Starcrossed Posted November 5, 2005 Share Posted November 5, 2005 From : The scale of this "crash" has remained hidden, partially because the two most high-profile house price indices - from Nationwide and Halifax - exclude properties worth more than £1 million, Bell says. http://www.telegraph.co.uk/money/main.jhtm...%2Fcmprop27.xml After 18 months on HPC I don't remember this being raised before... Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted November 5, 2005 Share Posted November 5, 2005 I've always known of this. QAs far as I'm concerned, you are welcome to a crash in over £1mill properties. Enjoy it, it won't change anything for the posters on this site though. Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted November 5, 2005 Share Posted November 5, 2005 Funny the date on the story as well........ Nov 2002 Quote Link to comment Share on other sites More sharing options...
zorn Posted November 5, 2005 Share Posted November 5, 2005 From : The scale of this "crash" has remained hidden, partially because the two most high-profile house price indices - from Nationwide and Halifax - exclude properties worth more than £1 million, Bell says. http://www.telegraph.co.uk/money/main.jhtm...%2Fcmprop27.xml After 18 months on HPC I don't remember this being raised before... Actually, that (three year old) article is out of date. Halifax do now include properties over £1 million. Quote Link to comment Share on other sites More sharing options...
deano Posted November 5, 2005 Share Posted November 5, 2005 And guess what else they ignore, cash purchases; one assesment said it was 20% of the market so all the really cheapies from auction etc don't register either. Quote Link to comment Share on other sites More sharing options...
88Crash Posted November 5, 2005 Share Posted November 5, 2005 (edited) I've always known of this. QAs far as I'm concerned, you are welcome to a crash in over £1mill properties. Enjoy it, it won't change anything for the posters on this site though. wouldn't be so sure of that, thanks to HPI homes of 1 million+ are no longer mansions In London and the South East (where the booms start and where the booms finish) it has a lot to do with the whole UK market When prices in the top parts of London double,so do the prices in the nearby 'good area's' like Battersea, Wandsworth etc, This extends out the the suburbs and home counties - jumps up to the Midlands and the SW - across to Wales and further north and finally the places further away like Newcastle, Cumbria, Scotland and Northern Ireland If prices for expensive one million+ houses in London drop bigtime, so will 2 bed terraces in Newcastle This assumes its similar to last time Maybe this time its different because a) it won't happen it will happen, but this time the effect will ripple across the UK a lot quicker Edited November 5, 2005 by 88Crash Quote Link to comment Share on other sites More sharing options...
apom Posted November 5, 2005 Share Posted November 5, 2005 Okay... more people are going bankrupt now then when interest rates were at 14 percent last time. and interest rates are heding up.. I was told, on this site, that it had been speculated that the level of debt in this country would cause a similar meltdown to the previous 15 % interest rates.. if they ever even hit long term average 6%... I thought it was crazy talk.. Madness. turns out we are outstripping bunkrupsies at 4.5%.. Christ.. This is going to go bang in a big way... Quote Link to comment Share on other sites More sharing options...
BearLite Posted November 5, 2005 Share Posted November 5, 2005 2002 was still a big mortgage aka debt rally. There's a difference from then and now because the debt taken on is too large for many. Low interest rates seem to be questionable at the moment. This doesn't give people much breathing space even if interest rates rise slightly. Quote Link to comment Share on other sites More sharing options...
large Posted November 5, 2005 Share Posted November 5, 2005 "Consumer spending is still surging, but I don't think many people realise that the economy is really in a vulnerable state," warns Whitehead. Does he read economic data? Consumer spending still surging? We are in the middle of one of the biggest consumer slowdowns seen in the last two decades. Also one of the economists says that interest rates aren't so high as in the last crash, but back in the 80s people borried less at higher rates, so when rates changed the effects weren't so great, Now people have borrowed to the max at lower rates, so even small .25% changes can have a big impact on peoples budget and reduce their ability to spend. Quote Link to comment Share on other sites More sharing options...
deano Posted November 5, 2005 Share Posted November 5, 2005 Is this true ? It's an amazing fact if so. Buckers I appeared to be over a year ago. If they haven't changed it since. Someone on hpc once published all the ways they arrived at there figures, along with the final line we reserve the right to change the way we calculate these figures without notice (words to that effect). Quote Link to comment Share on other sites More sharing options...
freelancer Posted November 5, 2005 Share Posted November 5, 2005 Would it then mean that if properties over £1m fall 10-20%, they'll come into the market tracked by the indices from the top end, making it look as if average prices have gone up? If so, it could be quite important even to those of us at the bottom end of the scale. Or doesn't it work like that? Quote Link to comment Share on other sites More sharing options...
deano Posted November 5, 2005 Share Posted November 5, 2005 (edited) And here it is HPC'ers, this is how they do it. http://www.hbosplc.com/economy/indexmethodology.asp Quote: "We reserve the right to vary our methodology and to edit or discontinue the indices at any time for regulatory or other reasons" Would it then mean that if properties over £1m fall 10-20%, they'll come into the market tracked by the indices from the top end, making it look as if average prices have gone up? If so, it could be quite important even to those of us at the bottom end of the scale. Or doesn't it work like that? Quote: "Properties over £1 million have been included since December 2002 to reflect the increasing number of this hitherto tiny market segment." From http://www.hbosplc.com/economy/indexmethodology.asp Edited November 5, 2005 by deano Quote Link to comment Share on other sites More sharing options...
Starcrossed Posted November 5, 2005 Author Share Posted November 5, 2005 Funny the date on the story as well........ Nov 2002 I was fooled by the date at the top of the article - November 5th 2005. Quote Link to comment Share on other sites More sharing options...
Guest muttley Posted November 5, 2005 Share Posted November 5, 2005 And guess what else they ignore, cash purchases; one assesment said it was 20% of the market so all the really cheapies from auction etc don't register either. That would exclude people downgrading then. So a person swaps their 600k property with someone who has a 200k property.Average property is 400k,right? Nope.The average price of these two properties is 200k. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.