http://www.guardian.co.uk/money/2011...numbers-rising


This sounds interesting.

 

In favour of the housing bulls, this country is always going to be full of NIMBY's and town planning haplessly slow and useless.

Personally I don't like to see green belt land built on.

 

So does this.

http://www.bbc.co.uk/news/business-13372555

 

Double dip predicted.

http://www.independent.co.uk/news/bu...t-2281706.html

 

i read in the paper today that the investment banks are back on university campuses offering 50K starting salary's

my brother's flat looks like a no brainer -- 5 mins walk from the central line means these young blades can be at their desk in a hour and for only £600 a month

and plenty on money coming into the south east FTB market --- were are back on track for another housing bubble

 

I cannot find anyone outside of the Lunatic Asylums predicting that a new housing bubble is underway

 

Of course we are.

 

I did allow myself a little chuckle when I wrote that -- I admit

but a serious point lies behind it, the banks look like they are gearing up (in every way) just now

and these new guys/gals all need somewhere to live in london, and they can soon start to afford the prices being asked

 

Meanwhile, back in the real world..

There is absolutely no basis for another housing bubble. Underlying fundamentals are probably the worst they have ever been right now.

The only good thing for self proclaimed amatuer 'property developers' and dreamers who've bought at the top of the market and think "ouses only goes up in value" is that they don't appear to understand concepts like inflation, so it makes the drops in value seem less severe to them.

 

your probably right Pete -- but what I would say is that bubbles rarely rely on fundementals, and hence have no "basis" either way, that is why they are bubbles in the first place

 

Agree to an extent, but there has to be something to fuel the bubble.

The last bubble was fueled mainly by excessive and totally irresponsible lending, which allowed people to borrow far far more than they should ever have been able to, and could ever pay back. Result? Money flooded into property, prices went up and it all looked very much like a one-way bet - but when things went pop the resulting financial crisis almost brought down the Worlds entire banking system. Something tells me it wont be happening again in a hurry.

Current status? Housing transactions are close to all-time lows because people CANNOT borrow the vast sums needed to buy. Sellers are unwilling to lower prices because they think their house is 'worth' more. Result? Stalemate. Only stuff selling is existing home owners moving house. This situation cannot continue.

 

And my, albeit flippant post, suggests that the fact that banks are offering 21 yr olds 50k a year is the fuel

obviously neither myself, yourself or pslewis would get out of bed for 50k --- but it is not a bad starting wage for a college leaver

 

But how many positions are we talking about here?! 50? 100? It's totally insigificant!

 

yep maybe, could be "mood" music though

but the beauty of a market is it take two views

 

No-one should have to work for £50k - that's totally unacceptable!

 

Seems like a decent amount before tax for a months work. What's the problem?

 

OH, right!!

For a horrible moment I thought it was referring to an annual pay!!

Phew, that's better - stand down!

 

Read an interesting article about supply and demand.

It's not the supply and demand of property that matters - it's supply and demand of finance and credit that counts!

So, anyone in the market currently? It seems to have fallen completely silent once again.

 

No ****, Sherlock

 

Yeah, OK - it was in response to those who say that we are a small island, with limited housing stock ...... that means jack if there is no finance or a desire to take finance.

Are we about to see a new 'order' in the property world .... back to the 1050's where house prices didn't increase hardly at all - and if they did, it was just in line with pay inflation.

 

Yep, currently selling three places, one has sold and two people are in a bidding war for it. (where has the smug smiley gone? ) The other two have received offers (cheeky low ones) I'm feeling confident they others will sell within the month.

 

Finance is king, as is well known. Hardly anyone buys with cash, and only those with chunky deposits and secure income streams are able to get a mortgage now.

It's all cyclical, and it will revert back to 'normal', whatever that is within a few years, or sooner. UK tenancy laws make renting unpleasant unless you're lucky, so home ownership is the desired option for most.

 

In the long run surely not though?

Credit only moves fwd purchases.

 

Reported in todays papers,that house prices are to surge by 16% in 2012 ! Back to 2007 levels .

 

Linky?

 

http://www.dailymail.co.uk/news/arti...Christmas.html

(rubbish I think ...)

 

Of course they will. Will low inflation and increasing pay, falling unemployment and lax credit/mortgage lending, first time buyers (who are the life blood of the mortgage market) will have no trouble buying. I'm amazed that the Express only came up with 16%.

Oh, hold on.

http://www.bbc.co.uk/news/business-13575857

 

Daily Express headline today states Interest Rates to stay low for another three years .!!!!!
Economy not back on track so further help for home owners to get get things going .

 

EFA ?