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Golden Shower

Hometrack +0.5%

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It said that prices rose by 0.5 percent in March, the fourth consecutive monthly increase, which left the cost of the average house up 0.1 percent on a year earlier -- the first annual increase since the start of 2005.

So real house prices have fallen in the UK.

This is just another piece of the puzzle falling into place.

Consumer spending has slumped badly, and unemployment is going up.

Next the banks are going to start worrying about losing their money, and the crunch will start.

Then it gets really ugly.

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I'm afraid this is more bad news. There seems to be no limit to the relentless rise in house prices.

I wouldn't worry to much about it. I suspect house prices aren't going to start racing away, but I don't see substantial nominal fall either. Real falls are a different matter...

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Guest Fiddlesticks
"A resurgent market in London, where prices grew by 1.1 percent, has put something of a gloss on the headline results," said Richard Donnell, director of research at Hometrack.

Anyone know how to get a regional breakdown? Can't find it on the Hometrack website.

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My area:

Monthly 0.0%, Sales to asking ration 93%

Still a long time to wait - keep on saving - it's gonna be years before this all pans out.

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My area:

Monthly 0.0%, Sales to asking ration 93%

Still a long time to wait - keep on saving - it's gonna be years before this all pans out.

Monthly 0.1%, Sales to asking up too (albeit to 95% so no great shakes, but a bit stronger than it has been over the last six months)

Edited by vicster

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if 0.5% increase is the best they can do for the run up to the big spring bounce, then doesn't that just go to show how bad things have really become.. and once it fails to materialise and UK plc takes a dive, it will just be a matter of time.

also, No investor in the right mind would consider housing with such poor returns,

BTL's must realise that if FTB's cannot afford, it is then a bubble market.

NOT LONG NOW

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This is great news. I am so glad that I STRed last year. My capital is definitely growing faster in the bank.

:)

Your capital growth will have to massively outstrip HPI to make the decision worthwhile, unless you have enought to buy a property outright. 15pc growth on a 10k deposit is the equivalent to a meagre 1pc rise on a 150k property.

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Your capital growth will have to massively outstrip HPI to make the decision worthwhile, unless you have enought to buy a property outright. 15pc growth on a 10k deposit is the equivalent to a meagre 1pc rise on a 150k property.

And of course, the interest you would PAY on that £150K mortgage does not come into the equation. Not to mention the potential negative equity.

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And of course, the interest you would PAY on that £150K mortgage does not come into the equation. Not to mention the potential negative equity.

Fair point - although interest on a mortgage in unavoidable. I agree that selling to rent is a decision that will come good in the end (I STRed myself in 04). However, I think it is too early to feel smug. The news coming through at the moment is not positive for us.

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Fair point - although interest on a mortgage in unavoidable. I agree that selling to rent is a decision that will come good in the end (I STRed myself in 04). However, I think it is too early to feel smug. The news coming through at the moment is not positive for us.

Believe me, I'm not smug, although I too STR'd last year. A couple of my friends have mortgaged themselves to the eyeballs recently, and I do worry that a rise in interest rates along with a drop in house prices could be devastating for them.

The news coming through is not particularly 'positive' for anyone. As other posters have pointed out, a house price correction/crash/whatever will bring negative effects to the economy as a whole, not just cheap houses for the patient.

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Fair point - although interest on a mortgage in unavoidable. I agree that selling to rent is a decision that will come good in the end (I STRed myself in 04). However, I think it is too early to feel smug. The news coming through at the moment is not positive for us.

Not necessarily unavoidable. I STR'ed in 2004 as well (in Australia), and put the proceeds into shares which have done quite nicely. I could just about buy for cash today, but I currently rent while I think through where I plan to live as a retiree in 5 years or so.

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  • 302 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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