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TheCountOfNowhere

Have You Seen House Prices In The Uk Fall By More Than 20% At Any Time Since Wwii?

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Someone posted this on twitter

"Have you seen house prices in the UK fall by more than 20% at any time since WWII?"

Thought it was a fair enough question.

CeK4EF0XEAQZBi7.jpg

He didnt see to like the Yes, in Real terms the North of England have collapsed in 50% since 2007.

oh I forgot to mention NI.

Edited by TheCountOfNowhere

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My parents house was valued at 65k in 1989. We sold it for 38k in 1994. So yeah, I've seen it and remember it and was 11 years old.

Good thing too. They ended up paying another 30k for the next house rather than another 45k had they moved in 89.

All in the 'untouchable' South east.

Edited by Frugal Git

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Nah, course they don't. Never heard of negative equity. They only ever go up esp. in London.

What's that? Your wages ain't gone up in real terms to even keep pace with average house price rises?

You can only afford a shoebox with a kitchen, lounge, bedroom and bathroom all in one small space in zone 5?

#BuyNowBuyAnything.

-

Sorry for cross posting but still relevant here: Watching a housing committee meeting on Parliament website: Housing minister said lower house prices would be bad because he knows people who bought new builds around 2006/2007 at the top end who have only just come out of negative equity. Apparently.

Edited by Tapori

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To be honest what it is worth is immaterial.......what it costs to buy and monthly cost to purchase over a shortest a period of time is what counts.......whilst living and paying for it, it can be worth 1p or 1 million, or be worth 1 million and then drop to 1p......who cares. ;)

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.

-

Sorry for cross posting but still relevant here: Watching a housing committee meeting on Parliament website: Housing minister said lower house prices would be bad because he knows people who bought new builds around 2006/2007 at the top end who have only just come out of negative equity. Apparently.

F#ck me

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F#ck me

I remember Central Northern City Apartments during the boom last decade proper burning people when post-recession their value dipped big time. I'm talking Liverpool, Leeds, Manchester and to some extent Newcastle.

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Who cares about a handful of people who bought at the top of the bubble going into negative equity?

As long as they keep paying off the mortgage they will climb out of it. They did, afterall, commit to paying the amount they borrowed, why should the debt repayment become someone elses responsibility?

So they won't be able to buy a house again for several years. Welcome to the club, we have millions of members. At least they have one.

This is just saying that prices must always increase otherwise people might have to start paying back what they owe.

The government could reallocate the HTB funds to help these people anyway, bit of rebranding - "Help-To-Stay-Out-Of-Negative-Equity", in the form of an interest free loan for 5 years, or maybe a special ISA, and so on.

To say that we must forever pay higher and higher prices, with more and more state state help to stretch ourselves as far as possible and beyond, when there are plenty of other solutions that put some onus on those who have already made a financial commitment, and already enjoy owner-occupier status - it's ludicrous.

But I think we probably all know why he *really* thinks lower prices would be bad, right?

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I remember Central Northern City Apartments during the boom last decade proper burning people when post-recession their value dipped big time. I'm talking Liverpool, Leeds, Manchester and to some extent Newcastle.

Indeed. I can't believe a modern MP, and a conservative one at that, is seriously espousing price fixing.

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What an amusing question ... I spent enough years trading to know that not having seen a 20% downturn in a highly illiquid market for which 40% returns are normal is a damn good reason to expect a huge imbalance has built up in the background that you can find strong evidence for and then make a stonking huge amount of money out of correcting. Doesn't matter what it is - things can only ever go down for ever .. it doesn't work for up for obvious reasons to do with behavior, substitution, population growth and wars (aren't 0% interest rates brilliant .. but where did all these refugees come from?).

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I wonder if the 25% increase in house price and associated stamp duty payable is more that the goverments generous HTB scheme (which has in effect pushed prices up 25%).

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I wonder if the 25% increase in house price and associated stamp duty payable is more that the goverments generous HTB scheme (which has in effect pushed prices up 25%).

Always remember that HTB is IIRC for new-builds only.

When the old school houses/flats hoovered up by the BTL's start being released to the market, Those price gains are going to look like a pipe dream when the correction is in full swing.

#BuyNowBuyNewBuild

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I remember Central Northern City Apartments during the boom last decade proper burning people when post-recession their value dipped big time. I'm talking Liverpool, Leeds, Manchester and to some extent Newcastle.

Renaissance - Northern (High) Lights

Edited by Saving For a Space Ship

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The closest to it was in the 70s crash.

While salaries rose 50% in 2-3 years, house prices were net flat.

20% pa inflation.

Now it's 0.0% inflation. Nothing to stop a crash now other than The Chancellor doing all he can. Gotta love the guy.

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The closest to it was in the 70s crash.

While salaries rose 50% in 2-3 years, house prices were net flat.

20% pa inflation.

Now it's 0.0% inflation. Nothing to stop a crash now other than The Chancellor doing all he can. Gotta love the guy.

Yes, I remember in the 70's a penthouse which was going to sell for over £70k went for £47k.

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The answer to the question is that we may not have seen falls of more than 20% so far in the past since World War II but that doesn't mean it won't happen in the future :D Here's hoping!

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Falls on paper arent the same as the life effects too which noone else seems to remember.

i remember as a kid people taking years to sell there houses. If someone lost there job they may have to go and find work and leave there families behind. I remember playing in a huge site of half built but abandoned new builds and it stayed like this for a loooong time.

This time when it starts to slide so much future earning potential is now gone that it will never recover and the Uk will become a tragic burnt out basketcase of a country.

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Someone posted this on twitter

"Have you seen house prices in the UK fall by more than 20% at any time since WWII?"

Thought it was a fair enough question.

CeK4EF0XEAQZBi7.jpg

He didnt see to like the Yes, in Real terms the North of England have collapsed in 50% since 2007.

oh I forgot to mention NI.

It was 40% and over in many areas during the last Tory recession 90-92.

A chap I knew in Chard, Somerset bought a 2 up 2 down in the eighties - he ended up with massive negative equity and 3 kids rammed in one box room for years.

Edited by Bill D'arblay

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It is the casual amounts that get thrown around that get me. Round here the cheapest thing you can buy is £300k. Actually nearly £400k for a 3 bed semi but we'll say £300k.

Every £100k borrowed costs around £180k to pay back over 25 years.

On £25k a year salary if EVERY penny of your post-tax salary went on repaying this £180k it would take 9 years of your working life to do so.

So a £300k purchase is basically 27 years of your life where every penny you earn goes on paying for your house.

Other expenses come to at least £1k a month even if you live frugally so basically the normal people can no longer buy. So who is buying?

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