oh dear: House prices will fall over next five years, says Niesr

[AtW]

The National Institute of Economic and Social Research (NIESR) claims that prices will fall, in real terms, by about eight per cent.

It means that after accounting for inflation, “real” house prices will have collapsed to 2003 levels by 2015

The forecast will add to families’ woes as they face higher taxes and lower wages that even the Treasury predicts will grow more slowly than inflation for the next three years. Capital Economics has estimated that the average household will be £3,000 a year poorer under the measures introduced in last month’s Budget.

NIESR’s figures show that although average house prices are expected to rise from £194,235 last year to £213,091 in 2015, they would need reach £231,000 to keep pace with inflation. As a result, average households will be £28,000 out of pocket. (AtW's comment: no they won't be ffs)

Simon Kirby, a NIESR research fellow, said: “While we have assumed the housing market remains stable, house prices could decline at a more rapid pace.”

Families have already been hit by falling house prices. They crashed 19.3 per cent during the recession, according to Nationwide and have yet to recover to pre-crisis levels despite a 10 per cent bounce. Mr Kirby said that weak bank lending would restrain house price growth.

More: House prices will fall over next five years, says Niesr - Telegraph

[markinbrussels]

Again, this is good news.

Instead of 1K monthly mortgage payments, you'll pay maybe 800. The other 200 quid can then go to boost other sectors of the economy.

Where is the problem here?

[shaunbhoy]

Again, this is good news.

Instead of 1K monthly mortgage payments, you'll pay maybe 800. The other 200 quid can then go to boost other sectors of the economy.

Where is the problem here?

There is no problem.............unless you don't have a property, and are simply intent on whining on about how expensive houses are instead of getting on and doing something about it.

HTH

[Mich the Tester]

Has Paul the Octopus expressed an opinion on this yet?

[SofaKingdom]

Has Paul the Octopus expressed an opinion on this yet?

He has. DimPrawn will combine his vast wealth with Atw's 2p and turn sasguru's shed into a loveshack where the 3 of them will live happily ever after.

The End

[TimberWolf]

"According to Ray Barrell, senior research fellow at the National Institute of Economic and Social Research, quantitative easing has had a positive impact on the economy – lifting equity and house prices by around 10pc..."
Bank of England posts

[Support Monkey]

I currently have my house on the market and we have had 9 people view it, all but one of them still had a house to sell.

My brother also has his house on the market (first time buyers house) and has found exactly the same thing and has had no first time buyer round.

There is no one looking who as actually sold, there are very few first time buyers around, there have been a large amount of rental property come onto the market and more properties since they got rid of HIPS.

The writing is on the wall for prices to stagnate or drop.

[Lockhouse]

We just luckily sold our BTL - we exchange this week. We're sitting it out now until we start to see apparent "bargains" appearing.

[TimberWolf]

I currently have my house on the market and we have had 9 people view it, all but one of them still had a house to sell.

My brother also has his house on the market (first time buyers house) and has found exactly the same thing and has had no first time buyer round.

There is no one looking who as actually sold, there are very few first time buyers around, there have been a large amount of rental property come onto the market and more properties since they got rid of HIPS.

The writing is on the wall for prices to stagnate or drop.

more quantitative easing