[Bodger]

BUT bad news for others.

In recent months, through the media there's been a feeling created that house prices have started to rise again. Well ? According to a report in todays Telegraph its a load of baloney.

Research carried out by the National Housing Federation show that house prices will continue to fall up until at least 2011.  A massive drop of 12.2% is predicted this year, followed by a slow down next year to 4.6% and a gradual levelling out to 1.1% the year after that.

The report concludes that people who bought in the boom year of 2007 will have to wait until 2014 before their properties have any chance of rising to the value that they bought at.

This is bad news for these people of course, but what about the people who are considering buying in todays market ? Armed with this information, surely if they can, they are going to hold off buying for as long as they can. Somethings got to give but when ?

[sellickbhoy]

it's bad news for me as my pension relies on the performance of an investment property - luckily, i'm not planning on retiring for about 20-25 years, so there is time for it to recover yet

HOWEVER, i don't think there is much good news in the housing market at all - well, for people moving up the ladder, times are good, but for 1st time buyers times are pants! you now need a bigger deposit to get a house, the products on offer aren't as good and the cost of a property is still too expensive for them - even taking into account falling prices.

those of us in the middle of the market are stuck between a rock and a hard place

as for downsizers planning to sell a big house now the kids are gone and buy a wee place to retire into - they'll really feel the pinch.

what i do find bizarre though is that even the rental market has died too. I've had to rent out 2 flats - one in Edinburgh and one in glasgow. normally i could have 10 viewing a week, i've been lucky to have 1 viewing a week lately.

Banks are starting to announce profits after the huge loses/right offs of last year, once they are feeling good again, they'll increase lending and encourage folk back onto the bottom of the ladder - this will stimulate prices and they'll start to climb again

what'll stop prices falling too far is that people now view their houses as an investment more than a home, and it's easier to rent out and sit on a property than take a loss selling it. So there will be a lack of properties for sale as people sit tight until they make a profit on the deal

[Bodger]

Inspite of the flannel that the government has been trying to slip to us, we are in grim times and things have still got a long way to go before they are going to get better.
People with ready cash are picking up terrific bargains thanks to the numerous repossessions by the banks, who are selling off at cut prices simply to cover the money they are owed. Its a vicious circle thats continuing to drive house prices down.
I know that if I had a spare hundred grand, I'd be very wary of spending it on a house thats only going to be worth £88,000 in 12 months time.