Comments on: UK house price predictions 2010

By: MoneyStar

MoneyStar — Tue, 08 Feb 2011 00:19:08 +0000

How did your 2010 prediction fare? And, what are the experts picking in 2011?

At SimplyFinance, we’ve seen a pick up in activity around first time buyer, next time buyer, and buy-to-let in 2011. Not sure if this will translate into higher real estate prices, but it looks like the mortgage market is beginning to thaw.

By: Housing Market

Housing Market — Thu, 05 Aug 2010 14:25:19 +0000

Well now that we are over half way there the picture is still no clearer. One predicts a rise another predicts a fall. It is still on the rise according to most educated analysts. .-= Housing Market on: Garden Delight =-.

By: The Investor

The Investor — Wed, 20 Jan 2010 00:01:21 +0000

@Sam – I haven’t heard of Zillow, I’ll have to look at it before I can answer!

By: Financial Samurai

Financial Samurai — Tue, 19 Jan 2010 23:15:52 +0000

You guys have a Zillow.com type online appraisal site? The data points here are that prices have rebounded quite quickly like the equity markets. .-= Financial Samurai on: Taxing All Big Banks Is A Double Standard And Is Unconstitutional =-.

By: David

David — Tue, 19 Jan 2010 14:07:34 +0000

14% rates may have been the technical blip caused by us clinging on to the ERM last time, but the technical blip this time is in the form of £200bn of printing money – it’s going to be an interesting year, particularly after the election.

By: The Investor

The Investor — Tue, 19 Jan 2010 10:56:27 +0000

I agree ermine, but I’ve been arguing about money illusion and expecting a big drop for 4-5 years. I still think rates will bite eventually, but I’m a six-figure sum down because of under-estimating the UK housing market before.

14% rates were a technical blip caused by us clinging on to the ERM. That said it would probably only take base rates of 8% or so to do the deed today.

Thanks for your thoughts!

By: ermine

ermine — Tue, 19 Jan 2010 09:58:32 +0000

You’re jumping the gun here – it’s high interest rates/inflation that will do for people. I was there in the early 1990s – 14% mortgage interest rates anyone? It’s happened before.

Inflation helps people with mortgages if it boosts their earnings once they’ve bought the hosue. This helped my parents who bought their house in the early 1970s for £5000 and saw wages rise over the next 10 years, but globalization and the shift of economic power eastwards from the indebted West will probably limit future capacity for wages to keep up with inflation. Be afraid…