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No.
People will never support the consequences of letting supply catch up with demand.
People will never support the consequences of letting supply catch up with demand.
So will the UK house prices ever come down ?
- Thread starter thedoc46
- Start date
supply and demand.
i have had my house for just over 5 years and i've had it valued at £27k more than i paid for. that's a valuation. a valuation means nowt if nobody is willing to pay that valuation, though i'd be fairly confident of making atleast £15k profit. GREAT.
until i realise that the house i want to move up to on the ladder has increased in value by £35k (for example)
the key is to get on the ladder with as big a deposit as you can. there are murmur's of an interest rate rise (i've been on a tracker for over 12months now and my mortgage payments have halved though i overpay) but i'm not looking to fix just yet as i can't see an increase of more than 0.5-1% over the next 12 months but i will expect to have found a fixed rate and fixed by this time next year.
just my 2c
i have had my house for just over 5 years and i've had it valued at £27k more than i paid for. that's a valuation. a valuation means nowt if nobody is willing to pay that valuation, though i'd be fairly confident of making atleast £15k profit. GREAT.
until i realise that the house i want to move up to on the ladder has increased in value by £35k (for example)
the key is to get on the ladder with as big a deposit as you can. there are murmur's of an interest rate rise (i've been on a tracker for over 12months now and my mortgage payments have halved though i overpay) but i'm not looking to fix just yet as i can't see an increase of more than 0.5-1% over the next 12 months but i will expect to have found a fixed rate and fixed by this time next year.
just my 2c
Seen as House prices are ridiculous so my view is less prosaic. Its interesting to see so many owners blinded by belief that their booming house price has any real relevance going forward with wage drops and mass unemployment, but it all depends on the value of course.
If houses are too expensive to buy then the worth to the owner who wishes to move is nothing as there is no timely sale if at all only wishful thinking. Demand can only exist if demand is possible.
if the owner sells their home then it must at this point be to a lesser amount, but even if it is a good amount then the need to buy in most cases a similar or more expensive home is hard or nigh on impossible on the same pricing curve, so again the owner who is also a buyer is like a first time buyer again.
If the owner is happy to live in their home then there is no current value other than it being a home nothing is lost, it is just a debt to pay. However if the home owner is not happy then the ability to not be able to move is a literal prison through debt and any day to day social horrors they must endure.
the only winners in this situation are people who have no mortgage or have owned a home for some time and built up large amounts of equity, which is a.) 1950's baby boomers b.) late 1990's buyers of cheaper northern houses in the age group of late 30's to early 40's
everyone else is fairly screwed.
If houses are too expensive to buy then the worth to the owner who wishes to move is nothing as there is no timely sale if at all only wishful thinking. Demand can only exist if demand is possible.
if the owner sells their home then it must at this point be to a lesser amount, but even if it is a good amount then the need to buy in most cases a similar or more expensive home is hard or nigh on impossible on the same pricing curve, so again the owner who is also a buyer is like a first time buyer again.
If the owner is happy to live in their home then there is no current value other than it being a home nothing is lost, it is just a debt to pay. However if the home owner is not happy then the ability to not be able to move is a literal prison through debt and any day to day social horrors they must endure.
the only winners in this situation are people who have no mortgage or have owned a home for some time and built up large amounts of equity, which is a.) 1950's baby boomers b.) late 1990's buyers of cheaper northern houses in the age group of late 30's to early 40's
everyone else is fairly screwed.
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there's some real nutters over there
http://www.housepricecrash.co.uk/fo...26-when-do-you-reckon-the-market-will-bottom/
Where is this mass unemployment? We have the lowest rate of unemployment in decades. I agree real terms wages are decreasing, but that's not what the issue is - Demand IS there, else the market would not be doing what it has the last 18 months - The biggest issue is it is largely being fueled by foreign money, not British workers as a whole, so the real terms wage drops are largely irrelevant, as people will just pay more of their disposable wage because they feel they have to.
I agree with your last point and have said for years that the baby boomers are the generation with everything. They feel "entitled", they screwed over the older generation who gave them everything they have and they have screwed over every generation since by squeezing them for everything they have too.
The only time things will start to get better for everyone else is in 20-30 years time when they all start to die and the wealth can be spread a little more.
The country is ran by bankers.
So to answer your original question, no, prices will never come down.
Hope not I have several
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Caporegime
I'm imagining a world where housepricecrash.co.uk has some kind of fight with mumsnet and by God it is glorious.
I would watch this film.
I would watch this film.
the demand is there because we are overcrowded. they wont put rates up because the confidence is not there with the public and they wont risk another recession. a recession (imo) is caused by people being 'afraid' to spend their money, not necessarily a case of them not having money to spend.
if interest rates go up, the positive effect it has on the saver is the other end of the spectrum in negative terms for the mortgage payer and people wont spend. an increase of anything more than 2.5% could put a lot of people in the red.
i have decent savings and i earn a decent wage and having 0 dependents, i do have a fair chunk of disposable income. i continue to save but i'm in a far better position being a mortgage payer with a low base rate.
there's some real nutters over there
http://www.housepricecrash.co.uk/fo...26-when-do-you-reckon-the-market-will-bottom/
I did join HPC back in 2008 I think, just to get an idea of what was going to happen to house prices after the credit crunch.
Dare I say it but some of the people there sold their houses and banked their equity and they have been hit twice, once by the fact there was no crash and secondly the money they put in the bank is now earning a pittance in interest.
Moral of the story is in this country debt is good. Whatever government we get, left, right or a hotch potch will always support the poeple in debt, sod those who are prudent.
So to those looking at buying now, do it, you will be protected come what May by the government. Crazy I know, but that is they way it is.
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well there are a lot more in unemployment or even too lower wage employment to get a house, so by unemployment i should have coined ill-employment.
The problem is though, from speaking to quite a few of these boomers (not on L4D2) who own sometimes two houses or at least in my case most have around half a million in equity and bemoan the cost of living and how they worked their expensive socks off to get where they are (they truly believe they deserved it and its not like it was endless luck within a fluid job market post war and huge house price rising
) is that there using the money they have from their large pensions to survive and hanging on until the last moment to sell and downsize into rental or emigrating. This group the late 50' and 60 year olds aren’t giving up that position too easily. In fact i remember an article on how they weren’t even selling in order to help their children! It seems like a digression but its part of the reason the market is so badly stacked for young people, we have a huge part of an affluent society who aren’t willing to even acknowledge there is a problem because it doesn’t effect them.
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I remember seeing an article which said that a 1% rise in interest rates would cause 100,000 households to default on their mortgage. No government will commit political suicide like that, plus the cost in human misery that would bring.
Until we have a system of secure 10 year tenancies with rent controls there is no other way to secure your home than to buy.
I rent, I don't really understand house prices.
If I bought a house at 200k, I don't want to let it go for anything less then 200k. If someone decided on paper tomorrow that my 200k house is now worth 150k then I won't sell it.
With that mentality house prices won't go down, and because house prices are going up for some reason a new bar is reached, "well I bought this for 300k, no I won't sell for 200k".
But like I said I don't know the market.
If I bought a house at 200k, I don't want to let it go for anything less then 200k. If someone decided on paper tomorrow that my 200k house is now worth 150k then I won't sell it.
With that mentality house prices won't go down, and because house prices are going up for some reason a new bar is reached, "well I bought this for 300k, no I won't sell for 200k".
But like I said I don't know the market.
The GF and I are looking at getting our own home soon but at the moment it looks like we'll be hard pressed to afford a shed.
We're having to expand our search areas to places we don't really want to live but we need to get on the housing market ASAP.
We're having to expand our search areas to places we don't really want to live but we need to get on the housing market ASAP.
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They built new apartment block near where i live and they are small. The one bedroom £160k and the rental is £900 per month.
http://www.rightmove.co.uk/property-to-rent/property-47672024.html
I dislike that open plan living area and kitchen, I don't see why it would cost that much more to just make normal size separate rooms like they did in the past.
http://www.rightmove.co.uk/property-to-rent/property-47672024.html
I dislike that open plan living area and kitchen, I don't see why it would cost that much more to just make normal size separate rooms like they did in the past.
Romford seems to be good for renting, I bought a 2 bed place there a few weeks ago and it should rent for £1200 but only cost £219