Credit where it's due

[chicane]

The first thing that'll happen once the global recession calms down is that house prices will go back through the roof.

Not sure whether to agree with you or not, but what does strike me about your predicted scenario is that most professional working couples will still only be in a financial position to buy houses in traditionally "working class" areas - around the 200K mark.

I just don't understand who will be buying the houses in the traditionally "middle class" areas around the 300K mark.

[sasguru]

House prices and the economy really have no baring on each other in the bigger picture.

Completely and utterly wrong, I'm afraid.

[AlfredJPruffock]

Grey Slates will go through the roof.

[SallyAnne]

most professional working couples will still only be in a financial position to buy houses in traditionally "working class" areas - around the 200K mark.

Well that probably wont be true, cause once things get back to normal they'll just start offering longer term mortgages again, and 125% mortgages, 5 times salary mortgages etc etc. Things will just go back to exactly the way it was before the recession.

And dont forget Northern Rock is nationalised now, so if it looks like noone can afford first time mortgages I reckon Gordo would step in and do something about it.
(The Tories wouldn't of course - they'd want the lower classes kept in their place, but that's a different story).

I just don't understand who will be buying the houses in the traditionally "middle class" areas around the 300K mark.

Probably the same people who were doing it before - people with cash, people already moving up on the property ladder.




I just think it's inevitable that things wil lgo back as they were! Unless they make it so bad in good old England that people dont want to come and live here (which I doubt will ever happen unless the NHS goers t*ts up).

[PM-Junkie]

The fact of the matter is there is a massive demand for housing in this country, and there will continue to be a massive demand for housing in this country.

The first thing that'll happen once the global recession calms down is that house prices will go back through the roof.

House prices and the economy really have no baring on each other in the bigger picture.

Very true...but I'm not sure they will go through the roof (was that an intended pun? ) for quite a while.

Demand for housing is down to a number of things, not least family demographics and increase in population...and the fact that we haven't been building anywhere like enough houses for decades.

Once credit is available again, demand for housing will start to pick up again. It is how that demand is met that is the debatable point.

It's an interesting debate if you're into that sort of thing.

[AtW]

Well that probably wont be true, cause once things get back to normal they'll just start offering longer term mortgages again, and 125% mortgages, 5 times salary mortgages etc etc. Things will just go back to exactly the way it was before the recession.

Not for a long time. This 125%, 5-7 times salary tulip is a recent invention that not just trumped decades old lending criteria but also any common sense they ever had.

[Moscow Mule]

Grey Slates will go on the roof.

Fixed that for you

[SallyAnne]

Not for a long time. This 125%, 5-7 times salary tulip is a recent invention that not just trumped decades old lending criteria but also any common sense they ever had.

My first mortgage was 125% through the Northern Rock.

This was about.....10 years ago.

So, shock horror, you're talking tulipe.

[AtW]

My first mortgage was 125% through the Northern Rock.

This was about.....10 years ago.

So, shock horror, you're talking tulipe.

Oh shock horror, no suprised it was Northern Rock that ended up in deep tulip

Like most people you fail to see the big picture and just look at your own personal circumstances, 125% morgages at high multiple wasn't an average 10 years ago, even though in some cases people got them (manager probably wanted bonus too badly), just like some people never got more than 50% offered because they were high risk, well, until "fool-proof" securitisation bulltulip came along some years ago.

[SallyAnne]

Oh shock horror, no suprised it was Northern Rock that ended up in deep tulip

Like most people you fail to see the big picture and just look at your own personal circumstances, 125% morgages at high multiple wasn't an average 10 years ago, even though in some cases people got them (manager probably wanted bonus too badly), just like some people never got more than 50% offered because they were high risk, well, until "fool-proof" securitisation bulltulip came along some years ago.

Do you have any idea how difficult your posts are to read?!

Do you believe it was Northern Rocks 125% mortgages which caused them to get into trouble AtW?