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Alfie Moon

Change Of Mood - Are House Prices Really Sustainable?

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From the move channel:

Buying an average-priced property in London now requires an income of nearly £82,000, a sum earned by fewer than one in 10 Londoners, the London Housing Federation has revealed.

Responding to figures released this week by Rightmove.co.uk which show that in March 2006 the average house price in London broke the £300,000 barrier for the first time, the Federation expressed serious concerns about the impact of high house prices on a huge swathe of Londoners.

London’s average house price - £300,790 – now stands at 11.5 times average individual earnings, which are £26,0002. Assuming that a couple both earned this amount, the largest mortgage they could reasonably afford would be £182,0001.

Berwyn Kinsey, head of the London Housing Federation, said: "Some Londoners will applaud the news that house prices have broken the £300,000 barrier, but for many more this is evidence that the housing nightmare is getting worse."

Bulls, and anyone whose 'mood' has changed - you need to explain how the above is sustainable and/or how house prices will go even higher.

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If you can't afford to buy a house, simply go to a lender and ask for a huge loan.

It doesn't matter that you can never pay it off, because your house will increase in value by at least an average of 20% PA for ever.

You don't need to bother with a troublesome repayment mortgage, interest only is fine as your house will be worth 75 times the loan when your are 70 YO

Houseprices never fall

It doesn't matter if interest rates rise by 0.25% (a 6% increase in your monthy repayment)

Safe as houses

Bricks and mortar

There will never be another recession.

Unemployment is increasing every month

No one is spending on the high st

Nobody is buying new cars

Monthly expenditure on stealth and council taxes are going through the roof

Proffits warnings galore.

Estate agents say everything is fine and boom time is here again

There is a national shortage of housing

Estate agents have never had so many properties on the books for years

Houseprices are affordable

Who needs any disposable income at the end of the month to enjoy life, be grateful you've got a small house on a crack estate and a huge mortgage.

MEW is a free loan which allows you to buy a new car everyear and perhaps a nice holiday apartment in Spain.

Huge numbers of people who own houses, BTL properties and have huge interest only loans spend huge amounts of their leisure time posting on internet forums that everything is fine in the housing market and prices are increasing and can never fall, so now is the best time to buy everybody!!

Why are they not out there enjoying their leisure time? Whya re they so concerned about something that there is no reason to be concerned about if all is well? Haven't they got such a nice stable lifestyle that they can dind something a bit more pleasureable to do with their lifes?

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Guest wrongmove

Well, you have compared average uk wage to Rightmove asking price - blatant VI spin. If you compare average London wage to OPDM figures for London, the figure is only 8x !! :D

The average price in London will be heavily influenced by very expensive properties. What is needed is a comparison of the median wage to the median property. Anyone have these figures ?

Remember too, that London has many people that do not rely on a PAYE wage for income. Many have plenty of capital already, or receive income from overseas or investments. Any who have owned property for a while will have lots of equity too.

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Remember too, that London has many people that do not rely on a PAYE wage for income. Many have plenty of capital already, or receive income from overseas or investments. Any who have owned property for a while will have lots of equity too.

Yeah, but they're not going to be buying ordinary 3 bed family homes that still cost at least 1/4 of a million in the majority of places in and around London and the South-East. Even with today's historically low interest rates the repayments on that will take out the income of someone on an above average salary.

The day you work out that it will be impossible for today's equity poor youngsters to take on the debt required to house a family let alone pay all the other expenses involved is the day you understand that this has to end at some stage and the longer we pretend otherwise the worse the final reckoning will be.

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  • 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%



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