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House Prices Back To 2008 Level

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http://news.bbc.co.uk/1/hi/business/8286028.stm

UK house prices have now recovered to the same level as a year ago, according to the latest figures from the Nationwide.

The average price of a home last month rose by 0.9% to £161,816, almost identical to September 2008.

The building society said house prices had now risen for five months in a row.

However, the nation's homeowners continued to pay off more of their mortgages between April and June, according to the Bank of England.

A further £7bn was added to people's equity in the country's housing stock, as homeowners accelerated the repayment of their home loans, or put down bigger deposits when taking out a new mortgage.

An extra £29bn has now been added to the value of their stake in the UK's housing wealth since the summer of 2008, a process triggered by last year's sudden slump in house prices.

_46483299_house_prices_07_09_466.gif

The further injection of equity has partly reversed the previous trend, which saw home owners cashing in on the rising value of their properties by expanding their mortgages to finance other spending.

More than £300bn was borrowed this way between the start of the decade and early 2008.

'Headwinds'

The Nationwide warned that the recent house price increases were unlikely to continue at their present rate, especially if more properties come on to the market.

"The most intense phase of the recession and financial crisis has probably passed," said Martin Gahbauer, the Nationwide's chief economist.

"However, given that the housing market still faces considerable headwinds in the form of high unemployment, restrictive credit conditions and an impending withdrawal of the stamp duty holiday, it would be surprising to see house prices continuing to increase at the very strong rate seen in recent months," he added.

Figures from the financial information company Moneyfacts show that mortgage rationing is still in full force.

The number of mortgage deals available with between 0% and 40% deposits rose by just 4 in the last month, to 1,290.

Of these, the proportion requiring at least a 25% deposit has gone up up from 64% to 66%.

By contrast, as late as December last year, only 43% of the deals needed such a large down payment.

In addition, there were still 402 mortgage offers that needed only a 10% deposit - now there are just 101.

Remaining cautious

The Nationwide said price rises had been particularly vigorous in the past few months.

In the three months to September they rose by 3.8% compared to the average level in the previous three months - the biggest rise on this measure since August 2004.

Mr Gahbauer said another reason to remain cautious about the outlook for house prices was that turnover in the market was still well below normal levels.

The Nationwide calculates that housing turnover - the percentage of private sector housing stock changing hands on an annualised basis - now stands at almost 4%.

This is still significantly lower than the rate of between 7% and 8% recorded before the downturn in the housing market.

David Smith, of property consultancy Carter Jonas, said anyone hoping to sell now had a "window of opportunity" that might soon shut.

"We have to expect more turbulence ahead, specifically as a result of rising unemployment and interest rates," he said.

"This toxic combination will bring more property on to the market as people struggle to meet their repayments, which will apply downward pressure on prices and potentially reverse the recent trend, at least for a time," he added.

'Accidental landlords'

Another factor that might depress house prices again would be if "accidental landlords" now decided to sell their homes instead of letting them to tenants, the Nationwide said.

"The downturn in housing turnover over the last two years has prompted many home movers to let their old properties out rather than sell," said Mr Gahbauer.

"The surge in so-called 'accidental landlords' has limited the supply of property in the sales market and increased the stock of homes available to let.

"Over recent months the increase in 'accidental landlords' seems to have tapered off, which may indicate that some of this elevated rental supply is returning to the sales market, with possible negative implications for house prices," he said.

The Royal Institution of Chartered Surveyors (Rics) agreed.

"The recent turnaround has been surprisingly strong," said Brigid O'Leary, an economist at Rics.

"An increase in property for sale would improve transaction levels but could also put some renewed downward pressure on house prices," she added.

**** ****** ***** It's just going to be worse in the long run :rolleyes:

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No WAY is the change in house prices coming to 0% so quickly!! This is unbelievable. :(

Maybe we're all buggered... maybe we'll have to wait another decade.

It's like the old boys network... if you're in , you want to keep playing the game. How can people be so deluded and selfish - can't they see high prices are a bad thing?

Edited by thomasross20

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Guest DissipatedYouthIsValuable

The question is though, how long is it going to take? How long are peoples/families lives put on hold?

For some people who thought it was about to be all over, it must be bloody gut wrenching!

Not really, it's quite handy not owning a house.

We're not bothering until we can pay for it outright now.

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I don't understand how they can be back to 2008 levels anyway... I thought prices were still falling, just at a slower rate!?

Admittedly, I haven't read the entire article, I have work to do..

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Where are mortgage approval rates back to? Something has to give and I doubt it will be a return to 125% liar loans, no matter how much the government and various VI's want it.

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No WAY is the change in house prices coming to 0% so quickly!! This is unbelievable. :(

Maybe we're all buggered... maybe we'll have to wait another decade.

It's like the old boys network... if you're in , you want to keep playing the game. How can people be so deluded and selfish - can't they see high prices are a bad thing?

Do you know the 'Tale of the two bulls' at the top of a hill?

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Guest Dizzy Rash Call

http://news.bbc.co.u...ess/8286028.stm

**** ****** ***** It's just going to be worse in the long run :rolleyes:

The question is though, how long is it going to take? How long are peoples/families lives put on hold?

For some people who thought it was about to be all over, it must be bloody gut wrenching!

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The question is though, how long is it going to take? How long are peoples/families lives put on hold?

For some people who thought it was about to be all over, it must be bloody gut wrenching!

****** it. Not worth getting that worried about renting for longer, even permanently if it stays the sensible choice and maybe your children can buy. I am far happier in that position than if i was the proud owner of a whacking great mortgage at this point. We are going to drop off a cliff fairly soon i'm feeling sure.

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90% Mortgages are available for FTBs @ rates of 5.99% now

Interestingly about the same sort of deal you would have got 10 or 11 years ago before HPI went silly. The mortgage market is loosening, approvals are rising, the signs are there for those that will see them, the next crash, and it will probably be a big one is due in about 2019

Or maybe not

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those bbc charts are awful, impossible to read, even if you're fairly educated/clever, so goodness knows what the ignorant masses must make of them.

why can't they just show the price?

and what does "2008 prices" mean? 2008 was, by far, the worst year for house prices on record. The beginning and the end of 2008 were miles apart.

the bare facts are that:

(1) halifax says we're back to december 08 prices, i.e. a little less than 20% from peak; and

(2) NW says that we're back to , what, well, obviously september 08 prices, i.e. a little less than 15% from peak.

the BBC numbers are hopelessly confusing.

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We're not bothering until we can pay for it outright now.

same here now, i'll keep putting money aside until house prices come down or the savings go up to meet. but by then i don't know if i'd want to sink all my money into a house anyway. a rented roof is still a roof, only difference is a renter doesn't have to pay to repair it

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No WAY is the change in house prices coming to 0% so quickly!! This is unbelievable. :(

Maybe we're all buggered... maybe we'll have to wait another decade.

It's like the old boys network... if you're in , you want to keep playing the game. How can people be so deluded and selfish - can't they see high prices are a bad thing?

Oh dear. Just imagine you own a 5 bed house with lovely views and garden down in dorset. perhaps you get it valued at say £550,000. Are you going to then sell it for £350,000 so that all the muppets on HPC.co.uk can be in with a chance??

:lol::lol::lol::lol::lol::lol:

Ah, I love it. I keep promising not to waste any more time reading this site but its worth it for the comedy factor alone.

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House Prices back to 2008 levels SHAME NOTHING ELSE IS ?

So how does that work......

Stephanie Flanders, the BBC's economics editor TODAY House Prices Too Good to Be True?

The more fundamental reason why prices might start falling again is that, by most measures, they are still significantly over-valued.

That's the IMF's conclusion in its latest World Economic Outlook, out yesterday. It says the typical housing boom lasts six years and sees house prices in real terms go up by about 50%. Downturns last five years, during which time house prices in real terms fall about 24%.

So what might happen if:

Taking the Nationwide’s figures, the 1997 to 2007 boom saw prices rise by 147 per cent in real terms. Within that, prices rose 76 per cent between 2001 and 2007

Telegraph TODAY House Price Rises Unsustainable ?

Mmmmm......wonder why?

Edited by Sybil13

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****** it. Not worth getting that worried about renting for longer, even permanently if it stays the sensible choice and maybe your children can buy. I am far happier in that position than if i was the proud owner of a whacking great mortgage at this point. We are going to drop off a cliff fairly soon i'm feeling sure.

THE END IS NIGH!!! THE END IS NIGH!!! REPENT, ALL MUST REPENT!!!

:lol::lol::lol::lol::lol::lol::lol::lol:

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those bbc charts are awful, impossible to read, even if you're fairly educated/clever, so goodness knows what the ignorant masses must make of them.

why can't they just show the price?

and what does "2008 prices" mean? 2008 was, by far, the worst year for house prices on record. The beginning and the end of 2008 were miles apart.

the bare facts are that:

(1) halifax says we're back to december 08 prices, i.e. a little less than 20% from peak; and

(2) NW says that we're back to , what, well, obviously september 08 prices, i.e. a little less than 15% from peak.

the BBC numbers are hopelessly confusing.

(1) halifax says we're back to december 08 prices, i.e. a little less than 20% from peak; and

AND 35% down if you are remortgaging :

Times

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Guest DissipatedYouthIsValuable

Oh dear. Just imagine you own a 5 bed house with lovely views and garden down in dorset. perhaps you get it valued at say £550,000. Are you going to then sell it for £350,000 so that all the muppets on HPC.co.uk can be in with a chance??

:lol::lol::lol::lol::lol::lol:

Ah, I love it. I keep promising not to waste any more time reading this site but its worth it for the comedy factor alone.

I know someone in this position who has an interest only mortgage which goes on into his retirement and takes 70% of his take home pay.

I know for sure I couldn't live like that.

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****** it. Not worth getting that worried about renting for longer, even permanently if it stays the sensible choice and maybe your children can buy. I am far happier in that position than if i was the proud owner of a whacking great mortgage at this point. We are going to drop off a cliff fairly soon i'm feeling sure.

If mortgages are unaffordable, how long before rents are, as well?

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Guest DissipatedYouthIsValuable

Now it's actually starting to sink in with you that there won't be a house price crash I don't feel like gloating.

I feel sorry for the young FTB's but they are only having the same as when I bought my first house.

I remember being on 10k a year and having to get my boss to say I was earning 20k so we could get the mortgage. Everyone has always done it.

You'll get there in the end.

It's the idiots on here I'm angry at. The ones who made you believe you would be getting a £200,000 house for £50,000.

Shame on them.

Problem is they still won't shut up harping on about 90% drops. I'd love to hear how that's going to happen. I thought by September 2009 everyone would be eating tinned food and a public revolt taken place. :lol:

Ability to pay is still declining.

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Meanwhile my employer is making redundancies left, right and centre and there's no way any of us left are going to saddle ourselves with a mortgage until that threat is over.

Multiply that across the country, add in the shock to public sector workers' confidence coming next year, and I don't think there's going to be many takers for these rising prices.

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Guest Dizzy Rash Call

Now it's actually starting to sink in with you that there won't be a house price crash I don't feel like gloating.

I feel sorry for the young FTB's but they are only having the same as when I bought my first house.

I remember being on 10k a year and having to get my boss to say I was earning 20k so we could get the mortgage. Everyone has always done it.

You'll get there in the end.

It's the idiots on here I'm angry at. The ones who made you believe you would be getting a £200,000 house for £50,000.

Shame on them.

Problem is they still won't shut up harping on about 90% drops. I'd love to hear how that's going to happen. I thought by September 2009 everyone would be eating tinned food and a public revolt taken place. :lol:

:-)

Be honest though, did you not think at one point during the past year that things could get pretty bad (banks collapsing isn't exactly a daily occurrence). The stimulus packages are finite and it has to all be paid for, granted property prices will likely not crash to the ground now.

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I know for sure I couldn't live like that.

Nor would I want to but I guess it's each to their own. Finding it all very amusing, wife & I have got an eye on a couple of new (1-2 yo) houses, both bought in 2008 and both are for sale for less than they were purchased for, guess it depends on the area, either way we will not be purchasing either until at least 25% is taken off the 2008 purchase price. Life is too short to tie ourselves to a massive debt, enjoy life, hence another car (that makes 4):

20090903105536_puma_black.jpg

post-1579-12544915218644_thumb.jpg

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Meanwhile my employer is making redundancies left, right and centre and there's no way any of us left are going to saddle ourselves with a mortgage until that threat is over.

Multiply that across the country, add in the shock to public sector workers' confidence coming next year, and I don't think there's going to be many takers for these rising prices.

I think it's still going to be bank of mum and dad supporting this. The dumb asses who think they have to jump on now before it's too late :o Round 2 is going to be more more decisive.

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... I feel sorry for the young FTB's but they are only having the same as when I bought my first house....

No, Sibley, dear, that is not correct at all. Houses now are less unaffordable on average then they have almost ever been when you divide the average house price by the average wage. Unless you were buying your first house in 1989-1990 [which I suppose is possible - if so you must have noticed that you had a much better job than the other people in your street] they are far more expensive now than ever before.

It's unbelievable that you have posted nearly a thousand times on here and still understand literally nothing more than "me... like... high... house... prices". What standard of education did you reach, if you don't mind me asking?

Edited by the flying pig

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No, Sibley, dear, that is not correct at all. Houses now are less unaffordable on average then they have almost ever been when you divide the average house price by the average wage. Unless you were buying your first house in 1989-1990 [which I suppose is possible - if so you must have noticed that you had a much better job than the other people in your street] they are far more expensive now than ever before.

It's unbelievable that you have posted nearly a thousand times on here and still understand literally nothing more than "me... like... high... house... prices". What standard of education did you reach, if you don't mind me asking?

FP - we found he was Britian's stubbornest man some time ago. Don't bother (and I think you mean "less affordable").

Put it this way, his IQ's probably AFM (Average For Maidstone).

His avowed wish, and forecast, is to cash his work-free equity in and emigrate to Thailand.

No sign of that yet.

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Put it this way, his IQ's probably AFM (Average For Maidstone).

:lol: When i worked in Swindon some time ago i inevitably came up with NFS (normal for swindon)

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