doomed Posted January 18, 2016 Share Posted January 18, 2016 http://www.bloomberg.com/news/articles/2016-01-18/u-k-first-time-homebuyers-get-respite-in-january-price-dip Quote Link to comment Share on other sites More sharing options...
Guest Posted January 18, 2016 Share Posted January 18, 2016 Nationally, listings of properties with two or fewer bedrooms -- a popular choice for first-time buyers -- jumped an annual 6.6 percent. FTBs have become older and older in the last 20yrs or so .... which means they will be wanting 3 or 4 bed places (i.e. family homes) rather than a small starter home. Thus I think the latter will slide in price markedly .... meaning housing market (especially London) will have dropping prices at the top and bottom, leaving the middle ground looking markedly pricey! crashy crashy Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted January 18, 2016 Share Posted January 18, 2016 FTBs have become older and older in the last 20yrs or so .... which means they will be wanting 3 or 4 bed places (i.e. family homes) rather than a small starter home. Thus I think the latter will slide in price markedly .... meaning housing market (especially London) will have dropping prices at the top and bottom, leaving the middle ground looking markedly pricey! crashy crashy A 20 year old FTB in 1998 is now 38 and probably still can't buy. Crazy, but true. Quote Link to comment Share on other sites More sharing options...
Guest Posted January 18, 2016 Share Posted January 18, 2016 A 20 year old FTB in 1998 is now 38 and probably still can't buy. Crazy, but true. Ha ha .... I was a 20 yr old FTB in 1998 .... and I still can't buy! Quote Link to comment Share on other sites More sharing options...
thewig Posted January 18, 2016 Share Posted January 18, 2016 I was 20 in 1998 but buying a house was the last thing on my mind to be fair... the good old days!! Beer, smoke, mates and women I had it all back then. But I still can't buy today. Well I could afford to, but I refuse to engage at today's highly offensive asking prices. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted January 18, 2016 Share Posted January 18, 2016 With 400,000 FTBs since 2002, that equates to approx 500 idiots in London ( based on 400,000 / 14 years = 28571 / 12 months = 2380 / (population of UK / population of London (EST) ) = 476 greatest fools. Rejoice, 476 people are getting a bargain. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted January 18, 2016 Share Posted January 18, 2016 Quick, snap up a bargain before it's too late . Quote Link to comment Share on other sites More sharing options...
streamingfreedom Posted January 18, 2016 Share Posted January 18, 2016 FTBs have become older and older in the last 20yrs or so .... which means they will be wanting 3 or 4 bed places (i.e. family homes) rather than a small starter home. Thus I think the latter will slide in price markedly .... meaning housing market (especially London) will have dropping prices at the top and bottom, leaving the middle ground looking markedly pricey! crashy crashy Excellent point - I'm actually in this situation myself. We know we'll probably only ever be able to buy one house now so need to ensure it's suitable for a family lifetime. Quote Link to comment Share on other sites More sharing options...
Guest Posted January 18, 2016 Share Posted January 18, 2016 Yes, I'll only be buying at most one house in my lifetime, now. With terms of 25 years or more, if I'm not in a position to take out a mortgage in the next couple of years, it's not happening. Houses have never been reasonably priced in my working lifetime - the absolute earliest I could have applied for a mortgage would have been 2005. Prices had already tripled since the 90s. I remember my coworkers in my first job talking about how much they had made on their flats. Quote Link to comment Share on other sites More sharing options...
billybong Posted January 18, 2016 Share Posted January 18, 2016 From the Bloomberg link. Asking prices for homes in the U.K. capital fell 0.9 percent this month, the least buoyant January performance for four years, property-website operator Rightmove Plc said on Monday in a monthly report. 0.9% "a respite". Take your respite and shove it up your jumper. Quote Link to comment Share on other sites More sharing options...
Guest Posted January 18, 2016 Share Posted January 18, 2016 Excellent point - I'm actually in this situation myself. We know we'll probably only ever be able to buy one house now so need to ensure it's suitable for a family lifetime. The vast number of baby boomers start hitting 70 about now, and will want to downsize from the big family home they bought in their 40s. Apart from meaning an increase in supply, they'll struggle to sell to us priced out 40ish folk unless they drastically drop the price .... there is hope yet. Quote Link to comment Share on other sites More sharing options...
Neverwhere Posted January 18, 2016 Share Posted January 18, 2016 Yes, I'll only be buying at most one house in my lifetime, now. With terms of 25 years or more, if I'm not in a position to take out a mortgage in the next couple of years, it's not happening. Houses have never been reasonably priced in my working lifetime - the absolute earliest I could have applied for a mortgage would have been 2005. Prices had already tripled since the 90s. I remember my coworkers in my first job talking about how much they had made on their flats. As many will have been priced out for this long I wonder whether this won't put downwards pressure on terms and therefore further downwards pressure on prices, taking them below historic averages? The money that priced out generations have spent in rent to BTL speculators would normally have gone towards the cost of their homes, remove the speculators from the equation and the priced out have to take up the slack but their purchasing power is lower than it would have been otherwise as it's already been partly siphoned off by the BTLers. Perhaps historic averages are misleading because they don't reflect this loss of purchasing power? Quote Link to comment Share on other sites More sharing options...
smiley Posted January 18, 2016 Share Posted January 18, 2016 Me too. I could have bought in the early noughties, but was convinced there was a house price bubble and they should crash. I'm still convinced there's a house price bubble and they're about to crash. Not sure I can still afford to buy, though. Quote Link to comment Share on other sites More sharing options...
Assume The Opposite Posted January 18, 2016 Share Posted January 18, 2016 I'm only 27 so this is a stab in the dark question. If we have a HPC and houses are logical values, will the 'living wage' being £7.20 (£14976 p/y) set a floor on prices? Will house prices actually be able to go down to previous levels such as the 90's given that basic wages are higher? Quote Link to comment Share on other sites More sharing options...
Guest Posted January 18, 2016 Share Posted January 18, 2016 If the price/earnings ratio fell to 90s levels that would be enough of a crash for me. That would mean a London house would be a third of the current cost, and the average UK house would be about 44% of the current price. Most of the problem is the way that house price inflation has been allowed to outpace wage inflation so massively for so long. When minimum wage workers get their wage rise, I'll have to go back to my employer and ask for another increase in order to avoid losing out to the resulting inflation. Sounds cold, but that's the economy we live in, now. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted January 18, 2016 Share Posted January 18, 2016 The vast number of baby boomers start hitting 70 about now, and will want to downsize from the big family home they bought in their 40s. My inlaws ar ein that bracket and have no intention of downsizing. There are no decent homes for them to downsize to !!! If you want a decent sized house with a decent sized garden near to some facilities you can go whistle. They are staying put and employing people instead. They dont need to worry about the stairs as the'll get a Bulgarian lady to carry them to their bed every night. Quote Link to comment Share on other sites More sharing options...
wherebee Posted January 18, 2016 Share Posted January 18, 2016 My inlaws ar ein that bracket and have no intention of downsizing. There are no decent homes for them to downsize to !!! If you want a decent sized house with a decent sized garden near to some facilities you can go whistle. They are staying put and employing people instead. They dont need to worry about the stairs as the'll get a Bulgarian lady to carry them to their bed every night. I just suggested that to the wife. For some reason she was upset. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted January 18, 2016 Share Posted January 18, 2016 I just suggested that to the wife. For some reason she was upset. Let me guess...she's from.... Quote Link to comment Share on other sites More sharing options...
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