Jump to content
House Price Crash Forum
Sign in to follow this  
athom

Telegraph: House Prices Drop In Value By More Than Average Salary

Recommended Posts

http://www.telegraph.co.uk/finance/personalfinance/8092471/House-prices-drop-in-value-by-more-than-average-salary.html

House prices are dropping in value by more than a typical annual salary, figures by Nationwide showed today.

Britain’s biggest building society said the average price of a home dropped 0.7 per cent this month, the equivalent of £2,376 in a month.

It brings the average price of a home to £164,381, down from £166,757 in September.

House price declines 'inevitable'

If prices continue to fall, the annual rate of house price inflation would drop to between 0 per cent and -1 per cent at the end of the year, Nationwide said. It compares to a rate of growth of 5.9 per cent at the end of 2009.

It follows a drop in prices of £6,000 in September, recorded by Halifax, Britain’s largest mortgage lender.

Concerns about the economy and a greater supply of properties for sale have helped to push down prices.

Economists said the latest figures meant the key question facing the market is no longer whether house prices will fall, but rather by how much.

Ed Stansfield, chief property economist at Capital Economics, said: “The fact that house prices now appear to be on their way back down after the past year’s rather unexpected surge should not be a surprise.

“Not only is the market overvalued on most measures, but house price falls are entirely consistent with the drop in buyer enquires and mortgage approvals that we have seen in recent months. They also square with reports that lenders have begun to tighten credit standards again.”

The Bank of England has warned that obtaining a mortgage is about to become even more difficult amid fears among lenders that increasing numbers of home owners will be unable to keep up with monthly mortgage payments.

Howard Archer, chief European and UK economist at Global Insight, said: “Latest housing market data and surveys have been consistently weak, and the housing market really does not seem to have got much going for it at the moment.”

Can someone explain how 0.7% is £2376? but who cares, this in the MSM is lovely to see. Here we go :D

Share this post


Link to post
Share on other sites

They used the raw non-seasonally adjusted figure.

ah yes, pity they didn't make that clear for mere mortals, but i'll let them off considering the rest. Telegraph readers probably fairly used to more bearishness than some other papers though.

Share this post


Link to post
Share on other sites

Wait until January 2011 with the increase in VAT

Wait until April 2011 with the increase in Council Tax

Wait until April/May 2011 with the increase in Tax, NI and the beginning of reduction in benefits etc

Wait until 2012 with further increases in tax and loss of further benefits

Wait until the increased loss of jobs between 2011 and 2015

Ladies and gentlemen, HPC is here. The dead cat bounce is over.

For those amateur BTLetters your time has come, a sunset industry. Good riddance and good bye to you.

For those who have waited patiently with your deposits and STR's I salute you

For the aged who wish to downsize I am sorry over your timing.

For the bankers who lent monies to those you knew who couldn't ever repay I curse you

For those who mewed, it's a tough world.

For those who lose their jobs, incomes and homes through no fault of your own I pray for you.

Oh how I loathe those Politicians of all colours who believed house price increases were a good thing, participated and encouraged their friends to join the band wagon. You stupid stupid people.

Share this post


Link to post
Share on other sites

That is a pretty meaningless statistic...

How long has it been since wages and the average house price had any real correlation?

Wage inflation has not kept up with housing inflation.

If there was any real relationship, then we SHOULD be seeing people forking out 80-95% of their take home pay on mortgage debt repayment because of the 'wage/housing cost' ratio; but clearly most are not.

For now, we live in a UK with 'homeowners' paying very expensive rent undersigned with damning life long legal obligations if you falter, especially as good whack of folk will NEVER own a property free and clear, simply because they will never accumulate the capital during their working lives to pay off the loan + interest.

How is this any good for the nation?

Dumb.

Share this post


Link to post
Share on other sites

Wait until January 2011 with the increase in VAT

Wait until April 2011 with the increase in Council Tax

Wait until April/May 2011 with the increase in Tax, NI and the beginning of reduction in benefits etc

Wait until 2012 with further increases in tax and loss of further benefits

Wait until the increased loss of jobs between 2011 and 2015

Ladies and gentlemen, HPC is here. The dead cat bounce is over.

For those amateur BTLetters your time has come, a sunset industry. Good riddance and good bye to you.

For those who have waited patiently with your deposits and STR's I salute you

For the aged who wish to downsize I am sorry over your timing.

For the bankers who lent monies to those you knew who couldn't ever repay I curse you

For those who mewed, it's a tough world.

For those who lose their jobs, incomes and homes through no fault of your own I pray for you.

Oh how I loathe those Politicians of all colours who believed house price increases were a good thing, participated and encouraged their friends to join the band wagon. You stupid stupid people.

Well said!

Share this post


Link to post
Share on other sites

What does 'seasonally adjusted' actually mean in practice? By how much do they 'adjust' it, and for what reason(s)?

I've pondered this. Autumn is traditionally a good month (so the EAs tell us) for house sales. Seasonally adjusting should therefore limit any rise and exaggerate any downturn? When will this turn around so that a fall of a grand is seasonally adjusted to a fall of 1.5%. Anybody out there more in the know here?

Share this post


Link to post
Share on other sites

That is a pretty meaningless statistic...

How long has it been since wages and the average house price had any real correlation?

The relevance is to us wanting to see price falls to affordable levels. Surely anyone considering buying at these prices and thereby continuing the madness will surely think twice before signing up to lose the equivalent of their annual salary. Even the thickest of us should be able to work it out in those terms and know to wait it out. The correlation was well used on the way up as well so good to see the boot on the other foot.

Share this post


Link to post
Share on other sites

The relevance is to us wanting to see price falls to affordable levels. Surely anyone considering buying at these prices and thereby continuing the madness will surely think twice before signing up to lose the equivalent of their annual salary. Even the thickest of us should be able to work it out in those terms and know to wait it out. The correlation was well used on the way up as well so good to see the boot on the other foot.

You've obviously not worked in MY office, which is funny because ALL of the staff bar the youngest ones craggie and Jase bought at the peak or are BTLers. I feel sorry for Jase though as he went 100% in 2008, but merely because his is about to become a father and his house was overpriced and falling apart... might gift him a wood burning stove though.

Share this post


Link to post
Share on other sites

You've obviously not worked in MY office, which is funny because ALL of the staff bar the youngest ones craggie and Jase bought at the peak or are BTLers. I feel sorry for Jase though as he went 100% in 2008, but merely because his is about to become a father and his house was overpriced and falling apart... might gift him a wood burning stove though.

I refer you to the post by Protect Rural England

Share this post


Link to post
Share on other sites

Wait until January 2011 with the increase in VAT

Wait until April 2011 with the increase in Council Tax

Wait until April/May 2011 with the increase in Tax, NI and the beginning of reduction in benefits etc

Wait until 2012 with further increases in tax and loss of further benefits

Wait until the increased loss of jobs between 2011 and 2015

Ladies and gentlemen, HPC is here. The dead cat bounce is over.

For those amateur BTLetters your time has come, a sunset industry. Good riddance and good bye to you.

For those who have waited patiently with your deposits and STR's I salute you

For the aged who wish to downsize I am sorry over your timing.

For the bankers who lent monies to those you knew who couldn't ever repay I curse you

For those who mewed, it's a tough world.

For those who lose their jobs, incomes and homes through no fault of your own I pray for you.

Oh how I loathe those Politicians of all colours who believed house price increases were a good thing, participated and encouraged their friends to join the band wagon. You stupid stupid people.

Good post. :)

Share this post


Link to post
Share on other sites

Wait until January 2011 with the increase in VAT

Wait until April 2011 with the increase in Council Tax

Wait until April/May 2011 with the increase in Tax, NI and the beginning of reduction in benefits etc

Wait until 2012 with further increases in tax and loss of further benefits

Wait until the increased loss of jobs between 2011 and 2015

Ladies and gentlemen, HPC is here. The dead cat bounce is over.

For those amateur BTLetters your time has come, a sunset industry. Good riddance and good bye to you.

For those who have waited patiently with your deposits and STR's I salute you

For the aged who wish to downsize I am sorry over your timing.

For the bankers who lent monies to those you knew who couldn't ever repay I curse you

For those who mewed, it's a tough world.

For those who lose their jobs, incomes and homes through no fault of your own I pray for you.

Oh how I loathe those Politicians of all colours who believed house price increases were a good thing, participated and encouraged their friends to join the band wagon. You stupid stupid people.

Yes, very well put - I can't help but hear "Land of Hope and Glory" in my head as I read this!!

Share this post


Link to post
Share on other sites

roller-coaster-12.jpg

Here's a little HPC MUST DO

I think a prize should be awarded for the best similar roller coaster picture of someone wearing an HPC tshirt eating popcorn. tshirt declaring "LIAR LOANS" in a large red font would be an acceptable alternative.

Share this post


Link to post
Share on other sites

For the aged who wish to downsize I am sorry over your timing.

Very good post, but i disagree slightly with this point. Timing may have denied downsizers the opportunity to profit from something for nothing.

When they bought their houses, it would have been unreasonable of them to assume they would be downsizing at the peak of a bubble. Its not as if they had planned carefully for this, and if they did, they wanted something for nothing and got nothing.

The truth is that there has been a 3 year window of opportunity for downsizers. If they havent taken it (and they didnt get something for nothing) they have nothing to grumble about.

Apart from that, a very good post.

Edited by Caveat Mortgagor

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.