Calling bottom on house price market

[AtW]

I've seen four bedroom new builds, 1 bedroom big enough for double bed (and nothing else). 2 bedrooms big enough for single beds only, and 4th "bedroom" is just big enough for a babies cot. These are "executive" family homes with a price tag to match.

Yup, seen those here too - 4-5 bedroom "executive" houses, priced: £ 450-600k

[PurpleGorilla]

British homes are the smallest in Europe, study finds - Telegraph

Expensive tulipboxes.

Houses are getting more expensive and smaller. Makes this chart all the more acute;

[OwlHoot]

Houses are getting more expensive and smaller. Makes this chart all the more acute; ...

Would be interesting to see a combined graph of house prices, and house price per unit floor area.

The vertical axes would have to be scaled so the graphs more or less overlapped until, say, the 1980s.

[DimPrawn]

Houses are getting more expensive and smaller. Makes this chart all the more acute;

I keep saying this, but for the younger generation, the solution to the eye watering rents and eye watering purchase prices of miniscule UK property is to emigrate. Simples.

Australian houses are 3 to 4 times the size for the same £££. Just avoid centre of Sydney, get a public sector job in some nice suburb near one of the big cities. Kick back, enjoy the sunshine and beaches. It's quite doable and speaking to my friends that have escaped the UK, it's the best thing they ever did.

Or save up your £50K deposit for a £500K shoe box here in the freezing sleety rain and shut up.

[ZARDOZ]

Will be interesting to see the effect these buy to let reforms have.
They should lead to a falling market, but the usual rules of economics dont seem to apply since the early 00s. The market has become so distorted by government manipulation an open door immigration policy and underwriting the market with cheap money.

The market should be left to correct itself but I doubt it will be.

[PurpleGorilla]

The market should be left to correct itself but I doubt it will be.

Damn right. Burn baby burn.

[DimPrawn]

Damn right. Burn baby-boomers burn.

FTFY

[ChimpMaster]

Will be interesting to see the effect these buy to let reforms have.
They should lead to a falling market, but the usual rules of economics dont seem to apply since the early 00s. The market has become so distorted by government manipulation an open door immigration policy and underwriting the market with cheap money.

The market should be left to correct itself but I doubt it will be.

The reforms will cause some investors to sell some of their properties so that they can consolidate and reduce gearing on the overall portfolio. However, this is unlikely to lead to price falls - at best you'll see some price moderation - because of a number reasons.

You're going to see that:
Rates will stay historically low for another 3 - 5 years yet. Mortgage rates have actually fallen around 0.25% in the past 6 months.
Increased immigration.
Greater rental demand.
Higher rents (caused by the Guv move to try and increasing costs on landlords).
Nowhere else for investors to make your cash work for you.

And these factors will keep property as the forerunner for investors.

The government caused this with their move to flood the economy with cheap money, but that has achieved very little for the average man in the street. Instead, we're all left to suffer a stagnant economy for what could be another 20 years. Like you said, they really should have let the economy self-correct back in 2008; we would have all been far better off now.

[OwlHoot]

The government caused this with their move to flood the economy with cheap money, but that has achieved very little for the average man in the street. Instead, we're all left to suffer a stagnant economy for what could be another 20 years. Like you said, they really should have let the economy self-correct back in 2008; we would have all been far better off now. ...

Because the Septics didn't "let the economy self-correct in 2008" (which I agree they should have), the UK Government couldn't either. It's as simple as that, and anyone who disputes that is deluding themselves I reckon.

If the UK had tried unilaterally then all the investment money would have flown across the Atlantic like a flock of starlings, and we'd be in a far worse, probably irremediable, pickle even than the one we're in now!

[PurpleGorilla]

Because the Septics didn't "let the economy self-correct in 2008" (which I agree they should have), the UK Government couldn't either. It's as simple as that, and anyone who disputes that is deluding themselves I reckon.

If the UK had tried unilaterally then all the investment money would have flown across the Atlantic like a flock of starlings, and we'd be in a far worse, probably irremediable, pickle even than the one we're in now!

Let's see the amount of tulip we get in with this unravelling now happening. I predict masses of lovely tulip.