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rantnrave

Housing Price 'double Dip' Warning

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An equity release firm has warned that a double-dip recession in house prices could be on the cards.

Bridgewater Equity Release has urged advisers to tone down their assumptions over future levels of house price inflation when selling products, which allow people to take equity out of their properties to use as income.

The specialist provider said too many advisers have been too bullish when it comes to making their own house price predictions, resulting in borrowers being recommended potentially unsuitable lifetime mortgage products.

Full article here

Edited by rantnrave

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Let's hope articles like this mean the word is spreading that houses as investments, are not a one way bet.

Aye. I've posted a lot over on EA Today about other 'options' that have produced much better returns than houses in recent years, why inflation is an important factor in assessing rate of returns on property etc etc. For several weeks I posted links there to articles from investor type magazines saying that UK house prices were not a wise buy right now. It took a lot of those to see off posts inferring that as soon prices dropped BTLers would swoop from on high and take all the property before HPCers got there and that HPCers were just pushing for lower prices so they could snap up BTLs etc etc. Don't see posts like that over there any more.

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I think one look at the the land registry chart proves conclusively that a double is in progress. The thing is this one will much deeper than the first.

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Surely prices would need to have dipped once before experiencing the second 'dip'.

When was the initial 'dip'?

As below. The dip in volumes can`t be fudged, and without people being able to sell there is no market. A crash is the only possible outcome?

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Aye. I've posted a lot over on EA Today about other 'options' that have produced much better returns than houses in recent years, why inflation is an important factor in assessing rate of returns on property etc etc. For several weeks I posted links there to articles from investor type magazines saying that UK house prices were not a wise buy right now. It took a lot of those to see off posts inferring that as soon prices dropped BTLers would swoop from on high and take all the property before HPCers got there and that HPCers were just pushing for lower prices so they could snap up BTLs etc etc. Don't see posts like that over there any more.

There are 3 houses for sale in my street, Leeds student/young prof renter-ville, largely similar terraced houses - the base price seems set by one that sold before chistmas at 90k, the ones on the street are on for 120k, 130k and 160k (last ons is bigger but still looks way overpriced)

we get BTLr looking types (blokes in 30s to 50s with clipboards and cameras) regularly snooping around them checking them out, and there is no sign any of them are being snapped up

just can't get the finance, is my guess, there seems real BTL demand out there, I suspect they don't understand that the yields are poor, but I suspect the banks HAVE sniffed the yields and refused to lend, my guess anyway

Edited by Si1

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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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