House prices booming

**GreenerGrass** · 27 September 2007, 07:32

Barratt said that sales of its homes fell as much as 10% in the week after Northern Rock got into difficulties.

But it expects the effect to be temporary and its long-term outlook for house prices is still positive.

**King Cnvt** · 27 September 2007, 07:35

Originally posted by GreenerGrass View Post

Barratt said that sales of its homes fell as much as 10% in the week after Northern Rock got into difficulties.

But it expects the effect to be temporary and its long-term outlook for house prices is still positive.

That's sales of one comapny selling new houses only in the very short period of one week after the Northern Crock debacle. Not exactly significant is it?

**Hart-floot** · 27 September 2007, 09:39

Originally posted by King Cnvt View Post

http://news.bbc.co.uk/1/hi/business/7015599.stm

The UK housing market managed to shrug off recent credit market turmoil with prices rising in September, according to the Nationwide.

However, Nationwide said annual price growth slowed to 9% in September from 9.6% - its lowest in almost a year.

Worried about your BTL portfolio

Give it 5 months and prices nationally will be below the RPI, i.e a fall in real terms. Were following the USA i'm afraid

**DimPrawn** · 27 September 2007, 09:48

Originally posted by Hart-floot View Post

Worried about your BTL portfolio

Give it 5 months and prices nationally will be below the RPI, i.e a fall in real terms. Were following the USA i'm afraid

You are bag-o-pus and I claim my 15% house price increase today.

You should join www.housepricecrash.co.uk

They have been 5 months away from the crash since 2000.

**Devlin** · 27 September 2007, 09:56

I have to admit, the UK housing market is simply astounding. How can already such high house prices keep going up so much?!?! One day surely everyone will reach the limits of what they can borrow to buy houses?

**DimPrawn** · 27 September 2007, 09:58

Originally posted by Devlin View Post

I have to admit, the UK housing market is simply astounding. How can already such high house prices keep going up so much?!?! One day surely everyone will reach the limits of what they can borrow to buy houses?

It's a uniquely British mentality. People would sell their childrens kidneys if that's what it takes to "get on the housing ladder". Nothing else matters in their lives.

**chicane** · 27 September 2007, 10:00

Originally posted by Devlin View Post

I have to admit, the UK housing market is simply astounding. How can already such high house prices keep going up so much?!?! One day surely everyone will reach the limits of what they can borrow to buy houses?

As long as there's easy credit, there'll be increasing house prices. When you can pile your food, drink, car, holidays etc on credit cards and loans until an unspecified point in the future, you can dedicate your income to a ridiculously high mortgage and utility bills.

An extreme example: Somebody on a 30k income in this scenario could afford (at least for the time being) to finance a 250k mortgage.

**Devlin** · 27 September 2007, 10:00

Originally posted by DimPrawn View Post

It's a uniquely British mentality. People would sell their childrens kidneys if that's what it takes to "get on the housing ladder". Nothing else matters in their lives.

Sounds right to me. Unfortunately it's just as bad back home in Oz

**Devlin** · 27 September 2007, 10:01

Originally posted by chicane View Post

As long as there's easy credit, there'll be increasing house prices. When you can pile your food, drink, car, holidays etc on credit cards and loans until an unspecified point in the future, you can dedicate your income to a ridiculously high mortgage and utility bills.

An extreme example: Somebody on a 30k income in this scenario could afford (at least for the time being) to finance a 250k mortgage.

Yeah and the sensible ones among us who actually save up for things before buying them get shafted with inflation, most notably in housing!

House prices booming