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Property price rises stoke fears of a new housing bubble

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    Property price rises stoke fears of a new housing bubble

    "Fears that George Osborne, the chancellor, is stoking a new housing bubble through plans to boost mortgages may be exacerbated by figures showing house prices grew faster in May than at any time in the past six years.

    Prices rose 0.4%, the most since May 2007, driven mainly by the market in London and the south-east – although the rest of the UK also averaged a marginal rise.

    Data from Hometrack, a property analytics firm, shows prices grew by 0.9% in the capital last month, and by 0.5% across the south-east.

    The number of people looking to buy grew almost 15% in London over the past six months but the number of available properties declined, creating the biggest gap between supply and demand for more than four years.

    The average time a sale takes in London is now one month – a third of the time taken in the East Midlands."

    Source: Property price rises stoke fears of a new housing bubble | Money | The Guardian

    The end to overpriced real estate might not be as nigh as some fools thought years ago

    #2
    Fill yer boots... the trick will be calling the top of the market and getting out
    How fortunate for governments that the people they administer don't think

    Comment


      #3
      We sold one house, literally, as the tenants left; the people approached me as I checked them out and asked if we were letting it out again or selling. We said make us an offer, and they did.

      Sold in under 5 minutes!

      On another thread, I just bought a farm!

      Comment


        #4
        It would be perfectly normal for houses to rise a few percent a year even in a flat market. Stupid to generalise about a very different market across the country of course but I think family houses in decent areas will still shift quite happily without being fought over which is very healthy I think.
        People can live without their biggest asset bouncing up 20% a year but they need the confidence that the price will at least maintain over the space of a few years.

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          #5
          Time you bought AtW.
          WGAS about house prices when you're mortgage free.
          Although would be pissed orf if they fell just when I retired - although this doesn't look like its going to be anytime soon, since the amount of low-hanging fruit in my sector is too good to pass on.
          Hard Brexit now!
          #prayfornodeal

          Comment


            #6
            House prices are still overblown, let alone if they start rising fast again.

            When the national average price (even excluding London) of a 1 bedroom flat is over 4 times the national average wage then something isn't right.
            Wage inequality would mean that you'd expect a larger number of people to be earning below the average, and fewer over the average - which would mean that even the target of a 1 bedroom flat would be out of the reach of a lot of people.
            I know it was for me when I was a permie - the highest I managed to earn was just over £30K before I abandoned permiedom. I refused to borrow over the odds - I thought 25% was a reasonable deposit, wanted to borrow no more than 3.5 times income, and wanted no more than 30 years on the loan (preferably 25). In my area, that would have meant a studio flat (fold up bed in the wall type thing). After having lived in a studio flat for years already with my (now) wife, it was clear that wasn't sustainable, even if I could have scraped a deposit together.
            Meanwhile people were borrowing 5, 6, 7 or more times income, taking loan terms that meant they'd need to repay until they were 80 (with the intention of remortgaging for a shorter term "when they started earning more"), borrowing 120% of value, or a combination of all of these. All encouraged so that people who already owned homes could see their value rising.
            Then the crash came. Instead of allowing the inflated market to reset itself, what happens? Schemes to ensure that those who borrowed without being able to repay are protected, new mortgage products to allow people to borrow more money, concern about getting first-time buyers into the market (by any means other than allowing properties to become affordable).

            Thank god I'm a contractor now. If things continue they way they've been going for me so far then I'm hoping to buy my first place within the next couple of years, and it will be on either a very small mortgage, or mortgage free. So don't pump the prices up any more please.

            Comment


              #7
              Originally posted by Ticktock View Post
              House prices are still overblown, let alone if they start rising fast again.
              Gotta be in it to win it!




              HTH
              How fortunate for governments that the people they administer don't think

              Comment

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