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House Prices to fall between 2% and max 5% in 2011
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Not as bad as some were forecasting.
http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=520269&in_page_id=57&expand=true
Rather strange that we could have average house prices higher at the year end 2010 compared to 12 months ago?
http://www.landregistry.gov.uk/
“It is quite conceivable that by the final quarter of 2011, national house prices will not be that very different from where they currently stand,” Mr Rubinsohn said.
So we could see house prices at the end of 2011, slightly above or on par with year end 2009. Considering all that has happened, that would be amazing!
http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=520269&in_page_id=57&expand=true
Rather strange that we could have average house prices higher at the year end 2010 compared to 12 months ago?
http://www.landregistry.gov.uk/
“It is quite conceivable that by the final quarter of 2011, national house prices will not be that very different from where they currently stand,” Mr Rubinsohn said.
So we could see house prices at the end of 2011, slightly above or on par with year end 2009. Considering all that has happened, that would be amazing!
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Not particularly amazing. First Labour and now the Tories have made every effort to sustain and increase prices.
And why "bad"? Got a BTL? A swift correction would do wonders for the future of this country.
Even if the economy recovers, most people don't earn the slaray needed to afford mortgages these days.
The Government, can try and run away from this as much as possilble, they will have to do a lot more on the issue of affordable homes than they have done previously and will have to do more than they want to.
The Nimbys can try and outragously block and moan about houses being built but eventually the Government will have to act in the same way as the Governments did after the war when it came to building affordable homes.
Don't count on it. Politicians will always talk up the need for more housing, but will happily back any efforts to prevent construction behind the scenes.
Another thing to consider is the raising of interest rates. There are growing demands for the Bank of England to raise the base rate but they have explicitly said they're resisting this at present to avoid a housing crash. They can't avoid doing the right thing forever.
That's not selfish. We've got it all ass-backwards in this country when it comes to house prices. Something's fundamentally wrong with any society that sees the unaffordability of a basic human necessity as a bellwether of its success.
The thing about renting, though, is that you can keep paying rent for years and have nothing to show for it at the end. It's never your house. I prefer to live somewhere no landlord can kick me out of.
Housepricecrash.com always had good comparisons between renting and buying with the former always coming out on top at the end of an average 25 year mortgage. It used to take into account everything including:-
Loss of interest over 25 years on funds required for deposit, survey, fees, legal costs etc
Loss of income for structural defects (most homes would require replacement windows, roofs, two boilers, rewired, etc over 25 years)
Potentail loss of deposit and any home investment should your circumstances change (25 years is a long time...)
Loss of disposable income where life assurances are compulsory and where mortgage repayments significantly outweigh comparable monthly rentals.
And of course the obvious fact that you hand over thousands every year to the lender - money which is as dead as handing it to a landlord.
Many people would be surprised just how quickly they could save enough to buy outright, then they could claim they only paid xyz for their house!
If they rise they rise, if they fall, they fall. Its all relative, if my house falls 5% in value then so do most of everyone elses.
What stuns me, is the absolute ends of the earth, every UK government goes to keep house prices artificially higher than they are really worth. You only have to visit the USA and New Zealand to see what you get for your money.
I have no reason to believe that this government will act any differently in propping the market up.
I know it is hard to buy your first home, but it is worth the struggle.
I see the supposed 'progressive', liberal, equality for all Guardian believes lower prices are bad too.
We paid 25k for our two bedroomed flat in London I would imagine that we paid 40k over the 25 years of our mortgage but we sold for £250k
Yes we pay for structural items and fittings but so do renters
as most landlords make a profit on their rents and its this profits that pay for the repairs etc on their properties, and of course that shiny new bathroom and new roof that the tenants proudly say the LL paid for will be used by someone else when that tenant can no longer afford the rent or the LL wants to sell, yes mortgage payers may lose their homes if they cant afford their payments but at least they dont have to move every 6 months on the whim of their LL.
And how can renting come out on top after 25 years, when a tenant will have to pay rent for a much longer period than that, after all if you start renting at the age of 20 and live until you are 70 you will be paying 50 years of rent, whilst a homeowner will pay a mortgage for 25 years and own their home with no mortgage or rent.
And dont forget rents will go up depending on supply and demand mortgage payments will go up of course due to interest rates but not always at the same level, for instance my mortgage payments in the last year of my mortgage was £136 pm whilst the flat next door to mine was being rented out for over £1000 pm
As for mortgage payments being dead money I honestly think that some of those HPC lot live on the planet of wishful thinking - as I said I sold for £250k thats a lot of dead money, I used less than 1/2 of that dead money to buy a new property for cash used some of the dead money on fixtures and fittings and the rest of my dead money is sitting in my bank account making more dead money
The attitude towards housing in this country really is quite sickening.
Considering most mortgages are 25 years or longer, how old do you want people to be before tackling taking on a mortgage?
Also, considering all the other massive costs facing us, pension, good education and up bringing of children if you have them, then its better to start early.
They are running out of time, both Government and the Nimbys. Though young people once they become home owners also become nimbys too quite often! :mad:
The issue is getting so bad/big, that they can't fob it off for much longer.
I'm hearing/reading people go on about the plight of older people a lot these days and my thinking is becoming more and more, that its the older generations that has made housing so expensive for younger people because of their nimbyism, so should I care about the older when they need help? I think more people will start to think like this as time goes on. Not good, but they can't have it both ways is the way I see it.
That all well and good, but the fact is is that taking on a mortgage and all those other priorities you mention are happening later and later, if at all.
Thats beause they are forced to thats why, becuase hse prices are so over priced, otherwise people would buy homes or fly the nest earlier.
Ahh, but reversing this trend would be "bad" remember, such are the demands of older owners.
If older people don't like it, my messege to them would be tough and how dare they expect sky high prices for their property when most of them got their houses them dirt cheap?
Everyone should have the right to get an affordable home to rent or buy as long as they are not anti social once in their and if they are - evict them! Seriously!
No one has any idea where house prices will go next year - its just guessswork. Basically any excuse to get their bank/estate agency firm/economic forecasting unit into the papers. Average figures are meaningless anyway - house prices in Kensington do not move in the same way as house prices in Kirkcaldy.
PS I predict every house in the UK will see its price fall next year by exactly 2.738717%. Prove me wrong?!:D
Dirt cheap you have GOT to be joking, when I first got my mortgage which was for 18k (we could only get 1 1/2 times salary and had to use savings for the rest) I was earning 3k a year yes 3k a year my husband was on 9k a year.
We couldnt buy in a 'nice' area we had to take what we could afford.
Looking at ads for people starting out in the professions me and OH are in a young couple doing what we did and working in the same industry would be earning 60k between them.
and please dont tell me a FTB couple cant buy in London on a combined salary of 60k , my Nephew and his wife on a combined salary of 40k bought a flat in north London this year. Ok they saved up for a few years to get a deposit something that a lot of young people seem unable to unwilling to do
I don't know how long ago you buying your 18 thousand pounds house was, but earning 3 thousand a year and your house was 18 thousand doesn't sound bad to me.
I don't earn anywhere near the "avearage wage of about 24-27 thousand", but if you where to x that by three you would have 81 thousand and you wouldn't be able to get anything for that in most parst of southern england unless you go for part rent/part buy.
Though Homes under the Hammer auctions showed auctions last year of houses going for around 75 thousand but that was slap bang in the middle of the recession, I doubt on the open market houses where going for that price.
Also even up to the mid 90's, I knew people buying their council houses for 25 thousand and those houses are worth even now well over 200 thousand, if not 250 thousand.