oh dear: House prices continue to go through the roof

[Bagpuss]

So BP - What's your view of a 'correction'

Are you thinking full scale crash, house prices down by 30%?

or something akin to recent stock market corrections - only 5% real drop in prices with a bounce back in a relatively short space of time?

I don't know, but try to find something that would pay off on a BTL, seems impossible now. So, BTL only possible if a large deposit is paid, return less than a building society, obviously prices have to drop to a level where the return is more than the cost of the mortgage.

[wendigo100]

You think those Polish immigrants that come here can just go and get £300k morgage to buy an that average house in London? For your information that kind of people are not exactly rich - they typically rent ROOM in a house with 3-6 other adult people in the same house (that's very efficient use of housing), and often they share room with another adult because it is so damn expensive to live in this country: their earnings are sh1t too, so stop spreading this rubbish about immigrants coming over and pushing house pricing higher - the reason for the bubble is inability of local population to think ahead a few years and just say NO to rip-off pricing.

Here we go again - AtW, for the hard of thinking:

Immigrants don't buy or rent the £300,000 houses. Well most don't anyway. They come in at or near the bottom of the market, bumping everyone else up, until it does affect the £300,000 houses and beyond. It is quite simple really:

Population + Immigrants = More People
More People = Higher Demand for Houses
Higher Demand for Houses = Higher Prices

[AtW]

They don't buy houses - and won't buy for a long time if at all, and their usage of existing houses that they rent is as efficient as it can possibly be (4-6 adults in a 3 bedroom house is not uncommon).

Demand on housing obviously goes up but by a very low value and demand for buying houses by those people is next to zero - even I don't buy a house even though I am much better off than most of new immigrants.

The reason for unending ridiculous bubble is because aborigens do not comprehend what their actions of overstretching themselves will lead to: big crash that will affect everyone.

There is a clear need for 2 laws:
a) much better tenancies - like on the continent where tenants get much better protection: here it's pretty much non-existant, only squatters seem to have good rights
b) noone should be able to get more than 3x net salary as a morgage, maybe 4x for London since it will always be overpriced location

[Bagpuss]

Here we go again - AtW, for the hard of thinking:

Immigrants don't buy or rent the £300,000 houses. Well most don't anyway. They come in at or near the bottom of the market, bumping everyone else up, until it does affect the £300,000 houses and beyond. It is quite simple really:

Population + Immigrants = More People
More People = Higher Demand for Houses
Higher Demand for Houses = Higher Prices

All well and good, but if that is true why aren't rents rocketing?

[Sockpuppet]

They don't buy houses - and won't buy for a long time if at all, and their usage of existing houses that they rent is as efficient as it can possibly be (4-6 adults in a 3 bedroom house is not uncommon).

Which reduces the supply of crappier houses and forces people to spend more to get onto the ladder which increases costs at the next level which increases costs at the next level which....

[Euro-commuter]

The reason for unending ridiculous bubble is because aborigens do not comprehend what their actions of overstretching themselves will lead to: big crash that will affect everyone.

Not necessarily. It is quite possible that the current position is stable. Prices so high that few can buy without a deposit so big that it can only come from sale of property. So those with a house are OK, those whose parents will release equity (whether before or after they die) to finance purchase are OK, those without will stay without.

Not nice for the have-nots, but potentially stable. It need not crash.

[Euro-commuter]

There is a clear need for 2 laws:

= AtWspeak for "I think that..."

[shaunbhoy]

= AtWspeak for "I think that..."

And has become abundantly clear over the years on here, AtW and "thinking" are not that firmly coupled. He is clearly wired wrong.

[Bagpuss]

Which reduces the supply of crappier houses and forces people to spend more to get onto the ladder which increases costs at the next level which increases costs at the next level which....

If demand for housing is so high why aren't rents rising ?

[Jawz .]

Move to India. It's hot, they do good currys and there's no fat chicks.