2005 figures have now shown and are continuing to fall.

The average property has gone down 4k since August.

The Royal Institution of Chartered Surveyors said the cost of homes in October fell for the third month in a row and at its fastest pace since two years ago.

High street bank Abbey said buying a home would be £5,811 or 1.3 per cent cheaper that renting a similar property over a 25 year period.

I know people that are worried that by the middle of next year they are going to be in negative equity in their current home which is quite a saddening thought.

What are peoples thoughts on this, what the hell is going to happen to this countries economy if the house prices keep dropping, while the interest rates stay up.???

 

I dont think they will continue to drop much further if at all, there is too much demand, just a "correction" to lots of rises IMHO

 

Dan,

I don't think they're going to drop through the floor so to speak, i think they'll level off soon, things did go abit CRAZY with prices tbh, reminds me of the Technology bubble, that went badly wrong, let's just hope the housing market learnt/learns from that..

 

COMEDY DAN
Prices always drop a bit in winter, that and rising interest rates.

Apparently they have said today interest rates may drop again soon...

Plus, I don't see any indication of these cheap houses everyone keeps going on about despite looking every day!

 

They will drop as they have numerouse times before, why would this time be any different. Around our area people just aint buying and houses are getting reduced all over, s if people aint buying that alone will drive the prices down and when they do i'll be there like a fucking vulture

 

Hopefully, as you have all said, nothing to sweat about.

And if the interest rate drops slightly, even better.

 

it wont drop as said might stablise but wont drop... if they do i'm fucked lol.

 

Its al the people with house's that are praying they wont drop me i aint arsed and have a BIG lumper in the bank ready for all the repo's lol

 

I wouldn't worry, there's never been a serious house price crash in the absence of a recession, and our economy is pretty strong at the moment. A slight 'correction' may be on the cards but i suggest this will be in the region of 5-10% max and will only effect those who overpaid in the last year or so. Other than that I wouldn't worry, and with interest rates predicted to start coming down early next year it's all good. We have a strong economy here and with high demand for property and a real shortage there's no way house prices can drop any real amount in my opinion.

 

This does not apply to scotland as house prices up here are sill rising between 5% and 22% PA depending on where you live.
My house value has gone up nearly 80k in 2 years

 

carfixz

I always knew scotland was years behind england

 

Be good if they do drop imo to be honest.

I know it's bad for homeowners, who stand to lose money. But it's become silly, all the investors have bought the cheaper properties at the low end of the market, meaning there is no affordable housing for new-comers to the market - all is well if your already on the ladder, if your not, you have no hope!

Who do the government want to look after? The investors with buy to let houses etc, or to be able to provide housing for a generation of the population.

 

hey some uf us even have the electric and piped gas now

 

carfixz

JUST most of the hotels i stay at in Dundee dont

 

know exactly how you feel me and the girlfriend are looking at the moment and even the cheapest house we have seen at 100k is too much realy

 

Dundee is a completely different matter, or Scumdee as its known to edinburgh folks

 

Same position as you matey!!!! Fingers crossed they will drop to last years prices!! Thing is if people are buying/have bought recently it shouldn't make a difference if they are buying to live there long term. Its only the investors trying to make a quick buck that may suffer!! (and so they should!!!!!! )

Chris

 

lol i was gonna say thats cos you work in dundee but you mentioned it already

 

Sadly, the house prices are unlikely to reduce to a sensible amount any time soon.

The main concern is as stated those with potential for neg equity. Neg equity is usually not the issue though - it is when interest rates rise to the point where those people cannot afford their monthly payments.

The issue is that income has not increased to reflect both house prices and raises in tax. Net result, under Labour you are substantially poorer than you would have been - unless you are one of those receiving substantial tax credits.

JJ

 

I reckon there will be two quarter point reductions in interest rates in the first half of next year.

 

doubt theyll plummet......

 

this thread echo's of the late 80s early 90s also reported the other day 2000 houses being repod every week in the uk, and rising

 

I agree mate. It went up too high too soon and it will continue to balance out. The only people it will effect it the people who bought when it was over priced and not worth the money that they paid.

 

No way mate.
It will be more than that

 

I agree with chip, i think 2 quarter point reductions will do it for next year. Maybe another quarter point sometime after that, but who really knows.

 

I hope things do stabalise as it's just rediculous for first time buyers at the moment, I was saving to get my own place but I'm just gonna stay put for awhile now and put away as much money as possible.

The only things that are slightly reasonable enough price wise are one of the many shoe box sized 'one bedroom apartment' which quite frankly are laughable!

 

Stop trying to kid yourselfs , house prices will drop a lot more yet

This is sad for people who have bought there home in the last 2 years , but it will have to happen .

People cant afford to buy a house so will have to ,
the only people to blame are the idiots that went out and paid stupid money in the first place , when prices started to rise quickly if people just stood back and didnt jump in to buy then the prices wouldnt have kept going up people paniced and just paid over the odds and are noe realising they cant afford it

People now cant even get on the ladder and those who are cant move up to free up the smaller first timer houses , so how can anyone get on the ladder ??

and all these new small houses are being given to the fooking imigrants

 

Lucky enough to buy a large property at a very good price due to the amount of work, me and my old man are on with it so no labour

I will never loose a penny due to it being basically half price but i would like to see a massive profit and in time it will make that, my mate has just paid 140000 for a end terrace in a nice area and ill be gutted for him to see negative equity on it but im sure it will bounce back as it always has.

As for people being "idiots" for paying over the odds i disagree as a lot of people dont have a choice when to buy, just more and less fortunate to buy at different times.

 

In the first half you reckon it will be more than .5% ?

I cant see it going that far personally, but would certainly welcome it if you are correct.

 

I dont see that is the case given the massive amount more demand than supply in most areas, especially with the influx of people we have currently making the demand even greater.

Thats largely dependant on interest rates as that determines the amount you can afford to spend, people dont have "200K" they have "900 quid a month" or whatever, so the cheaper money is for them to mortgage, the more they have to spend, thats why I think the interest rate drops that are no doubt coming will keep the housing prices up where they are.

???
Ive not heard of any imigrants being signed over the deeds to a house FOC, maybe you should go to the papers with that one if its true?

 

The bank of E have indicated that they will be looking to reduce interest rates now that they believe that they have stabilised the current situation with high interest rates.

This in theory will allow the house prices to stabilise and then rise again.

The trouble is that the uk banks have a lot of money and confidence tied up in the american sub-prime market. If America have a major issue, then it will take a number of our banks with them, which will have a huge knock on effect on our own economy (due to altered lending patterns).

The only way that house prices will fall substantially is if the above leads to a recession situation. Otherwise the best you can hope for is stabilisation followed by steady rise.

JJ

 

If we get that sort of recession then the people who want house prices to drop in order to make them more affordable will largely find themselves earning less money and even more unable to buy than currently

 

loss of 28k from this time last year....................down to just under 350k.... not really worried at the moment though only paid 64k for it in the first place...........

still a worry for those with a large mortgage to pay back though...

 

all media propoganda IMO

house prices level a bit, all the media hype up an imminant crash and every stop selling houses as it makes them unsure so no one wants to buy the ones that are being sold!

theres still a massive demand so no reason for them to drop, its just the media is putting off buyers!

 

Gottta say i'm finding myself agree with chip over this situation. I've had lots of conversations with people abotu house prices etc and you always get someone saying there's going to be a 50% drop etc, which is pure nonsense. If the economy went into that sort of recession then there'd be massive unemployment and people would be in a worse position to buy

 

Having only bought my first house in May...i find it very worrying hearing these reports.

If it does happen i know one thing for sure, i shall leave this SHIT country....i pay more for everything in life than say the Americans..who get cheap houses, cheap cars, cheap fuel, cheap food....i could go on.

i can't see the point in this country any more!

hopefully this government will already be thinking of a plan to stop the effects....if it happens. ( very doubtful though tbh. )

 

100% correct. This is why the government will not be wanting lower house prices.

Thus is the sad situation we find outselves in.

The only solution is to make everybody stop buying stuff until their earning capacity catches up with house prices. simple eh

JJ

 

Soooo funny how all the house owners say 'nah they'll not drop anymore' and all the non-house owners say 'yes i think they will drop for sure'.

Wishful thinking on both sides, but judging by the recent drops already and the fact that loads of houses on my estate have been for sale for ages now, with many over a year, i think that shows that demand is dropping off a bit. Ok it may not be down to demand itself, it may probably be the fact that people just cant afford them, which is sort of the same thing really. If these people want to sell their homes, the only way is to drop the price slightly, or continue to have no or little interest.

I personally think they will continue to fall slightly over the next few years at least.

 

the government want to learn to stop wasting our money
if i was to sell my house and buy the identical house next door i would have to pay 21k in stamp duty as would the purchaser of my house so one simple move next door generates 42k in revenue to the government not to mention the vat and tax they make from your estate agents lawyers etc.

 

Yes, they don't get the deeds, but you get one legal immigrant buying a house, and then organising loads of illegals to come over, and take any benefits they get for rent. That's certainly not uncommon.