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dubsie

House Prices Static

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House Prices nationwide are pretty static and the chances of a large crash are very unlikely, UNLESS THINGS CHANGE ECONOMICALLY ON A GRAND SCALE.

But even if they did crash would that be good for anyone looking to buy via a mortgage, the answer is no, as a crash would probably mean most of the major banks clawing in money and being reluctant to loan. It would probably also mean mass unemployment and recession.

So the reality is that we might see drops of around 5% but that is pocket money when you're spending 150k plus.

The housing problem goes back to the late 1970s when millions of social houses were sold off to tenants at discount by Mrs Thatcher and since then there has been a reluctance of government to tackle a growing housing problem.

Labour inherited a housing problem but has done nothing really to stop the problem getting any worse. It could be argued that by giving Eatern Europeans work permits has actually made the situation even worse. Yes we're building more homes but how many first time buyers can actually afford them.

As far as I can see neither labour, conservatives or libs are offering any solutions and it stands to get a lot worse is any one of these parties gains power at the next election. Want to change things, we need to change politics.

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Only IR rises will drop house prices - it'll affect 'affordability' and 'yields'

IR will only rise if the BOE/GB truly intend to fight real inflation - not going to happen - hiding rising inflation has kept them in power for years - why change?

Edited by dnd

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Only IR rises will drop house prices - it'll affect 'affordability' and 'yields'

IR will only rise if the BOE/GB truly intend to fight real inflation - not going to happen - hiding rising inflation has kept them in power for years - why change?

Economic activity does not run in straight lines. Human nature sees to that. House prices will not reach a limit and then freeze.

The lack of interest in fighting inflation has only served to increase the amount of debt out there which can only end in tears.

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Economic activity does not run in straight lines. Human nature sees to that. House prices will not reach a limit and then freeze.

Yep, they'll continue to rise as new financial 'products' come onto the market to make them 'affordable'...

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hiding rising inflation has kept them in power for years - why change?

Because Joe Sixpack is finally cottoning on to the fact that he's getting poorer every year?

Of course the funny thing is, if they increase rates to reduce inflation he's even worse off as his mortgage increases and the value of his house drops. But that's what happens when you follow ******tarded economic policies for the best part of a decade.

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Yep, they'll continue to rise as new financial 'products' come onto the market to make them 'affordable'...

C'mon, it can't go on forever!

But then again, here are some ideas for the banks:

Parent/Child/Parent's Pension mortgages - where the child gets an IO mortgage, the parents remortage their home for the deposit and the parents get still more cash by putting their pensions up as security.

Parent/Child/Grandchildren mortages - the above, except if there still isn't enough money to buy a bedsit the bank will offer further funds on a 100-year basis where the grandchildren become liable for the outstanding balance when they turn 18.

Hedge Fund Lottery mortgages - where the bank offers 150% IO and the homeowner must put 50 quid a week into the national lottery which the bank gets if they win. Surely if enough people do this it will pay off!

Timeshare Mortgages - where you get a mortgage for 10% of a flat, can live there for 5 weeks a year but must live with your parents for the rest of the year.

(sorry, bit pissed and going crazy here)

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C'mon, it can't go on forever!

it's s**t - i agree - but we live in a market economy - house prices will rise as new 'innovative' financial products to make repayments 'affordable' are taken up by ignorant morons

markets thrive on ignorance

'affordablity' has to be blown out of the water with high IR - IMO this isn't going to happen with the current government in power - they are obsessed with a 'smoke and mirrors' attitude...

Edited by dnd

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So the reality is that we might see drops of around 5% but that is pocket money when you're spending 150k plus.

This attitude is part of the problem.

You talk of 'spending 150k plus' like its nothing, why not call it what it is - 'a debt in excess of 150k'.

Its not pocket money if you have to borrow it and pay interest over 25 years.

Incidentally your pocket money equation amount to £7500.

Thats 33% of the average annual UK salary before tax.

Edited by needle

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Guest grumpy-old-man

my god, some of you people on this site really have no idea what is coming do you ?

unless you have plenty of collateral in your current house, a very secure job, money in the bank & either very little debt or no debt I would be very, very worried.

ps - troll posts are not included in the above statement :rolleyes:

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As far as I can see neither labour, conservatives or libs are offering any solutions and it stands to get a lot worse is any one of these parties gains power at the next election. Want to change things, we need to change politics.

I agree with you, the biggest bugbear is that labour, conservatives and libs are all very silent on the problem.

Need to change the politics. Little chance.

Better idea is to move out of Britain to somewhere else until the economy goes head over heals - carnage - then move back - cash in hand and pick up a place you want at an affordable price.

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my god, some of you people on this site really have no idea what is coming do you ?

unless you have plenty of collateral in your current house, a very secure job, money in the bank & either very little debt or no debt I would be very, very worried.

I have plenty of collateral in my house, a secure job ( for 5 years if I really want to stay), money in the bank and no debt.... and I still very very worried about what is to come over the next few years..... I think most people on this site worry to some extent, that's why they are here... even the apparent bulls... if there was really nothing to worry about they wouldn't waste their time.

But many of the people who aren't here, aren't the least bit worried either- they live for today (either because they are uninformed or because they have no choice financially) and if something goes wrong expect, or at least hope, that the government bail them out... and that just worries me even more!

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Guest grumpy-old-man

Nope, never heard of one of them :lol:

fair comment, I should have said a more secure job :D

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Only IR rises will drop house prices - it'll affect 'affordability' and 'yields'

IR will only rise if the BOE/GB truly intend to fight real inflation - not going to happen - hiding rising inflation has kept them in power for years - why change?

Yes it seems HPI is not included in the inflation figures so was not fed back into raising IR's to stem the HPI - Am I reading this correctly?

I know the BOE are supposed to keep inflation as close as possible to 2% so have to adjust IR's accordingly but this is not doing the job properly if house prices are not included in the inflation figures

It also seems that Mervin King is threatening a further IR rise on the back of rising education fees but this seems strange as the rising fees will also be acting as a 'brake' on peoples spending power

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It also seems that Mervin King is threatening a further IR rise on the back of rising education fees but this seems strange as the rising fees will also be acting as a 'brake' on peoples spending power

The keyword there is 'threatening' - it's a bluff - there is no way he is going to raise IR to levels that'll crash the housing market

Reducing consumer demand by surpessing wage inflation through immigration hasn't worked - people were still borrowing to bridge the gap between their static wages and rising prices

So he's nudging up IR to scare people into stopping borrowing/spending - problem with that is that they've let real inflation climb so high for so long that people are now borrowing to LIVE

Personally, I think another couple of IR rises and their bluff will be called as people continue to borrow/spend - they'll simply back off and redefine/hide 'inflation' again...

Yes it seems HPI is not included in the inflation figures so was not fed back into raising IR's to stem the HPI - Am I reading this correctly?

Yep, plus energy and taxes - basically anything that everybody does/uses everyday - it's easier to hide inflation rather than raise IR

I know the BOE are supposed to keep inflation as close as possible to 2% so have to adjust IR's accordingly but this is not doing the job properly if house prices are not included in the inflation figures

Real inflation (10%+) is certainly outstripping house price inflation...

Edited by dnd

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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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