North South House price Gap narrows
Discussion
House prices are falling in the South but still rising in the North.
We might be able to buy our first house soon :cloud9:
BBC article
UK property price divide narrows
Gaps between house prices in the north and south have narrowed
The north-south gap in house prices has narrowed to its lowest level in eight years, research shows.
Prices in the south are now 1.58 times the average in the north, dropping from twice the average in 2002.
Banking group Halifax found that, while prices fell in parts of southern England, other areas saw property price growth of more than a third.
Coatbridge in Strathclyde was the top property hotspot in the survey, with a 36% rise in prices over the year,
It was followed by Port Talbot in West Glamorgan (35%), Inverurie in Grampian (32%) and Lochgelly in Fife (31%).
But the Halifax added that the annual rate of house price inflation has slowed in all regions over the past 12 months, with all regions experiencing growth of less than 10%.
Hertfordshire had the biggest property price fall, being down by 6%. Surrey, Somerset, Northamptonshire, Warwickshire and Dorset, all saw prices go down by 5%.
Halifax chief economist Martin Ellis said: "These falls need to be viewed in the context of the substantial price rises recorded in these parts of the country during the last few years."
We might be able to buy our first house soon :cloud9:
BBC article
UK property price divide narrows
Gaps between house prices in the north and south have narrowed
The north-south gap in house prices has narrowed to its lowest level in eight years, research shows.
Prices in the south are now 1.58 times the average in the north, dropping from twice the average in 2002.
Banking group Halifax found that, while prices fell in parts of southern England, other areas saw property price growth of more than a third.
Coatbridge in Strathclyde was the top property hotspot in the survey, with a 36% rise in prices over the year,
It was followed by Port Talbot in West Glamorgan (35%), Inverurie in Grampian (32%) and Lochgelly in Fife (31%).
But the Halifax added that the annual rate of house price inflation has slowed in all regions over the past 12 months, with all regions experiencing growth of less than 10%.
Hertfordshire had the biggest property price fall, being down by 6%. Surrey, Somerset, Northamptonshire, Warwickshire and Dorset, all saw prices go down by 5%.
Halifax chief economist Martin Ellis said: "These falls need to be viewed in the context of the substantial price rises recorded in these parts of the country during the last few years."
Does this actually mean that the average wage a person earns is narrowing also or is this just people willing to commute? Has there been a slowdown in the “south” that has prompted this?
Excellent prospects on owning your first house, I’m sure you must be thrilled at the prospect. Have you been doing much market research?
Excellent prospects on owning your first house, I’m sure you must be thrilled at the prospect. Have you been doing much market research?
speedy_thrills said:
Excellent prospects on owning your first house, I’m sure you must be thrilled at the prospect. Have you been doing much market research?
We've been looking around the outskirts of South East London and just outside, we are a bit limited budget wise (my wife doesn't earn much) so at present anywhere half decent is very nearly out of our reach.
JagLover said:
Hertfordshire had the biggest property price fall, being down by 6%. Surrey, Somerset, Northamptonshire, Warwickshire and Dorset, all saw prices go down by 5%.
we live in hertfordshire and there has been no evidence of this - wonder if it'sthe combined effect of a lot of the more expensive houses going down - in the >350k market there seems to be no change from monitoring (2004 - 2005) both asking and sale prices where we are - wgc - hertford - hitchin sort of triangle if anything for the better properties they seem to have been **creeping** up a bit (i am excluding stevenage from this)
also it was only recently that someone was going on about increases in northants... hmm!
>> Edited by baskey on Saturday 22 October 12:19
I hate to say this but it seems to me that house prices are just falling where the unemployment is rising. In places like Port Talbot there is no employment anyway and you could buy the whole place for 20 quid. Clearly the master plan is to sit and watch house prices fall until large numbers of people are just slightly in negative equity then push for a federal Europe complete with Euro. Obviously from there on in its only a matter of time before everyone is given a state owned flat, uniform, job assignment and bicycle. Perhaps we could be different in England, oops sorry Blairbrowngrad and have blue uniforms instead of the EU wide grey. Something to look forward to anyway comrades, you should be grateful.
nonegreen said:
I hate to say this but it seems to me that house prices are just falling where the unemployment is rising. In places like Port Talbot there is no employment anyway and you could buy the whole place for 20 quid. Clearly the master plan is to sit and watch house prices fall until large numbers of people are just slightly in negative equity then push for a federal Europe complete with Euro. Obviously from there on in its only a matter of time before everyone is given a state owned flat, uniform, job assignment and bicycle. Perhaps we could be different in England, oops sorry Blairbrowngrad and have blue uniforms instead of the EU wide grey. Something to look forward to anyway comrades, you should be grateful.
JagLover said:That’s great, just a share a quick thought if I might though. When things start to fall apart a little more wont the banks become a little more snappy and attempt to reduce their risk by asking buyers for a higher initial deposit ratio and increasing interest rates?
We've been looking around the outskirts of South East London and just outside, we are a bit limited budget wise (my wife doesn't earn much) so at present anywhere half decent is very nearly out of our reach.
Jaglover said:
Maybe, but we should be able to get at least a 5% deposit together (more through our parents than our own feeble attempt at svaing) and I think the first to suffer will be those going for 100% mortgages.
Jaglover,
If you are buying to live in and dont move around for work then the LTV of your lending isnt an issue.
If you intend to move again in the short to medium term then it is.
speedy_thrills said:
We've been looking around the outskirts of South East London and just outside, we are a bit limited budget wise (my wife doesn't earn much) so at present anywhere half decent is very nearly out of our reach.
That’s great, just a share a quick thought if I might though. When things start to fall apart a little more wont the banks become a little more snappy and attempt to reduce their risk by asking buyers for a higher initial deposit ratio and increasing interest rates?
no they wont, they are still happy to Lend...
Take a look at Northern Rock they will lend over 100%, because they know that ties you in to the place (and to them) for a long long time.
rich1231 said:
Jaglover,
If you are buying to live in and dont move around for work then the LTV of your lending isnt an issue.
If you intend to move again in the short to medium term then it is.
As long as we find somewhere of a reasonable size we probably won't think about moving for a long time.
Tonker, you're getting me worried now! I've just bought at the top-end of the market, with a 5 year fixed mortgage. No other debts though.
This house is a long term investment, to live in and then move onto something bigger and let this one out, and the way I see it, if prices do fall this could only be down to an interest rate rise, therefore I'd be paying the same amount on my repayments anyway no matter what the house price.
I think over paying for the next 5 years would be a good idea
, and then in 5 years if interest rates are high I'm remortgaging on a lower amount.
This house is a long term investment, to live in and then move onto something bigger and let this one out, and the way I see it, if prices do fall this could only be down to an interest rate rise, therefore I'd be paying the same amount on my repayments anyway no matter what the house price.
I think over paying for the next 5 years would be a good idea
, and then in 5 years if interest rates are high I'm remortgaging on a lower amount.'choke a dozen donkeys' - is that legal speak 
To get on the ladder I had to sell everything including the TVR and my multiples are high 4x, but the way I see it it's got to be better to get on the ladder. There's no way I can save to 3 years worth of repayments, but I can over pay each month.
Oh and I'm running around in a battered old Mondeo now, and it's such a liberation I'll tell you (£300 off Ebay, and it flew through its MOT, no worrying about where I leave it, not worrying about it breaking down, getting scratched nicked......
I just hope that in the long term house prices rise overall.
Before the 1989 crash what were house prices like at their height? Are they comparable to todays prices taking into account inflation?
To get on the ladder I had to sell everything including the TVR and my multiples are high 4x, but the way I see it it's got to be better to get on the ladder. There's no way I can save to 3 years worth of repayments, but I can over pay each month.
Oh and I'm running around in a battered old Mondeo now, and it's such a liberation I'll tell you (£300 off Ebay, and it flew through its MOT
, no worrying about where I leave it, not worrying about it breaking down, getting scratched nicked...... I just hope that in the long term house prices rise overall.
Before the 1989 crash what were house prices like at their height? Are they comparable to todays prices taking into account inflation?
Argh, all this talk of equity, interest rates etc is scaring me now 
My partner and I bought last summer, in Leeds, as prices were rising.
We didn't really get the nicest property, it needed lots of work to modernise it.
Main thing is it was cheaper, so we could add value, which we are doing, and it was big, room for 3 cars, + two on street, 3 bedroom, big garden etc etc.
Just scared of high interest rates, if they even double, our mortgage becomes instantly HUGE.
I think we are tempted to finish doing up the house ASAP, keep an eye on things, and sell pretty sharpish, and move into my mums house (big house, lots of room, countryside, token rent etc) and just wait for the crash... Then go out with our built up equity etc, and buy cheap!?
A good plan, or is it not that simple?
Dave
My partner and I bought last summer, in Leeds, as prices were rising.
We didn't really get the nicest property, it needed lots of work to modernise it.
Main thing is it was cheaper, so we could add value, which we are doing, and it was big, room for 3 cars, + two on street, 3 bedroom, big garden etc etc.
Just scared of high interest rates, if they even double, our mortgage becomes instantly HUGE.
I think we are tempted to finish doing up the house ASAP, keep an eye on things, and sell pretty sharpish, and move into my mums house (big house, lots of room, countryside, token rent etc) and just wait for the crash... Then go out with our built up equity etc, and buy cheap!?
A good plan, or is it not that simple?
Dave
Mr Whippy said:Fantastic plan if there's a crash
A good plan, or is it not that simple?
Dave
If we get a small increase in inflation and interest rates follow suit, there may not be a crash
Or there might be
BTW if you know who's going to win the 3:15 at epsom, that would be handy too
Well yeah, there has to be a crash I suppose.
Either way we'll probably sell, and then build our own as we have the luxury of land, and then it doesn't matter what happens to prices as we'll be staying put.
Problem I see is that something has to give. Even if I was earning £40k a year, I'd have little chance of getting anything but a one floor flat or a shoebox sized new-build in Leeds last summer. It's got no better.
Fortunately I was with my partner, and we managed to get a nice ish house, but nowhere near as nice as similar earning couples were getting even a year earlier in the areas we were looking.
The gap has narrowed, but if no one can afford to actually buy a house FULL STOP, then we are screwed. Several couples we know got 100% mortgages and bought at the bottom of the market (first time buyers), and are basically screwed. If interest rates go up even 50% (say 7%) then they are gonna be RIGHT on the edge of what they can afford, and thats on above "average" earnings!
With alot of people borrowing vs their equity every year to pay off credit cards, or just in £5k of CC debt as well as using up all their equity on "goodies" like big TV's and cars etc.
I can just see that we are running a fine line, and with Gordon Browns clear lies and optimism about the economy I at least think things will get a bit choppy.
Good point Tonker, at least we are putting £3k a year into the house and doing it up. Just doing stripping of rooms, skimming, painting, new skirting boards, new windowsills, roof work, pointing exterior etc etc...
Dave
>> Edited by Mr Whippy on Monday 24th October 12:18
Either way we'll probably sell, and then build our own as we have the luxury of land, and then it doesn't matter what happens to prices as we'll be staying put.
Problem I see is that something has to give. Even if I was earning £40k a year, I'd have little chance of getting anything but a one floor flat or a shoebox sized new-build in Leeds last summer. It's got no better.
Fortunately I was with my partner, and we managed to get a nice ish house, but nowhere near as nice as similar earning couples were getting even a year earlier in the areas we were looking.
The gap has narrowed, but if no one can afford to actually buy a house FULL STOP, then we are screwed. Several couples we know got 100% mortgages and bought at the bottom of the market (first time buyers), and are basically screwed. If interest rates go up even 50% (say 7%) then they are gonna be RIGHT on the edge of what they can afford, and thats on above "average" earnings!
With alot of people borrowing vs their equity every year to pay off credit cards, or just in £5k of CC debt as well as using up all their equity on "goodies" like big TV's and cars etc.
I can just see that we are running a fine line, and with Gordon Browns clear lies and optimism about the economy I at least think things will get a bit choppy.
Good point Tonker, at least we are putting £3k a year into the house and doing it up. Just doing stripping of rooms, skimming, painting, new skirting boards, new windowsills, roof work, pointing exterior etc etc...
Dave
>> Edited by Mr Whippy on Monday 24th October 12:18
Yeah, was saying this the other year, my older brother (earning loads now so secure anyway), but his house went up from £65k to £85k in a year, and he simply bunged his £5k of CC debt, and some other student debt to his mortgage.
Fine, but he went and built up another £Xk of debt and let it ride ontop of his mortgage. Think he's getting the idea it's bad now, but is secure due to work etc which is ok.
However, the economy has done so well over the last few years like you say, because a good majority is borrowed money, not just people feeling flush with THEIR money, but with non-existant money tied up in their homes or on credit cards with 0% interest for a year etc.
Really am kinda cringing and hoping deep down it doesn't go tits up, since alot of people are REALLY going to feel the heat!
As per stuff being cheap. Yeah, stuff is pretty cheap. Pretty good for opportunist buyers, bad for those who already buy too much and think it's a bargain to bang on the CC
Dave
Fine, but he went and built up another £Xk of debt and let it ride ontop of his mortgage. Think he's getting the idea it's bad now, but is secure due to work etc which is ok.
However, the economy has done so well over the last few years like you say, because a good majority is borrowed money, not just people feeling flush with THEIR money, but with non-existant money tied up in their homes or on credit cards with 0% interest for a year etc.
Really am kinda cringing and hoping deep down it doesn't go tits up, since alot of people are REALLY going to feel the heat!
As per stuff being cheap. Yeah, stuff is pretty cheap. Pretty good for opportunist buyers, bad for those who already buy too much and think it's a bargain to bang on the CC
Dave
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