House prices 'up by 25% by 2013' - HotUKDeals
We use cookie files to improve site functionality and personalisation. By continuing to use HUKD, you accept our cookie and privacy policy.
Get the HUKD app free at Google Play

Search Error

An error occurred when searching, please try again!

Login / Sign UpSubmit

House prices 'up by 25% by 2013'

csiman Avatar
banned8y, 4m agoPosted 8 years, 4 months ago
Average house prices in England are set to rise by 25% by 2013, a National Housing Federation report says.

It sees prices falling 4.4% in 2008, 2.1% lower in 2009, recovering by 2010 and rising at over 9% in 2012 and 2013.

People living for longer, delaying marriage and getting divorced more were all adding to demand for homes.

While there are questions over how accurate five-year forecasts can be, there is a general concern that new homes being built will not meet demand.

"As soon as the economic outlook improves, house prices will resume their previous upward trajectory," said the Federation's chief executive David Orr.
csiman Avatar
banned8y, 4m agoPosted 8 years, 4 months ago
Options

All Comments

(38) Jump to unreadPost a comment
Comments/page:
banned#1
I wish they would make their minds up!

http://news.bbc.co.uk/1/hi/business/7528248.stm
#2
I'm sure that only adds up to just over 18% increase?
EDIT - Depends on 2011, which it doesn't mention.
#3
>Average house prices in England are set to rise by 25% by 2013, a National Housing Federation report says.

I cant see that happening.

House prices have risen far above their real "worth" in the last few years, mainly fueled by irresponsible lending by banks and other loan organizations.

By encouraging people to lie on their mortgage applications, and give people mortgages for over 100% of the value of the property, it just drove up house price to a level that could not be sustained.

So we are now in a period of credit crunch with loan companies very careful who they lend their money to, and how much.

Fuel and food prices are rising, giving people less money. People are also worried about losing their job, causing a lack of confidence in the economy.

This problem is not likely to go away quickly and I think house prices will drop over the next few years, and then remain static. I cannot see such large rises that they are talkiing about.
banned#4
yes but people still need somewhere to live and with housebuilders around the country downing tools and immigration still out of control, I foresee further rises in the not too distant future, especially in the south east of england.
#5
do they know what next weeks lottery numbers will be aswell?

no i doubt it, they arnt physcic, its a random guess!!!
#6
Prices will on average keep rising by 8% a year. They've slowed down over the last few years but they'll pick up to over 8% in a few years time to compensate. Every 10 years or so there's a dip and then they surge up again.

Prices have to keep on going up otherwise we'll get to a time when every house is owned and no-one needs mortgages, this can't happen. There is plenty of money out there but it's tied up in people's houses, rather than relying on mortgages people need to pass money down to their grandchildren to enable them to buy houses.
banned#7
nono2522;2617718
do they know what next weeks lottery numbers will be aswell?

no i doubt it, they arnt physcic, its a random guess!!!

An element of guessing, but mostly based on logic, facts & past trends which is more than your last sentence was! What the hell is physcic and arnt?
#8
csiman
especially in the south east of england.


Particulary where we live??

I hope not! I fancy moving up the ladder at some point and the cheaper the better obviously!
#9
just in process of buying a house, its going to be expensive buy hey ho its just that its happened now, however things can only improve and get easier as it sorts itself out
#10
Who is this 'National Housing Federation' and what interest (if any) do they have in putting out this information? Always the first question to ask before you answer a 'future' question that is essentially unanswerable. Too many factors influence the rise and fall of house prices - they can't be predicted with any degree of certainty.
#11
Average house price 10 years ago?

Average house price in 10 years?

I bet that in 10 years time it will have doubled twice from 10 years ago. They will always on average go up. Can't have an economy where everyone owns their house.
banned#12
Havince
just in process of buying a house, its going to be expensive buy hey ho its just that its happened now, however things can only improve and get easier as it sorts itself out


Are you staying in Manchester, if so, whereabouts, North, South etc...

I live in North Manchester for my sins.
#13
"Halifax, the UK's biggest mortgage lender, said the cost of the average home had risen from just £29,993 in 1983 when it first started its house price index, to £121,742 at the end of last year. "

From 2003, what do you get if you double 30k, then double it again?

House prices double every 10 years.
#14
How is this news, any cretin knows prices will rise over the long term, whether it's 25% or not is the only uncertainty.

people need to chill out, prices will drop rise and then drop agian. If you're not moving and aren't a borrowing against your mortgage mentalist you don't need to worry about ti.
banned#15
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][/SIZE][/FONT][FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black]Makes for interesting analysis:-

A property located in [COLOR=red]UK [/COLOR][COLOR=black] which was valued at [COLOR=red]£10000[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]1978[/COLOR][COLOR=black], would be worth approximately [COLOR=red]£32627[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]1988[/COLOR][COLOR=black]. [/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT][FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black]This is equivalent to a change of [COLOR=red]226.27%.[/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
---------------------------------------------------------------
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black]A property located in [COLOR=red]UK [/COLOR][COLOR=black] which was valued at [COLOR=red]£32627[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]1988[/COLOR][COLOR=black], would be worth approximately [COLOR=red]£45516[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]1998[/COLOR][COLOR=black]. [/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black]This is equivalent to a change of [COLOR=red]39.5%.[/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
---------------------------------------------------------------
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black]A property located in [COLOR=red]UK [/COLOR][COLOR=black] which was valued at [COLOR=red]£45516[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]1998[/COLOR][COLOR=black], would be worth approximately [COLOR=red]£129784[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]2008[/COLOR][COLOR=black]. [/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black]This is equivalent to a change of [COLOR=red]185.14%.[/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
---------------------------------------------------------------
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
#16
csiman
[FONT=Verdana, Arial, Helvetica, sans-serif][/FONT][FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black]Makes for interesting analysis:-

A property located in [COLOR=red]UK [/COLOR][COLOR=black] which was valued at [COLOR=red]£10000[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]1978[/COLOR][COLOR=black], would be worth approximately [COLOR=red]£32627[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]1988[/COLOR][COLOR=black]. [/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT][FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black]This is equivalent to a change of [COLOR=red]226.27%.[/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
---------------------------------------------------------------
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black]A property located in [COLOR=red]UK [/COLOR][COLOR=black] which was valued at [COLOR=red]£32627[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]1988[/COLOR][COLOR=black], would be worth approximately [COLOR=red]£45516[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]1998[/COLOR][COLOR=black]. [/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black]This is equivalent to a change of [COLOR=red]39.5%.[/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
---------------------------------------------------------------
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black]A property located in [COLOR=red]UK [/COLOR][COLOR=black] which was valued at [COLOR=red]£45516[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]1998[/COLOR][COLOR=black], would be worth approximately [COLOR=red]£129784[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]2008[/COLOR][COLOR=black]. [/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black]This is equivalent to a change of [COLOR=red]185.14%.[/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
---------------------------------------------------------------
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]


An average 150% increase every 10 years.
banned#17
Benjimoron;2617945
An average 150% increase every 10 years.

nope - more like 100% if you compund the interest so you were right first time :)

savings would have gone from £10000 to £55000 over the same period on average interest rates.
#18
csiman
nope - more like 75%


add the three together, divide by 3.
#19
csiman

savings would have gone from £10000 to £55000 over the same period on average interest rates.


All well and good but you'd still have to fork out for somewhere to live, this investment pays your rent too!
banned#20
Benjimoron;2617972
add the three together, divide by 3.

not quite that simple.

10,000 x 150% = £25,000

25,000 x 150% = £62,500

62,500 x 150% = £156,250

So 100% is a better guesstimate.
#21
Benjimoron
House prices double every 10 years.


You don't have to think too hard to understand that this isn't sustainable over the long term. :roll:

According to your thinking, this means that in 2058 the average house price will be circa £6 million?

Even considering inflation, I think you may be a tad off the mark there :p
#22
Liddle ol' me
You don't have to think too hard to understand that this isn't sustainable over the long term. :roll:

According to your thinking, this means that in 2058 the average house price will be circa £6 million?

Even considering inflation, I think you may be a tad off the mark there :p


We'll see!!!

Remember that the money is still there, it's not like buying a tv where you have to pay the full value, you'll get a large amount from your previous house, probably 5 million for example.

That's why I said for new owners they're going to be relying on money being passed down from grandparents etc as the money is currently tied up in their houses, inheritance needs to be passed down to grandkids rather than kids.
#23
csiman
not quite that simple.

10,000 x 150% = £25,000

25,000 x 150% = £62,500

62,500 x 150% = £156,250

So 100% is a better guesstimate.


Fair points, I knew 100% every 10 years was the figure.
banned#24
Liddle ol' me;2618001
You don't have to think too hard to understand that this isn't sustainable over the long term. :roll:

According to your thinking, this means that in 2058 the average house price will be circa £6 million?

Even considering inflation, I think you may be a tad off the mark there :p

It sounds bizarre but my parents bought their first property in 1968 for £4000. Double that every 10 years and you get £64,000

The same house is on the market now for £210,000 (2 bed terrace) :w00t:
#25
Also remember that you can't have a situation where most people own their home outright. Imagine what would happen to the economy if most people owned a house worth 6 million, personally I'd downsize to a house worth 5 million and have a million pound cash to spend and an income of £50k per year on the interest.
#26
csiman
It sounds bizarre but my parents bought their first property in 1968 for £4000. Double that every 10 years and you get £64,000

The same house is on the market now for £210,000 (2 bed terrace) :w00t:


Yes, I know the facts, but my point is that those trends are not sustainable indefinitely. The kind of growth in the economy since WW2 has allowed this situation to happen. But the UK is now a 'mature' economy and could not possibly grow in the same way or at the same levels over the next 50 years.
banned#27
Liddle ol' me;2618081
Yes, I know the facts, but my point is that those trends are not sustainable indefinitely. The kind of growth in the economy since WW2 has allowed this situation to happen. But the UK is now a 'mature' economy and could not possibly grow in the same way or at the same levels over the next 50 years.

Yes, i do agree with you but I still feel that the basic trend over the next 10 years will be still be upwards with a small dip over the next 2 years. I'd look to the 1988-1998 growth trend above which seem to suggest around 35-40% from todays prices. Whilst there may not be many buyers at the moment, the same could be said for sellers as most seem to be sitting tight. That, combined with the housebuilding coming to a halt will sustain the market in the medium to long term.
#28
Liddle ol' me
Yes, I know the facts, but my point is that those trends are not sustainable indefinitely. The kind of growth in the economy since WW2 has allowed this situation to happen. But the UK is now a 'mature' economy and could not possibly grow in the same way or at the same levels over the next 50 years.


I wouldn't be so sure, the economy needs people to struggle to afford a house, if everyone could afford a house easily (and most people would if house prices didn't keep going up at such a rate) then most people wouldn't need to work. You can't have an economy where most people don't need to work.
#29
And just to add a point to the 'logic' of assuming trends continue, consider this:

In 1901 baby boys were expected to live for 45 years and girls 49 years.

The life expectancy of new born children in the UK in 1999 was 75 years for boys and 80 years for girls.

Source: [url]www.parliament.uk/commons/lib/research/rp99/rp99-111.pdf[/url]

That would mean that we should expect to live on average to more than 150 years old by the end of the century.
#30
Liddle ol' me
And just to add a point to the 'logic' of assuming trends continue, consider this:

In 1901 baby boys were expected to live for 45 years and girls 49 years.

The life expectancy of new born children in the UK in 1999 was 75 years for boys and 80 years for girls.

Source: [url]www.parliament.uk/commons/lib/research/rp99/rp99-111.pdf[/url]

That would mean that we should expect to live on average to more than 150 years old by the end of the century.


Fantastic!

BUT I fail to see what medical advancements improving our age has to do with house prices?
#31
Benjimoron
Fantastic!

BUT I fail to see what medical advancements improving our age has to do with house prices?


Then maybe you should go back and read through the posts again :thumbsup:
banned#32
Benjimoron;2618153
Fantastic!

BUT I fail to see what medical advancements improving our age has to do with house prices?

Can't fault your reasoning there :thumbsup:
#33
i live in stockport Manchester

fact is that altho things are bad now its a good time to buy i just got a house for 110,000 down from 135,000 and NOTHING needs doing, kitchen 3 years old bathroom 3 years old guttering 2 years, full PVC windows 2 years, carpets 1 year

and after riding the storm of the next 18 monthes and i come to re-mortgage itl be a better rate reducing my payments and the house will not be undervalued
banned#34
Havince;2618319
i live in stockport Manchester

fact is that altho things are bad now its a good time to buy i just got a house for 110,000 down from 135,000 and NOTHING needs doing, kitchen 3 years old bathroom 3 years old guttering 2 years, full PVC windows 2 years, carpets 1 year

and after riding the storm of the next 18 monthes and i come to re-mortgage itl be a better rate reducing my payments and the house will not be undervalued

Well done and well said. Its your home now and sounds an absolute bargain at that price.
#35
I am selling at the moment and admit that things are slow. It seems that people are uncertain about how prices will go in the future. Nobody wants negative equity. So people are sitting tight. Buyers and sellers alike.
With housebuilders also pulling out of the market, surely this will cause a future shortage of housing and when the market starts to pick up again I thing that the demand from potential buyers will push the prices up to the levels reported.
Maybe thats just wishful thinking as a seller.

However I bought my house as a home, not an investemnt. As a home its been a very good one.
#36
csiman
Well done and well said. Its your home now and sounds an absolute bargain at that price.


Here's another example to show that you are taking too much on face value and not considering the variety of factors that contribute to house prices. There is a house about 35 miles from me (near Blackburn) that I saw listed in a local paper for £39,950. It also has similar specs - newly refurbed - to the one mentioned above. So that makes it an "absolute bargain" does it? According to your logic it absolutely must be. But it is in the centre of a high-crime area that is considered a no-go for the average person and nobody wants to live there. Still a bargain? And take this kind of complexity and apply it to the other 'facts' and assumptions that have been made on this thread and you might begin to see that things are not always so cut and dried.
#37
wee_paul
I am selling at the moment and admit that things are slow. It seems that people are uncertain about how prices will go in the future. Nobody wants negative equity. So people are sitting tight. Buyers and sellers alike.
With housebuilders also pulling out of the market, surely this will cause a future shortage of housing and when the market starts to pick up again I thing that the demand from potential buyers will push the prices up to the levels reported.
Maybe thats just wishful thinking as a seller.

However I bought my house as a home, not an investemnt. As a home its been a very good one.


but if some1 is buying now they shouldnt be thinking of selling it anytime soon so worrying about negative equity isnt worth the pain and headache, plain and simple if you can afford to not sell at the moment you dont if you see something worth buying then buy it im sorry but life is 2 short
#38
Liddle ol' me
Here's another example to show that you are taking too much on face value and not considering the variety of factors that contribute to house prices. There is a house about 35 miles from me (near Blackburn) that I saw listed in a local paper for £39,950. It also has similar specs - newly refurbed - to the one mentioned above. So that makes it an "absolute bargain" does it? According to your logic it absolutely must be. But it is in the centre of a high-crime area that is considered a no-go for the average person and nobody wants to live there. Still a bargain? And take this kind of complexity and apply it to the other 'facts' and assumptions that have been made on this thread and you might begin to see that things are not always so cut and dried.


perhaps, but there is a big difference betweek 40,000 and 110,000. the ammount of interest this house had before i viewed it and then bought it straight away showed that i would have been a fool to hang around and miss out.

Post a Comment

You don't need an account to leave a comment. Just enter your email address. We'll keep it private.

...OR log in with your social account

...OR comment using your social account

Thanks for your comment! Keep it up!
We just need to have a quick look and it will be live soon.
The community is happy to hear your opinion! Keep contributing!