oh dear: UK house prices go into reverse

[sasguru]

Doomed etc ...ad nauseum.

How's your bedsit, Alexei. Come the crash, you might have a new landlord. That's the only way anything to do with property will affect you.

[AlfredJPruffock]

From the BBC:

It estimated that mortgage repayments, for those on the average income, now absorb 42% of their take home pay.

That was a much bigger chunk of their money than ten years ago when the current house price boom set in.

Back in 1996, repayments used up just 18% of first time buyers' incomes.

Jeez, 42% of your hard earned (after New Lie has taken about 60% in taxes) goes as dead money on interest.

They must be mad.

To be fair they can then borrow lots money in the way of of credit to buy such modern must haves such as plasma TVs,Tonys Blairs biography,sex toys etc thus prolonging the UKs economic miracle.

Thank goodness I dont have a mortgage, and never had one, estate was paid by contract booty.

Ditto for pension plans, hope I die before I get old, well at least 50.

All Praise to New Labour.

[AtW]

I could never understand why morgages are given on the basis of gross pay, surely £50k pa for one person is not double after-tax as £25k pa?

[DimPrawn]

From the BBC:

It estimated that mortgage repayments, for those on the average income, now absorb 42% of their take home pay.

That was a much bigger chunk of their money than ten years ago when the current house price boom set in.

Back in 1996, repayments used up just 18% of first time buyers' incomes.

Jeez, 42% of your hard earned (after New Lie has taken about 60% in taxes) goes as dead money on interest.

They must be mad.

[Dundeegeorge]

Still renting Alexei

Mwahahahaha

[The Lone Gunman]

Ha Ha! Beat you to it.

http://forums.contractoruk.com/thread8674.html

[AtW]

UK house prices go into reverse

The housing market is slowing Halifax said

House prices fell unexpectedly by 1.2% in June, according to Halifax, the UK's biggest mortgage lender.

The fall in prices follows several months where the UK housing market has been very buoyant, beating economists' expectations, particularly in London.

Householders were feeling the pinch because of rising utility and council tax bills, the Halifax said.

But overall, during the second quarter of 2006, UK house prices have risen 2.6% on average.

No crash

The bank, though, was keen to emphasise that June's fall did not necessarily mean that house prices were about to crash.

"Sound fundamentals, underpinned by a strengthening economy, high levels of employment and low interest rates, will continue to support housing demand over the second half of 2006," Martin Ellis, Halifax chief economist, said.

Price growth in the first half of 2006 had already exceeded the bank's and many other economists' expectations.

House prices had risen in all parts of the UK, apart from Wales, during the second quarter, the Halifax added.

But the Halifax survey will add to the weight of evidence that the market has slowed as spring has rolled into summer.

Last week, Nationwide said that house price inflation in June was subdued at 0.3%.

Howard Archer, chief UK economist at Global Insight, predicted that UK house prices were "likely to settle back into an extended period of relatively modest rises."

Mr Archer added that the recent trend of house price inflation outstripping earnings was squeezing affordability.