House prices are BOOMING!!!!!!!!1

[DaveB]

Thank feck for that!

Whooo! Good news there DaveB

Slight correction on the later editions. It's the Home Condition Report bit that wont be compulsory. Mortgage lenders refuse to lend against it and are insisting on the traditional structral survey.

Still a step in the right direction though. And since they still can't decide what is going to be in the rest of it anyway my original prediction stands

[Joe Black]

Average house prices in England could rise from £195,000 to nearly £290,000 by 2011, research from Oxford Economic Forecasting (OEF) has said.

On a back of the fag packet calculation that works out as just 8% per year.

The numbers sound nice, but I'm in two minds as to whether anyone should get excited about it.

On the HIP side of things, does this mean NL might actually consider bringing in something useful instead?

[DimPrawn]

What's interesting is over the same period, average pay WILL NOT match 8%, making home ownership less and less affordable.

That is until the New Lie in 2010 bring in the "home ownership fairness initiative legislation" which means all homes are snatched by the government and then handed to the 15,000,000 asylum seekers.

HTH

[hyperD]

That is until the New Lie in 2010 bring in the "home ownership fairness initiative legislation" which means all homes are snatched by the government and then handed to the 15,000,000 asylum seekers.

Don't laugh: the Ruskies did that to the Hungarians.

re: 8% - with wage rises ~ 3% you would expect a market correction/slowdown unless of course there is pressure on demand, such as immigration.

[The Lone Gunman]

Don't laugh: the Ruskies did that to the Hungarians.

re: 8% - with wage rises ~ 3% you would expect a market correction/slowdown unless of course there is pressure on demand, such as immigration.

The correction has been avoided due to lenders changing policy.
According to a report I read on the BBC yesterday (cant be arsed to find it again for a link) lenders are now willing to loan 6 times salary as opposed to the 2.5 it used to be. This is allowing the bubble to expand.
Obviously this can't go on forever. The next step is to introduce 100 year or family mortgages that can be passed on to your kids.

As long as mortgages are affordable the price will keep on rising.
Apparently all the pointers for a stable economy for the lenders are good. Low inflation, steady/low unemployment and steady interest rates are all part of it.
<Anybody else see a slight problem here?>

Dont shout at me I am only relaying what I read.

[hyperD]

The next step is to introduce 100 year or family mortgages that can be passed on to your kids.

Yes, happened in Japan with a low/zero interest rate, slowdown in consumer spending economy. No reason why it shouldn't happen here.

[BlasterBates]

...well I've finally capitulated, for the last three years I've been waiting for a housing crash, but it aint going to happen, I now predict that house prices will rise indefinitely at 10% a year.

Heck if I lived in the UK I wouldn't work I'd just live off the capital increases take out bigger mortgages, paying off the bigger mortgage with an even bigger mortgage the following year.

[DimPrawn]

House prices - "To infinity and beyond!"

Sounds better than "We're doomed!"

[hyperD]

Don't you get the feeling that your "perceived wealth" isn't worth quite as much as it was ten years ago? Perhaps fractional reserve banking has something to do with it...

[The Lone Gunman]

...well I've finally capitulated, for the last three years I've been waiting for a housing crash, but it aint going to happen, I now predict that house prices will rise indefinitely at 10% a year.

Heck if I lived in the UK I wouldn't work I'd just live off the capital increases take out bigger mortgages, paying off the bigger mortgage with an even bigger mortgage the following year.

With your ability to read the market I am now considering selling. If beans agrees with you I am selling and moving abroad.