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Corruption

Everythings Coming On Rm Above 2007 Prices

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This is one of my search areas and pretty much everything is coming on the market above 2007 selling prices.

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E1460&sortType=6&maxPrice=210000&maxDaysSinceAdded=3&radius=5.0&includeSSTC=true&_includeSSTC=on&googleAnalyticsChannel=buying

Yes i know they may not get this but from what ive seen in the last several months sales are going through at these daft prices.

Ive no doubt prices will fall at some point but it could be years, and after waiting all these years and watching prices slowly drop up until September 2013, seeing this new boom is like i live in a twisted nightmare.

The only decent future i can see for myself is to stop working and play the benefits game and see if i can blag a council house in Southern England .. and ive a decent paying job (in the well paying oil industry) that is just pointless doing.

My hatred for the LIBLABCONs and the Queen after she spoke highly of Help to Buy this week is at new heights!

Edited by Corruption

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This is one of my search areas and pretty much everything is coming on the market above 2007 selling prices.

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION^1460&sortType=6&maxPrice=210000&maxDaysSinceAdded=3&radius=5.0&includeSSTC=true&_includeSSTC=on&googleAnalyticsChannel=buying

Yes i know they may not get this but from what ive seen in the last several months sales are going through at these daft prices.

Ive no doubt prices will fall at some point but it could be years, and after waiting all these years and watching prices slowly drop up until September 2013, seeing this new boom is like i live in a twisted nightmare.

The only decent future i can see for myself is to stop working and play the benefits game and see if i can blag a council house in Southern England .. and ive a decent paying job (in the well paying oil industry) that is just pointless doing.

My hatred for the LIBLABCONs and the Queen after she spoke highly of Help to Buy this week is at new heights!

Hang in there.

Where I am (Northants) prices are coming on at or at least pretty near 2007 prices, but much of that sits for a long time before selling.

I've been loosely following 20-30 of these houses, many of them since Jan, and plenty have reduced their prices, some by up to £15-20K, to no avail.

Sold prices are up about £6-7K over a 12 month period.

This recent 'surge' is purely HTB stoked, and has bought out all sorts of jokers chancing their arm with asking prices, while suckering in unwary fearful/greedy buyers who are convinced that they must buy now or miss out for ever. I suspect many sellers take their house off the market if they don't receive asking price within a couple of months, while the serious sellers slowly realise that their house isn't worth a great deal more than what it was last summer.

Take sentiment out of the equation and this baby is going down.

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This is one of my search areas and pretty much everything is coming on the market above 2007 selling prices.

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E1460&sortType=6&maxPrice=210000&maxDaysSinceAdded=3&radius=5.0&includeSSTC=true&_includeSSTC=on&googleAnalyticsChannel=buying

Yes i know they may not get this but from what ive seen in the last several months sales are going through at these daft prices.

Ive no doubt prices will fall at some point but it could be years, and after waiting all these years and watching prices slowly drop up until September 2013, seeing this new boom is like i live in a twisted nightmare.

The only decent future i can see for myself is to stop working and play the benefits game and see if i can blag a council house in Southern England .. and ive a decent paying job (in the well paying oil industry) that is just pointless doing.

My hatred for the LIBLABCONs and the Queen after she spoke highly of Help to Buy this week is at new heights!

Ultimately all that excess debt will have to be inflated away. Whether that can be accomplished in an orderly fashion via stagflation or has to be done in a disorderly fashion via default is still an open question, though of the two I believe the latter outcome to be more likely.

Not being in the UK, or at least not being in sterling, when this happens is the only way to win.

Edited by zugzwang

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This is one of my search areas and pretty much everything is coming on the market above 2007 selling prices.

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E1460&sortType=6&maxPrice=210000&maxDaysSinceAdded=3&radius=5.0&includeSSTC=true&_includeSSTC=on&googleAnalyticsChannel=buying

Yes i know they may not get this but from what ive seen in the last several months sales are going through at these daft prices.

Ive no doubt prices will fall at some point but it could be years, and after waiting all these years and watching prices slowly drop up until September 2013, seeing this new boom is like i live in a twisted nightmare.

The only decent future i can see for myself is to stop working and play the benefits game and see if i can blag a council house in Southern England .. and ive a decent paying job (in the well paying oil industry) that is just pointless doing.

My hatred for the LIBLABCONs and the Queen after she spoke highly of Help to Buy this week is at new heights!

You have to learn to play the game fella.

Thinking the queen is allowed out to express her own opinion on housing matters is not part of it...... Don't they teach the constitution at school any more what goes on at the State Opening?

In the part of the Country I am NW. Prices are not increasing much (if at all). On the other hand transactions are hardly above what they were 18 Months ago. Estate agents are in the local papers every week doing puff pieces trying to change sentiment but are failing miserably.

Its a bubble. All the other economic indicators are wrong, they simply cannot explain the strengths being displayed in the property market, it won't last. Only question is will it get past the election in 12 Months time.

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You have to learn to play the game fella.

Thinking the queen is allowed out to express her own opinion on housing matters is not part of it...... Don't they teach the constitution at school any more what goes on at the State Opening?

In the part of the Country I am NW. Prices are not increasing much (if at all). On the other hand transactions are hardly above what they were 18 Months ago. Estate agents are in the local papers every week doing puff pieces trying to change sentiment but are failing miserably.

Its a bubble. All the other economic indicators are wrong, they simply cannot explain the strengths being displayed in the property market, it won't last. Only question is will it get past the election in 12 Months time.

I was never overly interested in what they teach at school, but the very moment i switched the TV on she was saying how her govt will continue to help first time buyers with HtB 1 and 2 aswell as endlessly low interest rates.

Now i do not believe for one moment she does not oversee exactly the way things are worded in that speech.

And i know its a bubble but it was also a bubble prior to 2007/8 and that bubble still hasnt burst.

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I was never overly interested in what they teach at school, but the very moment i switched the TV on she was saying how her govt will continue to help first time buyers with HtB 1 and 2 aswell as endlessly low interest rates.

Now i do not believe for one moment she does not oversee exactly the way things are worded in that speech.

And i know its a bubble but it was also a bubble prior to 2007/8 and that bubble still hasnt burst.

If you can't stomach wanting a situation where we get a bit more of a financial squeeze on older owners of the better housing stock, perhaps Winter fuel allowances cut, and no special treatment for savings... to encourage them to begin selling at lower prices, to bring all house prices down, then there's not much to complain about, as I see it.

The problem is the prices are too high. Way too many older owners hogging large family homes, with little incentive to sell when they're getting even more insane in value. Too many owners of multiple homes. Too many landlords, and much of the property-wealth standing ready to bid on new homes being built/and any that come to market, for their portfolios - reassured that their own homes are worth so much, and seeing only for-ev-ah HPI into the future.

Nice of you to decide the size of property people should be allowed.

When i get old i will buy a house 3 times that i need in the hope i p7s5 off one person like you.

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^^^

Youve a good memory, but good luck to old people who want to stay in the house they worked for .... at least they arent ripping of some young family by selling them an overpriced house. Besides if my parents didnt keep their 3.5 bed house id be renting some slave box and wouldnt be able to work as no one could look after my kid.

If i can ever afford a 3 bed house which is the aim i intend keeping it until i drop dead.

Besides the street im currently living in has early retired boomers and all stopping a few minor benefits would do is mean they have to upgrade the BMW bi annually as opposed to yearly.

Edited by Corruption

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^^^

Youve a good memory, but good luck to old people who want to stay in the house they worked for .... at least they arent ripping of some young family by selling them an overpriced house. If i can ever afford a 3 bed house which is the aim i intend keeping it until i drop dead.

Besides the street im currently living in has early retired boomers and all stopping a few minor benefits would do is mean they have to upgrade the BMW bi annually as opposed to yearly.

With current house prices, you may drop dead early paying the mortgage. Too many of your old people who worked for their homes, bought at £5K, £10K, £25K, and now seeing homes worth £400K+, £1m+.

Many of them paid off the mortgage quickly, and have had a lifetime of earnings to go to living, pension and savings.

You might be correct (BMWs - same here), but not all are that well positioned in any street. Some have spent their savings into zirp. Some have bought other properties without selling their own. Some like timak's parents in law just gone into BTL (apparently they are different to normal landlords because they've only done it as savings rates so low.)

When some not as well positioned older sellers at the margin begin selling their homes at lower prices, to younger families wanting a family home. It brings down all the other house values in the street. Let them keep their homes, but some falling prices may encourage more sellers to market. Not wanting to force anyone to move; it's fine if they don't care if their home is worth £750K or £300K (post crash), if they just treat it as a home.

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With current house prices, you may drop dead early paying the mortgage. Too many of your old people who worked for their homes, bought at £5K, £10K, £25K, and now seeing homes worth £400K+, £1m+.

Many of them paid off the mortgage quickly, and have had a lifetime of earnings to go to living, pension and savings.

You might be correct (BMWs - same here), but not all are that well positioned in any street. Some have spent their savings into zirp. Some have bought other properties without selling their own. Some like timak's parents in law just gone into BTL (apparently they are different to normal landlords because they've only done it as savings rates so low.)

When some not as well positioned older sellers at the margin begin selling their homes at lower prices, to younger families wanting a family home. It brings down all the other house values in the street. Let them keep their homes, but some falling prices may encourage more sellers to market. Not wanting to force anyone to move; it's fine if they don't care if their home is worth £750K or £300K (post crash), if they just treat it as a home.

Im of the opinion that the housing stock is so poor in this country that even if there wasnt a shortage much of this property from the first part of the C20 that boomers are in is utterly crap and needs replacing anyway.

Grannys dropping from 3 bedroom houses to 2 bedroomed places wouldnt make a difference.

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Im of the opinion that the housing stock is so poor in this country that even if there wasnt a shortage much of this property from the first part of the C20 that boomers are in is utterly crap and needs replacing anyway.

Grannys dropping from 3 bedroom houses to 2 bedroomed places wouldnt make a difference.

Yet it is over valued so highly, as is.

http://www.rightmove.co.uk/property-for-sale/property-30713532.html

Edited by Venger

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Nearly bought recently place fell through at the last min, but tbh i bit releaved we were getting it for a fair discount but when i saw the survey and had a closer look needed loads spending on it. Where i live are plenty of chancers but overall market feels like its flatlined HTB2 has stopped the slow decrease but hasnt increased prices. I also look at most houses and feel they so badly built or are ugly to bother with and most are in poor condition.

IMO unless housing is sorted this country is on the way out u cannot fleece the young forever to pay for baby boomer excess. It annoys me that so many people get on this UKIP bandwagon, when they are just another party of the middle aged, its not immigrants who are wrecking this country its the boomers we should have a anti boomer political movement instead!

My dream now is that remote working will really take off in the next few years and i will be able to go and live abroad, u dont need to buy on most of the continent as renting is so much more respected

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Nearly bought recently place fell through at the last min, but tbh i bit releaved we were getting it for a fair discount but when i saw the survey and had a closer look needed loads spending on it. Where i live are plenty of chancers but overall market feels like its flatlined HTB2 has stopped the slow decrease but hasnt increased prices. I also look at most houses and feel they so badly built or are ugly to bother with and most are in poor condition.

IMO unless housing is sorted this country is on the way out u cannot fleece the young forever to pay for baby boomer excess. It annoys me that so many people get on this UKIP bandwagon, when they are just another party of the middle aged, its not immigrants who are wrecking this country its the boomers we should have a anti boomer political movement instead!

My dream now is that remote working will really take off in the next few years and i will be able to go and live abroad, u dont need to buy on most of the continent as renting is so much more respected

...So what are you waiting for, thousands are already doing that....Oh and watch out there are 'boomers' living all over the world. ;)

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i keeping my eye out dont worry :rolleyes: have also just finished my masters which will also help but i dont want to work in an office enviroment abroad, prefer total home working which is the way a lot of jobs should go IMO.

i think we have a particularly nasty bunch of boomers here!

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This is one of my search areas and pretty much everything is coming on the market above 2007 selling prices.

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E1460&sortType=6&maxPrice=210000&maxDaysSinceAdded=3&radius=5.0&includeSSTC=true&_includeSSTC=on&googleAnalyticsChannel=buying

Yes i know they may not get this but from what ive seen in the last several months sales are going through at these daft prices.

Ive no doubt prices will fall at some point but it could be years, and after waiting all these years and watching prices slowly drop up until September 2013, seeing this new boom is like i live in a twisted nightmare.

The only decent future i can see for myself is to stop working and play the benefits game and see if i can blag a council house in Southern England .. and ive a decent paying job (in the well paying oil industry) that is just pointless doing.

My hatred for the LIBLABCONs and the Queen after she spoke highly of Help to Buy this week is at new heights!

Well, the effect is so many people not voting is starting to be noticed.

http://www.theguardian.com/politics/2014/jun/04/queens-speech-miliband-public-cynicism-parliament-coalition-bills

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i keeping my eye out dont worry :rolleyes: have also just finished my masters which will also help but i dont want to work in an office enviroment abroad, prefer total home working which is the way a lot of jobs should go IMO.

In case you missed it, the ONS had a release on home working trends a couple of days ago. It's not particularly detailed, but it may be of interest:

http://www.ons.gov.uk/ons/dcp171776_365592.pdf

Certainly this is an interesting dynamic, considering the technology becoming available. I think it's always been a bit of a puzzle to some why in an age of broadband communication we still have people commuting for several hours each day when they end up sitting in an office where their routine functions don't involve much more than sitting in front of a computer tapping on a keyboard.

One of the great stumbling blocks has been the importance of social interaction, and if you look at what's happening in the US at some tech companies with telepresence then you can see the early (and I stress early) indications of where things might lead in this regard.

Also we have the recent rebirth of Virtual Reality. I was quite involved with this technology in the 1990s, and in December I made a comment that the developments with the Oculus Rift may bring VR to the public consciousness in the not-too-distant future. At that time Oculus VR was a small tech company with a very interesting piece of kit, but never in my wildest dreams did I envisage that Facebook would end up paying $2 billion for the company (Palmer Luckey's rise-to-riches story must be one of the most amazing ever). I can only presume that FB's vision for the potential of VR matches my own.

This will, in time, have profound implications for housing markets in my view, particularly in terms of the regional distribution of prices. After the Facebook acquisition I've been very tempted to put up a dedicated post on the main board giving my thoughts on this, but to be fair to the mods I think it's perhaps a little early for that.

Anyway, I'm in danger of derailing Corruption's topic, so I'll end by briefly saying that the present situation all comes down to interest rates IMO. If we enter a rising rate cycle starting next year then it's my firm belief that house prices will resume their fall in real terms (I'll make no predictions on nominal prices). I can appreciate how frustrating it must be for many members here who have seen their hopes for buying apparently quashed by the cynical Osborne/Cameron attempt to get re-election through pumping the housing market, but against this you have to consider that in exchange for more forbearance on your part in terms of timing, a vast swathe of the competition - the people that YOU would have been competing against to buy a home - have now been taken out of the equation. IF (and it's still a big if) rates rise in the coming months then many of these buyers are pretty much screwed. Their first house could very well be their last, particularly in London.

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Anyway, I'm in danger of derailing Corruption's topic, so I'll end by briefly saying that the present situation all comes down to interest rates IMO. If we enter a rising rate cycle starting next year then it's my firm belief that house prices will resume their fall in real terms (I'll make no predictions on nominal prices). I can appreciate how frustrating it must be for many members here who have seen their hopes for buying apparently quashed by the cynical Osborne/Cameron attempt to get re-election through pumping the housing market, but against this you have to consider that in exchange for more forbearance on your part in terms of timing, a vast swathe of the competition - the people that YOU would have been competing against to buy a home - have now been taken out of the equation. IF (and it's still a big if) rates rise in the coming months then many of these buyers are pretty much screwed. Their first house could very well be their last, particularly in London.

MMR, ECB bank stress-tests coming up (capital requirements), mortgage rates showing some signs of ticking up, European authority active deflationary policies, US taper, tax/holding changes to offshore/companies arrangements buying in UK; I hold out more hope for these factors having impact than base rate rises, which I struggle to see occurring.

True; out of the equation, other than for 'victim' (hpc breakdown-excuse fodder) HTB2ers. This of the other day, and day before that (can't find thread) someone who could afford the mortgage but zero deposit, trying to work out if HTB2 would cover to the max £600K. Can't be that many of them though, and I expect the crash to bring some quality mid-level homes to market, available at a fraction of what owners think they're currently worth.

05-06-2014, 2:51 PM

Anyone have experience of using HTB (2nd part) on higher value mortgages?
Hello,
Just wondering if anyone has had any actual experience of this and whether it is harder to get.
We are in that situation where affordability is not an issue, but getting together deposit + stamp duty and fees is creating more of a headache (or, I am just impatient as we are trying to buy in London :/)
We would be looking for a 95 LTV mortgage on a c.£480k property.
Weakness in other hyper-reflated global markets, may also bring about a reaction.
Knight Frank global house price index % change 2013-14 (The Times, Tuesday June 3, 2014)
Dubai: +27.%
China: +17.5%
Estonia: +16.2%
Turkey: +13.8%
Taiwan: +12.2%
Brazil: +12.1%
Australia: +10.9%
Colombia: +10.6%
US: +10.3%
Iceland: +9.7%
New Zealand: +9.2%
Great Britain: +9.1%
Edited by Venger

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MMR, ECB bank stress-tests coming up (capital requirements), mortgage rates showing some signs of ticking up, European authority active deflationary policies, US taper, tax/holding changes to offshore/companies arrangements buying in UK; I hold out more hope for these factors having impact than base rate rises, which I struggle to see occurring.

True; out of the equation, other than for 'victim' (hpc breakdown-excuse fodder) HTB2ers. This of the other day, and day before that (can't find thread) someone who could afford the mortgage but zero deposit, trying to work out if HTB2 would cover to the max £600K. Can't be that many of them though, and I expect the crash to bring some quality mid-level homes to market, available at a fraction of what owners think they're currently worth.

Weakness in other hyper-reflated global markets, may also bring about a reaction.

What counts going forward is whether at some point central banks and governments allow individuals to face the consequences of their poor decisions, come what may. The evidence over the past few years is that they simply haven't the stomach for this and will ALWAYS back off under pressure.

On my very first post on this forum in 2005 I wrote:

"The removal of the principle of personal responsibility has led to a willingness (and demand) for compensation for whatever ill may befall an individual, regardless of his or her actions. It seems inevitable to me therefore that there will be tremendous pressure this time round to bail out debtors at the expense of savers and those with capital. Whether this manifests itself through inflationary monetising, mandatory debt forgiveness or 'emergency' wealth taxes is a matter of debate. The end result would be that those who have saved and not been irresponsible would be sacrificed to save the herd (and the skins of the central bankers and politicians)."

Everything that has happened thus far has validated this view, but now we are seeing the inevitable outcome of this perversity: the concept of 'risk' is being relentlessly eliminated, and every man and his dog has come to believe that central banks and the state will bail them out if they take a punt that backfires. We are now witnessing the ultimate put option, with speculators around the world convinced that the authorities will ALWAYS buckle under pressure if there is any suggestion that they may take losses.

The media are totally complicit in this circus. Set up a focus group of five people: "Justice for Mortgage Liars", get the Daily Mail to take up your case: "Sally lied about her income when she got a mortgage because she needed a home for her seven abused kittens, but now the Stasi Halifax are threatening to make her homeless" and before you know it 'Dave' Cameron will appear on the BBC telling everyone that it's the Government's priority to help people like Sally and that he's introducing a new 'Help The Kitties" scheme to address the problem. Sally will be given a new five bedroom home overlooking the Thames, all paid for by the taxpayer, so that she and her pets may never have to worry about financial pressures again.

It's a completely fukced up world, but I have to admit that I'm completely fascinated by it. Logic tells me that the system MUST break at some point - that these warped outcomes where the losers become the winners and the prudent lie dead by the roadside MUST at some point have repercussions, But who knows? Maybe this will go on for years, even decades…I just don't know.

One thing I am convinced of though is that until we see a return to system where risk and reward are sensibly related, we will not have a properly functioning society.

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What counts going forward is whether at some point central banks and governments allow individuals to face the consequences of their poor decisions, come what may. The evidence over the past few years is that they simply haven't the stomach for this and will ALWAYS back off under pressure.

On my very first post on this forum in 2005 I wrote:

"The removal of the principle of personal responsibility has led to a willingness (and demand) for compensation for whatever ill may befall an individual, regardless of his or her actions. It seems inevitable to me therefore that there will be tremendous pressure this time round to bail out debtors at the expense of savers and those with capital. Whether this manifests itself through inflationary monetising, mandatory debt forgiveness or 'emergency' wealth taxes is a matter of debate. The end result would be that those who have saved and not been irresponsible would be sacrificed to save the herd (and the skins of the central bankers and politicians)."

Everything that has happened thus far has validated this view, but now we are seeing the inevitable outcome of this perversity: the concept of 'risk' is being relentlessly eliminated, and every man and his dog has come to believe that central banks and the state will bail them out if they take a punt that backfires. We are now witnessing the ultimate put option, with speculators around the world convinced that the authorities will ALWAYS buckle under pressure if there is any suggestion that they may take losses.

The media are totally complicit in this circus. Set up a focus group of five people: "Justice for Mortgage Liars", get the Daily Mail to take up your case: "Sally lied about her income when she got a mortgage because she needed a home for her seven abused kittens, but now the Stasi Halifax are threatening to make her homeless" and before you know it 'Dave' Cameron will appear on the BBC telling everyone that it's the Government's priority to help people like Sally and that he's introducing a new 'Help The Kitties" scheme to address the problem. Sally will be given a new five bedroom home overlooking the Thames, all paid for by the taxpayer, so that she and her pets may never have to worry about financial pressures again.

It's a completely fukced up world, but I have to admit that I'm completely fascinated by it. Logic tells me that the system MUST break at some point - that these warped outcomes where the losers become the winners and the prudent lie dead by the roadside MUST at some point have repercussions, But who knows? Maybe this will go on for years, even decades…I just don't know.

One thing I am convinced of though is that until we see a return to system where risk and reward are sensibly related, we will not have a properly functioning society.

FT, your trademark is fact without comment - well respected on HPC.

The world is never fcuked up, and moralising is the worst way of explaining bad outcomes.

Has someone hijacked your account?

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We all speak Yoda, Yes.

It trendy to cut words. As we more cosmopolitan. Now we use in adverts.

Ready you not?

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If you can't stomach wanting a situation where we get a bit more of a financial squeeze on older owners of the better housing stock, perhaps Winter fuel allowances cut, and no special treatment for savings... to encourage them to begin selling at lower prices, to bring all house prices down, then there's not much to complain about, as I see it.

so cutting the £200 pa per 'HOUSEHOLD' WFA will cause the older generation to be squeezed so they sell their house they like to live (which may well not be better housing stock) in for peanuts :wacko:

and the so-called special treatment on savings (an extra 1%) will make them sell

you really are in the realm of 'deluded' :)

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This is one of my search areas and pretty much everything is coming on the market above 2007 selling prices.

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E1460&sortType=6&maxPrice=210000&maxDaysSinceAdded=3&radius=5.0&includeSSTC=true&_includeSSTC=on&googleAnalyticsChannel=buying

Yes i know they may not get this but from what ive seen in the last several months sales are going through at these daft prices.

Are these prices that daft?

Take this one for example,

http://www.rightmove.co.uk/property-for-sale/property-46718021.html

Walking distance to the station and then Waterloo is what, an hour and twenty away? The Solent, New Forest, and South Downs all close by. Winchester has some pretty well regarded sixth form colleges. And as you said, there's oil industry jobs in the area.

I'd guess the rebuilding cost (excluding land) for that property must be over £100k. And it's x4 a household income of £40k.

I'm not saying it's any kind of bargain, and anyone can see that it needs work, but compared to some of the truly wacky prices I've seen it doesn't look that totally stupid. What price do you think it should be?

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so cutting the £200 pa per 'HOUSEHOLD' WFA will cause the older generation to be squeezed so they sell their house they like to live (which may well not be better housing stock) in for peanuts :wacko:

and the so-called special treatment on savings (an extra 1%) will make them sell

you really are in the realm of 'deluded' :)

Accepted it's the buying side that is the real issue. The flood of yield chasers, savers spending up (shocking falls in overall balances recently), new borrowers going hard for it, teaser rate 60% LTV mortgages. That's what needs to fall away.

At the same time I just would like to see a bit more supply provoked onto market, and at this point, yes, deluded!

Anything that helps though just force a few more willing sellers to tilt the balance - from my imagined older person hogging such a family home... now asking £650K+ for it. Maybe they will get such a price and if they do, not seller's fault. If they have to accept less for it, then it has a bearing on other houses in the area, with a few similar transactions also taking place.

Values can be set by very few buyers and sellers in illiquid markets. +10% a year, +27% a year in Dubai, +3%+ the other month re Nationwide, on very low buyer-seller volume. If people don't get that, and too many complacent owners don't understand it, but certainly are exceptionally focused when a house goes for sale on their own road to what it is worth, then no wonder inventory is so low, and not a rush to cash out at these mad crazy high values.

Sunday Times 25th May 2014

The share of new loans that are for more than 4.5 times income hit a record of nearly

39% in the last quarter of 2013, above the 2007 peak of 32%

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It's a completely fukced up world, but I have to admit that I'm completely fascinated by it. Logic tells me that the system MUST break at some point - that these warped outcomes where the losers become the winners and the prudent lie dead by the roadside MUST at some point have repercussions, But who knows? Maybe this will go on for years, even decades…I just don't know.

One thing I am convinced of though is that until we see a return to system where risk and reward are sensibly related, we will not have a properly functioning society.

FT; it is surreal, hearing and watching politicians make the argument for HTB1+2, that they can afford the mortgage but don't have the deposit. Enabling them ahead of those of us who do have the deposit, but have been waiting for better value + fuelling profits for favoured developers at prices they want to sell newbuilds for. (That's my view). HTB1 newbuild is good for me, for it's burning out my competition, soaking up a certain class of pent-up demand, which now will be less likely to be competing against me in the secondary home market.

I accept it's been a culture of entitlement with HPI expectations for buyers. All the time now, we're hearing 2007 is the norm. Many on hpc are guilty of coming up with excuses themselves, for buyers who've been reckless extremes with their positions.

My sister in her early 30s runs a lady's sports group in her spare time, and tells me quite a few of the young girls going through uni right now, seem less materialistic, more humble in their views. Impossible to tell much from that, but how more forgiving-excuses/enabling can the VI be, against younger non-owning positions coming through. Many I hope who have no intention of paying what many owners think their own homes are worth, regardless of any new schemes like HTB3.

And non-owners are for the moment just being given token pity to their plight, even getting away with terms such as 'nation of renters' - but perhaps they're underestimating a dynamic. The young turned on the old in the 1989/90+ hpc. It was the better housing stock they wanted to buy/upsize to at lower values that was part of the impulse.

Edited by Venger

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