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crabs
Joined: 02 May 2006
Posts: 652
Location: london
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 Posted: Tue Apr 08, 2008 12:41 pm Post subject: House prices 'see sharp decline' |
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| House prices fell by 2.5% in March, the biggest monthly decline since September 1992, much more than many analysts had forecast, the Halifax has said. |
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jbvr
Joined: 12 Mar 2008
Posts: 18
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| Posted: Thu Apr 10, 2008 11:05 am Post subject: |
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| But landlords will continue to keep rents high because of demand. Plus they will continue to break down decent flats into the smallest constituents to maximise profits. Plus they may also advertise pppw to encourage the disgusting and frankly medieval living conditions folks from outside the eu and in eastern europe are happy to accept. What change is there for people that use this site? |
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crabs
Joined: 02 May 2006
Posts: 652
Location: london
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| Posted: Fri Apr 11, 2008 11:18 pm Post subject: |
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| jbvr wrote: | | But landlords will continue to keep rents high because of demand. Plus they will continue to break down decent flats into the smallest constituents to maximise profits. Plus they may also advertise pppw to encourage the disgusting and frankly medieval living conditions folks from outside the eu and in eastern europe are happy to accept. What change is there for people that use this site? |
Rents will drop just takes time now, just hold on. |
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impaired
Joined: 13 Jun 2007
Posts: 242
Location: London
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| Posted: Sat Apr 12, 2008 3:16 pm Post subject: |
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I thought this (supposed) fall in house prices was because buyers are finding it more difficult to get a mortgage and mortgages are more expensive. This means:
a. there will be less new buy-to-let merchants and less new properties on the rental market
b. existing landlords who have borrowed against their property are not only facing a fall in the value of their property, but an increase in their mortgage repayments.
Both the above are likely to put rents up, not down.
The party's over for buy-to-let investors |
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crabs
Joined: 02 May 2006
Posts: 652
Location: london
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| Posted: Sat Apr 12, 2008 8:51 pm Post subject: |
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| impaired wrote: | I thought this (supposed) fall in house prices was because buyers are finding it more difficult to get a mortgage and mortgages are more expensive. This means:
a. there will be less new buy-to-let merchants and less new properties on the rental market
b. existing landlords who have borrowed against their property are not only facing a fall in the value of their property, but an increase in their mortgage repayments.
Both the above are likely to put rents up, not down.
The party's over for buy-to-let investors |
yes at the start, however when people start to lose their jobs they can't afford to pay the rent, the council has capped the amount of rent they will pay out as of 1 april 08. So landlord will have to except the lower rents. |
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Dirty Mom
Joined: 15 Jan 2008
Posts: 1123
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| Posted: Sat Apr 12, 2008 9:13 pm Post subject: |
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| why does the ammount the council pays have an impact on private rental agrements? |
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Bluey
Community Moderator
Joined: 21 Mar 2006
Posts: 4755
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| Posted: Sat Apr 12, 2008 9:44 pm Post subject: |
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| Dirty Mom wrote: | | why does the ammount the council pays have an impact on private rental agrements? |
I think Crabs might be referring to the replacement of Housing Benefit with the Local Housing Allowance (though that only applies to new claims going forward and isn't retrospective to existing claimants).
But HB wasn't ever an infinite sum and encouraged the claimant to top up any difference.
I can't see how LHA is any more limited than before - the aim is to encourage responsibility in the claimants and encourage them to shop around with the benefit (though since Housing Benefit claimants are deeply unpopular with landlords, I haven't fathomed how they are going to enjoy any more choice).
See my thread here about how LHA might be even more unpopular with landlords than Housing Benefit.
http://forums.gumtree.com/about77185.html |
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Hi again
Joined: 10 Sep 2007
Posts: 5298
Location: Edinburgh Scotland
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| Posted: Sun Apr 13, 2008 1:12 pm Post subject: |
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| crabs wrote: | | jbvr wrote: | | But landlords will continue to keep rents high because of demand. Plus they will continue to break down decent flats into the smallest constituents to maximise profits. Plus they may also advertise pppw to encourage the disgusting and frankly medieval living conditions folks from outside the eu and in eastern europe are happy to accept. What change is there for people that use this site? |
Rents will drop just takes time now, just hold on. |
Given the shortage of housing in the UK and the number of immigrants who continue to flood in, I VERY much doubt it.
If the mortgage market continues to shrink and the Deposits required continue to rise (25% at present) more and more people will have no choice but to rent if they want a roof over their heads.
More demand certainly is not going to reduce prices!
Loads of private landlords are now not willing to take DSS tenants because of the situation with rent payments by the Council and who could blame them? |
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crabs
Joined: 02 May 2006
Posts: 652
Location: london
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| Posted: Sun Apr 13, 2008 3:56 pm Post subject: |
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| Hi again wrote: | | crabs wrote: | | jbvr wrote: | | But landlords will continue to keep rents high because of demand. Plus they will continue to break down decent flats into the smallest constituents to maximise profits. Plus they may also advertise pppw to encourage the disgusting and frankly medieval living conditions folks from outside the eu and in eastern europe are happy to accept. What change is there for people that use this site? |
Rents will drop just takes time now, just hold on. |
Given the shortage of housing in the UK and the number of immigrants who continue to flood in, I VERY much doubt it.
If the mortgage market continues to shrink and the Deposits required continue to rise (25% at present) more and more people will have no choice but to rent if they want a roof over their heads.
More demand certainly is not going to reduce prices!
Loads of private landlords are now not willing to take DSS tenants because of the situation with rent payments by the Council and who could blame them? |
What do you think going to happen with jobs hey? do you think they'll be enough jobs to cope with the rent rise. you'll start to see unemployment rise, peopel spending less etc...
If you think rents are going to rise into 2009 think again. |
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Dirty Mom
Joined: 15 Jan 2008
Posts: 1123
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| Posted: Sun Apr 13, 2008 4:06 pm Post subject: |
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Why are jobs an issue though?
At the moment, economic growth is being impacted on simply by the credit-restricitions. Not an underlying spending issue in the wider economy. So, as long as the credit supply does not become too restricted, people will keep spending, and jobs will not go.
Even if the situation does get out of hand, and the wider economy is impacted to the degree that people lose their jobs, it is not going to be the rapid tumple you'd expect to see in a consumer-driven economic collapse. And thus, you could find yourself waiting a long time for house prices and rents to fall by any significant margin. More likely is a medium-term period of stagant / slightly negative growth. All the while of course, you'll be renting, and canny investors who bought several years ago or more will be getting an income, with more security than any other investment (other than sophisticated fincial vehicles beyond the reach of the average punter).
Not quite an open and shut case at the min. |
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crabs
Joined: 02 May 2006
Posts: 652
Location: london
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| Posted: Sun Apr 13, 2008 9:34 pm Post subject: |
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| Dirty Mom wrote: | Why are jobs an issue though?
At the moment, economic growth is being impacted on simply by the credit-restricitions. Not an underlying spending issue in the wider economy. So, as long as the credit supply does not become too restricted, people will keep spending, and jobs will not go.
Even if the situation does get out of hand, and the wider economy is impacted to the degree that people lose their jobs, it is not going to be the rapid tumple you'd expect to see in a consumer-driven economic collapse. And thus, you could find yourself waiting a long time for house prices and rents to fall by any significant margin. More likely is a medium-term period of stagant / slightly negative growth. All the while of course, you'll be renting, and canny investors who bought several years ago or more will be getting an income, with more security than any other investment (other than sophisticated fincial vehicles beyond the reach of the average punter).
Not quite an open and shut case at the min. |
ok do you think the credit crunch has only hit the consumer? its hit every part of the economy, and on another note this economy like many western economies grew because of debt ie borrowing mewing etc... that has no stopped and the negative to any boom has started. |
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montyzuma
Community Moderator
Joined: 25 Jul 2007
Posts: 2240
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| Posted: Wed Apr 16, 2008 6:07 am Post subject: |
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| RICS, however, remains relatively upbeat, claiming that while "sentiment is at a very low ebb and will continue to remain depressed", lack of new supply of housing means "a significant crash remains unlikely". |
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MrThacker
Joined: 14 Sep 2007
Posts: 2935
Location: How much text is allowed in this box, before the machine cuts it off, making it look like I am an id
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| Posted: Wed Apr 16, 2008 12:59 pm Post subject: |
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Interestingly, I see unemployment has fallen ... yet another sign of the "mixed" economic situation, and further proof that the economic "disaster" suggested by some is not certain.
http://news.bbc.co.uk/1/hi/business/7350042.stm |
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crabs
Joined: 02 May 2006
Posts: 652
Location: london
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| Posted: Wed Apr 16, 2008 1:25 pm Post subject: |
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| cant you see only 1200 off job seekers the rest are on other benefits than arnt counted or on training courses, never believe job stats the yare so bias. |
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crabs
Joined: 02 May 2006
Posts: 652
Location: london
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| Posted: Wed Apr 16, 2008 1:27 pm Post subject: |
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| btw its not goign to happen over night, theres a lag in employment stats. |
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MrThacker
Joined: 14 Sep 2007
Posts: 2935
Location: How much text is allowed in this box, before the machine cuts it off, making it look like I am an id
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| Posted: Wed Apr 16, 2008 2:16 pm Post subject: |
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| crabs wrote: | | cant you see only 1200 off job seekers the rest are on other benefits than arnt counted or on training courses, never believe job stats the yare so bias. |
Ah.
But other stats are ok?  |
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impaired
Joined: 13 Jun 2007
Posts: 242
Location: London
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| Posted: Wed Apr 16, 2008 3:51 pm Post subject: |
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From today's Independent:-
| Quote: | House prices: The east-west divide
Across Britain, some regions are in meltdown while others are still on the up. Phil Thornton sees a pattern emerge
Tomorrow's homebuyers must relearn that old mantra: location, location, location.
West Midlands
Annual change: down 3.7%
Quarterly change: down 5%
North-west
Annual change: 1.3%
Quarterly change: down 0.5%
Wales
Annual change: down 5.3%
Quarterly change: down 4.7%
South-west
Annual change: down 3.3%
Quarterly change: down 2.6%
The North
Annual change: up 3.1%
Quarterly change: up 1.2%
East Anglia
Annual change: up 3.4%
Quarterly change: up 1.4%
East Midlands
Annual change: up 2.9%
Quarterly change: up 2.2%
South-east
Annual change: up 3.3%
Quarterly change: no move
Greater London
Annual change: up 2%
Quarterly change: up 1.6%
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montyzuma
Community Moderator
Joined: 25 Jul 2007
Posts: 2240
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| Posted: Wed Apr 16, 2008 9:46 pm Post subject: |
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| Err you mean across England and Wales |
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crabs
Joined: 02 May 2006
Posts: 652
Location: london
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montyzuma
Community Moderator
Joined: 25 Jul 2007
Posts: 2240
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