Originally posted by ferret
View Post
- 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!
Reply to: Repossessions set for dramatic rise
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Repossessions set for dramatic rise"
Collapse
-
-
Originally posted by ferret View Post
Doomed.
Leave a comment:
-
Originally posted by DiscoStu View PostSounds good to me. At the moment we have this crazy situation where I pay £800 pm rent for a flat that would be costing me at least £1300 in mortgage payments if I'd bought it. Bring on the falls!
Leave a comment:
-
Originally posted by BlasterBates View PostGreat doom posting Ferret . Even has hardened doomster like me quivering in my boots.
Leave a comment:
-
Originally posted by ferret View Posthttp://www.independent.co.uk/news/bu...rk-822851.html
Add high inflation to this and what do you think might happen?
Like bagpuss said, not that many people can afford much more than a flat with the new (return to the old) lending regimes and with all the media finally suggesting prices are too high people will hold off buying. So house prices sales will stagnate but this should in turn lead on to some hefty falls in price IMO.
And those who are coming off old cheap fixed rates are getting a double whammy of higher living costs plus higher mortgage payments. So this could lead to higher repossessions, more properties coming on to the market, BTL'ers who got in late going under, emigration growing, sounds like the perfect recipe for a sharp downturn in house prices to me, will be very surprised to see "stagnation" of house prices over the next 12-24 months.
Doomed.
Great doom posting Ferret . Even has hardened doomster like me quivering in my boots.
Leave a comment:
-
Originally posted by ferret View Posthttp://www.independent.co.uk/news/bu...rk-822851.html
Add high inflation to this and what do you think might happen?
Like bagpuss said, not that many people can afford much more than a flat with the new (return to the old) lending regimes and with all the media finally suggesting prices are too high people will hold off buying. So house prices sales will stagnate but this should in turn lead on to some hefty falls in price IMO.
And those who are coming off old cheap fixed rates are getting a double whammy of higher living costs plus higher mortgage payments. So this could lead to higher repossessions, more properties coming on to the market, BTL'ers who got in late going under, emigration growing, sounds like the perfect recipe for a sharp downturn in house prices to me, will be very surprised to see "stagnation" of house prices over the next 12-24 months.
Doomed.
Leave a comment:
-
Originally posted by Moscow Mule View PostYou're forgetting to factor in people coming off fixed rates from 2/3 years ago now not being able to get a decent mortgage deal, and payments going up.
Whilst I don't think we're in doom country, I think house prices will stagnate in the medium term which is an effective drop given the inflation we're living with at the moment.
What does seem to be falling off a cliff is the housing market. As everyone knows we now have a small year-on-year decline in prices, but that conceals six months of gains and six months of losses. Look at prices on a six-month basis and prices are falling at an annual rate of around 9 per cent. Look at them on a three-month basis and annualise that, and the number for the Halifax index is minus 15.7 per cent. Those of us who expected either a plateau in prices or modest declines look like being wrong.
Like bagpuss said, not that many people can afford much more than a flat with the new (return to the old) lending regimes and with all the media finally suggesting prices are too high people will hold off buying. So house prices sales will stagnate but this should in turn lead on to some hefty falls in price IMO.
And those who are coming off old cheap fixed rates are getting a double whammy of higher living costs plus higher mortgage payments. So this could lead to higher repossessions, more properties coming on to the market, BTL'ers who got in late going under, emigration growing, sounds like the perfect recipe for a sharp downturn in house prices to me, will be very surprised to see "stagnation" of house prices over the next 12-24 months.
Doomed.
Leave a comment:
-
Originally posted by The Lone Gunman View Post....
The major factor is whether borrowers can service their loans.
As long as they can they wont have a problem.
Things that will stop them is a big enough rise in interest rates or if they lose thier jobs.
...
When you can counter that then we may be in trouble.
Whilst I don't think we're in doom country, I think house prices will stagnate in the medium term which is an effective drop given the inflation we're living with at the moment.
Leave a comment:
-
How many times does it have to be explianed to you.
There may be a house price crash, but personaly I doubt it will be that bad.
The major factor is whether borrowers can service their loans.
As long as they can they wont have a problem.
Things that will stop them is a big enough rise in interest rates or if they lose thier jobs.
At the moment the BOE is keeping the base rate fairly stable and there does not (at the moment) seem to be a massive surge in unemployment.
If there is a drop in prices then the market will dry up. People who are in negative equity will sit tight and not sell thus restricting the availability of houses thus pushing the price back up.
While rates are manageable and there is no threat to jobs there will be no crash as such.
When you can counter that then we may be in trouble.
Leave a comment:
-
Can't be true, Gormless said there would be no more boom and bust.
Leave a comment:
-
Originally posted by Turion View PostMy posts are more informative than most of the clutter on this board. They are aimed at adjusting the perception that that property is only a one way up investment. Too many people have relied on house prices rising, and the easy availablility to pile further debt up on top of rising prices in order to fund further investment on property or even their holidays and cars. Unfortuneately for them, the days of 'adding it to the mortgage' are over. This is likely to cause a correction similar or worse to the early '90s. This is a natural market reaction to over bought assets and should be welcomed by those FTB's and upgraders.
Lower prices will benefit most people. But, in any correction there will be casulties. Judging by the replies to this thread, it's hurting some of you big time. Many contractors have put everything into BTL and built up large debts. That may be some of you. I suspect that some of you are in denial about this. Maybe some of you will be ruined and have to start again. Let it be a lesson learnt.
Leave a comment:
-
Originally posted by 51st State View PostFine that you hold your own view that the market is going to fall, because you think (oddly) that there is a connection between average earnings and the average house price.
The banks are returning to the old ratio and removing self cert mortgages which begs the question, who will be buying the houses? There aren't enough people significantly outside modal incomes to keep the boom going. That's why the purchasing power of average incomes is so important.
Don't forget the average UK price in many areas will only buy a flat, it's hardly luxury living.
Leave a comment:
- 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
Leave a comment: