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Eddie_George

Soaring Uk House Prices To Trigger Homeowner Sale Bonanza

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The rising value of houses in the UK could trigger homeowners to sell and increase supply on the market, therefore holding back runaway prices, according to Halifax.

In its monthly housing market report for March, Halifax said UK house prices rose by an average of 8.7% across the year. The average price of a UK home sits at £178,249.

Demand in the housing market is being fuelled by government efforts to make mortgages cheaper through the Help to Buy scheme; a recovering domestic economy; and the Bank of England holding interest rates down with its record-low base rate of 0.5%.

"The recent strengthening in house price is increasing the amount of equity that many homeowners have in their home," said Stephen Noakes, mortgages director at Halifax.

"This will potentially encourage and enable more owners to put their property on the market for sale over the coming year, therefore boosting supply and easing pressure on prices."

http://www.ibtimes.co.uk/soaring-uk-house-prices-may-trigger-homeowner-sale-bonanza-1443364

HPI is what makes Britain so great. No downsides whatsoever.

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http://www.ibtimes.co.uk/soaring-uk-house-prices-may-trigger-homeowner-sale-bonanza-1443364

HPI is what makes Britain so great. No downsides whatsoever.

This is a new angle - price rises so more people sell houses increasing the supply of houses.

House prices will only return toward normality when their generous tax treatment changes and / or the absurd levels of lending are reined in that allow people to buy on such large income multiples with such low deposits.

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I really can't see a good way out of this now.

The folk who own houses are sitting on decades worth of earnings and don't want to give it up without a fight. Yet the prices are unsustainable with interest rates going up.

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So people pay top money for PCP cars, top money for education, have decreasing real wages, little pension provision etc.

This will end well.....

As an anecdote, people I know have accepted an offer on their flat for more than the expected amount (which was nuts).

Buy in haste, repent at leisure.

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The early bird captures the worm......January and February looked like a good time to nail the worm, doesn't seem to be any left...new solds are few and far between.

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Probably hasb't been a better opportunity in the last couple of decades to sellup in the south and emigrate/retire to the continent.

....my understanding is that the Germans and Scandinavians are now actively buying in places where homes were allowed to adjust/fall, where there is greater room for growth/ improvement. ;)

Oh and the Chinese are also moving to pastures new.

Edited by winkie

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Problem is, when they all want to sell the nature of the Ponzi is exposed. Fun times to come.

You won't be able to give them away. ;)

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Even though some will eventually want to, just to get free of the stress of repairs council tax etc. on a declining asset.

....nice thought that to give away your debt......must relive a lot of stress and unnecessary expense. ;)

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....nice thought that to give away your debt......must relive a lot of stress and unnecessary expense. ;)

I remember when I finally paid down about 30k in credit card and student loan debt, what a relief, and that was all interest free because it had gone to court as a default. I was happy paying it off and happier when the burden was finally gone. Can`t imagine what it is like being deep in debt for something you actually have to pay to look after and maintain, or deal with tenant problems every other week. Just not worth it IMO.

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I remember when I finally paid down about 30k in credit card and student loan debt, what a relief, and that was all interest free because it had gone to court as a default. I was happy paying it off and happier when the burden was finally gone. Can`t imagine what it is like being deep in debt for something you actually have to pay to look after and maintain, or deal with tenant problems every other week. Just not worth it IMO.

.......why do you think they made bankruptcy law so much easier not that long ago, reduced the time of discharge, there are no longer debtor prisons.....being in debt and not paying your dues is no longer something to be ashamed of, because the system wants and needs people to continually take on debt, rolling debt, forever topping it up keeping it growing....the more people there are the more debt they can take up.......debt is wealth, magic. ;)

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.......why do you think they made bankruptcy law so much easier not that long ago, reduced the time of discharge, there are no longer debtor prisons.....being in debt and not paying your dues is no longer something to be ashamed of, because the system wants and needs people to continually take on debt, rolling debt, forever topping it up keeping it growing....the more people there are the more debt they can take up.......debt is wealth, magic. ;)

until its not.

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The article mentions gov efforts to get mortgages cheaper through htb but at 8.7% hpi I suspect (too early to do the maths) that the average monthly mortgage payment for comparable purchase will be rising. It was expected that htb would rapidly run out of steam. The rational thing would be that as Halifax mortgage guy says (uses could) higher prices encourage more sales. However, the irrational is to hold and hoard in expectation of 1.0x^n hpi but the market rapidly grinds to a halt.

It is too early too tell though. feb mortgage approvals were below market expectations.

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I saw it happening in Northern Ireland in 2006 early 2007 - the boasters who were waiting for prices to go up a bit higher before they sold their precious house. Some are still sitting on the property news portal for sale because they will never get their imagined price.

Housing is an illiquid asset. If you don't get out at the right time at the right price you could be stuck for years with it.

Yep. Convincing someone to take out a big loan on a deprecating asset is a pretty hard sell.

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Increased supply will hold back HPI? That is BS. These homeowners will not give it away, there will be so many kite flyers they will blot out the sun.

Not give it away. Ahh yes.

My local, large town, Scarborough, is full of OAPs not 'giving it away'.

They are carried out of the house feet first.

The house then joins the 100s of probate sales which are blocking up the market.

And then the reductions start.

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Guest spp

Not buying this HTB 'running out of steam' business, at least not anytime soon. It's all about the monthly 'cost'! Thousands once again have access to the market because they have been handed a deposit.

Speculators, BTL, and late boomers that have paid off their mortgages...all know this. The 'confidence' is back! There will only be a slow down when that monthly cost starts hitting a new ceiling.

Don't be surprised if the goal posts move again. TPTB are hell bent on 'stimulating' the economy. The long term social consequences do not factor into their thinking. It's all about creating enough growth to keep the masses fed and 'happy'. Whether it be handing out benefits, creating HPI, early pension release or getting involved in foreign wars.

A £1.3 trillion national DEBT? Domestic energy production cut in half in the last 10 years? Consequences...what consequences? Wasn't me sir...

Edited by spp

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Not buying this HTB 'running out of steam' business, at least not anytime soon. It's all about the monthly 'cost'! Thousands once again have access to the market because they have been handed a deposit.

Speculators, BTL, and late boomers that have paid off their mortgages...all know this. The 'confidence' is back! There will only be a slow down when that monthly cost starts hitting a new ceiling.

Don't be surprised if the goal posts move again. TPTB are hell bent on 'stimulating' the economy. The long term social consequences do not factor into their thinking. It's all about creating enough growth to keep the masses fed and 'happy'. Whether it be handing out benefits, creating HPI, early pension release or getting involved in foreign wars.

A £1.3 trillion national DEBT? Domestic energy production cut in half in the last 10 years? Consequences...what consequences? Wasn't me sir...

I also need to see something a bit more positive in terms of volume of homes for sale to believe this. I really want it to happen soon as I am seriously running out of space. Past few months has just been frustrating seeing people pay up at ridiculous asking prices.

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The rising value of houses in the UK could trigger homeowners to sell and increase supply on the market, therefore holding back runaway prices, according to Halifax.

http://www.ibtimes.co.uk/soaring-uk-house-prices-may-trigger-homeowner-sale-bonanza-1443364

But what are the sellers going to do? Aren't they mainly going to buy? There just aren't enough houses being produced in some areas causing a scarcity. More and more people are only selling when they have to (divorce, larger family, change in job etc.) . The more house is worth the less likely the sale is discretionary given the costs involved in buying a new house.

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