Pistolpete2

This is a good start, if it happens, and follows President Obama's proposed new jobs initiative:

http://www.independent.co.uk/news/uk...n-2352868.html

concretepump

hi
what they also need to do is make banks lend up two 95% mortages then it will kick start off and bring in more jobs as well

dunroving

It is possible to get higher LTV mortgages these days, it's the margins that are killing homebuying - even though the Bank of England base rate is only 0.5%, mortgage interest rates are closer to 5%.

It's also very difficult to get lifetime deals, so people are worried that the mortgage market may be even worse when 2- or 5-year deals run out.

Pistolpete2

These numbers would of course need to be corroborated by the actual Land Registry stats in due course:

http://www.guardian.co.uk/money/2011...ces-small-rise

Pistolpete2

British banking new regulations:

http://www.guardian.co.uk/business/2...ven-until-2019

Pistolpete2

http://www.telegraph.co.uk/finance/e...says-OECD.html

"Canada, France and Italy are currently deeper into "slowdown" territory than the UK."

Pistolpete2

We need to wait and see on this one:

The Green Deal

http://www.independent.co.uk/news/uk...s-2353544.html

Pistolpete2

Latest unemployment figures:

http://www.guardian.co.uk/business/2...es-2-5-million

Pistolpete2

Stratford City retail - East London

http://www.guardian.co.uk/politics/b...y-opens-europe

bandrui

When President Obama's plan hit North American TV, most political commentators felt that he had been backed into a financial corner by the Republicans and the funds weren't there to implement the plan. We'll see.

But I have very little confidence in the UK economy right now, primarily based upon what is happening in Europe. Yesterday, for the first time, the Canadian news was looking at the effect Europe is having on the Canadian economy and it is not good. I can't see it turning soon in the UK either.

bandrui

I am not really buying this.

Firstly, real estate figures are very seasonal; this time of year Aug/Sept is one of the 2 most popular times to buy/move, so it only really makes sense to look at yearly figures.

Secondly, the author is the only person I know who considers the current UK house prices to be "reasonably priced".

FTBs only have to come up with a mere 25% of house price to buy, the article says.

There is a quote saying that there is a shortage of supply of homes and I have seen nothing to indicate that this is the case.

I still feel sure that prices will come down. There are so many little black clouds floating around at present.

bandrui

My response to this is what I just posted on Location thread. Give me strength . Wonder who's getting rich on this one.

Pistolpete2

bandrui

Just about every commentary out there suggests there is an acute shortage of supply of homes in the Uk which is the one main reason that property prices are where they are right now. There is also most definitely a shortage of supply of suitable homes, typically three bed family homes in key areas.

If it were the US then most assuredly there would be far more downward pressure as there was so much over-building. In the Uk there is totally insufficient building.

Of course the market is impacted by the inability to secure finance for FTBs and this curtails demand when it comes to actually completing.

Heh look! I just tried to sell a property and the price was agreed but the purchaser couldn't come up with the financed readies so we agreed to postpone until the end of the tenancy and then they (the tenant) will go for finance at that time.

SO, I'm satisfied that the price at the time of FOR SALE was correct even though nothing went through and will hope the market doesn't turn too far against me in the interim. There must be loads of vendors out there like that so the market is not moving down simply to meet the prospective buyer's actual financing capabilities unless the vendor is really "motivated".

Pistolpete2

Well I will say that when we were in the Uk on the South Coast we did notice a very large number of French people loading up in the shops so maybe that bit is correct. You need to go to Stratford to appreciate the scale of the development in that area now and not just for the Olympics. There is an immense and immensely successful Westfield on the other side of London near Holland Park. London is on its own in the Uk and now in Europe for this scale of retail enterprise.

bandrui

I do believe there is a shortage in supply of affordable housing, but the bigger problem is that of financing/price.