House prices set for double-digit increase, Nationwide predicts

[PAH]

There are some real funny sockpuppets on here.


As for house prices shooting back up. I just can't see it, unless it's related to hyper inflation.

There seems to be lots of reason against it:

1. Mortgages cheap, though still around 4 or 5% and requiring large deposits despite the base rate being 0.5% so the banks can earn yet more money. They're not going to stay 'cheap' for long.

2. Average wage is still only low 20s afaik (no sign of that changing dramatically, too much cheap labour and exploited foreign workers), so fine, if you want to pay an average of 200k for a pile of bricks go and be a debt slave for the rest of your life.

3. The recession is no way over. Where is the money going to come from to allow people to afford lots of new shiny things or 4 quid starbucks, a requirement for the economy to rise.

More likely is lots more job losses, higher interest rates, people struggling with the massive amount of personal debt they still have, higher taxes after the election to try to control the national debt, and a miriad of other negatives.

[Xenophon]

B O O M E D

Spend, spend, spend. You can start by buying my house.

[thunderlizard]

People have got to put their redundancy money somewhere!

[PAH]

People have got to put their redundancy money somewhere!

Somewhere like council tax, leccy, gas, water, food, mortgage, petrol/diesel, parking fines, parking permits, litter fines, not recycling properly fines, too much non-recyclable rubbish fines, tv licence, broadband tax, and many many stealth taxes so stealthy we don't even know they exist yet.

All the above are likely to rise in the coming months/years, and the govermin still thinks (and at some point will insist) we sacrifice a large chunk of our money to pensions (so they can be raided in the future).

Good luck saving up that warchest.

[OwlHoot]

Somewhere like council tax, leccy, gas, water, food, mortgage, petrol/diesel, parking fines, parking permits, litter fines, not recycling properly fines, too much non-recyclable rubbish fines, tv licence, broadband tax, and many many stealth taxes so stealthy we don't even know they exist yet.

All the above are likely to rise in the coming months/years, and the govermin still thinks (and at some point will insist) we sacrifice a large chunk of our money to pensions (so they can be raided in the future).

Good luck saving up that warchest.

WHS

It amazes me that loads more people aren't drowning in debt. Many of the items in that list have more than doubled in the last ten years, whereas average salaries have hardly budged.

[Sysman]

Absolute bo**cks IMO. The last 18 months has been a phoney recession for most people since their mortgage payments and other debt payments have fallen a lot, so they have had more cash to spend than ever before. We will see that most folks standard of living actually falls year on year for at least the next 5 years as taxes and interest rate rises bite. By 2015 houses may even cost less than today, certainly in real terms I reckon.

Yep. Let's have proper recession where yer mortgage cost skyrockets to the point clientco cannot afford to pay on time.

[AtW]

Yep. Let's have proper recession where yer mortgage cost skyrockets to the point clientco cannot afford to pay on time.

There are 2 ways about it:

1) price imbalances in the system are corrected - those who overextened themselves lose houses and overall house prices deflate: the losers are those who bought houses at price they should not have bought (as well as banks who loaned them the money), savers and prudent house owners are not affected

2) price imbalance is kept but everyone is shafted by high inflation - everyone pays for stupid decisions made by others

In the past it was #1 scenario that happened, this time it's different (tm) - #2 is happening... 0.05% interest rate in my bank ffs!

[AlfredJPruffock]

GIven that the perceived Wisdom of the CUK Panel (with one or two exceptions) was that House Prices were going to fall off a cliff - naturally then the reality is the exact opposite.

Thats why yiou can hear a loud cheer friom the Pruffock Mansions.

[Lockhouse]

There'll be no sanity in the housing market until first time buyers can afford to get on the ladder.

I believe that inflation will erode the value of property in real terms AS WELL AS prices falling. It's not looking good out there for Joe Public. The recession hasn't happened yet.

[sasguru]

There are some real funny sockpuppets on here.

.