This, I do not believe!
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Taxpayers will underwrite mortgages totalling hundreds of millions of pounds under plans to “unblock” the housing market[^] So hang on, the UK created a credit and housing bubble, that burst, and had to be paid out by the tax payer. Now, in order to commit continued suicide and pump the bubble back up, the tax payer is just going to fund it directly! WTF! Who are thes cretins we have in government? The reason the house market is slow is because house prices are too high due to previous irresponsible lending! The housing market will pick up as soon as house prices fall against real wages with lenders lending money at responsible rates. And that is going to take a number of years while inflation and devaluation take the inflated guff out of houses prices.
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Erudite_Eric wrote:
WTF! Who are thes cretins we have in government?
The mob. They own all construction companies, directly or indirectly, mostly directly. So they have a huge interest in keeping the house prices as ridiculous as possible. Of course people have to be buying houses at all for that to work, but a nice bubble benefits them more than realistic prices. So they're not actually cretins, it makes sense from their perspective.
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Devaluation won't occur, you'll have to wait until wages catch up with the current house prices. Nobody is prepare to take a drop - would you?
Software Kinetics Wear a hard hat it's under construction
Metro RSSOf course not! The house prices never fall, they always go up and up and up. Basic economics and laws of offer and demand doesn't apply to the housing market.
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Absolutely agree. As someone struggling to be a first time buyer its interesting (if you want a 'new' home), but a correction is necessary and this is just perpuating the stupid state of affairs we've got into over the last decade or two.
Regards, Rob Philpott.
There's a reason it's only on new builds. Nobody who could afford to buy a house in the first place would actually buy one of these (unless it's buy to let). We currently rent a 2 bed detached new build, it's tiny, the walls a paper thin, parking in the entire area (apparently the biggest private development in Europe) is insane - partially due to inconsiderate neighbours, and partially due to moronic planning. We have a garage attached to the house which doesn't even belong to it! Ours is part of some communal plot of garages currently used for flytipping. On top of that, because it's so "affordable", the area is quickly becoming a dive, my car has been vandalised twice, grafitti everywhere, and 3 burnt out cars so far this year.
He who makes a beast out of himself gets rid of the pain of being a man.
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Of course not! The house prices never fall, they always go up and up and up. Basic economics and laws of offer and demand doesn't apply to the housing market.
It does, but there is an ever increasing population, so there is always a demand for housing. I work in the sector, and we, in the UK, are not building nearly enough houses, so there is always going to be a scarcity, and therefore always a high price.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
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Devaluation won't occur, you'll have to wait until wages catch up with the current house prices. Nobody is prepare to take a drop - would you?
Software Kinetics Wear a hard hat it's under construction
Metro RSSNorm .net wrote:
Devaluation won't occur,
Have you been living on Jupiter for 4 years? :) It has happened already, not in London, admittedly, but other regions have seen drops of up to 30%, which is entirely expected in a market correction. And yes, even if digit figure remain the same, the inflation brought on by QE will devaule house proces, but dont ecxpect much activity for at least 5 years.
Norm .net wrote:
Nobody is prepare to take a drop - would you?
When unemployment kicks in and houses get repossesed, the 'owner' has no choice...
============================== Nothing to say.
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Average price for a 3 bed semi is now £250,000 Average Salary is about £35,000 So husband and wife both on average salaries earn £70,000 per annum. For an affordable mortgage it should be no more than three times income. Thus £210,000, but assume there is a deposit of at least £40,000 then the average house is affordable to the average couple. No problem.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
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Norm .net wrote:
Devaluation won't occur,
Have you been living on Jupiter for 4 years? :) It has happened already, not in London, admittedly, but other regions have seen drops of up to 30%, which is entirely expected in a market correction. And yes, even if digit figure remain the same, the inflation brought on by QE will devaule house proces, but dont ecxpect much activity for at least 5 years.
Norm .net wrote:
Nobody is prepare to take a drop - would you?
When unemployment kicks in and houses get repossesed, the 'owner' has no choice...
============================== Nothing to say.
Erudite_Eric wrote:
drops of up to 30%
Only in the northern wastelands. London has still risen annually, and the south east in general has maintained a fairly even keel.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
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Absolutely agree. As someone struggling to be a first time buyer its interesting (if you want a 'new' home), but a correction is necessary and this is just perpuating the stupid state of affairs we've got into over the last decade or two.
Regards, Rob Philpott.
Rob Philpott wrote:
this is just perpuating the stupid state of affairs we've got into over the last decade or two
Quite. It is utterly moronic for the tax payer to prop up BS house prices. Let the tax payer spend his money where HE sees fit, not be dictated to by incompetent government. If the government really wants to speed up the inflation-devaluation process then they should force the banks to lend some of the 80 billion pounds they have been given over the last few years. Personally, I would like to see the government print cash and give it to the pensioners. Add 30% to their pension. That would feed money direct into the high street and benefit the entire economy fomr the bottom up, rather than waiting for banks to trickkle it down. And it would get them big votes.
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I think you may want to re-examine your figures as the ONS published the average salary for a full time employee in 2010 was £25,900, so a bit below the £35k... perhaps you want to take a look outside the south east once in a while...
I am in the south east, where the average house price is as I mentioned. Sure it is lower in the north, but then house prices are lower there too.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
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It does, but there is an ever increasing population, so there is always a demand for housing. I work in the sector, and we, in the UK, are not building nearly enough houses, so there is always going to be a scarcity, and therefore always a high price.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
And you are in an island, so in the near future there will be not enough space for so many englishmen. I think the japanese had the same theory before their bubble burst. And if there are not enough houses in england, you can come to Spain. The banks need to dump hundreds of thousands of houses from foreclosures to the market.
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There's a reason it's only on new builds. Nobody who could afford to buy a house in the first place would actually buy one of these (unless it's buy to let). We currently rent a 2 bed detached new build, it's tiny, the walls a paper thin, parking in the entire area (apparently the biggest private development in Europe) is insane - partially due to inconsiderate neighbours, and partially due to moronic planning. We have a garage attached to the house which doesn't even belong to it! Ours is part of some communal plot of garages currently used for flytipping. On top of that, because it's so "affordable", the area is quickly becoming a dive, my car has been vandalised twice, grafitti everywhere, and 3 burnt out cars so far this year.
He who makes a beast out of himself gets rid of the pain of being a man.
The UK? My big concern about the inaffordability of house prices I saw in the UK with families increasingly forced to live in small, badly insulated (for sound) flats, with children having no garden to play in, and neighbours impingeing on each other purely because of the lack of space (ie stingyness of the developer) is the social issues and tension it causes. It is unjust and unfair in every way, and governments must make it a basic right for a family to have accomodation of a decent size with propper facilities and it should enforce that through legislation.
============================== Nothing to say.
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The housing bubble has not burst. From 1997 to 2007 house prices doubled (at least, in some areas it tripled). Since 2007 they have fallen back, at an average of about 10%. Reduction or softening in price, yes, but the bubble is still there. see here[^]
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
Dalek Dave wrote:
an average of about 10%.
Yes, some areas there is almost no change, London for example, but other have seen up to 30%. True though, this isnt a sufficient correction, but, as much as we arent out of the recesion caused by the debt crisis, we havent seen the full correction yet.
============================== Nothing to say.
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There's a reason it's only on new builds. Nobody who could afford to buy a house in the first place would actually buy one of these (unless it's buy to let). We currently rent a 2 bed detached new build, it's tiny, the walls a paper thin, parking in the entire area (apparently the biggest private development in Europe) is insane - partially due to inconsiderate neighbours, and partially due to moronic planning. We have a garage attached to the house which doesn't even belong to it! Ours is part of some communal plot of garages currently used for flytipping. On top of that, because it's so "affordable", the area is quickly becoming a dive, my car has been vandalised twice, grafitti everywhere, and 3 burnt out cars so far this year.
He who makes a beast out of himself gets rid of the pain of being a man.
You forgot that the garden is so small that if you have a barbecue you have to turn the food through the kitchen window.
Ideological Purity is no substitute for being able to stick your thumb down a pipe to stop the water
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Average price for a 3 bed semi is now £250,000 Average Salary is about £35,000 So husband and wife both on average salaries earn £70,000 per annum. For an affordable mortgage it should be no more than three times income. Thus £210,000, but assume there is a deposit of at least £40,000 then the average house is affordable to the average couple. No problem.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
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Dalek Dave wrote:
an average of about 10%.
Yes, some areas there is almost no change, London for example, but other have seen up to 30%. True though, this isnt a sufficient correction, but, as much as we arent out of the recesion caused by the debt crisis, we havent seen the full correction yet.
============================== Nothing to say.
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Erudite_Eric wrote:
drops of up to 30%
Only in the northern wastelands. London has still risen annually, and the south east in general has maintained a fairly even keel.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
Dalek Dave wrote:
Only in the northern wastelands.
And Wales.... ;)
Dalek Dave wrote:
London has still risen annually
As always, those regions that saw the big increases just before the bust, see the biggest falls after. Down here in Provence prices only came off about 5% at the worst and are back up to old levels so our place is still worth about 750.
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Of course not! The house prices never fall, they always go up and up and up. Basic economics and laws of offer and demand doesn't apply to the housing market.
mav@octaval wrote:
house prices never fall
Actually, falling prices is happening all over the USA. Even where I live, a popular beach area, the prices have dropped $100,000 for a $400,000-$500,000 home. Basically, the selling price of homes for the middle-class is dropping. The really expensive homes, bought by rich people, are unaffected as they still have all the money (I believe it was given them as a poor-judgement-bonus for bringing their employer to the edge of bankruptcy a few year ago).
"The difference between genius and stupidity is that genius has its limits." - Albert Einstein
"As far as we know, our computer has never had an undetected error." - Weisert
"If you are searching for perfection in others, then you seek disappointment. If you are seek perfection in yourself, then you will find failure." - Balboos HaGadol Mar 2010
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You forgot that the garden is so small that if you have a barbecue you have to turn the food through the kitchen window.
Ideological Purity is no substitute for being able to stick your thumb down a pipe to stop the water
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The UK? My big concern about the inaffordability of house prices I saw in the UK with families increasingly forced to live in small, badly insulated (for sound) flats, with children having no garden to play in, and neighbours impingeing on each other purely because of the lack of space (ie stingyness of the developer) is the social issues and tension it causes. It is unjust and unfair in every way, and governments must make it a basic right for a family to have accomodation of a decent size with propper facilities and it should enforce that through legislation.
============================== Nothing to say.
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You forgot that the garden is so small that if you have a barbecue you have to turn the food through the kitchen window.
Ideological Purity is no substitute for being able to stick your thumb down a pipe to stop the water
:) and the smoke fumes the neighbours washing! :) But anyway, at least it is something of a garden to muck around in. I hate what happened to Britain in respectof housing in the last 20 years. OK, we aparantly did well out of it, our place there is paid off and worth 130 streling, 15 down form the peak, but I feel very sorry for the social injustice the whole thing caused, and the financial mess it is responsible for us being in now.
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