House price gravy train may have hit the buffers

[charliegolf]

I think it's called a market correction.
Anyway maybe a good thing if house prices crash.
Young people might actually be able to afford to buy a house if house prices drop a lot.

Not if the crash is due to recession/depression event. If that happens, there's no money around, except Mum and Dad's bank acc.

 

[Ivor Windybottom]

The upturn that follows is the time to buy, not during the crash.

It would be a dark tunnel, but there's light at the end of it, especially for the young.

There were lots of repossessions among middle-aged people in the 1990s, then the next generation got the bargains after.

 

[aveatry]

A house price crash may well end up with everyone paying more tax.

Thinking of someone in a care home having to sell the house to pay for care - now the house is worth half of what it was so money runs out quicker and the taxpayer steps in

 

[Ivor Windybottom]

The repercussions would be huge, we've never had anything like the levels of personal and state debt we now have. To keep the plates spinning, house prices have to keep rising so the feckless can keep extending their mortgage and buying more tat.

Most of the flashy cars around on the roads are rented. They'll be going straight back if there are mass layoffs.

You don't know who's swimming naked until the tide goes out.

We need a rebalancing.

 

[motorbiking]

For there to be a crash we need a combination of supply massively outstripping demand and people being forced to sell, even at a loss. e.g. repossessions.

In recent years (25 or so) we have had ups and downs, but even after the Financial crash of 08/09 we didn't get massive increases in supply while demand was low. House prices fell and the market dried up.

The only losers were estate agents, who need the market to flow to survive.

 

[VictorLangdon]

That's been going on for a long time. Sadly it's just a London thing, prices there had got utterly out of control. Anyone with any sense is abandoning the place for the surrounding areas, cashing in and escaping rapidly rising crime.

I thought UK prices were unsustainable in the early 2000s. Thankfully my other half persuaded me to go along with buying our first house, against my instincts. I remember saying to someone that it was just a place to live, not an investment and there's no way it would ever be worth more than the £200k we were paying. About 15 years later we sold for £350k, although probably half of that rise was the money we spent on the old shack.

So many MPs (including Labour party) have property investments that there's a massive corrupt vested interest in keeping the grazy train going, eating their own young in rent payments.

At some point it has to crash, but I wouldn't ever predict it happening. Although the likely Labour party death of the UK economy will probably make it inevitable.

I hope I get to see it. We own one house, it's paid for and I don't want to sell it. So whether it's worth £1 or £1million doesn't matter in the slightest. But I'd really enjoy watching a few massively indebted all-flash-and-no-cash types face reality.Játékok kategóriák

I think that’s the key point - London has been distorting the picture for years. Outside of it, things haven’t always followed the same pattern, so any “correction” might end up being quite uneven rather than a big nationwide reset.