Jump to content
House Price Crash Forum
dubsie

House Prices Steady And Rising

Recommended Posts

Recent reports have shown that despite a slow economic growth house prices are still rising above the rate of inflation.

Although many of you don't want to believe this, that fact is house prices are rising again. I pitty the first time buyer as by the end of 2006 unless you have wealthy parents or a very good job then buying a house could prove impossible.

The cheapest property in my area is now about £120,000 and only 12 months ago you could get the same house for £110,000. Although this isn't the boom we're used to but its still £10,000. This basically means that to buy a house you either need to have £40,000 gross plus approx £10k deposit.

The reason for this increase is simple, there's simply not enough houses and its supply and demand. People need housing and they will pay what ever it costs to get on the ladder. As long as Banks are willing to lend then there's going to be someone out there willing to borrow.

The only way house prices will go down is if interest rates soar as this will result in house reposessions and reluctance to borrow. I don't think we'll see this in the next 5 years....maybe when oil runs low but not yet.

Share this post


Link to post
Share on other sites

Recent reports have shown that despite a slow economic growth house prices are still rising above the rate of inflation.

Although many of you don't want to believe this, that fact is house prices are rising again. I pitty the first time buyer as by the end of 2006 unless you have wealthy parents or a very good job then buying a house could prove impossible.

The cheapest property in my area is now about £120,000 and only 12 months ago you could get the same house for £110,000. Although this isn't the boom we're used to but its still £10,000. This basically means that to buy a house you either need to have £40,000 gross plus approx £10k deposit.

The reason for this increase is simple, there's simply not enough houses and its supply and demand. People need housing and they will pay what ever it costs to get on the ladder. As long as Banks are willing to lend then there's going to be someone out there willing to borrow.

The only way house prices will go down is if interest rates soar as this will result in house reposessions and reluctance to borrow. I don't think we'll see this in the next 5 years....maybe when oil runs low but not yet.

Hi,

Do you care to expand on ;

Recent reports have shown that despite a slow economic growth house prices are still rising above the rate of inflation.

Which indices are you using for that call? In what way do you attach particular credence to that indice compared to another that may be contradictary (some indices showed house price falls last year).

Although many of you don't want to believe this, that fact is house prices are rising again. I pitty the first time buyer as by the end of 2006 unless you have wealthy parents or a very good job then buying a house could prove impossible.

FTB's are at an historical low. Investor numbers have shown to be falling with some lenders pulling out of investor loaning altogether. Where do you see the continued growth and confidence within the market to maintiain or rise these valuations?

The reason for this increase is simple, there's simply not enough houses and its supply and demand. People need housing and they will pay what ever it costs to get on the ladder. As long as Banks are willing to lend then there's going to be someone out there willing to borrow.

The demand and supply issues and demographics are little different to the last crash except a rise in the age of the population and more investors in the market. Banks are infact tightening lending criterias and some withdrawing from some sectors of loaning. Can you be more specific on these issues?

The only way house prices will go down is if interest rates soar as this will result in house reposessions and reluctance to borrow. I don't think we'll see this in the next 5 years....maybe when oil runs low but not yet.

Interest rates could soar if there was a run on sterling. Currency has always been a problemaric issue to the UK economy and was infact the cause of the last large scale hike in rates (but note that house prices were already falling before that event). In what ways do you now see the UK currency as inherently stable compared to the past? Do you not see the debt levels of the uk as an issue? Please can you elaborate.

Boomer

Edited by boom_and_bust

Share this post


Link to post
Share on other sites

Recent reports have shown that despite a slow economic growth house prices are still rising above the rate of inflation.

Good for them! Funnily enough so are my savings so that keeps us on an even keel then.

Share this post


Link to post
Share on other sites
Guest Bart of Darkness
I pitty the first time buyer as by the end of 2006 unless you have wealthy parents or a very good job then buying a house could prove impossible.

If people don't buy, home owners can't sell = no housing market all all.

Unless you're an advocate of Brainclamp's "rentier society"?

Share this post


Link to post
Share on other sites

If HPs are rising why are there reports that developers are knocking 15% off the price of Newbuilds? And why am I surrounded by properties for sale that have been on the market for up to a year? Why can't my parents sell their house?

Are you an estate agent by any chance?

Share this post


Link to post
Share on other sites
Guest Charlie The Tramp

May I remind you of a previous posting of yours.

I run a couple of retail companies and our products are in growth areas, however, the last few months have been very hard. We do online and high street sales and both are suffering.

October was appalling but November is looking a little better but it won't match last Christmas which was also considered to be poor. We have less than 6 weeks to Christmas and with mail order this is reduced to about 5 weeks as people tend not to shop online in the last week up to christmas.

Anyone one thinking of starting a retail business should seriously think otherwise at the moment as its simply saturated and I'm predicting lots of empty spaces in the high street in the new year. This will continue while high street landlords and local councils rake in huge amounts of money from over inflated rents and rates.

I'm considering selling up and learning a new trade as I can't see a future in retail sales in the uk for a long time.

However, there are some promising signs, the building trade is still bouyant with tradesmen still in full employment and no evidence of it slowing down. As the olympics gains momentum this is likely to boost the construction industry even more. The big question is will this end also?

It's very tricky to predict how a slump in retail will affect the rest of the economy but in the UK where retail is one the main measures of economic performance this could be bad news for everyone.

I think retail has grown too big too quickly and this growth has been based on credit and not real income. We must remember that under the last conservative government we had areas of the country where just about everyone was on the dole, almost 5 million unemployed under Mrs Thatcher. This lowered wages for the working portion and in general people didn't spend a lot in the shops as a result. Since labour we have had record growth and employment and people have been feeling the positive affects of almost no unemployment and rising property prices. They went spend crazy and lots of spending has been on credit. Unfortunately this money has to be paid back and this is the result....poor sales.

Its so easy to blame politics but in my opinion for the vast majority of working people things are better now than they every were under the conservatives. I'm far from a Blair supporter and would much prefer a different party but I don't think the conservatives, labour or the lib dems could of stopped what is happening now.

I think we need to revive our exports, maybe turn all UK farms organic and export a high value finished produce to the US and Europe rather than produce mass produce rubbish. Start producing BIO diesel and selling that, design and build eco houses for europe.

Train thousands as plumbers, builders and get them working on the 1 million empty homes in the UK, rather than have 1000's employed in dead end poorly paid jobs.

We need to push forward public/freight transport as congestion is killing uk production. Have some guts and buy back the railways and pump in billions for new tracks and rolling stock and trains that run on time all the time 24 hours a day. Get Britain moving again.

There's so many solutions to our fading economy but we are chasing old ideas. We need to be slick, fast moving and able to embrace new ideas and make them happen....

Share this post


Link to post
Share on other sites

Hi,

Do you care to expand on ;

[...]

Boomer

Boomer,

I bet you don't get any response to your detailed queries from dubsie.

Come on dubsie, surprise us for a change. Or will you be yet another hit-and-run bull with no backup to call on?

frugalista

Share this post


Link to post
Share on other sites

If HPs are rising why are there reports that developers are knocking 15% off the price of Newbuilds? And why am I surrounded by properties for sale that have been on the market for up to a year? Why can't my parents sell their house?

Are you an estate agent by any chance?

Same thing applies in WEst Midlands area--Newbuilds deeply discounted, EAs offering 10% sales, houses sold STC for months on end and then withdrawn. The counterattack by EAs, Trolls and VIs will not turn around a market with downward momentum based on affordability and a contracting economy as evidenced by GDP>

Share this post


Link to post
Share on other sites
Guest Riser

I'm still waiting for Nationwide to publish their quaterly regional report for December. The National figure published in December no doubt had Scotland and Northern Ireland once again masking losses for the rest of the UK. As for Halifax, we have already shown that their seasonal adjustment is all to pot.

Share this post


Link to post
Share on other sites

dubsie

I think you have smoked a bad batch of draw. I decided to go to a small

industrial new town in Shropshire last week. Before I got to the town I

noticed a lot of houses for sale. Things are not looking good. I hope you

have something else lined up as I would not want to be an estate agent

in 2006.

Share this post


Link to post
Share on other sites

snore as much as u like bignose.

perhaps you'd care to explain why you think THIS

Although many of you don't want to believe this, that fact is house prices are rising again. I pitty the first time buyer as by the end of 2006 unless you have wealthy parents or a very good job then buying a house could prove impossible.'

isnt spam???

oh dear, we've all 'missed the boat'...

Share this post


Link to post
Share on other sites

snore as much as u like bignose.

perhaps you'd care to explain why you think THIS

Although many of you don't want to believe this, that fact is house prices are rising again. I pitty the first time buyer as by the end of 2006 unless you have wealthy parents or a very good job then buying a house could prove impossible.'

isnt spam???

oh dear, we've all 'missed the boat'...

Only if you tell me why you think AWOOGA adds anything to any online discussion?

Share this post


Link to post
Share on other sites

There are ove 570,000 properties on rightmove that no-one seems to want. That will be the supply shortage. Can you point out the demand?

And, let us not forget, RightMove only have slightly over half the agents in the UK signed up. Which would suggest a million properties on the market at the moment - about the same number that normally sell in a year.

Yes, I can see there is a real supply problem.

Share this post


Link to post
Share on other sites

I think it depends on which area you're looking at. We've been looking at Cheshire for the last 3 years and have noticed that over the past 12 months prices generally seem to be stagnating. The village we'd chose to live in is very expensive but very little is selling and some vendors are reducing for a sale.

Share this post


Link to post
Share on other sites

Peach - it's obvious. It flags up the fact that at least someone thinks its a troll post. Maybe someday you should try moderating a board and find out just how hard it is. The mods can probably use all the help they can get on the 33,000th most popular website in the world. The response 'awooga', is, in fact, entirely in keeping with the worthless troll post that inspired it. What are u expecting? a 10,000 word refutation of a VERY lame spam post?

On another level (which you may understand, becasue the first para is prob way over ur head) think of it like spam. You can set the filters in your email to 'flag' spam mail (I assume you understand what spam is, if you dont, let me know). This is identical. The board is the system of its users, and although it gets spammed (fairly frequently, as in this case), we can either ignore it, or flag it as spam. Over time, the board, like a good email filter, should begin to notice spam of its own accord (i.e. its members will), and then it wont 'get thru' (or in the case of a board, draw postings which keep a worthless post at the head of the board. Imagine if u couldn't delete spam mail from ur inbox. U'd probably find that quite annoying. Actually, scratch that. You prob think each and every one of those viagra messages is addressed to u personally).

If u need any more help with internet basics, feel free to let me know.

Actually, don't. Go buy yourself a book or something.

>snore<

Edited by CrashIsUnderWay

Share this post


Link to post
Share on other sites

You say you wander your own land

But when I think about it

I don't see how you can

You're aching, you're breaking

And I can see the pain in your eyes

Says everybody's changing

And I don't know why

So little time

Try to understand that I'm

Trying to make a move just to stay in the game

I try to stay awake and remember my name

But everybody's changing

And I don't feel the same

You're gone from here

And soon you will disappear

Cause everybody's changing

And I don't feel right

So little time

Try to understand that I'm

Trying to make a move to stay in the game

I try to stay awake and remember my name

But everybody's changing

And I don't feel the same

So little time

Try to understand that I'm

Trying to make a move to stay in the game

I try to stay awake and remember my name

But everybody's changing

And I don't feel the same

Share this post


Link to post
Share on other sites

Peach - it's obvious. It flags up the fact that at least someone thinks its a troll post. Maybe someday you should try moderating a board and find out just how hard it is. The mods can probably use all the help they can get on the 33,000th most popular website in the world. The response 'awooga', is, in fact, entirely in keeping with the worthless troll post that inspired it. What are u expecting? a 10,000 word refutation of a VERY lame spam post?

On another level (which you may understand, becasue the first para is prob way over ur head) think of it like spam. You can set the filters in your email to 'flag' spam mail (I assume you understand what spam is, if you dont, let me know). This is identical. The board is the system of its users, and although it gets spammed (fairly frequently, as in this case), we can either ignore it, or flag it as spam. Over time, the board, like a good email filter, should begin to notice spam of its own accord (i.e. its members will), and then it wont 'get thru' (or in the case of a board, draw postings which keep a worthless post at the head of the board. Imagine if u couldn't delete spam mail from ur inbox. U'd probably find that quite annoying. Actually, scratch that. You prob think each and every one of those viagra messages is addressed to u personally).

If u need any more help with internet basics, feel free to let me know.

Actually, don't. Go buy yourself a book or something.

>snore<

Do you really think that adding AWOOGA to the thread is a public service to the moderators?

Also, spam is defined as unsolicited email, usually advertising. Not posting an argumentative thread. http://en.wikipedia.org/wiki/Spam

Finally, I do understand what a moderators role is about. I do it for two other boards.

www.zgeek.com www.glastonburyforum.co.uk

Edited by Peach

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.