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benjamin

Is 2006 The New 1976

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Why should there be? Oh yes, I forgot, the nation should share HPC obsession and bitterness about house prices.

The article is mainly pointing out curious parallels over the 30 year gap - what's common between 1976 and 2006 in house prices? We all know what's different.

It does mention the low level of home ownership in 1976.

I know which year I prefer (using the Internet and IPod as she types...)

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Guest Charlie The Tramp

The article forgets to mention the best bit of 1976.

HPI went negative at minus 13% and myself and friends moved up from our FTB homes into nice 4 bed detached houses sold at £17,950. While others enjoyed the sun we made a killing. ;)

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The article forgets to mention the best bit of 1976.

HPI went negative at minus 13% and myself and friends moved up from our FTB homes into nice 4 bed detached houses sold at £17,950. While others enjoyed the sun we made a killing. ;)

HPI may have gone negative in your little village, but the Nationwide figures show average prices rose throughout 1976 having slowed at the end of 1975. The first negative in those Nationwide figures is at the end of the 80s, but they're averages of course. Only when they are adjusted for inflation to they dip a bit.

Thankfully I don't remember the 70s. Looks and sounds dreadful!

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Guest Charlie The Tramp

HPI may have gone negative in your little village, but the Nationwide figures show average prices rose throughout 1976

No in a popular area of Greater London.

And annual inflation ( not fiddled ) reached 16.5% as wages followed to keep up, hence the term high wage inflation erodes your debt quicker. ;)

Homeowners saw the slowest annual real rate of increase in house prices under Harold Wilson's Labour Government. Annual house prices actually fell in real terms by 13% between March 1974 and April 1976
James Callaghan In office from April 1976 to May 1979 Price of Home at start of term - £12,415 Price of Home at end of term - £20,004. Real average annual per cent increase within term - +4 per cent

Inflation 1977 15.8% 1978 8.3% 1979 13.4%

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Guest Charlie The Tramp

But I also don't recall prices falling until the early 80's, unless he means in real terms?

In December 1969 I bought my first property a 2 bed maisonette with detached garage and garden for £3,950. On signing contracts I learnt from my solicitor the vendor paid £4,500 as a new build in July 1967. A neighbour told me that the property was up for sale for nearly a year. During 1970 in the area a few properties were reduced after failing to sell. EAs then did not value at silly prices and making an offer was very rare.

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The year before, 1975, I had bought my first house at the age of 28. It was a good three bedroomed detached property and inflation eroded the mortgage debt so swiftly that three years later I was able to buy a five bedroom detached house. By the time I was 35 I had moved again and was living in a large Georgian rectory. The key to this effortless progress up the housing ladder was not skill on my part, but the sensible house prices combined with the huge inflation of the time which destroyed mortgage debt in a few short years. In 2006 young professionals on similar salaries (adjusted for inflation) struggle to buy a one bedroom flat.

Things have changed for the worse over the last 30 years; how long do you suppose the current house price insanity can continue in a low inflation environment where a half-decent house now costs half a million pounds and the mortgage required to buy it remains a ball-breaking debt for a generation or more?

Edited by Red Baron

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The year before, 1975, I had bought my first house at the age of 28. It was a good three bedroomed detached property and inflation eroded the mortgage debt so swiftly that three years later I was able to buy a five bedroom detached house. By the time I was 35 I had moved again and was living in a large Georgian rectory. The key to this effortless progress up the housing ladder was not skill on my part, but the sensible house prices combined with the huge inflation of the time which destroyed mortgage debt in a few short years. In 2006 young professionals on similar salaries (adjusted for inflation) struggle to buy a one bedroom flat.

Things have changed for the worse over the last 30 years; how long do you suppose the current house price insanity can continue in a low inflation environment where a half-decent house now costs half a million pounds and the mortgage required to buy it remains a ball-breaking debt for a generation or more?

Civil war ! :D

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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% +
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