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stay calm and just sit back


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It was great to hear that there was a 2% fall in the asking prices for new homes .. :). One point which i picked upon in the report was the fact that supply had increased. That is such a good sign.

To all the bears, just relax and don't carried away with the figures. It's only one months statistics, and a true picture can only be developed once the figures for a few months have been complied.

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I have to agree.

In the poorest part of Cornwall prices have trebled in the last four years easily. It doesn't seem to show on the statistics, but having lived here I know.

I still live in the same rented 2 up 2 down tiny cottage that I did in 1997. Only back then it was me and my partner, now we have three kids as well (but that isn't the market's fault). We all fit in the house since us parents got rid of most of our possessions, books, records, furniture etc).

My ambition was to get a fallen down old house with a couple of acres, back then lots were available and for next to nothing, so I could carry on my small business growing organic salads, veg and fruit.

When the prices started taking off this went out of the window so I retrained into accounting and got a good job, thinking that we could get a place at least then get back to farming later.

We worked hard to get better jobs and have saved a deposit all this time only to see the kind of housing we need move further and further out of reach.

Rents as well as prices have gone out of control so moving to another larger rented property would mean no more saving and cutting back on spending.

Sometimes we get depressed and angry about this but know full well that our time will come, and we'll make sure we don't get caught out again by learning about economies and credit and stuff first. They should teach it in schools don't you think?

Holiday homes, buy to let, second homes, shared equity, 'affordable' shoe boxes for £175,000...its all a big joke but I'm not laughing. :D

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yes, those are fair points which you make and i do share your frustration. The whole thing is just greed gone crazy........................

Different parts of the country exeperience different situtations. Here in birmingham, prices have also been stupid, but i do think that there will be a correction up here. i have definalely seen the weekly property papers becoming thicker.

All i can say is i hope that one day people will be able to get away from this greed mentality and everyone can achieve their aspirations.....but i doubt it......money is the new age evil...........................controlled by a few, whilst the masses obey

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I have to agree. I remember when I first thought I was really in a position to look at buying a house, about 4 years ago. I was aged 21, earning about £22,000 a year. In the town in Sussex that I was looking at, the two bed terrace houses were on the market for between £79,000 - £89,000 and we just out of my reach.

I remember at the time thinking "This is madness. I can't afford these little houses, and most of the people I know in my age group earn half what I earn. This can't last much longer."

Now, after a spell of pretty good luck I earn nearly £60,000 at the age of 25. but the same terraces I was looking at 4 years ago are now often on the market for £189,000 - £199,000.

There "greater fool" priciple is now all that has been propping this all up. When it collapses it's likely to undershoot the prices 3 or 4 years ago, which were unaffordable to most people then too. So what would that mean.... these example properties falling from £199,000 to £69,000 (65% fall). Looks perfectly feasible, even 'likely', now to me.

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King Cobra

Where are you in Birmingham ? I've noticed things like thicker property pages in my local observer (Sutton Coldfield) & a few more for sale signs outside Blocks of Flats (especially new build flats from the last couple of years ).

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RJG18. I was lucky to buy in Sussex before it all went mad. Got lots of friends in Brighton though (inc some originally from there) who now find themselves priced out by Londoners who commute up.

I not recently of a case in Wales were a town has banned outsiders from buying property there to help local people. Bit of legeal minefield but I think we could see more of this or financial penalties on 2nd homes/BTL's etc.

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>"Gosh, 60k at 25 what do you do?"

It's not just from one job. My main (day job) is as a Business Analyst for one of the UK's largest consultancy firms, earning around£30kpa, and splitting my time between a regional office in West Sussex and commuting to London.

In my spare time I am also the Finance Director of Funny.co.uk Ltd, which is the UK's largest independent comedy website company (around 40,000 unique visitors per day, generating over 200,000 page views per day). This currently generates a further salary of around £25k-£35kpa for me. I also own 40% of the shares in this company.

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twopey,

i live near handsworth but i'm looking to move to north birmingham eg, great barr. i get the great barr observer on a weekly basis, and since the king's comments, the great barr observer paper has become thicker with properties.

There are quite few new developments which have sprung up over the year, and there are still a lot flats still available to rent or buy..........a sign of the times.....

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Cobra

we used to rent round handsworth way about 6/7 years ago , just off the Hamstead Rd. Lot better than people make out , then again I did go to school round there & the missus (at the time) had lived round there so we had a fair idea what it was like .

Great Barr was where I was looking when I was buying (about 3/4 years ago) but just got lucky with where I am now.

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