Tuesday, Nov 17, 2009

You've missed your chance to buy

Telegraph: UK house prices: peak for affordability 'now over'

Housing affordability peaked in the second quarter of the year and is now deteriorating as property prices rise, according to Lombard Street Research (LSR). The consultancy's housing affordability index, produced in conjunction with The Daily Telegraph, shows that in the second quarter of the year house prices were at their most undervalued level since the mid-1990s. The finding underlines suspicions that the bargain-hunting period for UK homes is now over, with prices having bounced back much faster than expected.

Posted by little professor @ 06:26 PM (2558 views)
Add Comment
Report Article


1. little professor said...

Lombard Street Research are a bunch of clowns, I used to have a folder bookmarked with all their previous wildly innacurate forecasts which had all proved wrong, but I can't be bothered trotting it out again.

Tuesday, November 17, 2009 06:28PM Report Comment

2. Pooodle2 said...

looks like everything is 'back to normal' :-)

even my wife thinks i'm talking gibberish when I mention the anatomy of a bubble graph.

Now I just have to hold my nerve and be in the minority who end up being right

Tuesday, November 17, 2009 06:58PM Report Comment

3. wdbeast said...

LOMBARD is an acronym for;

Loads Of Money But A Right Dickhead

Which accurately describes anyone who buys a house in the current market.

Tuesday, November 17, 2009 07:18PM Report Comment

4. Paul said...

Once again the haves, try to sucker the have nots into spending what little money they have, before the 60% + reduction fire sale........

Tuesday, November 17, 2009 07:23PM Report Comment

5. Paul said...

Cowardice from the Telegraph, disabling comments below the article..............

Tuesday, November 17, 2009 07:23PM Report Comment

6. waitingtobuy said...

Jamie Dannhauser of LSR said: "Barring some catastrophe we are now past the peak for housing affordability."

Phew! that was close,for a minute I thought that the younger generation were going to be able to afford a roof over their heads.

Tuesday, November 17, 2009 08:17PM Report Comment

7. matt_the_hat said...

3. waitingtobuy - you couldn't make it up

Tuesday, November 17, 2009 08:46PM Report Comment

8. Martyk said...

I've been following the various threads on this website and I'm getting angry!

I'm not a finance professional but please tell me how House Prices can continue to defy gravity when most private sector firms seem (despite the Daily Express's proclamations to the contrary) to be either shedding staff or implementing pay freezes. Gordon seems to have engineered this short term financial feeding frenzy by printing "funny money" in the form of QE. What in Gods name happens next year when the s**t hits the financial fan and everyone realises that this once great country has no more assets to sell and no overseas investor believes in our currency anymore. The Germans are coming out of recession and are now selling more real things (BMW's and such like). We seem delighted if the shops are selling more goods (mostly crap from Primark and such like). Is it just me or are we REALLY in trouble!!!

Tuesday, November 17, 2009 09:00PM Report Comment

9. braindeed said...

What's happening at the moment is that people are punting on stocks. If you have equity (lots) money is extremely cheap - re-mortgage up at 2-3% and theres been a 30% gain since the trough.....better than the 'returns' on the housing bubble, since even the seventies.
Not very moral, but there you go.
Theres not much else for banks to play with and its all very attractive for the balance sheets....only works if you've got a real spare wad though, and the banks look after their mates.

Tuesday, November 17, 2009 09:03PM Report Comment

10. will said...

If housing is now un-affordable, who is going to buy from those wishing to sell?

Tuesday, November 17, 2009 09:36PM Report Comment

11. Alfie said...

Funny how its always the same people who hype up the property market, im sure they dont have a vested interest.

Maybe the annual “corruption index” from Transparency International, should have a list for these muppets who think they can lie to help line their pockets.

Tuesday, November 17, 2009 09:56PM Report Comment

12. watching with amusement said...

Hang about, doesn't the article also have a paragraph, "However, LSR warned that the recent rebound, which is broadly due to cheap borrowing and to the resurgence of the City, could be short-lived." In which case the peak for affordability isn't over. Or am I missing something?

Tuesday, November 17, 2009 10:29PM Report Comment

13. Redprince said...

What a load of old tosh-they cant see beyond next weekend and futher than London.This country will see 2002 prices inside next 18 months in real money.These "experts" are a joke and even Joe Public is starting to see through it.Unemployment will rise for another 18 months WITHOUT taking into account public sector job losses.These people are making complete arses of themselves.

Wednesday, November 18, 2009 08:28AM Report Comment

14. Neilb said...

Who'd have thought that as prices rise things become more unaffordable..... Wow that must be some reallt complicated algorithm they must be using to work that one out.

Wednesday, November 18, 2009 11:08AM Report Comment

15. need-a-crash said...

"In the end, you also need the people on the bottom to come on the ladder and buy the lower-grade stock," said Mr Dannhauser. "These are the right conditions for a short term bounce, but not a sustained improvement."

That's right Mr Dannhauser I just can't wait to pay £250k for that ex-council flat in Streatham! Just what I'd always dreamed of taking on a mountain of debt for. Or perhaps I'll just emigrate instead!

Wednesday, November 18, 2009 12:04PM Report Comment

Add comment

  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines
Admin Password
Email Address

Main Blog | Archive | Add Article | Blog Policies