Guest Posted February 9, 2016 Share Posted February 9, 2016 Presuming the crash that has now started is allowed to run its course - once we see decent falls (30% plus) what will the specific practical outcomes for the man on the street? I'm not talking WW3 scenarios, or the need to store beans! For instance: BTL landlords sell up - meaning more supply? Cheaper rents? Foreign owners sell up, or never buy in the first place? Prime London starts to welcome back normal residents Living costs come down drastically, so people have more to spend on other things Business rents much lower, meaning increased margins, fewer failures, better job security Grandparents and parents no longer have to give lump sums to their children to finance house purchases People pay off mortgages quicker Cheaper housing will allow councils to make more compulsory purchases for social housing I didn't include lots of EAs out of work - nice but doesn't directly benefit people! Although ... might allow an online EA service to grow rapidly and change the EA system long term. Quote Link to comment Share on other sites More sharing options...
Automotive Engineer Posted February 9, 2016 Share Posted February 9, 2016 Presuming the crash that has now started is allowed to run its course - once we see decent falls (30% plus) what will the specific practical outcomes for the man on the street? I'm not talking WW3 scenarios, or the need to store beans! For instance: BTL landlords sell up - meaning more supply? Cheaper rents? Foreign owners sell up, or never buy in the first place? Prime London starts to welcome back normal residents Living costs come down drastically, so people have more to spend on other things Business rents much lower, meaning increased margins, fewer failures, better job security Grandparents and parents no longer have to give lump sums to their children to finance house purchases People pay off mortgages quicker Cheaper housing will allow councils to make more compulsory purchases for social housing I didn't include lots of EAs out of work - nice but doesn't directly benefit people! Although ... might allow an online EA service to grow rapidly and change the EA system long term. I imagine that investors would flee the pound sterling for the U.S dollar, as 60% of our economy is the housing economy (read it on another thread with verifiable data to back up). This would force Mark "the vigilant" Carney to raise IR to avoid the mass dumping of the pound, further exacerbating the housing crash and giving savers great deals AND we could finally buy our own house. BRING ON BLACK WEDNESDAY HOW DO YOU EMBED YOUTUBE VIDS Quote Link to comment Share on other sites More sharing options...
davidg Posted February 9, 2016 Share Posted February 9, 2016 BTL landlords sell up - meaning more supply? Cheaper rents? surely less supply, rents go up on remaining property. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 9, 2016 Share Posted February 9, 2016 (edited) Never presume. It makes a pres out of u and me.....hang on, that's not right. Never assume. Edited February 9, 2016 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
insertcoinstocontinue Posted February 9, 2016 Share Posted February 9, 2016 existing mortgages will still have to repaid. So the poor buggars who bought during the last 18nonths or so are still going to have to repay their huge debts. I've been off/on HPC since 2007 and I've always had an issue with the lack of empathy to people who bought out of necessity, me being one of them. Of course I want a crash, but spare a thought for the innocent people who's lives will be ruined by huge negative equity! Some of the things I read on here are really quite vile. Quote Link to comment Share on other sites More sharing options...
billybong Posted February 9, 2016 Share Posted February 9, 2016 (edited) ^ Black Wednesday video Amazing how they believed that just by setting an exchange rate that would result in a prosperous economy "like Germany's". For sure their economic tomfoolery knows no bounds. It's no different now. 9.57 minutes in - Lamont takes the budget book out of the Red Box and the pages are literally full of holes Edited February 9, 2016 by billybong Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 9, 2016 Share Posted February 9, 2016 Presuming the crash that has now started is allowed to run its course - once we see decent falls (30% plus) what will the specific practical outcomes for the man on the street? I'm not talking WW3 scenarios, or the need to store beans! For instance: BTL landlords sell up - meaning more supply? Cheaper rents? Fewer landlords and the same number of people wanting to rent will mean higher rents? Quote Link to comment Share on other sites More sharing options...
Tresbon Posted February 9, 2016 Share Posted February 9, 2016 existing mortgages will still have to repaid. So the poor buggars who bought during the last 18nonths or so are still going to have to repay their huge debts. I've been off/on HPC since 2007 and I've always had an issue with the lack of empathy to people who bought out of necessity, me being one of them. Of course I want a crash, but spare a thought for the innocent people who's lives will be ruined by huge negative equity! Some of the things I read on here are really quite vile. Necessity? You simply had no other options available whatsoever other than purchase an overpriced property? Really? Nothing at all? Quote Link to comment Share on other sites More sharing options...
insertcoinstocontinue Posted February 9, 2016 Share Posted February 9, 2016 So now a house is not a necessity? Renting is not an option children at school are unable to rent as they could be evicted at any time. Like I said the tone of this forum has turned very nasty. And regarding BTL landlords selling up??? For every landlord selling a reduced property there will be 5 wanting to buy a reduced property, thus the game simply starts again.... Quote Link to comment Share on other sites More sharing options...
dryrot Posted February 9, 2016 Share Posted February 9, 2016 Business rents never seem to go down, they prefer voids to lowering rents (I'm guessing there are tax reasons for this?) I think its valuations on the balance sheet for major commercial landowners. If they let one shop at cheaper rent then the valuations on all the others fall too. Better to keep them empty or as charity shops than risk price discovery V cheap money helps here too of course... Quote Link to comment Share on other sites More sharing options...
Flopsy Posted February 9, 2016 Share Posted February 9, 2016 Fewer landlords and the same number of people wanting to rent will mean higher rents? Fewer Landlords, less homes to rent as some will have bought, leaving the less well off who cannot buy and who cannot afford large rents to compete for the rest. Potentially leading to lower rental prices as the more well off have bought ? Quote Link to comment Share on other sites More sharing options...
winkie Posted February 9, 2016 Share Posted February 9, 2016 (edited) existing mortgages will still have to repaid. So the poor buggars who bought during the last 18nonths or so are still going to have to repay their huge debts. I've been off/on HPC since 2007 and I've always had an issue with the lack of empathy to people who bought out of necessity, me being one of them. Of course I want a crash, but spare a thought for the innocent people who's lives will be ruined by huge negative equity! Some of the things I read on here are really quite vile. No sympathy I am afraid.....nobody forces people to buy something that is over valued.....nobody forces people to take on debt to buy something that may take extra years to repay.......be thankful that interest rates are so low. The contract is to repay over ~25 years....a long-term commitment......what does it matter what it is worth whilst you are paying/ renting and repaying it...........nobody is entitled to free equity gain, in fact the more the value the more the next 'step on the ladder ' will cost........secured debt does not disappear it will always have to eventually be repaid....... . Edited February 9, 2016 by winkie Quote Link to comment Share on other sites More sharing options...
tyres Posted February 9, 2016 Share Posted February 9, 2016 well here in Cambridge there is no whiff of a Crash Cambridge average house price up £30k in THREE MONTHS while bottom end of the market nears £300k House price growth in UK's 20 major cities 'may have peaked' - but Cambridge property soars 12% in a year Quote Link to comment Share on other sites More sharing options...
insertcoinstocontinue Posted February 9, 2016 Share Posted February 9, 2016 Same in Shropshire...... I think we have to wait for London to officially crash and wait for aftermath Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted February 9, 2016 Share Posted February 9, 2016 It would be interesting to see London prices fall within a backdrop of 0.5% interest rates as yields would rocket >5%. I can see many piling in once prices have become more realistic, just like they did in Dublin in 2012. So a fall, followed by a sudden sharp bounce as investors clamber to buy a high yielding asset. Quote Link to comment Share on other sites More sharing options...
Quicken Posted February 9, 2016 Share Posted February 9, 2016 existing mortgages will still have to repaid. So the poor buggars who bought during the last 18nonths or so are still going to have to repay their huge debts. That will happen regardless of a crash, so what are you complaing aboiut? So now a house is not a necessity? Renting is not an option children at school are unable to rent as they could be evicted at any time. Like I said the tone of this forum has turned very nasty. And regarding BTL landlords selling up??? For every landlord selling a reduced property there will be 5 wanting to buy a reduced property, thus the game simply starts again.... Stamp duty and the big clause 24 squeeze suggest not... The big BTL game is ending soon. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted February 9, 2016 Share Posted February 9, 2016 I imagine that investors would flee the pound sterling for the U.S dollar, as 60% of our economy is the housing economy (read it on another thread with verifiable data to back up). This would force Mark "the vigilant" Carney to raise IR to avoid the mass dumping of the pound, further exacerbating the housing crash and giving savers great deals AND we could finally buy our own house. BRING ON BLACK WEDNESDAY HOW DO YOU EMBED YOUTUBE VIDS Glorious stuff. Thanks for posting. Too bad the events of 2007/8 weren't documented in the same way. Quote Link to comment Share on other sites More sharing options...
Quicken Posted February 9, 2016 Share Posted February 9, 2016 I think its valuations on the balance sheet for major commercial landowners. If they let one shop at cheaper rent then the valuations on all the others fall too. Better to keep them empty or as charity shops than risk price discovery V cheap money helps here too of course... Mark to fantasy. Post-modernism at its best. Quote Link to comment Share on other sites More sharing options...
Guest Posted February 9, 2016 Share Posted February 9, 2016 surely less supply, rents go up on remaining property. Sorry I meant increased supply for houses for sale ... will rents go up, or will there be fewer people renting, so landlords drop rent to get tenants? Quote Link to comment Share on other sites More sharing options...
Guest Posted February 9, 2016 Share Posted February 9, 2016 well here in Cambridge there is no whiff of a Crash Cambridge average house price up £30k in THREE MONTHS while bottom end of the market nears £300k House price growth in UK's 20 major cities 'may have peaked' - but Cambridge property soars 12% in a year Of course tulip bulbs won't come down in price ... look how much we're all paying THIS week! If a crash was coming why would we still be buying? You must think we're stupid! Well .... actually .... Keep the faith tyres Quote Link to comment Share on other sites More sharing options...
Tresbon Posted February 9, 2016 Share Posted February 9, 2016 So now a house is not a necessity? Renting is not an option children at school are unable to rent as they could be evicted at any time. Like I said the tone of this forum has turned very nasty. And regarding BTL landlords selling up??? For every landlord selling a reduced property there will be 5 wanting to buy a reduced property, thus the game simply starts again.... This is exactly the attitude which gets you zero sympathy. I know a number of people whom have to do exactly this. Rent with kids. My younger brother and the majority of his friends. You did have a choice and you chose to buy at the price you did, rather than rent. At least be man enough to accept the negative consequences of this decision, should they come about. Quote Link to comment Share on other sites More sharing options...
spunko2010 Posted February 9, 2016 Share Posted February 9, 2016 insertcoinstocontinue sounds like s/he's from MSE or Mumsnet. Quote Link to comment Share on other sites More sharing options...
Automotive Engineer Posted February 9, 2016 Share Posted February 9, 2016 existing mortgages will still have to repaid. So the poor buggars who bought during the last 18nonths or so are still going to have to repay their huge debts. I've been off/on HPC since 2007 and I've always had an issue with the lack of empathy to people who bought out of necessity, me being one of them. Of course I want a crash, but spare a thought for the innocent people who's lives will be ruined by huge negative equity! Some of the things I read on here are really quite vile. I speak only for myself, and my opinions are my own. Nevertheless, vile comments I reserve for the Governor of the Bank of England, Geroge Osborne and the BTL brigade Quote Link to comment Share on other sites More sharing options...
Guest Posted February 9, 2016 Share Posted February 9, 2016 ...innocent people who's lives will be ruined by huge negative equity! When you move into a house, you have to consider whether you'll be there for a year, or five, or twenty five. Negative equity is only a problem for people who want to move ... they should have considered that when they disregarded the option of renting. Quote Link to comment Share on other sites More sharing options...
insertcoinstocontinue Posted February 9, 2016 Share Posted February 9, 2016 I'm not complaining I am saying you should spare a thought for people who will still have to repay the over inflated prices paid. HPC is not going to be a utopia. Fact is the majority of the population HAVE bought and although I accept they have added to the problem, HPC is going to be pretty awful for the average family. I think there are too many butter renters on this forum who 8 years on from when I first started reading this have grown even more self centred! I started reading this forum back in 07 before I bought my second house and I'm still waiting for a crash. I would be interested to know if there is some sort of date in mind when if HPC hasn't occurred we give up? Personally I see no end to the BTL game, it just means wealthy people will buy more cheaper houses and as for ir raises, forget it. I think if we ain't seen HPC by summer 17 you can forget it Quote Link to comment Share on other sites More sharing options...
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