Boomed - House prices to return to (2007) peak

[DimPrawn]

http://www.guardian.co.uk/money/2008...housing-market

The average price of a house in the UK will not return to its 2007 peak until 2023, a leading academic said yesterday.

Andrew Clare, professor of asset management at Cass business school in London, said the housing market would get "a lot worse" before it started to pick up.

Using futures contracts based on the Halifax house price index, he has calculated that, in 2010, the average will be 40% lower than the peak of £199,600 in August last year - about £120,000. "Worse still, according to these prices, the Halifax index will not recover its August 2007 level until 2023," he said.


Not long for you guys with negative equity to sit it out.

[sasguru]

Bloody stupid academics. Thats bollox and you know it
Looking at the London market, rental yield is now approaching 6-7% in some areas - this will pull the BTL punters in, thus providing a floor to the house price falls. Don't forget there's still a lot of money out there looking for a home that's not a bank.

[DimPrawn]

Bloody stupid academics. Thats bollox and you know it
Looking at the London market, rental yield is now approaching 6-7% in some areas - this will pull the BTL punters in, thus providing a floor to the house price falls. Don't forget there's still a lot of money out there looking for a home that's not a bank.

Damn your insight and statistical prowess.

[Bagpuss]

When the recession kicks in do people thing the Poles etc will stay?

[expat]

When the recession kicks in do people thing the Poles etc will stay?

In Poland?

[DimPrawn]

When the recession kicks in do people thing the Poles etc will stay?

Nope. What sasguru is forgetting is mass unemployment around the corner. No jobs, no immigrants, no money, can't pay the rent. Sorry.

This Time It's Different ™

[sasguru]

Nope. What sasguru is forgetting is mass unemployment around the corner. No jobs, no immigrants, no money, can't pay the rent. Sorry.

This Time It's Different ™

Crappy HMOs will suffer.
Good property in decent areas of London will always rent out.

[expat]

Crappy HMOs will suffer.
Good property in decent areas of London will always rent out.

During a recession, or even a depression, some people are not suffering. If you are one of those, and you rent or sell to those, then you might even do well out of it.

[Bagpuss]

Where will all those people who made their fortune form the stock market live?

Is cardboard city still available?

[tim123]

Bloody stupid academics. Thats bollox and you know it
Looking at the London market, rental yield is now approaching 6-7% in some areas - this will pull the BTL punters in, thus providing a floor to the house price falls. Don't forget there's still a lot of money out there looking for a home that's not a bank.

I'd love to know where you think that you can get 7% from a "normal" house (not a Student HMO).

In any case, 7% is still not a good return on BTL if you aren't expecting a capital gain each year.

tim