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Realistbear

Vicious Housing Crash Up North-- Some Down 60% And Its Getting Worse

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http://www.telegraph.co.uk/finance/comment/jeremy-warner/8464483/The-other-housing-market-where-house-prices-have-regressed-60pc.html

The 'other' housing market, where house prices have regressed 60pc..../
Many can neither be sold nor let. You've heard about Britain's chronic shortage of housing stock, one of the factors which allegedly underpins the value of domestic property in the UK. Well, there's little sign of it here in Newcastle and the rest of the North East. Row upon row of properties that used to house workers in the region's once proud industrial tradition of shipbuilding, coal and steel lie half boarded up or otherwise derelict.
Yet believe it or not, these very same houses and flats were until three years ago as much a part of the British property bubble as everywhere else – perhaps more so in some cases.
Over a seven year period, prices for a typical two to three bed house or flat were chased all the way up from the low teens to well in excess of £60,000. New build subject to mortgage fraud would fetch £125,000 or more. Today you'd be lucky to get half. Prices are fast regressing all the way back to where they came from before the bubble began.
Typical of this phenomenon is Benwell, located on the hillside that tumbles down to the Tyne in Newcastle's West end. A scene of grim degradation, it stands as a lasting reminder of the policy failures and illusory prosperity of Brown's Britain. Pumped up on a sea of credit, make work public expenditure and benefit payments, prices rocketed from 2000 onwards.

Coming to towns near you soon. :o

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Prices are fast regressing all the way back to where they came from before the bubble began.

Coming to towns near you soon.

Not soon enough.

And will the government be giving me back the tens upon tens of thousands I have been forced to waste, in rent?

A direct result of Government sponsored fraud, theft and incompetence?

If not, why not?

If Private business's are entitled to be bailed out, by taxpayers, why are'nt taxpayers who do not own property?

What about punitive damage's for the wasted decade, when weve been forced to put our lives on hold, paying for liar loan landlords mortgages and retirement?

Working for nothing.

Pressganged into debt slavery, by Grand Larcenists

Half a million pounds compensation, should cover me, thankyou very much.

Edited by Dan1

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before we all get misty between the legs about this, bear in mind that JW talks about Blyth, which, if you've been, looks like the less developed part of Beirut.

The crash is happening up here. Shitty flats can be had for some £30,000, but you wouldn't live there if you could sleep on a park bench.

Still, this is a very refreshing article which will no doubt stir some shit up, as I have witnessed after posting it on my facebook page with the comment (crash is ON, and yes, it's the North East)

Crucially, JW hits the nail on the head. Labour largesse has gone, and that's the main economic driver for some demographic in the North East.

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I don't understand why people ever thought that massive rises in prices in fundamentally rubbish areas would ever last.

Well, at least in a couple of years locals will once again be able to buy a little terraced house for £15000 or so......

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Disappointing that they say that the situation is the same in London in the nice areas - it is not. These were some of the worst hit areas by bubble era lending. The only problem is that many of the vendors have taken longer before feeling the pain, so they are sitting it out with over inflated asking prices.

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Disappointing that they say that the situation is the same in London in the nice areas - it is not. These were some of the worst hit areas by bubble era lending. The only problem is that many of the vendors have taken longer before feeling the pain, so they are sitting it out with over inflated asking prices.

....and record low IR enabling them to hang on that much longer.

Cuts will take another 6 months to kick in.

Edited by Realistbear

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I think the London market is a seperate market than the rest of the country. Super rich foreigners buy in London because its a great place to put money in a nation with strong property laws. Its a rainy day fund. If you were a UAE citizen with £100 million.. it would be smart to put say £10 million of that in London properties.

The Northeast on the other hand has to deal with realities on the ground. Like unemployment, supply and demand of houses, low wages, while still having to pay for transportation, food, maintenance, insurance.

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I don't think it is just London that has "escaped" falling property prices.

At worst our house is probably 5% off the absolute peak, and that is in a not that sought after area of Cambridge. In the surrounding villages I'd say you are probably 10-15% off peak but for prime Cambridge I reckon it is higher than ever. Around 7-8 years ago the first ever £1m property was sold, now there are tens of properties for that sort of price on the market - and selling.

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I don't think it is just London that has "escaped" falling property prices.

At worst our house is probably 5% off the absolute peak, and that is in a not that sought after area of Cambridge. In the surrounding villages I'd say you are probably 10-15% off peak but for prime Cambridge I reckon it is higher than ever. Around 7-8 years ago the first ever £1m property was sold, now there are tens of properties for that sort of price on the market - and selling.

For rich foreigners Cambridge has to be a great place to buy. There are also many nice smaller cities on the sea.

I've been wondering if some super rich people will buy in Wales. Its really nice in parts, but one theory is there is an oversupply of nice properties. So they might buy but it doesn't drive the prices up.

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I don't think it is just London that has "escaped" falling property prices.

At worst our house is probably 5% off the absolute peak, and that is in a not that sought after area of Cambridge. In the surrounding villages I'd say you are probably 10-15% off peak but for prime Cambridge I reckon it is higher than ever. Around 7-8 years ago the first ever £1m property was sold, now there are tens of properties for that sort of price on the market - and selling.

You can't say that until you've tried selling your house...and succeeded!

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....and record low IR enabling them to hang on that much longer.

Cuts will take another 6 months to kick in.

SMI wont work its way out of the system until the end of 2013 now either...

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Interesting comment on the error of the Nu Labour regeneration policies.

You should look at the Pathfinder scheme in Oldham. People should be sent to prison for what they've done. People in their fifties & sixties who had paid off their mortgages having perfectly good homes CPO'd. Unable to get new mortgages because they're unemployed and also because they are in their fifties. Losing their benefits because the CPO money lifts them above the threshold - likewise with pension credits, unable to get private rented accommodation because they have no job and landlords don't want HB tenants.

The whole thing is a disgrace. They've emptied out whole housing estates and boarded them up, vandals burning them, druggies using them as dens. And then cancelled it.

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Interesting comment on the error of the Nu Labour regeneration policies.

Edit: FUY already beat me too it.

Edited by PopGun

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Just as man can’t exist without his body, so no rights can exist without the right to translate one’s rights into reality—to think, to work and to keep the results—which means: the right of property.

Ayn Rand

"The right to life is the source of all rights—and the right to property is their only implementation. Without property rights, no other rights are possible. Since man has to sustain his life by his own effort, the man who has no right to the product of his effort has no means to sustain his life. The man who produces while others dispose of his product, is a slave.

Bear in mind that the right to property is a right to action, like all the others: it is not the right to an object, but to the action and the consequences of producing or earning that object. It is not a guarantee that a man will earn any property, but only a guarantee that he will own it if he earns it. It is the right to gain, to keep, to use and to dispose of material values."

Ayn Rand 1905 - 1982 American/Russian Philosopher/Novelist.

Edited by Dan1

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http://www.telegraph.co.uk/finance/comment/jeremy-warner/8464483/The-other-housing-market-where-house-prices-have-regressed-60pc.html

The 'other' housing market, where house prices have regressed 60pc..../
Many can neither be sold nor let. You've heard about Britain's chronic shortage of housing stock, one of the factors which allegedly underpins the value of domestic property in the UK. Well, there's little sign of it here in Newcastle and the rest of the North East. Row upon row of properties that used to house workers in the region's once proud industrial tradition of shipbuilding, coal and steel lie half boarded up or otherwise derelict.
Yet believe it or not, these very same houses and flats were until three years ago as much a part of the British property bubble as everywhere else – perhaps more so in some cases.
Over a seven year period, prices for a typical two to three bed house or flat were chased all the way up from the low teens to well in excess of £60,000. New build subject to mortgage fraud would fetch £125,000 or more. Today you'd be lucky to get half. Prices are fast regressing all the way back to where they came from before the bubble began.
Typical of this phenomenon is Benwell, located on the hillside that tumbles down to the Tyne in Newcastle's West end. A scene of grim degradation, it stands as a lasting reminder of the policy failures and illusory prosperity of Brown's Britain. Pumped up on a sea of credit, make work public expenditure and benefit payments, prices rocketed from 2000 onwards.

Coming to towns near you soon. :o

yeah but if you want a house in a decent area they still go for top dollar.

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Welcome to a stagnating Market with very low turnover. Shit houses in shit areas will drop..... A lot. Nice houses in nice areas won't.

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There are a LOT of not so nice estates/areas surrounding Newcastle. Benwell to the west, Walker and Byker to the east. To the north in the immediate vicinity you've got the Unis and campuses. A lot of Scottswood was recently demolished to the West, bordering on Benwell- 47 out of 50 houses on one street I remember we're boarded up.

Gateshead is another area - some of it really nice but then bits that are not so nice. The not so nice parts exploded in value - that will come down quickly as well.

Sorry perhaps more for the NE locals than anything.

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  • 312 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%



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