Tuesday, November 17, 2009

You’ve missed your chance to buy

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 (2591 views)
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15 thoughts on “You’ve missed your chance to buy

  • little professor says:

    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.

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  • 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

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  • LOMBARD is an acronym for;

    Loads Of Money But A Right Dickhead

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

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

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

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  • 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.

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  • 3. waitingtobuy – you couldn’t make it up

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  • 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!!!

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  • 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.

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

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  • 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.

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  • watching with amusement says:

    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?

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  • 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.

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  • 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.

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  • “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!

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