house prices 'tumble'

The house I bought donkeys ago for £65k is now "worth" £220k.
The house I "should" have bought then (sound of hooves leaving ...) was £130k.
A similar one in the same area now costs £380. Meaning that instead of having to find £65k I now need to raise £160k.... and I don't have that much in the sock under the bed.

Hence I'd love to see a crash, but I suspect that the downturn in the economy that would come with it would be unpleasant for all.

Ho hum
 
What it says is prices are only up by 6.9% as opposed to a previous 9.7% over the year.

So on a £150K house the rise was only £10,350 instead of £14,550. Quite how that results in a 'tumble' we can leave the bean counters to explain.

The Land Registry reckons prices are up by 8.1%.

Not quite time to panic yet methinks.
 
Chuckurbarla said:
What it says is prices are only up by 6.9% as opposed to a previous 9.7% over the year.

So on a £150K house the rise was only £10,350 instead of £14,550. Quite how that results in a 'tumble' we can leave the bean counters to explain.

The Land Registry reckons prices are up by 8.1%.

Not quite time to panic yet methinks.
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Yeah, but it does say that prices dropped last month, which is the biggest drop in a long time. (they had been climbing all year, so overall in 07 its still a climb, but this month its dropped)

basically, if you own one house then it doesnt really matter that much if it crashes (unless you plan on re-mortgaging)
but if you own more than one house just to make some income by renting out to people that cant afford to buy a house, then you are about to get your comeuppance!
And about time too, you've had it too good for too long!
 
badgerbaiter said:
if you own more than one house just to make some income by renting out to people that cant afford to buy a house, then you are about to get your comeuppance!
And about time too, you've had it too good for too long!
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I could be a bit slow today, can you explain that, I don't see how that could be a problem. If you're getting the rent to pay the mortgage there won't be a difference will there? And if you don't have a mortgage on it you're laughing all the way to the bank aren't you?
 
Yes, that makes sense, there always seem to be more renters in the queue though, especially for a nice house in a nice neighbourhood close to a major city with lots of big businesses.

Thankfully I don't own any property in UK any more so it's not my problem.
 
It's not gonna crash round brentford though is it? I live very local and the place I bought is still climbing in value (albeit not as aggressively as it was) but I bought 18 months ago for £155k and now have a place worth £200k or so. That's pretty damn good, but I am quite appalled at how hard it is for people to buy.

I tend to think the estate agents are mostly to blame, pushing prices up with no regulator to keep them in line (and lets face it we all hate greedy money loving and devious estate agents) but also jobs need to match the costs of life and wages aren't increasing, they're falling.

We're just suffering the effects of the american business model imo which is basically a big stupid pyramid scheme. Eventually wealth will be so polarised and things will get much worse - the middle classes will go to another country, while the rich stay and the poor can't afford to leave or get of benefits.

Should be fun. Mad max style perhaps :)
 
Basically in most areas its still really expensive to buy.
I'm an estate agent and the market is not great at the moment...
If your a first time buyer you have no hope these days. We'll need to see a massive fall in house prices to see a change in the market and hope for those struggling ftbs!
However its not so good for those people who want to sell their house at the highest price they possibly can get and because people just can't afford it, they are not selling. Greedy people, they just don't seem to understand if they lowered it a bit they would sell. It is like literally :bang:
Not so bad for those people upsizing or dowsizing-on a lighter note! ;)
 
First time buyers do have a hope, it just costs a bloody fortune. I bought my first house last year, costs me about £300 more a month that it did to rent a similar house, but we wanted to own our own home and live without the risk (however small) of eviction, or having the hassle of a landlord. We can decorate and do what we want in our house, so thats a plus. Only problem is the mortgage at the beginning of every month...

Can anyone lend me a tenner :LOL:
 
Just my view but I think prices will only tumble if mortgage rates continue to increase, that's looking less likely now. Higher mortgage rates make buy to let's less attractive in the short term, particularly if the mortgage is fully funded by the rent. If it isn't then landlords will simply hold onto the property and ride out the slump, if it comes.

Renting isn't restricted to those who "can't" afford to buy. Short term job transfers, seasonal workers, students, etc all create demand for private lets, often at rates in excess of what it would cost to pay a mortgage. A house price crash won't make the slightest difference to those groups.
 
i,d love to see a crash, so my oldest lad (currently renting with his girlfriend) could get on the property ladder.he could get a mortgage, just couldnt afford to eat aswell. my house is worth 3 times what i paid for it seven years ago. i couldnt afford it know, if i was now buying.my mortgage is a twenty year. my son is looking potentialy at 35 years. bloomin ek.
sadly, all that i reckon is likely , is a slow down in price rises. although , a year or twos time, i reckon ther,ll be a lot of repo,s going cheap.
 
what i dont get is how they judge the value of a house thats not been sold.
the people that value the houses are estate agents and its in their interest to value the house higher.
the true monetary value of something is how much someone will actually pay for it.
my house (if i had one) could be worth £200,000 but if its been for sale for 2 years and no one has bought it then its not worth £200K
 
badgerbaiter said:
what i dont get is how they judge the value of a house thats not been sold.
the people that value the houses are estate agents and its in their interest to value the house higher.
the true monetary value of something is how much someone will actually pay for it.
my house (if i had one) could be worth £200,000 but if its been for sale for 2 years and no one has bought it then its not worth £200K
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There's a whole load of inaccuracies in your posts on this debate, and I'm not even sure you understood the link you started off with

House prices not shooting up in Nov/Dec, or even falling a bit, is no sign of anything at all - it happens every year

Just because something doesn't sell in a given period doesn't mean it's not worth the asking price either, more likely is that there is simply no suitable buyer available in that period where there's evidence of similar products/assets selling at similar prices. Estate Agents are not generally interested in getting you top price as it's in their interests to sell rather than sell high; it would actually be in their interests for prices to fall to ensure a higher turnover

What I don't get is why you think a crash would be funny, or that someone deserves it for buying into property as an investment. But then as you appear to not own property at this time, perhaps its just jealousy
 
The housing market isn't allowed to crash until after I've sold my house next year :nono: I need the best price I can get in order for my up and coming immigration to Canada :D

The media just likes to blow all things out of proportion as per usual.
 
The problem with the housing market in the last few years has been people buying multiple properties just to let. They do this and remove all the starter homes from the market making first time buyers unable to afford a house. They also buy up flats and other houses before they're built meaning again, first time buyers don't get a chance.

One big area that could help the housing market would obviously be to limit the number of investment properties that an individual can purchase. But that clearly makes to much sense and will not happen.

If you're living on your own in this country then there is no real way that you can get on to the property ladder without either a massive deposit, or a salary of over £50k.

To me it's fairly clear that there is no way that the country can support the current level of house prices and the rate at which they have been rising, so something has to give somewhere. Imagine when in a year or two's time the average house price is £350k and the average wage is still way under £30k. That just will not work will it?
 
I don't want a crash as my house then won't be worth as much :razz: :LOL:
 
What I find strange is the assumption that a crash in the housing market wouldn't have any noticeable effect apart from house prices falling!

A crash in the housing market would cause problems with the economy as a whole! This would lead to an increase in unemployment. Those people unfortunate to have lost their jobs may well find themselves unable to maintain mortgage repayments (A lot of first time buyers are mortgaged to the hilt so don't just assume the only people who'd suffer would be multiple property owners) but at the same time unable to sell their house to pay off the mortgage as the house is now worth x,000 or even x0,000 less than the mortgage they needed to buy it.

Even if they sell at the much lower price they still have to pay off the balance of the mortgage plus the rent on wherever they end up living until they can find another job.

As someone who also should have bought the £68K house 6 years ago (now worth ~£200K) I too find myself now needing £100K instead of £30K I understand the trap many are in but wishing for a crash in the market is not the wonderful cure-all some seem to think.
 
In Northern Ireland as usual we get the raw end of the deal. Generally things are more expensive we have similar house prices to England yet the average wage is under 20k... and dont get me started on insurance over here...

The market here has really frozen in the past 6 months or so with lots of houses on the market with very very few buyers.
 
Im sick of people viewing property as investments. When did they stop being homes???

We are living in a very unstable economy built on masses on unsustainable debt - something has to give! Houses will fall into line soon enough.
 
I think this posting is a little narrow minded and very sad. I realise this is a public forum and I respect that people can post opinions and in this country because we live in a democracy those opinions are valid and are respected.

However, over the past few years housing has become very expense throughout the country and where I live (Surrey/Hampshire border). A lot of first time buyers have taken out some horrendous mortgages just so that they can get a fixed roof over their head. It is these people who will now struggle to re-mortgage when their current deals run out as the value of their mortgage maybe greater than the property (i.e. negative equity). They will be forced to accept stupid rates from the banks which will in turn mean they have less money to spend in the high street therefore affecting inflation which in turn affects stock markets and will in the end mess up peoples pensions.

It means alot of people won't move unless they really have to, i.e. why move if your mortgage is greater than the value of your property?? which in turn will just cause the housing market to stop.

This won't help first time buyers, in fact it may make it worse, if there are less properties on the market then gazumping (people coming in with higher bids) may be even more common.

Yes I know they say it will stop the investment buyers, but will it? investment buyers often have multiple properties, huge deposits, and are in it for the long term for example my neighbour rents his flat, his monthly rental would cover the owners mortgage. In 25 years time that monthly income could be the owners pension.

We all are guilty of reading things in the media, but what affects one person doesn't always affect the next. Therefore the fact that prices dropped last month, doesn't consitiute a crash, and as one person said prices are still up over the year.
 
DiddyDave said:
What I don't get is why you think a crash would be funny, or that someone deserves it for buying into property as an investment. But then as you appear to not own property at this time, perhaps its just jealousy
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for me it would be more than funny it would be brilliant
Ive always thought i would never be able to afford a house in my lifetime, but now there is some small light at the end of the tunnel.
for 10 years i havent been able to afford a house, and have been paying tens of thousands of pounds to those who can afford more than one house. I've been helping the rich get richer whilst i get poorer.
Even worse than that, people from the UK (mainly) have been allowed to buy up properties in other countries and ensure those poor sods cant even buy a house in their own country.
If people want to invest in property and price people out of the market then fair enough, but dont ask me why i would find it funny when the prices drop!
 
Kanikula said:
Im sick of people viewing property as investments. When did they stop being homes???

We are living in a very unstable economy built on masses on unsustanable debt - something has to give! House will fall into line soon enough.
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If people didn't have property as investments how would uni students live? they rent! at the age of 18 they couldn't buy.

You are right about this country being built on debt but thats what this government has encouraged. Whne nborthern rock had issues, and people were withdrawing money, looking at the queues and reading the press it was the "silver savers" who own this country. If they all take their money out the younger generation (including people my age) would be stuffed.
 
rwotton said:
I think this posting is a little narrow minded and very sad.
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i dont know why you think its sad??
narrow minded, it is absolutely.
As for the people who will lose money if the prices go down, i couldnt give a monkeys. I bet they dont give a monkeys about me whilst I've been throwing my money away and getting in debt over my head.
 
Surely it's a simple fact that the economy can't support the house prices raising as they are, so something is going to have to give soon isn't it?

You can't have it so the average house price is over 10x the average income!
 
rwotton said:
If people didn't have property as investments how would uni students live? they rent! at the age of 18 they couldn't buy
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Plenty of students live in halls.
The students that live in rented accommodation live in the grottiest of holes that the landlords couldnt care less about. And i speak from a lot of experience.
 
badgerbaiter said:
i dont know why you think its sad??
narrow minded, it is absolutely.
As for the people who will lose money if the prices go down, i couldnt give a monkeys. I bet they dont give a monkeys about me whilst I've been throwing my money away and getting in debt over my head.
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People won't loose money though, its like shares its paper money it means nothing until you sell.

The value of my property could half, yeas it may mean people like you could afford it, but i ain;t going to sell in that sitauation so you still loose.

People will only sell if they have, so you i can't see how you can win.
 
mattyh said:
What about people like me then? I've worked bloody hard to afford my own house, if there is a "property crash" then I'll lose a fortune. I was in the same boat as you a year ago, so how's that fair?
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But how will it ever work, house prices raise by what, 10%+ a year? and peoples income raises by say 3%. As that gap widens then people won't be able to afford property, repossessions will increase, and everything goes a bit wrong :puke:
 
Considering the IMF said house prices in the uk are over valued by as much as 40% and I'm sure most people regardless of their current housing position would agree - there has to be a down turn in house prices. They've been rising too fast, too quickly for too long.
 
Matt. said:
But how will it ever work, house prices raise by what, 10%+ a year? and peoples income raises by say 3%. As that gap widens then people won't be able to afford property, repossessions will increase, and everything goes a bit wrong :puke:
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we are one of the few counties in europe where people own their properties, alot of people rent. maybe it doesn't have to change, maybe just peoples views on renting.
 
Actually, now I think about it, a crash would be great. I'd buy some more :p
 
Matt. said:
But how will it ever work, house prices raise by what, 10%+ a year? and peoples income raises by say 3%. As that gap widens then people won't be able to afford property, repossessions will increase, and everything goes a bit wrong :puke:
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My salary goes up by more than 3% a year ;)

But I see your point, the gap is ever increasing and there's going to be a point where everything falls into the abyss :D
 
I wish the house prices would come down, just so that I could afford to move out!
Even though Im an Assistant Manager, I work in retail, and the wages are still poor, but I like the job that I do.
Any other money tends to go on [paying off my camera/course etc] and whats left after petrol etc, I save.
I dont drink I dont smoke...yet I cannot afford to rent.
I could pull my hair out at times...and my mum wonders why I try and spend as much time as possible either out of the house, or upstairs out of the way!!!
 
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