Realistbear Posted January 16, 2011 Report Share Posted January 16, 2011 http://uk.finance.yahoo.com/news/UK-housing-market-get-tougher-tele-1148940402.html?x=0 UK housing market to get tougher for first-time buyers Louisa "Weezy" Peacock, 19:59, Sunday 16 January 2011 Housing affordability is at near-record levels, new figures show, However first-time buyers will find it increasingly hard to join the property ladder this year. Mortgage lending is "tighter now than it was six months ago", an economic consultancy has warned. The prospect of buying a house will also become more daunting if, as is widely expected, the Bank of England "will start raising interest rates" this year, putting further strain on the cost of living, the consultancy warned. The latest housing affordability index, published by Lombard Street Research (LSR) in conjunction with The Daily Telegraph , shows house prices are at their most undervalued level since the mid-1990s. Houses may be down 20% from peak but they are not down 60% to where they were before the Brown years of the worst out of control house prices we have ever known. Most sane observers of the market would say that at an average price well north of £170k houses are extremely UNAFFORDABLE for FTBs and most other people on average wages. What a lod of crap these fools publish thinking they are going to stimulate a dying market. Quote Link to post Share on other sites
maxdiver Posted January 16, 2011 Report Share Posted January 16, 2011 I'm sure their research is correct. Prices may be higher than before 2004 - but the cost of money is much lower. If interest rates were to rise, then affordability is reduced. Quote Link to post Share on other sites
Pent Up Posted January 16, 2011 Report Share Posted January 16, 2011 House prices undervalued? You what? Are they talking about low interest rates making mortgage payments lower because there is no way in hell house prices are undervalued! Quote Link to post Share on other sites
lulu Posted January 16, 2011 Report Share Posted January 16, 2011 House prices undervalued? You what? Are they talking about low interest rates making mortgage payments lower because there is no way in hell house prices are undervalued! Well I am conviced I will be out there tomorrow over bidding for any property that takes my eye - as will any other savvy buyers.... Quote Link to post Share on other sites
cica Posted January 16, 2011 Report Share Posted January 16, 2011 Housing affordability is at near-record levels, new figures show, However first-time buyers will find it increasingly hard to join the property ladder this year. Stupid usage of the word affordable. Got to take EVERYTHING into account to measure affordability. Quote Link to post Share on other sites
Pent Up Posted January 16, 2011 Report Share Posted January 16, 2011 Stupid usage of the word affordable. Got to take EVERYTHING into account to measure affordability. House are only at record low affordability if you already own one... Quote Link to post Share on other sites
Tiger Woods? Posted January 16, 2011 Report Share Posted January 16, 2011 http://uk.finance.yahoo.com/news/UK-housing-market-get-tougher-tele-1148940402.html?x=0 UK housing market to get tougher for first-time buyers Louisa "Weezy" Peacock, 19:59, Sunday 16 January 2011 Housing affordability is at near-record levels, new figures show, However first-time buyers will find it increasingly hard to join the property ladder this year. Mortgage lending is "tighter now than it was six months ago", an economic consultancy has warned. The prospect of buying a house will also become more daunting if, as is widely expected, the Bank of England "will start raising interest rates" this year, putting further strain on the cost of living, the consultancy warned. The latest housing affordability index, published by Lombard Street Research (LSR) in conjunction with The Daily Telegraph , shows house prices are at their most undervalued level since the mid-1990s. Houses may be down 20% from peak but they are not down 60% to where they were before the Brown years of the worst out of control house prices we have ever known. Most sane observers of the market would say that at an average price well north of £170k houses are extremely UNAFFORDABLE for FTBs and most other people on average wages. What a lod of crap these fools publish thinking they are going to stimulate a dying market. Does anyone ever swallow this crap? Quote Link to post Share on other sites
billybong Posted January 16, 2011 Report Share Posted January 16, 2011 Housing's now having to compete walletwise with all the other essentials. Petrol has never been so expensive, lots of food has gone up in price by 20% "because of the VAT increase" (they will say anything and oh yes I so believe 'em ), public transport, clothing is getting more and more expensive and as for heating costs just to keep warm - you mention it it's gone up and likely their tax take "innovation" has hardly got into first gear. Yeah rush out and buy a house because it's so "at record levels of affordability", feel lucky. No thanks. For example if there was ever a time for downsizing to get into affordable housing and saving on heating and helping with all the other costs of living etc it's right now. Quote Link to post Share on other sites
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