House prices booming

[Devlin]

Yes, but at least you'll still have your house in 5 years time.

I don't have one unfortunately.

[chicane]

Yeah and the sensible ones among us who actually save up for things before buying them get shafted with inflation, most notably in housing!

Yes, but at least you'll still have your house in 5 years time.

[Devlin]

As long as there's easy credit, there'll be increasing house prices. When you can pile your food, drink, car, holidays etc on credit cards and loans until an unspecified point in the future, you can dedicate your income to a ridiculously high mortgage and utility bills.

An extreme example: Somebody on a 30k income in this scenario could afford (at least for the time being) to finance a 250k mortgage.

Yeah and the sensible ones among us who actually save up for things before buying them get shafted with inflation, most notably in housing!

[Devlin]

It's a uniquely British mentality. People would sell their childrens kidneys if that's what it takes to "get on the housing ladder". Nothing else matters in their lives.

Sounds right to me. Unfortunately it's just as bad back home in Oz

[chicane]

I have to admit, the UK housing market is simply astounding. How can already such high house prices keep going up so much?!?! One day surely everyone will reach the limits of what they can borrow to buy houses?

As long as there's easy credit, there'll be increasing house prices. When you can pile your food, drink, car, holidays etc on credit cards and loans until an unspecified point in the future, you can dedicate your income to a ridiculously high mortgage and utility bills.

An extreme example: Somebody on a 30k income in this scenario could afford (at least for the time being) to finance a 250k mortgage.

[DimPrawn]

I have to admit, the UK housing market is simply astounding. How can already such high house prices keep going up so much?!?! One day surely everyone will reach the limits of what they can borrow to buy houses?

It's a uniquely British mentality. People would sell their childrens kidneys if that's what it takes to "get on the housing ladder". Nothing else matters in their lives.

[Devlin]

I have to admit, the UK housing market is simply astounding. How can already such high house prices keep going up so much?!?! One day surely everyone will reach the limits of what they can borrow to buy houses?

[DimPrawn]

Worried about your BTL portfolio

Give it 5 months and prices nationally will be below the RPI, i.e a fall in real terms. Were following the USA i'm afraid

You are bag-o-pus and I claim my 15% house price increase today.

You should join www.housepricecrash.co.uk

They have been 5 months away from the crash since 2000.

[Hart-floot]

http://news.bbc.co.uk/1/hi/business/7015599.stm

The UK housing market managed to shrug off recent credit market turmoil with prices rising in September, according to the Nationwide.

However, Nationwide said annual price growth slowed to 9% in September from 9.6% - its lowest in almost a year.

Worried about your BTL portfolio

Give it 5 months and prices nationally will be below the RPI, i.e a fall in real terms. Were following the USA i'm afraid

[King Cnvt]

Barratt said that sales of its homes fell as much as 10% in the week after Northern Rock got into difficulties.

But it expects the effect to be temporary and its long-term outlook for house prices is still positive.

That's sales of one comapny selling new houses only in the very short period of one week after the Northern Crock debacle. Not exactly significant is it?

[GreenerGrass]

Barratt said that sales of its homes fell as much as 10% in the week after Northern Rock got into difficulties.

But it expects the effect to be temporary and its long-term outlook for house prices is still positive.

[King Cnvt]

http://news.bbc.co.uk/1/hi/business/7015599.stm

The UK housing market managed to shrug off recent credit market turmoil with prices rising in September, according to the Nationwide.

But the group warned current credit problems may lead to a softening in the market as loan conditions get tougher.

Prices increased 0.7% during September, after rising 0.6% in August, beating forecasts of a slowdown to 0.4%.

However, Nationwide said annual price growth slowed to 9% in September from 9.6% - its lowest in almost a year.


As predicted, no crash, prices if anything are booming. Still rising on average 9% per year and more like 15% in London.