disproportionately, by saying 'well they shouldn't have sky/smoke/drink/live/breathe.'
The market needs proper long term government input to correct the situation.
You can't excuse the fact that property prices compared to salary have increased disproportionately, by saying 'well they shouldn't have sky/smoke/drink/live/breathe.'
The market needs proper long term government input to correct the situation.
You'd have enough for a deposit on a 3 bedroom semi detached house in the commuter belt
I liked this response; Stop spending money on avocados? Good idea, I’ll have a house deposit by 2117
You'd have enough for a deposit on a 3 bedroom semi detached house in the commuter belt
Ha, true.
Generalisations on both sides of the argument are pointless, no not all millennials are living beyond their means on fancy coffee and beard lotions and no not all baby boomers are sitting in 4 bed detached properties that cost them a tuppence decades ago.
The real issue is the disparity between the haves and the have nots, before those stuck in the middle at least had a chance but now it all seems to be going out of reach. With population set to rocket to 77m by 2050 and automation supposedly taking mid to high level jobs I don't see a particularly rosy future, the competition for jobs could be insane leading to lower salaries while demand for property will be at a record high.
Not sure what message the BBC are trying to make with that article, house prices were at ridiculous prices in 2007 and still at ridiculous prices today. Unless the government is going to start encouraging companies to create jobs in less populated areas, start a massive house building program and tax foreign investment / second properties (plus many more programs which will probably be unpopular with home owners) then I can't see any real change coming.
Down 20% here from 2007 apparently.
Interesting that it says we could buy 6 houses in North Ormesby, Middlesborough, or less than a tenth of a house in Knightsbridge and Belgravia, Westminster...
I live in Chichester at the moment and currently saving quite a bit thanks to a friend who is allowing me to 'house sit' for him for 2 years without paying any rent or council tax.
This is great as it enables me to save for a house but the average house price in Chichester is £300k+
My wage plus my wife's wage = £56k but even we would struggle with mortgage payments with a 10% deposit.
The South East and London are just crazy right now but my entire family and friends are down here and I don't want to have to move away from everything I've built over the past 30 years just so I can have a house.
This is great as it enables me to save for a house but the average house price in Chichester is £300k+
My wage plus my wife's wage = £56k but even we would struggle with mortgage payments with a 10% deposit.
The South East and London are just crazy right now but my entire family and friends are down here and I don't want to have to move away from everything I've built over the past 30 years just so I can have a house.
Soldato
- Joined
- 13 Sep 2005
- Posts
- 4,502
What would be wrong with limiting buy to let purchases past a certain date to say 1 or none, and to stop foreign buyers completely?
The rental market should be much more heavily regulated. Rather than make it unprofitable to get into renting out, make it unprofitable to let out badly maintained homes. This would help get rid of the "have a go" landlords that seem to think you buy a house, rent it out, then forget it while they pay your mortgage.
Your ward is Fortune Green, Camden
The average house price is £766,250 in 2017
Up 52% since 2007
(% after inflation adjustment)
For the average price of a house in your ward, you could buy...
21 houses in North Ormesby, Middlesbrough
or
less than half of a house in Knightsbridge and Belgravia, Westminster
Phew! 21 houses seems too many and half a house doesn't seem enough. I'm glad I bought where I bought.
At this rate few years and someone will pay me to take a house!
At that price you would need to earn £27,450pa to get a mortgage. I can't afford this, but the wife and I can ... problem is as she is on a zero hour contract so to the banks, she doesn't count.
There are some 2up-2down terraces for £90,000, but on my basic (£19,000 + 10% shift allowance), I can afford that if I'm never asked to change shift. With a wife and toddler in the house, not sure where the deposit and fees will come from though. I don't like avocado, but if I stop my addiction to cans of Monster I can save £260 a year!
285k up 27%
although this doesn't show the whole story.
a lot of the rundown places are no longer on sale normally, but are put at auction where us ftb essential cannot purchase them. However btl and developers lap up what use to be ftb flats/houses.
although this doesn't show the whole story.
a lot of the rundown places are no longer on sale normally, but are put at auction where us ftb essential cannot purchase them. However btl and developers lap up what use to be ftb flats/houses.