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House Prices Could Rise By Up To A Third In Five Years As Average Cost Of Home Jumps By Staggering £43,000

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http://www.dailymail.co.uk/news/article-2488139/House-prices-rise-years.html

Estate agents Savills forecast average cost of a home would rise by 25 per cent in next five years - from £171,000 to £214,000

Jump will be greater in South East (32 per cent) and East (31 per cent)

The house price boom is predicted to last for another five years meaning the average cost of a home will jump by £43,000.

Prices in some areas will rocket by a third by 2018, according to estate agents Savills, fuelling a growing gap between homeowners and those who cannot afford to buy.

The property seller forecast the average cost of a home would rise by 25 per cent in the next five years – from £171,000 to £214,000.

But I didn't think there was a boom?

Still looks like London driving the increases again.

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I'm seeing 20-40% increases in asking prices since September. This is getting ridiculous now.

One quick glance at zoopla is showing a 2 bed flat, previous sold price £250,000 asking for £350,0000.

For a flat, which should be ftb or b2l territory. No bubble my ****.

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I'm seeing 20-40% increases in asking prices since September. This is getting ridiculous now.

One quick glance at zoopla is showing a 2 bed flat, previous sold price £250,000 asking for £350,0000.

For a flat, which should be ftb or b2l territory. No bubble my ****.

Well, at some point there are not going to be anymore dumb FTB able to afford to buy these places even with HTB and the yield on BTL must be getting worse and worse as the prices rise. So I guess it is up to the Chinese and Indian students with rich parents to buy these places?

Edited by fru-gal

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What's driving the higher prices?

Is it: Lower price of credit? higher wages? Or both?

It's those savvy chinese investors who think the rich british people will pay massive rents to live in their massively over-priced houses.

CHINA MUGS.

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BLT questioned a Savills analyst and these rises are broadly in line with a projection of a 25% increase in nominal wages.

EDIT: check out this twotpic

Lucian Cook (@LucianCook) tweeted at 8:46 am on Wed, Nov 06, 2013:

Our UK mainstream housing forecast (out today) and the basic assumption behind it http://t.co/DutCC7fRdl

(

) Edited by 7 Year Itch

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Same guy, their mortgage affordability prediction:

Lucian Cook (@LucianCook) tweeted at 8:49 am on Wed, Nov 06, 2013:

What our 25% 5-year house price forecast means to mortgage affordability

http://t.co/l6g82UEYV2

(

)

Lucian Cook (@LucianCook) tweeted at 8:50 am on Wed, Nov 06, 2013:

and the alternative scenarios

http://t.co/ENEfAySIvF

(

) Edited by 7 Year Itch

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Disposable income rising strongly in tandem with base rates remaining rock bottom. Yeah, right.

I guess the normally reliable Mr Hudson died a little inside as he tweeted that.

As I tweeted you, the recent fiscal drag trends will stomp on any nominal pay rises.

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What's driving the higher prices?

Is it: Lower price of credit? higher wages? Or both?

...first it was lie to buy, self-certified loans, then it was falling interest rates, then it was the realisation that you could get rich quick by just borrowing more money, so thirdly it was withdrawing equity from existing property to purchase more with more debt.....now it is the new money coming in that is keeping the momentum going....so lastly we will finally find out who will be left holding the baby. ;)

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What's driving the higher prices?

Is it: Lower price of credit? higher wages? Or both?

An economist on the Today programme this morning was arguing for an interest rise now. He was concerned about the damage a sudden ratcheting would do to the economy if things get out of hand. But Carney is enjoying things too much now to stop the party now it has finally got started.

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An economist on the Today programme this morning was arguing for an interest rise now. He was concerned about the damage a sudden ratcheting would do to the economy if things get out of hand. But Carney is enjoying things too much now to stop the party now it has finally got started.

I reckon we've got £375bn if QE to unwind before we start worrying about interest rates going up.

Seems odd raise rays whilst that still outstanding.

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I reckon we've got £375bn if QE to unwind before we start worrying about interest rates going up.

Seems odd raise rays whilst that still outstanding.

I think they are going to forget about that. It wasn't a temporary asset purchase scheme, it was permanent money creation. Unwinding looks unthinkable unless the economy does something spectacular.

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House Prices Could Rise By Up To A Third In Five Years As Average Cost Of Home Jumps By Staggering £43,000

Ah but Max Kaiser says that house prices will collapse.

http:/

/www.maxkeiser.com/2013/08/keiser-report-max-makes-a-bet-on-uk-housing-bubble-06aug13/

Then there's moneyweek too.

http://

moneyweek.com/endofbritain/

http://

moneyweek.com/get-ready-for-a-fresh-slide-in-british-house-prices-61500/

Edited by billybong

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What's driving the higher prices?

Is it: Lower price of credit? higher wages? Or both?

fantasy....My old trainers are on ebay for £400....they have a unique odour but are the famous branded set that have christmas lights built in.

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Shock: Estate agent telling you it's a good time to buy.

BYYDRMPCQAIbSXq.jpg

BYYDZwKCUAA_xxW.jpg

the affordability forcast looks suspect to me.

As the other poster said, you would need to keep 0% interest rates and have wages increase faster than inflation to keep up affordability.

For arguments sake, lets say their guess/model is correct then what happens in 2018 when affordability is poor and interest rates rise?

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Shock: Estate agent telling you it's a good time to buy.

BYYDRMPCQAIbSXq.jpg

BYYDZwKCUAA_xxW.jpg

the affordability forcast looks suspect to me.

As the other poster said, you would need to keep 0% interest rates and have wages increase faster than inflation to keep up affordability.

For arguments sake, lets say their guess/model is correct then what happens in 2018 when affordability is poor and interest rates rise?

We are heading for 100% HTB....i.e. council houses!!!!

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We are heading for 100% HTB....i.e. council houses!!!!

Move in free and easy but you and your family owe £1m for a pokey box - indexed and liable in perpetuity.

In the meantime pay rent.

Edited by billybong

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Shock: Estate agent telling you it's a good time to buy.

BYYDRMPCQAIbSXq.jpg

BYYDZwKCUAA_xxW.jpg

the affordability forcast looks suspect to me.

As the other poster said, you would need to keep 0% interest rates and have wages increase faster than inflation to keep up affordability.

For arguments sake, lets say their guess/model is correct then what happens in 2018 when affordability is poor and interest rates rise?

"Weather Forecast" from the first tweet is also wortj posting. It shows increases in disposable income and interest rates.

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Shock: Estate agent telling you it's a good time to buy.

BYYDRMPCQAIbSXq.jpg

BYYDZwKCUAA_xxW.jpg

the affordability forcast looks suspect to me.

As the other poster said, you would need to keep 0% interest rates and have wages increase faster than inflation to keep up affordability.

For arguments sake, lets say their guess/model is correct then what happens in 2018 when affordability is poor and interest rates rise?

as that bubble graph says, prices can ONLY rise if more money (credit) is pumped into the market...this has ALWAYS been the case..so the question to ask is where the extra 25% of cash is going to come from in the next 5 years?

It is possible that as has happened in the US, corporates are about to buy into a market flooding with defaulters homes possessed and used to get the amazing rental incomes.

The US market has died a death recently as the rentals have begun to compete with each other for tenants, and the corporates realise that it costs actual money and effort to maintain places.

Note also a Bill in the House in the US is passed to repeal Dodd Frank control over derivatives, ie, make them unregulated again...This could start off a lending frenzie for zero or negative returns again 2003 style

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What a load of frothy fanny batter. Of course you will get huge VI's saying everyone pile in - it's their job. They are unlikely to say George has pressed the button too early, and we are all going to hell in this bubbletastic hand cart. Let's hope those fixture and fittings can support a bodies weight, otherwise there will be a lot of disappointed FTB's.

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