Defo the case in my area in terms of supply and demand, I paid £330k last year for a 3 bed semi last June (offer made Jan before_, the one next door to same house and crappier condition completed its sale last week for £399k, £69k increase in 12months. Estate agent put it soley down to demand. People dont want to move because of rising rates, so less on the market, but still seems to be alot of people wanting to buy.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Property prices (again)
Collapse
X
-
-
The average certainly seems more likely to be £40-£45k ish per couple than £60k...of which take home will be £30k ish...which is £2.5k ish per month take home...
Take from that:
£300 on food
£200 on petrol
£300 on car (running and depreciation)
£300 on bills (assuming 2 bed house ish)
£200 on clothes
That leaves about £1,300 per month to spend on mortgage, going out, make-up, presents, home maintenance, furniture, gyms/club memberships, pension, holidays, and probably loads of other things I've not even thought of...
Not a pretty picture huh...add in to that interest on loans/credit cards which most people have, nursery fees for couples with kids along with all other kiddie expenses etc etc
Its a wonder how people survive...Property advisor for the peopleComment
-
Originally posted by sasguruHouse prices will keep rising for now as
Supply < Demand
As supply will not change in the medium term, demand has to fall off.
This will only happen if
(1) Interest rates rise massively
(2) Unemployment increases massively
As both these are unlikely to happen in a 2-3 year time span, I predict continuing house price rises.
The rise has to stop somewhere, even if the economy continues to be good and interest rates don't change drastically.Will work inside IR35. Or for food.Comment
-
Originally posted by VectraManThe lenders can't keep lending larger and larger multiples of salaryComment
-
Originally posted by AtWI've seen much of the rest of the world. It is brutal and cruel and dark, Rome is the light.Comment
-
Originally posted by VectraManYes, but prices are rising faster than wages which means demand has to fall off. The lenders can't keep lending larger and larger multiples of salary, so the number of people who can't possibly get a mortgage will increase. And as the gap between buying and renting widens, the number of people who don't want to get a mortgage will also increase.
The rise has to stop somewhere, even if the economy continues to be good and interest rates don't change drastically.Hard Brexit now!
#prayfornodealComment
-
There is a demand for council housing which is being fueled by private BTLs. Further proof of this can be seen in your council tax bills. I'll give you an example from ours:
PHP Code:Description 2005 2006 2007
Refuge collection £2000 £2400 £2500 (5% council tax total) (4-9% yearly increase)
Housing & council tax benefit £14000 £15500 £17600 (40% council tax total) (10-14% yearly increase)
If you think my attitude stinks, you should smell my fingers.Comment
-
Originally posted by wendigo100Well, they've made a pretty good fist of it to date. They have started to offset it in other ways, like offering longer and longer terms. And if you can't repay in your old age, the house goes to the bank. A cunning plan.
Oh wait, that's just like renting.
The stupid would still go for it though "to get a foot on the housing ladder".
The reason for the US crash is all the "sub prime" lenders (that's banks that lend to people with poor history or not much income) have been hit badly by defaults. I know our situation is not necessarily the same, but at some point this all has to start going badly for the banks and they'll have to reign in all the silly deals and get back to responsible lending.Will work inside IR35. Or for food.Comment
-
It's pretty similar to the US sub-prime problem when lending 5 or 6 times salary. Doesn't take much to change for it to become unaffordable.
All mortgagees are renters, off their mortgage company. They're just gambling that the historical evidence of house prices always rising over time will pay off for them in the time they have the house, whether it be just a few years or 30.
If lifetime and beyond mortgages become the norm then people will be paying for the priviledge of being able to do what they like with their rented property without having to run it past the landlord every time."If it floats, flies, or f***s, lease it." - Evel Knievel when he wasn't jumping buses or womenComment
-
The house I last bought was a place where I could call home, desirable, in a convenient local, a roof over my head, nothing more. Cost me 315K and even then the roof is in need of repair! Investment, investment, investment, no….. it’s somewhere to live, live, live."Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment