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House Prices In The Red Until 2020, Warns Pwc

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Just heard someone from pwhc talking about it. Not only did he say levels of borrowing on housing was not good for the country, he also said that he had been renting for the last 4 years!

Own up, who are you? Are you really workin for phwc, or did you just hang around the studios waiting to be mixed up with someone else?

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From the Reuters story on the RICS survey :

In a separate study published Tuesday, professional services firm PWC said it saw only a 12 percent chance that real house prices would match their 2007 peak by 2015, and only a 50 percent chance of prices exceeding 2007 levels by 2020.

http://uk.reuters.com/article/2011/07/12/uk-britain-housing-rics-idUKTRE76A7GQ20110712

They are basically telling us that housing will be "dead money" for the next 5 to 10 years at least. I am not sure that the general public or the economy are ready for this.

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This implies most will be on low wage rises and possible wage freezes for an extended period (public sector). This will mean compounded standard of living falls because the BOE/MPC are clear that they will ignore general CPI. Obviously it's a green light to firms that have the ability to pass on price rises.

Anyone that can raise their wage with inflation they will be laughing!

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Why are they expecting real house prices to exceed previous levels at all? Are PWC saying that there is an even bigger bubble looming in 9 years' time? Or are they just making it up?

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<br />Just heard someone from pwhc talking about it. Not only did he say levels of borrowing on housing was not good for the country, he also said that he had been renting for the last 4 years!<br /><br />Own up, who are you? Are you really workin for phwc, or did you just hang around the studios waiting to be mixed up with someone else?<br />
<br /><br /><br /><br /><br />And some blatant scaremongering from BBC's Simon Jack this morning about the perils of renting and that you can be kicked out by a landlord at any time with young kids in tow, and that general consensus was for FTB to buy at all costs!  Unless there was some reverse psychology going on there by our Simon.  <br /><br />I think we should know if he's got a VI.  Does he own/rent out property? Edited by bomberbrown

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Why are they expecting real house prices to exceed previous levels at all? Are PWC saying that there is an even bigger bubble looming in 9 years' time? Or are they just making it up?

No doubt highly qualified academics have helped to prepare the report, in no way shape or form will this report have been completely made. Lucky for the economy another bubble is looming even before this bubble has burst.

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<br /><br /><br /><br /><br />And some blatant scaremongering from BBC's Simon Jack this morning about the perils of renting and that you can be kicked out by a landlord at any time with young kids in tow, and that general consensus was for FTB to buy at all costs!  Unless there was some reverse psychology going on there by our Simon.  <br /><br />I think we should know if he's got a VI.  Does he own/rent out property?

my landlady has very sensibly just put our house up for sale, we have a 2 year old and another on the way, we don't know what to do for schools applications because we don't know where we'll be. It's a hassle. Would i sleep better changing this hassle for having massive debt on a falling asset at a time like this? Not likely :D

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I just heard the story on R4, with Evan underlying the point that we shouldn't see +/- HPI as good/bad news. He could have gone further, and to be fair the man from PWC said these were "good news".

Refreshing, until another beard stepped up and wheeled out the old shortage myth.

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This implies most will be on low wage rises and possible wage freezes for an extended period (public sector). This will mean compounded standard of living falls because the BOE/MPC are clear that they will ignore general CPI. Obviously it's a green light to firms that have the ability to pass on price rises.

Anyone that can raise their wage with inflation they will be laughing!

merv_1771184b.jpg

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This report is meaningless and doesn't make sense at any level.By saying that "real" prices may still be below 2007 levels in 2020 what thery are saying is that the £200k average,compounded up for 13 years will be lower.Well of course it will.Todays £160k only corresponded to about £140k in 2007 after allowing for inflation.So by 2020 they are going to need to be in the £350k area to be higher in real terms.

These high flyers who don't have trhe slightest grasp of maths and statistics really get my goat.

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My link

The housing market is entering 'a mini ice age', with anybody who bought between 2006 and 2008 among the biggest losers, a top firm of accountants has claimed.

It warns Britain's 18million homeowners that prices may not recover to their peak levels for more than a decade.

The report, from Pricewaterhouse Coopers, says there is a 'near 50 per cent chance' that prices will still be underwater in 2020, when adjusted for inflation.

At the price peak in 2007 the cost of the average property was just under £200,000.

But the same home is currently worth £160,000, a fall of £40,000, equal to 20 per cent of the property's value at the peak.

Bear food...yum yum

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Just heard someone from pwhc talking about it. Not only did he say levels of borrowing on housing was not good for the country, he also said that he had been renting for the last 4 years!

Own up, who are you? Are you really workin for phwc, or did you just hang around the studios waiting to be mixed up with someone else?

I saw that. Nearly choked on my toast! It was all very bearish, except for stating that big institutions/pension funds should get involved in the BTL market to make renting more stable for the longer term - no doubt this is the grand plan, hence the recent stamp duty change from the sum of a portfolio, to the avg price.

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I just heard the story on R4, with Evan underlying the point that we shouldn't see +/- HPI as good/bad news. He could have gone further, and to be fair the man from PWC said these were "good news".

Refreshing, until another beard stepped up and wheeled out the old shortage myth.

BBC Website: Today programme spot, "Slow house price recovery 'could be a good thing'".

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Why are they expecting real house prices to exceed previous levels at all? Are PWC saying that there is an even bigger bubble looming in 9 years' time? Or are they just making it up?

this is the salient point. The only way real house prices can rise is if there is some structural change to the housing market.

However, in the name of innovation I'm sure they are working on it as we speak.

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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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