House prices to rise dramatically

[DimPrawn]

http://www.ft.com/cms/s/0/8863fc62-4...077b07658.html

Dwindling housing stock in the UK could lift property prices within the next two years, according to property experts.

With buyer demand still strong, the reduction in the number of new homes being built is exacerbating the declining stock of empty property across the country, said Nicholas Leeming, director of propertyfinder.com.

However, estate agents say house prices could start to rise again within 12 months if housebuilders continue to shelve plans for new developments. “Unless there is a major expansion in building, house prices can only go in one direction over the long term, and that is upwards,” claimed Leeming.


There you have it folks, the crash is over, time to fill yer boots on your next BTL "portfolio" and expect to be a millionaire very soon.

[Cyberman]

You don't have to be an expert to know that property prices are closely linked to economic principles of supply and demand. The UK has undersupply due to lack of building and overdemand caused by 'crazy' levels of immigration.

According to Paragon figures released last week, rents are already rising throughout the country, excluding London, which proves that demand is there.

Time will tell, but I see the market much improved within 2 years or so as interest rates fall, availability of funding improves and New Lie bite the dust.

[sasguru]

Dream on. Prices will rise eventually - but only after the most painful recession since the 20s.

HTH

[Bagpuss]

Supply and Demand? yes in some ways true, but during the last crash the population of the UK didn't fall as house prices did, so it's not a direct correlation based on population. It's more connected to the supply of money and expectations than anything else, and the money has dried up and expectations are at a 10 year low.

[Cyberman]

Dream on. Prices will rise eventually - but only after the most painful recession since the 20s.

HTH

That will not happen because New Lie only have 18 months to turn things around. Expect interest rate cuts very soon!!

[BrilloPad]

There you have it folks, the crash is over, time to fill yer boots on your next BTL "portfolio" and expect to be a millionaire very soon.

How do we get a mortgage to fund it?

[bobhope]

You don't have to be an expert to know that property prices are closely linked to economic principles of supply and demand. The UK has undersupply due to lack of building and overdemand caused by 'crazy' levels of immigration.

According to Paragon figures released last week, rents are already rising throughout the country, excluding London, which proves that demand is there.

Time will tell, but I see the market much improved within 2 years or so as interest rates fall, availability of funding improves and New Lie bite the dust.

Paragon BTL mortgages? - now they just have to be unbiased.

[BrilloPad]

That will not happen because New Lie only have 18 months to turn things around. Expect interest rate cuts very soon!!

That is what Gordon would like - but I am struggling to see how he can Engineer it.

Get the rate setting committee to target house price inflation?

[sasguru]

That will not happen because New Lie only have 18 months to turn things around. Expect interest rate cuts very soon!!

I suppose that was a tongue in cheek comment, but nevertheless we have gone beyond the point where interest rates matter, as the banks are not passing them on. Quite sensibly the BofE have decided that as there is going to be pain anyway, they may as well go for inflation.
Hence I expect interest rates to rise.

[Bagpuss]

and so do the banks hence Nationwide's new 7% bond