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UK house prices to breach 300,000 GBP...

UK house prices to breach 300,000 GBP...

Old Aug 6th 2007, 6:00 pm
  #1  
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Default UK house prices to breach 300,000 GBP...

This is unbelievable -- business analysts think in just five years, average UK house price will break 300,000 GBP.

I can never move back home again!!! How can this be??? I can bet you that average wages won't rise by a similar amount....

http://news.bbc.co.uk/2/hi/business/6932304.stm
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Old Aug 6th 2007, 6:06 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by ali_j
This is unbelievable -- business analysts think in just five years, average UK house price will break 300,000 GBP.

I can never move back home again!!! How can this be??? I can bet you that average wages won't rise by a similar amount....

http://news.bbc.co.uk/2/hi/business/6932304.stm
yes, i can well belive it...you can't buy much for under £300,000 now!
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Old Aug 6th 2007, 6:07 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by ali_j
This is unbelievable -- business analysts think in just five years, average UK house price will break 300,000 GBP.

I can never move back home again!!! How can this be??? I can bet you that average wages won't rise by a similar amount....

http://news.bbc.co.uk/2/hi/business/6932304.stm
Interesting story.
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Old Aug 6th 2007, 6:22 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by ali_j
This is unbelievable -- business analysts think in just five years, average UK house price will break 300,000 GBP.

I can never move back home again!!! How can this be??? I can bet you that average wages won't rise by a similar amount....

http://news.bbc.co.uk/2/hi/business/6932304.stm
There was a time, wasn't there, you'd have laughed at the present cost of housing in the UK.........
"250K?........yeah, right - pull the other one, its got bells on it........I'll bet you think the Berlin Wall will come down as well......."

Look at it from the other side.........sitting here in the US with a 200K mortgage in dollars isn't quite so painfull is it? It might take 5 years or 10.........sooner or later something must give........you cannot keep that type of pressure up indefinately.........what can sustain it?????
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Old Aug 6th 2007, 6:38 pm
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Default Re: UK house prices to breach 300,000 GBP...

Without commenting on how likely this is to occur, notice who is saying this, and what their agenda is.
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Old Aug 6th 2007, 7:10 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by Lycanthrop
There was a time, wasn't there, you'd have laughed at the present cost of housing in the UK.........
"250K?........yeah, right - pull the other one, its got bells on it........I'll bet you think the Berlin Wall will come down as well......."

Look at it from the other side.........sitting here in the US with a 200K mortgage in dollars isn't quite so painfull is it? It might take 5 years or 10.........sooner or later something must give........you cannot keep that type of pressure up indefinately.........what can sustain it?????
I just don't know -- there's so many people wanting far too few homes -- UK is very small, and maybe we've reached that level of pressure that will keep the prices high indefinitely.
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Old Aug 6th 2007, 7:20 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by ali_j
This is unbelievable -- business analysts think in just five years, average UK house price will break 300,000 GBP.

I can never move back home again!!! How can this be??? I can bet you that average wages won't rise by a similar amount....

http://news.bbc.co.uk/2/hi/business/6932304.stm
House prices are already mad here. There was an interesting article/editorial in Saturday's Times about the situation, what's causing it, and what will solve the problem (taxing second homes and buy-to-lets).

Caveat: I'm no financial expert. However, IMO the current increase is being sustained partly by new homeowners (a) being heavily subsidized by parents, who in turn are remortgaging their $200,000 - $400,000 house that has a $20,000 mortgage (or no longer have a mortgage) in order to give their kids a healthy deposit, (b) taking on mortgages with extremely long terms (and after all, if you're going to work for another 40 years, why not take on a 40-year mortgage, (c) being fooled by special deals like low fixed rate mortgages, not realizing the pain will come when they need to remortgage or try to change to another lender mid-stream.

The buy-to-let market can't keep going at these prices and interest rates, you just can't charge the rents needed to cover payments (even interest-only payments).

I think the increases in interest rates will start to kick in soon, the sums just don't add up. I can't see how anyone will be able to afford a house if prices keep rising.
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Old Aug 6th 2007, 7:31 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by dunroving
I can't see how anyone will be able to afford a house if prices keep rising.
i remember hearing those words some 30 yrs ago and they do, they keep rising and the buyers are out there willing to pay the exorbitant prices.
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Old Aug 6th 2007, 8:25 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by TruBrit
i remember hearing those words some 30 yrs ago and they do, they keep rising and the buyers are out there willing to pay the exorbitant prices.
That's true, I remember hearing similar before too (like 2000, when the bounce back had been going on all through the 90's, and houses on this street were going for 40k-60k, now they're 140k-200k). But I just don't see how the numbers can add up to more than people earn, which is how it seems these days, especially for first time buyers and low wage earners. I mean I'm a college prof and I don't have anything left at the end of each month!
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Old Aug 6th 2007, 8:39 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by dunroving
House prices are already mad here. There was an interesting article/editorial in Saturday's Times about the situation, what's causing it, and what will solve the problem (taxing second homes and buy-to-lets).
Did the article say how it would tax buy to lets? I can't find it online.
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Old Aug 6th 2007, 8:51 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by dunroving
That's true, I remember hearing similar before too (like 2000, when the bounce back had been going on all through the 90's, and houses on this street were going for 40k-60k, now they're 140k-200k). But I just don't see how the numbers can add up to more than people earn, which is how it seems these days, especially for first time buyers and low wage earners. I mean I'm a college prof I'm a college prof and I don't have anything left at the end of each month!
and i'm a domestic engineer and i cannot see how it all adds up either
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Old Aug 6th 2007, 8:56 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by Cape Blue
Did the article say how it would tax buy to lets? I can't find it online.
Let me see, it says: "tax second homes [deosn't say how] ...close loopholes that let BTL-ers avoid capital gains tax ... and tax exemption on capital gains when moving up the housing ladder ... lower tax threshold on inherited property ...".

These aren't government strategies, just recommendations of the writer (Matthew Parris) and he wasn't recommending all at once just saying here are some ideas.

He did make an interesting observation about a shift in thinking about houses as being an investment or retirement vehicle rather than a need for shelter (hence people buying a bigger house than they really need, or buying second and third properties).

There has been some rumbling about removing tax exemption on rental income (i.e., remove allowance to offset against mortgage interest), but I don't think it will happen anytime soon.

Aha, here you go: http://www.timesonline.co.uk/tol/com...cle2195714.ece
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Old Aug 6th 2007, 9:03 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by dunroving
- the comments beneath the article make for interesting reading. I love this idea:

"Instead, lenders, valuers and estate agents should shoulder more of the risk from falling prices should the bubble burst, since they have fuelled it. Gearing on BTL mortgages should be limited by law to say 60%. Lenders should not be permitted to sue borrowers for any under recovery due to negative equity on foreclosure, and it should be made possible to sue valuers/estate agents for say 10% of any fall in price in excess of 20% of valuation. Such measures would deflate the bubble rapidly, and leave the pain with those who caused it including those who overpaid."

- it's always bugged me that real estate agents make more commission when house prices go up (and so have an incentive to overprice houses), and so presumably have enjoyed a 200% pay rise as house prices have trebled, but won't have to remiburse the poor homeowners when the crash comes (if it comes).
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Old Aug 6th 2007, 11:13 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by TruBrit
and i'm a domestic engineer and i cannot see how it all adds up either
I'm an engineer and cannot add up at all ........
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Old Aug 6th 2007, 11:25 pm
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Default Re: UK house prices to breach 300,000 GBP...

Originally Posted by ali_j
I just don't know -- there's so many people wanting far too few homes -- UK is very small, and maybe we've reached that level of pressure that will keep the prices high indefinitely.
Ta daaa !!!!

Fresh off the drawing board.......the latest in 21st century living at an affordable price.

........as far as the eye can see........vast majestic estates of these beauties........sweet
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