Reply to: House prices to rise for years, says BoE's David Miles

[Pondlife]

I can enjoy it on Right Move and dream of one day when I move into one of those properties

Altogether now

Oh, I could hide neath the wings
Of the bluebird as she sings,
The six o'clock alarm would never ring...

[AtW]

And what woould a loser like you know about top-end property?

I can enjoy it on Right Move and dream of one day when I move into one of those properties

[oracleslave]

At the start of the top end of the market (i.e. 1 million + in London and the SE) I can vouch that the market is red hot.
Sealed bids and gazumping are rife.
This is because there is a shortage of good property and an influx of European money.

Have you sold your London pad?

I have my first agent coming round tonight to give me a valuation.

Haven't decided yet whether to sell or get a corporate tenant in as I get about 3 letters a week asking me if I would consider renting it.

[sasguru]

Which would make my post empty .

Quite - like all the content free TPD posts you have made over time.

[BrilloPad]

No need to sign off your posts.
HTH

Which would make my post empty and there identical to yours in the creative department.

Do you have to insult people without giving a reason? Oh yes, this is the general bear-pit - I forgot for a second.

[sasguru]

Cretin

No need to sign off your posts.
HTH

[BrilloPad]

And what woould a loser like you know about top-end property?

Cretin

[sasguru]

And you are sure of that because your £50k less than pricing cash bid wasn't accepted?

And what woould a loser like you know about top-end property?

[AtW]

At the start of the top end of the market (i.e. 1 million + in London and the SE) I can vouch that the market is red hot.

And you are sure of that because your £50k less than pricing cash bid wasn't accepted?

[sasguru]

At the start of the top end of the market (i.e. 1 million + in London and the SE) I can vouch that the market is red hot.
Sealed bids and gazumping are rife.
This is because there is a shortage of good property and an influx of European money.

[BrilloPad]

Everyone knows that house prices always go up.

Over the long term yes. But buying a house in early nineties was bad in the UK except for central/western London.

I still think house prices will be flat for next 3-5 years.

[Lockhouse]

Anyone going into BTL expecting capital appreciation needs their head examined. It's all about yield.

[Optimus Prime]

Everyone knows that house prices always go up.

[TimberWolf]

So this is the final call for the top of the market in London. Note that outside London (and some posh parts of the SE) prices have dropped between 10-50% since 2007.

The Dim one posted a link to house price statistics recently that showed house prices were dropping about 6% annually in some parts of the UK, and accelerating downwards. Except London and I think Scotland. Beats me how house prices can stay at stupid levels with real incomes nose-diving, unemployment booming, layoffs, record austerity and the day of reckoning to come, one day soon. And 0.5% base rates and QE can't last forever, and building societies are raising their interest rates anyway. How can house prices stay at record highs in the face of all that is to come.

[eek]

David Miles, one of the Bank’s nine rate-setters, said in an official paper that the desire for space caused by the UK’s rising population would reinforce planning restrictions and make it more difficult for housebuilders to keep up with demand. As a result, he said: “We should anticipate a rising trajectory for real house prices over the longer term.

“This is particularly likely in a country like the UK where population density looks set to rise relatively fast. The model also suggests that the upwards trajectory in house values may ultimately become steeper than the rise in real incomes.”

However, a housing boom would be out of reach for first time buyers, he added, because credit will remain in short supply. Before the financial crisis, buyers did not need a deposit to secure a mortgage. Since the recession, though, large deposits have become essential.

“It should not be seen as a sign of a damaged market,” Mr Miles said. “It probably never made sense for there to be 100pc mortgages. There may be no price at which it makes commercial sense for such a loan to be available.”

He added: “New homeowners in the future may need to have more equity than was normal in the years leading up to the financial crisis. This will have an impact, probably permanently, on the pattern of home‐ownership.

Source: House prices to rise for years, says BoE's David Miles - Telegraph

So this is the final call for the top of the market in London. Note that outside London (and some posh parts of the SE) prices have dropped between 10-50% since 2007.