House Prices

Discussion in 'Bulletin Board' started by dreamboy3000, Jul 19, 2019.

  1. dreamboy3000

    dreamboy3000 Well-Known Member

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  2. Vesp77

    Vesp77 Well-Known Member

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    I work in estate agency and the Barnsley property market has been pretty much static for the best part of 5 years. There's been little or no movement. People that bought houses for £200k 5 years ago are still only getting £200k back (or less, in a some cases).

    Vendors generally think their house is worth 10% more than what it is because of stories like this one and because the estate agency industry is on its arse we tend to just say "ok" to get the instruction... Then 4 weeks later we're ringing them to reduce.

    If anything I reckon there'll be a housing market crash relatively soon.
     
  3. Dod

    DodworthRover Well-Known Member

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    Why are houses in Dodworth selling overnight then at ten grand a year increases.
     
  4. Farnham_Red

    Farnham_Red Administrator Staff Member Admin

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    Who to believe eh. The Daily Mail or person who has first hand knowledge of the subject. Hmm tricky one that.
     
  5. leebrilleaux

    leebrilleaux Well-Known Member

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    This is yet another example where 'The market' has failed. Why do people fall for the (false) pretense that their house is worth x % more than y years ago?

    One of the main reasons for house price inflation (other than the folk falling for the drip feed of capitalism is good) is the failure of the authorities to build more (affordable) housing. Selling off council houses fine..........but why weren't they replaced?
     
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  6. 6ozDave

    6ozDave Well-Known Member

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    BS
    Funny how the hated Daily Heil suddenly becomes relevant if it fits your narrative.
    ABW sold my house for £2k more than I paid for it in 2012. Spent over £10k in improvements. Thankfully bought by a young couple with a kid, at least not a landlord with intentions of an HMO.
     
  7. leebrilleaux

    leebrilleaux Well-Known Member

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    There will be a crash - either when the local authorities are allowed to build more or when some demand is withdrawn - e.g one scenario could be when people start to lose their income (jobs) post brexit.
     
  8. Redhelen

    Redhelen Well-Known Member

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    I've never seen my house as an investment but as somewhere to call home. The rate new houses are being built suggests that values wont go up by much, its not like a city where supply is limited. I may be out of touch but we still.have a fair bit of social housing and I didnt think waiting times were that bad?
     
  9. orsenkaht

    orsenkaht Well-Known Member

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    The bit in the article about "doer-uppers" is interesting. The amount of building and upgrading in the Pogmoor area (Oakfield Walk, Pogmoor Road, Intake Lane) is amazing. It seems people are going for the area and are either extending, building up or in some cases totally rebuilding properties in that area.

    The other thing I've noticed about housing locally is that there seems to be a premium with new properties for the "shiny new" factor, where everything is done for you and fixtures and fittings are included. The price differential as between those new properties and older ones with similar space and amenity seems to me to be more than the cost of upgrading an existing property to have the same "shiny new" interior. I would imagine that this might contribute to the newer properties not appreciating much in value if they are sold on relatively quickly after their initial purchase. Do you agree with this, Vesp77?
     
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  10. Farnham_Red

    Farnham_Red Administrator Staff Member Admin

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    Think this is a poor example to blame the market. Im more for blaming politicians on this one. When Thatcher forced councils to sell houses on the cheap they were forbidden by law from using the money raised to build new ones as part of the tory plan to move all house rentals into the private sector. Another thoroughly stupid Tory policy from which 2 generations later we are still suffering

    also in general over the last 50 years house prices have gone up at a far faster rate than inflation or earnings - thats due to a shortage not increased costs of building them. No quick fix unfortunately but sooner or later there will be another crash. Good news for those wanting to get on the property ladder, makes no difference to those who already own their house as if they want to move though their house is worth less so are the ones they will be buying. Potentially bad for those who have houses as an investment
     
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  11. Redstone

    Redstone Well-Known Member

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    If you only own one house it doesn't really matter if the value goes up in most cases. If your house has gone up others will likely have increased too. So if you sell you are probably going to be buying another so it doesn't really help.
     
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  12. Tarntyke

    Tarntyke Well-Known Member

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    Nail on head, hit. It’s surprising how many folk don’t realise about the law not allowing council’s to re- invest monies from the sale of council property into building new council properties. If I had my way, I would temporarily suspend these sales until much more affordable housing is built. Oh, and get rid of that law.
     
  13. Vesp77

    Vesp77 Well-Known Member

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    They're not, unless they've been extended or improved in some fantastic way.

    And just because they're on the market at 10k more doesn't mean that the sold for that much. Wait and see what they've actually sold for when the land registry is updated. Bet it's the same or less than their last sale
     
  14. Cod Eye

    Cod Eye Well-Known Member

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    Bit bemused at those of you who think a housing market crash wouldn't really effect those with only one house/non-landlords etc(the house they buy will be as low as the one they sold). Of course it will effect the majority of people, as they will have mortgages that are borrowed against their current home at the higher value.

    If someone buys a house worth £150k using a mortgage(lets say they borrow £120k), and that house is now only worth £80k after a huge crash, they are now looking at £70k worth of negative equity which effectively blocks them from moving or re-mortgaging the current property(as they would be unable to clear the charge on the property though the house sale). That leads to the horrible feeling that you are paying a huge amount for a house that is no longer "worth it"...
     
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  15. MarioKempes

    MarioKempes Well-Known Member

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    This policy has always been wrong in my opinion. The two elements to it really are at odds with each other...

    Firstly social housing should never have been sold off and certainly not cheaply. If people want to purchase a house they should buy from the private market - social housing should be reserved for those who need it; it should be a precious commodity protected by councils and government. If social housing is sold off the law should state that it should be sold at market value and every single penny should be invested back in to building more houses.
     
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  16. Trickster Two Six

    Trickster Two Six Well-Known Member

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    Absolutely Mario, if only councils had the budgets to start building again.
     
  17. MarioKempes

    MarioKempes Well-Known Member

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    Yes and this should be such an easy budget to manage (in principle). Council x raises £25,000,000 from the sale of houses in a calendar year which is ringfenced so £25,000,000 can be reinvested into building new homes. The bottom line though is that I don't think any social housing should be sold in the first place.
     
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  18. Redstone

    Redstone Well-Known Member

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    I was pointing out them going up doesn't make much difference, obviously going down can be a problem if you want to move.
     

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