davegtt

just heard on the radio the halifax have reported house prices are increasing at an alarming rate, 20% over the year aparently...

WOW!!!! who said its dead already

not particually bothered myself as Ive already bought but still suprised to see them on a hefty rise as 20%

TelBoy

That's why the Bank of England raised rates last month, and will probably do so again on Thursday, and again until this stops....

TopBanana

It's not going to last. Get out while you still can.

SELL SELL SELL

alcazar

iTrader: (2)

OoooooooH that makes me so fekkin MAD

Why on earth punish those of us with mortgages, just because the lenders have lent too much, too fast?

Why not go back to the methods of the 70's and 80's when only a certain amaount of money could be lent, so if you wanted a mortgage, you might have to wait 6 months, not like today>>>>..............."You want to borrow how much, sir? Why not have another £20,000 cashback to buy a car, too, and have it at a lower rate and have it by tomorrow???"

Fekkers!

Alcazar

davegtt

never said it was going to last but what makes me laugh is 2 years ago people waffling on about housing market crashing, look where its at now, even if it "crashes" its unlikly to go below what they was 2 years ago anyhow why sell up? some people bought a house to live in it, not to make a profit

some people

TelBoy

The difference being - two years ago, the Bank of England were not actively engaged in preventing house price inflation. Now, they recognise it as the *major* threat to UK inflation overall, and are doing something about it.

But of course, if you want to swim against the intentions of the Mr King et al....

CEL

iTrader: (1)

My thoughts exactly... just waiting for the money to come through

messiah

Only locked in for another 4 months, then I'm going shopping for a new deal, how much do you reckon a month for a £60k mortgage on a 4 bed semi with double garage?

God I'm glad I bought my house in 1999...

dba

these rises are very localised,eg Darlington a trillion percent,Wakefield 20 % in the last year and Epsom 5%,as an example.The North is catching up

bloke

I assume all this is concentated in the 1st time buyer sector?

What I see in the mid-sector of the market is almost zero volume, price reductions all over the place, and properties sitting on the market for ages...

Muffleman

1st time buyers and buy-to-lets, last drinks at the saloon anyone ?

Matt

unclebuck

It's all built on New Labour sand. The end is nigh I tell you......

UB

Ringpeas

My mate in Barton bought a semi for £60k 2 years ago (oop north).
Just had it valued at £130K after doing nothing to it at all

Thats around 50% per anum !!!!!

Its about time we caught up with those posh southerners

Petem95

Doesnt surprise me that theyre still climbing, people always jump on the bandwagon blind when they hear of others making easy money - they just want in.

Looks like interest rate rises might speed up however, high oil prices causing inflation, manufacturing output on the up - rates will head in the same direction.

Cant see a massive crash being likely though - just look at how many people are entering the country, and how many new homes are being built....

JDM

its all very worrying for someone like me, I can't get onto the property ladder at all and am forced to rent. Makes me think of leaving the country to be honest, probably just as bad everywhere else though. It aint what you know, it's who you know.

clarence

There's a thing called negative equity, & it'll be suffered by those very ppl who bought a property to live in (speculators would have either gone bankrupt or got out then) when property prices drop.
It is no fun when u're saddled with a mortgage that's costing u 10 or 20% above what u should be paying.
Property prices in London for example are very unreasonable.

dba

bloke

nope,its not just the first time buyer market,its throughout,but as i said,in my expereince from currently selling and buying a house at the moment,its very localised,some areas nothimg,others,like some areas of Darlington,60%

Hanslow

***** me right off because we want to move. Can't find anything we like within our price range and we're not stupid enough to go for 8x our salary or whatever stupid offers are around. We know how much we want to spend, just got to find the right house.

Missus has set a limit of 250k.....it's when I turned round and said, you mean a quarter of a million, that it suddenly hits home how large a sum it actually is. I expect an 8 bedroom mansion with acres of land for that

dsmith

The apolitical independant interest rate committee have no mandate to control house prices - only inflation and Mortgage payments are not counted for inflation anymore.

So why do they care about house prices ?

Oh - perhaps they're not *that* independant are they.....

Deano

Echo

We're stuck too. To get an extra bedroom here (over the field from Mr J Clarkson) I need about an extra 70-100k. No way. I'm waiting for it all to crash and am paying my mortgage off fast while the interest rates are lowish so eating in to the capital faster.

If people in their 30's in decent jobs can't get on the ladder it will crash sooner or later. If I was renting now I'd still rent and wait for a few years.

Mike

TelBoy

Their independent mandate is to control inflation, and consumer debt and house price inflation are now the primary threats to this. The only way the Bank can counteract them is via interest rate policy, so that's what they're doing. Nothing that isn't independent about that. Unless i'm missing the point you're making?

P1Fanatic

Even with negative equity you are still paying money into an investment rather than pissing it up the wall never to be seen again which is what you do when renting.

And thats a big when. If anything I think house prices on average will plateau but not drop. Sure there will be areas that may drop but there will be others that continue to rise.

Simon.

TelBoy

Simon,

Call me old fashioned, but isn't "investing" into something which is falling in value also pissing it up the wall? Other than knowing it's "yours", and avoiding the hassle of having to get back on the property ladder as/when the market turns again, there isn't much upside to paying too much on a mortgage in a falling market, is there?

davegtt

I dont understand what your trying to say, end of the day even if ur in negative equity... so what, people buy a house for the long run... there will become a time when that house will rise in value again and thats besides the point of owning your own house...

as I say people used to buy a house to live in the damn thing. doubt people always worried about what their house was *worth*

GaryK

The clue is the word 'halifax' those jokers are constantly reporting this because they have a vested interest to do so to stimulate growth, personally I think in my area they are fairly static, some are selling others arent shifting at all, we've been renting for nearly a year and to be honest jumping off the property ladder wasnt the best move so we have just bought now and will at least have a solid base. Renting sounds very good but we have moved twice within in a year and its very unsettling and Im fecked if Im gonna do it again!!!

Gary

P1Fanatic

Ok, say for example you buy a £200K house and pay it off over 25 years and its then worth £180k. You then have a house worth £180k, whereas if you rented you would have f*ck all to show for it unless your rent was much less than your mortgage would be and you saved every penny of that 'difference'. Even then I still think youd do well to save up £180k.

At the end of the day the majority of people buy a house to live in and make their own. If it makes them money in the process then thats a bonus if not then youve not really lost out that much unless prices tumble - which I really cant see unless tens of thousands of new cheap houses suddenly appear on the market.

Simon.

Nexuas

In my opinion the negative equity situation is a complete load of tosh.

If you have a mortgage you are paying back more than the house is worth anyway due to intrest rate.

I have borrowed 120K, in 25 years time I will have payed back in the region of 180K IIRC WE ONLY PAYED 177K FOR IT IN THE FIRST PLACE.

Yes you can be p1$$£d off if you took out a mortgage for 170K to buy a 170K house and the price falls to 150K and you owe the bank more than the house is worth (even if you payed it off that day in a lump sum) other than that it is just scare mongering.

The people who will cause the price crash will be the investment buyers who are all going to pull out of the market as they can not afford to keep their investment because the intrest rate has gone up. But unfortunatly this affects the everyday person who needs a house to live in.

So what is going to happen in the future? The prices crash because all the investors pull out, the bank of England feels they have been sucessful and so drops intrest rates again. Investors see cheap house and low intrest rates go on a buying frenzy and push prices back up, bamnk of England increases intrest rates again and the investors pull out, and prices crash

Welcome to the "Circle of Life" or should that read circus?

TelBoy

Simon, i see what you're saying - i was referring to switching between owning and renting as the market changes. Too much hassle for most, but the secret to making and keeping *real* money from the property market.

A bit like salary - the best way to make substantial gains is to switch jobs, not just accept your annual pay rise from the company you're in.

ProperCharlie

there definitely seems to be stagnation in the upper part of the market where i am. people just haven't got the money to spend much in excess of £300k on a house round here. i've seen lots of places advertised for £350k - £400k, only to be re-advertised for less a few months later. it would worry me if i wanted to sell, or had a variable rate mortagage, but as i don't, i'm quite happy.

ProperCharlie

but this is quite common - index tracker investments or other share portfolios often involve buying things that are getting cheaper by the day - the logic being that at some point they will start getting more valuable again and you will end up ahead.