UK House prices: News & Views

[drbubb]

I wonder how sales are going at the quarter mile development in Edinburgh?

I see they are still asking for £400k for a two bed flat!

And only require a 5% deposit!

 

LUXURY LIVING JUST A 5% DEPOSIT AWAY

http://www.qmile.com/

Mortgage slavery only a 5% deposit away.

[drbubb]

Land Reg

 

Prices up 0.8% MOM, down 1.3% YOY

 

http://uk.finance.yahoo.com/news/House-prices-show-first-rise-reuters_molt-675670402.html?x=0

That's the Spring bounce - as seen thru the LR "rear-view mirror"

 

BDEV went back UP - to fill the gap / BDEV chart

 

Gap filled now - What's next ?

 

BDEV : 115.50 / Change: +3.00 // Percent Change: +2.67%

Open: 113.00 High: 118.273 Low: 113.00

Volume: 1,449,555

 

PSN also filled a gap / PSN-chart

[John Doe]

Yes, I think it's now clear that the spring bounce was more of a stumble forward.

 

Assuming the seasonal trends of the past couple of decades are followed, we could still see between 5 and 10% down YOY (nominal) by end 2011.

 

Although, have to say it may take a little longer to get to the 10% nominal down.

[neil324]

 

Admin, i think someone has hacked John's account.

[John Doe]

 

Admin, i think someone has hacked John's account.

Heh, Im not that bad, just like to see both sides of the argument.

 

To be fair, I have always said I thought there could be falls of between 5 and 10% down (nominal) over 2011 or so (originally made that estimate back in Oct last year), just not the 20% crash some expect.

[No6]

Land Reg

 

Prices up 0.8% MOM, down 1.3% YOY

 

http://uk.finance.yahoo.com/news/House-prices-show-first-rise-reuters_molt-675670402.html?x=0

 

They never mention number of sales, which I'm guessing are low. Lower sales levels can easily distort prices as there is no real lower entry level to the market right now what with FTB'e almost totally priced out. I suspect total sales are still running at about 30% of the peak in 2007 when light touch regulation, 125%, make up your income to whatever level you want mortgages were all the rage.

 

I'm beginning to think this crash will never happen

but then again I'm beginning to doubt I'll ever return to the UK anyway

EA prices kept artificially high while repos are snapped up cheap by

the elite for their btl portfolio to screw the peasants with high rents

Anyone been to the Azores ? looks like my kinda place

isolated ,good climate ,reasonable house prices, agrarian society,low crime

 

Property must be a lot cheaper in Spain, Greece, Portugal, Ireland, etc and as the UK is part of the EU it must be an option for Brits to go and live there, provided they have job skills that can be transferred or a skill to make money wherever they live. Mind you, if the UK ever does pull out of the EU, it is just possible all those Brits living the British way of life in someone else's country and refusing to assimilate, might just be asked to leave. Parts of Southern Spain, or Britannia El Spania, would be deserted.

[Erewhon888]

I wonder how sales are going at the quarter mile development in Edinburgh?

I see they are still asking for £400k for a two bed flat! :

 

 

Or for a tenth of that you could have Hong Kong style living in pollution-free N.I.

Still overpriced property links

 

6a Coolmoyne House, Belfast, BT17 9EW

For Sale

Price Guide £39,950

2 Bedrooms Apartment

Description

Located in Dunmurry this apartment offers spacious and bright living accommodation. Comprising two good sized bedrooms, spacious lounge with beautiful views, separate kitchen and bathroom. Ideal for those commuting to Belfast and seeking a base with little maintenance or alternatively for the investor or the first time buyer seeking access onto the property market.

[John Doe]

They never mention number of sales, which I'm guessing are low. Lower sales levels can easily distort prices as there is no real lower entry level to the market right now what with FTB'e almost totally priced out. I suspect total sales are still running at about 30% of the peak in 2007 when light touch regulation, 125%, make up your income to whatever level you want mortgages were all the rage.

 

 

Property must be a lot cheaper in Spain, Greece, Portugal, Ireland, etc and as the UK is part of the EU it must be an option for Brits to go and live there, provided they have job skills that can be transferred or a skill to make money wherever they live. Mind you, if the UK ever does pull out of the EU, it is just possible all those Brits living the British way of life in someone else's country and refusing to assimilate, might just be asked to leave. Parts of Southern Spain, or Britannia El Spania, would be deserted.

Tempting, but Euro still way up above the happy old 65p area.

[RichardHifi]

a small elite of wealthy Portuguese families who have massive power and influence. Fall out with them and you're going to have a very, very hard time.

 

Mainland Portugal is no different.

[borassic]

SSTC, but can't find anywhere to move to. Sale now fallen through, vendor thinks house prices only going up. Offer was close to asking and vitally, cash!

 

I think the market is zombied. No one's buying, no one's dropping prices. Stalemate. Once hols kick off then it really will be totally dead. It's going to be a long hot summer.

[borassic]

This is the property

 

http://www.rightmove.co.uk/property-for-sale/property-32838047.html

[drbubb]

I think the market is zombied. No one's buying, no one's dropping prices. Stalemate. Once hols kick off then it really will be totally dead. It's going to be a long hot summer.

No one really HAS TO BUY (no matter what)

 

But due to Death, Divorce, or Forced Moves... some will find they HAVE TO SELL (no matter what)

 

So I think the "stalemate" will resolve in favor of LOWER PRICES, especially if rates move higher,

restraining the buyers.

[Carlton]

This is the property

 

http://www.rightmove.co.uk/property-for-sale/property-32838047.html

 

You, sir, have excellent taste. That looks like a beautiful property in a beautiful location (it makes me almost cry about the shoeboxes I've considered buying in Chicago.)

 

Although it looks like the train runs right next to the property. Hopefully the trains are quiet.

[G0ldfinger]

Although it looks like the train runs right next to the property. Hopefully the trains are quiet.

It looks as if the train line is less than 20m from the house! This is a MAJOR NO-NO!!!

 

I once lived similarly close to a train line when I was a student. I made it 6 weeks, before I moved out. The first train was at 5:00 AM, weekends not much later. You can't ignore a train so close, not with the best anti-noise measures and ear plugs 24/7. It is like an earth quake, the tremours go through the whole house. Your subconsciousness will signal you DANGER. Your stress levels will always be elevated (this is proven for people who live in noisy houses, leading to less life expectancy).

 

Value of this house to me personally: GBP 0.00. You simply can't live there.

[pjohnp]

This is a MAJOR NO-NO!!!

 

On the contrary, living by some railway lines is a great pleasure. Occasional trains, wending their way to mysterious or romantic destinations, all helping keep cars off the roads: it's a pleasure to watch and to listen to them.

 

There was a train line at the bottom of my garden in Coventry thirty years ago, and it was a joy. I'd pay more for the pleasure of it.

[DoctorSolar]

On the contrary, living by some railway lines is a great pleasure. Occasional trains, wending their way to mysterious or romantic destinations, all helping keep cars off the roads: it's a pleasure to watch and to listen to them.

 

There was a train line at the bottom of my garden in Coventry thirty years ago, and it was a joy. I'd pay more for the pleasure of it.

 

Well it all depends on how much traffic this line takes, at what times of day, are there freight train hurtling along at 3am? etc etc

 

I live directly opposite a major railway line and let me tell you it is a nightmare. Not so much due to the noise and rumble of trains but rather the amount of maintenance that goes on mostly scheduled between midnight and 5am. The noise levels are unbelievable. Thank god we are renting as I would not want to live here really long term. The woman downstairs actually went completely doolally recently with lack of sleep.

[Ret45]

No one really HAS TO BUY (no matter what)

 

 

True. And no one really has to own more than one pair of shoes. No one really has to go on holiday. No one really has to go to a football game, attend a concert, go to the pub or the cinema. And yet they do. Predicating your argument only on what people have to do is to ignore human nature.

 

No one has to own a house. But I know many 30 something couples with young kids who want to. They want to put down roots and create a long term home that their kids will grow up in, and not have to leave at the whim of a landlord. They want to choose a location that is close to schools and know they can stay there for as long as their kids are in school. They want to pay down a mortgage and to own their home outright before they retire so they don't have to rely on investments to pay the rent in their old age. They want to pass on an asset to their children. These desires are perfectly legitimate, even if you do not share them.

 

The simple solution is to create a legal and tax climate where people no longer want to buy a house because their needs are met through renting - long term security of tenure with built in ceilings on rental increases and with the balanace of power firmly tipped towards the renter. A tax environment that makes home ownership a very expensive luxury and which will reward investment in small and medium sized businesses. This is exactly the situation that exists in Switzerland - the population there invest their money in thriving Swiss businesses and rent throughout their lives. The government actively discourages home ownership through taxation. The only people I knew who owned their own homes in Switzerland were foreign tax exiles. Its also interesting to note the shift in attitude in Ireland (which has the highest levels or home ownership in the world) - where mortgaged property has gone from being considered an "asset" to rightly being seen as a liability.

 

It would be very easy to change the attitude of the population from pro home ownership to pro renting with a few straightfoward changes to the tax code and pension arrangements. Just think of all the billions currently being "invested" into unproductive property that could be use to finance businesses that actually create and produce things...

[John Doe]

On the contrary, living by some railway lines is a great pleasure. Occasional trains, wending their way to mysterious or romantic destinations, all helping keep cars off the roads: it's a pleasure to watch and to listen to them.

 

There was a train line at the bottom of my garden in Coventry thirty years ago, and it was a joy. I'd pay more for the pleasure of it.

We have friends that live backing onto the cut by the boatyard just down the road from that house.

Lovely part of the world, great for cockling too!

 

That train line is a small line from Exmouth to Exeter which terminates ~1 mile down the track. Small slow trains, not that often, and a nice walkway alongside, I guess it's far more bearable than a high speed line with constant traffic.

 

Living near a train line can be quite nice, but having previously lived in Coventry for many years (finally escaping in late 90's), I think that there it would be the ONLY pleasure

[drbubb]

We have friends that live backing onto the cut by the boatyard just down the road from that house.

Lovely part of the world, great for cockling too!

 

That train line is a small line from Exmouth to Exeter which terminates ~1 mile down the track. Small slow trains, not that often, and a nice walkway alongside, I guess it's far more bearable than a high speed line with constant traffic.

 

Living near a train line can be quite nice, but having previously lived in Coventry for many years (finally escaping in late 90's), I think that there it would be the ONLY pleasure

I like the idea of living within a short walk of a station, but perhaps not right on the line.

 

Convenience would wing out over a minor noise nuissance - assuming it was truly minor

[John Doe]

I like the idea of living within a short walk of a station, but perhaps not right on the line.

 

Convenience would wing out over a minor noise nuissance - assuming it was truly minor

Having put a few pounds on over the last couple of years, a slightly longer walk would be more benificial for me.

 

I park my car ~ 1m from work specifically to get my daily exercise now (and free parking ). A similar walk to a station - work would be great.

[tallim]

Well, it's happened, the £10,000 2-up 2-down Northern terrace is back.

 

Pugh's auction on 2nd June 2011, number 7 and number 9 Grange Street in Burnley were sold on behalf of the administrators for £8,000 and £9,500 respectively.

 

http://www.theauctionpeople.co/Lot/Manchester/20110602/119

http://www.theauctionpeople.co/Lot/Manchester/20110602/120

 

Some poor mortgage lender probably lent on them valued at £47,500 each back in February 2008 according to the land registry. The street looks like a prime mortgage fraud hotspot, too many double entries for the same house on the same date, but with different prices for me to believe otherwise.

 

http://www.houseprices.co.uk/e.php?q=grange+street%2C+burnley&n=100

 

Another 10 houses in Burnley at the same auction sold for between £10,000 and £20,000.

 

Apparently 12 Herbert Street which sold for £15,500 is tenanted and producing £4,420 per annum.

 

http://www.theauctionpeople.co/Lot/Manchester/20110602/141

 

Before your inner Rachman starts getting your chequebook out, tempted by that apparent 28.5% gross yield, remember that Burnley, while being in parts a rather nice faded industrial glory kind of place, in others is a racially divided hole.

[huntergatherer]

Well, it's happened, the £10,000 2-up 2-down Northern terrace is back.

 

Pugh's auction on 2nd June 2011, number 7 and number 9 Grange Street in Burnley were sold on behalf of the administrators for £8,000 and £9,500 respectively.

 

http://www.theauctionpeople.co/Lot/Manchester/20110602/119

http://www.theauctionpeople.co/Lot/Manchester/20110602/120

 

Some poor mortgage lender probably lent on them valued at £47,500 each back in February 2008 according to the land registry. The street looks like a prime mortgage fraud hotspot, too many double entries for the same house on the same date, but with different prices for me to believe otherwise.

 

http://www.houseprices.co.uk/e.php?q=grange+street%2C+burnley&n=100

 

Another 10 houses in Burnley at the same auction sold for between £10,000 and £20,000.

 

Apparently 12 Herbert Street which sold for £15,500 is tenanted and producing £4,420 per annum.

 

http://www.theauctionpeople.co/Lot/Manchester/20110602/141

 

Before your inner Rachman starts getting your chequebook out, tempted by that apparent 28.5% gross yield, remember that Burnley, while being in parts a rather nice faded industrial glory kind of place, in others is a racially divided hole.

Tenure: Long Leasehold

[DoctorSolar]

Well, it's happened, the £10,000 2-up 2-down Northern terrace is back.

 

Pugh's auction on 2nd June 2011, number 7 and number 9 Grange Street in Burnley were sold on behalf of the administrators for £8,000 and £9,500 respectively.

 

http://www.theauctionpeople.co/Lot/Manchester/20110602/119

http://www.theauctionpeople.co/Lot/Manchester/20110602/120

 

Some poor mortgage lender probably lent on them valued at £47,500 each back in February 2008 according to the land registry. The street looks like a prime mortgage fraud hotspot, too many double entries for the same house on the same date, but with different prices for me to believe otherwise.

 

http://www.houseprices.co.uk/e.php?q=grange+street%2C+burnley&n=100

 

Another 10 houses in Burnley at the same auction sold for between £10,000 and £20,000.

 

Apparently 12 Herbert Street which sold for £15,500 is tenanted and producing £4,420 per annum.

 

http://www.theauctionpeople.co/Lot/Manchester/20110602/141

 

Before your inner Rachman starts getting your chequebook out, tempted by that apparent 28.5% gross yield, remember that Burnley, while being in parts a rather nice faded industrial glory kind of place, in others is a racially divided hole.

 

<sarcasm>And there was me thinking that all these mega rich foreigners would pile in buying up any and all UK property thus ensuring that this kind of thing did not happen</sarcasm>

[drbubb]

It would be very easy to change the attitude of the population from pro home ownership to pro renting with a few straightfoward changes to the tax code and pension arrangements. Just think of all the billions currently being "invested" into unproductive property that could be use to finance businesses that actually create and produce things...

Perhaps not quickly.

 

In the US property prices have fallen so far, that it makes little sense to build new, but the government has continued to throw tax benefits towards the builders, even when it is clear no new supply is needed.

 

In the UK the government has temporarily SUCCEEDED in propping up prices in London thanks to a combination of rental subsidies, other housing benefits, and ultralow rates. I do not think the game is sustainable, but that has not stopped them from trying.

[tallim]

Tenure: Long Leasehold

 

I'd not thought about that, could be unmortgageable with less than 70 years left on the leasehold, or on a ground rent which is more than peppercorn.