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House Price Gloom Moves Up A Gear

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By Roland Gribben

Last Updated: 8:44AM BST 26/04/2011

Confidence in the housing market is continuing to fall and is now at its lowest point since the election, according to property website findaproperty.com.

Results from its March survey covering 1,000 people showed 42pc feel house prices will fall further in the months ahead and only 11pc are looking for an improvement.

The figures represent the latest pitch down in expectations among the British public after the same survey in February found that 39pc expected prices to fall and 10pc were forecasting an improvement.

The data also highlights the extent to which public confidence in the UK economy has fallen over the last year as the austerity cuts and unemployment have taken their toll. In May 2010, a recent highpoint for optimism about the UK housing market, just 16pc of respondents expected prices to fall in the months ahead, compared with 36pc looking for an increase.

Samantha Baden, a property analyst with the website, said: "Since the election the news has been dominated by talk of spending cuts, job losses and inflation. It's not surprising that this gloominess has percolated through to people's everyday lives.

"The number of property transactions is significantly up on where it was at the bottom of the market a couple of years ago. However, our barometer clearly shows that property hunters are proceeding with caution."

http://www.telegraph.co.uk/finance/economics/houseprices/8472296/House-price-gloom-moves-up-a-gear.html

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I think I may be beginning to understand what the media mean by 'austerity cuts'. I think they are conflating it with cuts to disposable income. After all, a majority would feel better if there were cuts to government spending and their taxes. Not saying which is right - just trying to work out what on earth the media keep going on about and why people feel worse.

I'm pretty sure nobody's proposing tax cuts for the majority of taxpayers.

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I think I may be beginning to understand what the media mean by 'austerity cuts'. I think they are conflating it with cuts to disposable income. After all, a majority would feel better if there were cuts to government spending and their taxes. Not saying which is right - just trying to work out what on earth the media keep going on about and why people feel worse.

I'm beginning to wonder if there is any meaning to the word "austerity" when used by the coaltion.

Cutting 3% a year off spending is hardly austere is it? Try cutting 10% a year (boob jobs on the NHS, sky tv for prisoners, £150k for a head teacher etc. etc.).

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I'm beginning to wonder if there is any meaning to the word "austerity" when used by the coaltion.

Cutting 3% a year off spending is hardly austere is it? Try cutting 10% a year (boob jobs on the NHS, sky tv for prisoners, £150k for a head teacher etc. etc.).

Just a drop in the ocean..... as said there are tons of way to save money. Move housing benefit down to the 5th percentile instead of 30th.

Outsource prisons to Iraq.

Implement arms length laws for government procurement. Which will prevent the rampant widescale corruption whereby people get to sell £5000 light bulbs to the government as they are best mates with the head of the dept. In HK a bloke merely mentioned that his cousin was the chancellor of HK to curry favor and was reported to the ICAC. This should save billions a year. Make the auditors who enforce this be rewarded with performance related pay to encourage them to root through the finances of councils.

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At the weekend I was at a BBQ and the inevitable house price topic reared its ugly head. What surprised me was the porsche driver who admitted he was worried about the lack of equity in his home. Especially so as he moved to his present address in 2001 so he should be insulated from any recent drops. My only thought was that he'd MEWed a lot and now can sense the tide turning.

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At the weekend I was at a BBQ and the inevitable house price topic reared its ugly head. What surprised me was the porsche driver who admitted he was worried about the lack of equity in his home. Especially so as he moved to his present address in 2001 so he should be insulated from any recent drops. My only thought was that he'd MEWed a lot and now can sense the tide turning.

Porsche driver? Bought house in 2001? Worried about how much equity in his property?

Join the dots!

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Porsche driver? Bought house in 2001? Worried about how much equity in his property?

Join the dots!

It will be great when the HPC does start to watch this kind of twit get their just deserts. :lol:

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I think this plum just got a dose.

MSE Link

:lol:

I think that the majority of the public have a very optimistic view of property due to the fact that the market has been propped up for so long.

I could tell that the conversation on property at the weekend would have ended with demands that more be done to support HPI. :blink:

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It will be great when the HPC does start to watch this kind of twit get their just deserts. :lol:

What amazes me is that people on a website called housepricecrash don't realise house prices have already crashed 25-35 % in real terms.

The HPC started 3+ years ago and prices have been pretty much dropping in real terms ever since. We are living the HPC. This is it.

It's a slow process, Porsche man might loose his job, might inherit some money, might get a bug bonus, might get a pay cut. etc etc etc, i.e. the HPC will affect everyone differently.

But make no bones about it, the HPC is well under way. Perhaps you are waiting for the mass repossessions, they might not come, prices might decline over 20 years, meaning we're still at the start of the crash....when and what you buy is up to you and your ability to buy something with credit, cash, assets or equity, how patient you are, how much research you do, how lucky you are and how well you negotiate.

If you're waiting for the crash to start, I think you have missed something. :rolleyes:

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What amazes me is that people on a website called housepricecrash don't realise house prices have already crashed 25-35 % in real terms.

It could be because for 'real terms' to be real, they need to have some relationship to earnings and on that score, the correction is still a long way off.

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I'm beginning to wonder if there is any meaning to the word "austerity" when used by the coaltion.

Cutting 3% a year off spending is hardly austere is it? Try cutting 10% a year (boob jobs on the NHS, sky tv for prisoners, £150k for a head teacher etc. etc.).

Non-essential Plastic surgery on the nhs is being ditched, and about time too.

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It could be because for 'real terms' to be real, they need to have some relationship to earnings and on that score, the correction is still a long way off.

Granted.

Im sure some train drivers/teachers ( 1000 headmasters on 100K + ), bus drivers etc have been getting RPI linked wage increases ( wholly unsustainable as far as I am concerned, but they're getting them ).

So for them, the crash is well under way.

We have to work on averages when dealing with "the crash".

Everyone's experience of the crash will be different.

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It could be because for 'real terms' to be real, they need to have some relationship to earnings and on that score, the correction is still a long way off.

I tried to explain this in terms of 'how many loafs of bread is your house worth compared to 2007' to a work colleague. The look of utter blankness was a picture i will not forget in a hurry.

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I tried to explain this in terms of 'how many loafs of bread is your house worth compared to 2007' to a work colleague. The look of utter blankness was a picture i will not forget in a hurry.

That was the realisation that he was short of a loaf. :)

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I overheard a group of women talking in the office today, one was boasting that she had "just found a mug buyer for her btl" but her house was still on the Market, another one was asking the others if she should sell her house and they all agreed it was a good idea, the other one said she had just had an offer on a house excepted but was going to pull out because she had seen better value houses and housing was falling sharply so she didn't want to be "anywhere near property right now". Anyway turned out woman 3 was buying woman 1s house and ended up in a full scale argument ("you have to buy the house", "i dont have to buy anything", "your such a bitch" blah blah blah sort of thing) and I thought at one point it was going to get physical - all quality watching with my yogurt over lunch.

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What amazes me is that people on a website called housepricecrash don't realise house prices have already crashed 25-35 % in real terms.

The HPC started 3+ years ago and prices have been pretty much dropping in real terms ever since. We are living the HPC. This is it.

It's a slow process, Porsche man might loose his job, might inherit some money, might get a bug bonus, might get a pay cut. etc etc etc, i.e. the HPC will affect everyone differently.

But make no bones about it, the HPC is well under way. Perhaps you are waiting for the mass repossessions, they might not come, prices might decline over 20 years, meaning we're still at the start of the crash....when and what you buy is up to you and your ability to buy something with credit, cash, assets or equity, how patient you are, how much research you do, how lucky you are and how well you negotiate.

If you're waiting for the crash to start, I think you have missed something. :rolleyes:

The effect of the budget savings may has an impact in my area it's the HPC that we need in my area of the south east. You could tell from the tone of the conversation the fear is there, we just need to see some proper drops.

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Just a drop in the ocean..... as said there are tons of way to save money. Move housing benefit down to the 5th percentile instead of 30th.

Outsource prisons to Iraq.

Make the auditors who enforce this be rewarded with performance related pay to encourage them to root through the finances of councils.

You remember those 'Wanted, dead or alive' posters of yesteryear?

The idea being that any member of the public could chance their life at catching dangerous bandits.

Could we not have a similar system for accountants. They could trawl through public finances and get huge Bankster like rewards.

They could also check banksters finances and be rewarded 200% for everything wrong that they turn up. The rewards to be paid by the banks of course.

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Gloom? Something else to read to give some hope, considering there has been very little 'good news' recently.

Buyers and sellers locked in stand-off over house prices

By Lauren Thompson

Last updated at 12:13 AM on 27th April 2011

http://www.dailymail.co.uk/money/article-1380858/Buyers-sellers-locked-stand-house-prices.html

I like Shipside's final comments but he's been saying the same for 2 years now. The message needs to get through to sellers and estate agents.

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I think this plum just got a dose.

MSE Link

:lol:

Always a pleasure reading threads like that on MSE: a nice dose of reality for the masses.

#22 DannyboyMidlands Yesterday, 5:00 PM

Like I say, nobody has a crystal ball but that'd [5 years] be my guesstimate. I have friends who have been waiting since 2008 for things to "return to normal" so that they can sell. They're still waiting and every year prices are lower than the year before. They even knocked back an offer of £4k under the £140k asking price back in 2009. And anyway, what is normal? Prior to the crunch my dog could have got a mortgage, it was that easy. The boom wasn't normal it was collective delusion.

But at least the penny dropped...

#34 HJS86 Yesterday, 10:36 PM

We'll stick it out for a while I guess. Is so disheartening when all our friends are moving, (two last week and one in the next couple of months) because instead of getting on the ladder straight away like everyone told us all to, they rented at really high prices, but now have been able to take advantage of this brilliant buyers market without the headache of selling something that's worth tuppence compared to what we paid for it.

Better to rent at what you consider to be "high prices" (compared to what - buying :blink: ??), my dear, than to purchase an over-priced, lavishly decorated slave-box that you will likely be trapped in for the next 5+ years and on which you will still make a loss.

If only you'd made the decision for yourself... yet here you are again asking others what they think. My advice: drop the price, take the hit and GTFO ASAP. You can rent a nice 2 or 3 bedroom house and get on with your life (see how the VI mantra can work both ways?) while saving for somewhere that you can actually afford to buy... and indeed sell.

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I overheard a group of women talking in the office today, one was boasting that she had "just found a mug buyer for her btl" but her house was still on the Market, another one was asking the others if she should sell her house and they all agreed it was a good idea, the other one said she had just had an offer on a house excepted but was going to pull out because she had seen better value houses and housing was falling sharply so she didn't want to be "anywhere near property right now". Anyway turned out woman 3 was buying woman 1s house and ended up in a full scale argument ("you have to buy the house", "i dont have to buy anything", "your such a bitch" blah blah blah sort of thing) and I thought at one point it was going to get physical - all quality watching with my yogurt over lunch.

Awesome :)

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  • 311 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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