Huge rise in house repossessions in June

at last house price plummet....after 10 yrs of failed predictions do you still think it is going to happen with the Tories...comme on

what more can be done to keep the market propped up?

Banks dont have the capacity to offer mortgage deals like the good old days and interest rates habe nowhere to go but up.

On the plus side rental prices are heading north.

TIMMMMMBBERRRRRRRRRR !!!!!!!!!!!!

where's chisel when you need him?

A ridiculous claim from desperate individuals!

Mortgage arets are at all time lows, house prices increasing by 12% in past 15 months ensure that peopel wit mortgageas are able to sell their property at a decent price, and probably plenty enough to cloear any mortgage.

The threat to mortgage lenders was 18 months ago when prices were 20% down, repossessing at that time would have led to massive losses. The slashing of interest rates, QE , ets has saved the banks, and to be honest better rates at higher loan to values are coming out all the time.

Things are defiantely going to be tough for next 18 months, but interets rates are going to be kept low as a result. My advice? Dont panic, The Country is in good hands

Ridiculous?  If people don't have jobs they can't pay a mortgage Chis.  Unemployment is set to soar over the coming months/years.

Also note the warning from the Bank of England earlier this week that mortgage finance will be more difficult to obtain going forward.

It's all change, and we'd better start getting used to it.

chisel you are a downright liar.

we dont need to read your carp, we all know people who have being trying to sell their homes without joy.

what a total idiot you are.

Valero - "what a total idiot you are"
A statement you must be familiar with - chisel states as he sees it.

Krackers---I think you'll find that Valero is spot on.

Anyone that claims that
house prices increasing by 12% in past 15 months is a downright liar.

KRACKERS, very apt.

My house is up for sale and I popped into my estate agents yesterday and directed them to remarket the property with a 2.5% lower asking price.

I was in the estate agents for around an hour and the phones were very quiet and nobody called in during that hour.

In 2007 the house next to me went for 22% higher than mine is asking at.

I live in one of the most desirable places in the north of england ten minutes walk from the city centre. If it is like this in my area then I would expect it to be much worse around the country.  People cant keep talking up the market and throw incorrect stats around. 

London has its own market so that cant really compare to the rest of the UK.

Utd fan

I am sorry to say that you are actually wrong. Houses are selling steadily in many parts of teh country, and are certainly not 22% down from the peak now. Live 4 , we have been hearing that unemployment will go through teh roof for 3 years. It simply has not materialised as expected. Mortgage arrears and repossessions are miles lower than experts predicted.

Live 4
Mortgage finance is readily available for customers with decent deposits, and new lenders are coming to the market. There are even mortgage lenders lending to those with poor credit again!! With respect Live 4, teh banks that are lending in teh UK currently are strong companies, who have seen house prices rise 12% since 2008 , ensurin g they are in a much stronger position than they were. Mortgage arrears are low, profit margins are enormous and this has not been a bad playing field for them the padt 18 months. Interest rates are likely to stay 0.5% for forseeable future as Austerity cuts create a difficult financial landscape.

utd fan
thanx for the anecdote telling it as it is , hope you sell your house .

Just looked on right move and two houses I was interested in buying have dropped in asking price by 5% since last week.  Although I am now fully set on going into rented accomadation if I manage to sell. 

My City York is being squeezed at the moment from a sales perspective.  My agency blamed the world cup for the recent quiet spell and they said they will expect it to be quiet over the next six months due to the summer holidays. Sounds to me like they are already building up a raft of excuses.

Maybe York is not a true refelction for the rest of the country but I am saying it how I see it based on true facts.

Thanks gs, me too.

* six weeks

House prices rise 12% since 2008

Is there no limit to what this loser will claim?

The Halifax index for 2008 ranges from £196,244 to £160,070. It now stands at £166,203.

That ranges from a 15% decreaseto a 3.8% increase.

Where the Fcuk does 12% increase come from.



I am sorry to say that you are actually wrong. Houses are selling steadily in many parts of teh country, and are certainly not 22% down from the peak now


The truth is that house sales in every part of the country have fallen off a cliff and there is no sign of a recovery.

House prices in many parts of the country are 22% or more down from the peak.

If the average is 17%,there must be areas over 22% to compensate for areas where falls have been much lower than 17%,most notably London


Mortgage finance is readily available for customers with decent deposits.

That has always been the case.

and new lenders are coming to the market

Increasing the no of available mortgages 10 fold increases the no of people with enough deposit by 0.

great post JML

somebody who knows what he is talking about

you feckwit chisel, lowlife scumbag lurking around on a betting forum looking for mortgage business, terrible state of affairs!

UTDfan - excellent idea to sell now, ASAP even at 5-7% drop, and rent for 18-24 months = QUIDS IN

Have just sold my house to  a couple coming back from Australia. Been on the market since October had 3 viewings. Was valued at 300k in 2006 and have accepted 242k as there is no chain. The other viewers were trying to sell bigger properties and had not even had a viewing in 5 months. I don't know whether prices will drop again, but I do know they won't be going up anytime soon. At the moment I would sooner be outside looking in than inside looking out of the property market.

dont think drop applies to the south of uk. seems to be its own price market.

rent for 18-24 months ..dumbest move ever.

wilson
good anecdote like Utd fan's , thanx for sharing , be prepared to be told your wrong or accused of lying.

My property was on the market at 265k I only have a small mortgage so any drop in price was going to come out of me. Houses between 250 and 300k are very hard to sell because of mortgage availability and stamp duty threshold. Only low interest rates are holding the whole thing together, if rates do go up there could be a bloodbath imo.

yup good point crediter... with vat up to 20% in jan, and nowhere but up for interest rates to go now... renting would be a mugs game.

dont think drop applies to the south of uk. seems to be its own price market.
---------------
How many more people can the Kensington&Chelsea liferaft take?

if you dont know south....get a map.....and yeah you keep renting...lol pmsl.

sussex kent hampshire are in england polis...just arrived or what.

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if you dont know south....get a map.....and yeah you keep renting...lol pmsl.
----------
Never lived further north than Lambeth, and was an owner before you left your Fathers scrotum.

sussex kent hampshire are in england polis...just arrived or what.
-----------------------
You missed out Surrey, where you apparently purchased a mansion on an overdraft

Oh sussex! isn't that where Bognor is?

no its where son and one daughter are..newick..oh you wouldnt know anyway ...you know surrey huh...or just driven thru it ...apparently it was in fir tree road...epsom downs anywiser ..thought not.

where u live pot.....

Retired in Hampshire, previously Tonbridge, Bromley and Lambeth.
Family all over southern suburbs, many in surrey, Sutton, Ewell, Croydon, etc.
Was in surrey two weeks back, tried the new Marriott Country club Hotel on Lingfield racecourse, can highly recommend it.

any where near fleet...

Just to add Valero. For such a great post JML is totally wrong. The average House price from Halifax in April 2009 was £154716 and it is now £166203. Nationwide was 151861 and is now £170111. A rise of over 12%

thanks very much

What a d!ckhead.


April 2009 was NOT in 2008.

any where near fleet
--------------
No, other side of the New Forest.

JML

As the bottom of the market was a few months after 2008 I am happy to stand corrected. What I should have written is since the market reached its low in April 2009..With respect I was hardly going to state why the market had risen 12% if there were 4 months of drops!!

The end of 2008 was teh watershed though , with Base rate being slashed taht is what sparked the recovery.

anyone read the extracts from the FSA report?

2.5 We have undertaken a detailed analysis of affordability, using data from the Living Costs & Food/Expenditure & Food Survey (LCF/EFS), and our Product Sales Data (PSD) and Arrears dataset.
2.6 We used a representative sample of 9,000 households holding a mortgage from the LCF/EFS covering the period 2005 to 2008, to calculate how much money
borrowers had after mortgage payments and living costs were deducted from their income.

The tough new proposals, published in the consultation paper, form part of a major review by the FSA into the UK mortgage market and are based on detailed analysis of past lending decisions, looking at the causes of arrears and repossessions since 2005.

The FSA found that:

    * 46% of households either had no money left, or had a shortfall after mortgage payments and living costs were deducted from their income;
    * Almost half of new mortgages between 2007 and the first quarter of 2010 were provided without a customer having to verify their income;
    * The share of interest-only mortgages has been increasing. At the peak of the market, over 30% of all mortgages were interest-only;
    * Many consumers with no repayment vehicle count on future house price rises or uncertain life events to repay their mortgage and some have no plan at all;
    * Borrowers with a credit-impaired history are particularly vulnerable.

Billy

I have made it clear to you that just because the lender did not ask for proof of income, it does not mean that there is no proof of income. Some of the mortgages would be very small and many less that 2 or 3 times customers salary. as i stated earlier. Mortgage advisers have to have proof of income on file. Teh FSA insists that we check affordability before submitting the case

I actually do not believe any of the statements above are true. It is simply impossible that 46% of mortgage borrowers can not afford their payments. As less than 3% of mortgage s are 3 months in arrears or less. I simply do not believe what is written...Sorry!

Gents, new guy in town, been reading this thread with interest, being "in the industry" so to speak, at a decent level.

The great thing about forums is anonoymity, so what i speak here i would not tell clients etc.

I can 100% assure you the CHISEL is being very disingenuous on here, almost to the point of manipulating facts to suit an agenda he has.

Property in large parts of the country are being revalued DOWN daily.

Anybody who tried to tell you otherwise has an agenda, be careful people.

The market has not risen 12%.

The Nationwide index represents only a small % of the market
(as low as 5% some months).

Quoting Nationwide figures to represent the whole
market is deliberately misleading.

Anyone wanting to give an accurate picture would use the much
more comprensive LR figures.

No one will argue that there was a recovery in house prices.

But the recovery is over.

There was indeed a recovery period, lead by in large by the lowest base rates in the history of the bank of england.

Rates went down like they have never before, most mortgages went down by anywhere between 25-60% in monthyl repayments.

The market is crumbling right now, i assure you, anybody selling should do so quickly and take a reduced sum, as it will be a lot less in 6-12 months.

Finally, i have no agenda, i actually lose money from this advice (work it out).

BOB

I appreciate your opinions, but how canb you "assure anyone!!""

Why sell a home if your capital is hgoing to be eroded when you move out and rent somewhere?

I am afraid you are not being sensible.

My advice would be this.. If you are struggling with your mortgage payments whilst rates are this low. Sell your home and either buy a cheaper property or  Rent. If you can afford your lovely cheap mortgage , and you are happy in your home. pay as much off your mortgage as you can whilst rates are low.. Nothing else to add really!

Chisel,

I assure them from my professional perspective, which is very much involved on a day to day basis within the consumer property market, as opposed to commercial property which i have no idea about.

I am being sensible, and this is why:

1. With rates as low as they can now go, no more stimulus will be seen, as has been over the last 18mths.

2. VAT will smack every single person on this island in the chops, your food bills will go up markedly.

3. More defaulters, lenders stricter with new apps, bigger depostis required... will all lead to marked slowdown in sales, which i am already seeing now, bigtime.

4. Sell now, rent for 2 years, let the market cool right off to sensible levels of affordabilty, when you see chalets being sold for 325k you know its not a sensible market.

5. The money down the drain on renting will be more than compensated in the tens of thousands saved on new property.

Sorry, but this is sensible, only somebody with an agenda would lead people up the garden path otherwise.

btw - i encompass propetry in ALL parts of the UK in my analysis on the current slowdown in sales at the minute, and it gets worse by the week/month and with fiscals as they are, it really does not take a rocket scientist to evaluate the next 18 or so months.

it really is that straight forward, anybody who tries to bamboozle you with fixed figure, has an agenda, people bear that in mind.

let common sense prevail.

http://www.fsa.gov.uk/pubs/cp/cp10_16.pdf is the FSA report on mortgages. 

I find that 46% figure hard to understand too, as it seems to be a sample of 9,000 household of income and expenditure.  There are many ways of surviving though, loans, credit cards, saving etc.  It also says you can remortgage for an extra £25K which will cover an income shortfall of £600 per month.  22% of all new mortgages from 07 to 09 were further advances.

It is in the governments interest to keep house prices high. 
- stamp duty revenues
- negative equity would lead to people not being able to remortgage and crystallise the unaffordability of their mortgages.
- people not losing their homes and hence going to the public sector
- banks not having to write down mortgages as bad debts
- banks not having to write down credit card debts
- public have not made any pension provision and are relying on downsizing their house in retirement
- banks with BTL landlord with huge geared portfolios

I reckon the tax increases and job cuts coming will tip the balance and just as the house price bubble kept expanding, once the prices start falling, they will keep on in a death spiral.

from Zoopla

The average UK home is now worth £218,705, up £21,667 (11.02%) since March 2009, according to property website Zoopla.co.uk, which provides free value estimates for every UK home.

However this figure remains more than £20,000 below the November 2007 peak, when average house prices reached £239,063, showing that despite the rebound over the last 16 months only half the ground lost over the prior 16-month period has been made up.

As we enter the second half of 2010, the UK residential property market is at an important juncture, which will determine the direction of house prices for the months to come. UK house prices have risen steadily for the past 16 months, bouncing off their lows of March 2009 and recovering half of the value lost during the prior 16 month period of price declines from the November 2007 market peak.

ADVERTISEMENT

Regions recovering at different pace

Property prices in England have recovered more ground than elsewhere, having climbed 11.46% since March 2009, with the average home in England now worth £226,342, but still well below the level reached in November 2007 of £246,714.

By contrast homes in Wales have been much slower to rebound, up only 7.07% since March 2009 to a current average value of £154,521, a long way short of the £173,388 peak in November 2007. Scottish property values have climbed 9.12% on average to £156,217 over the past 16 months, having fallen 18.1% in the prior 16-month period when they reached a high of £174,805.

And whilst the dramatic fall in house prices during the 16 months from the November 2007 high to the March 2009 low affected all areas of the country, the rebound in the 16 months since has been far more selective.

Property prices in the South East have bounced back strongly and have regained most of the value lost during the downturn. House prices in the South East, which peaked at £291,120 in November 2007 had fallen sharply by 18.24% to £238,017 by March 2009, and have since risen by 17.57% to £279,848., according to Zoopla.co.uk. In contrast, the North East saw average house prices drop 16.11% from £182,390 in November 2007 to £153,002 in March 2009, and have since only managed to regain 4.98%, standing today at £160,627.

Dramatic turnaround in London

The London market has seen the most dramatic turnaround, with average house prices today at new highs and above the levels seen in November 2007. Having fallen by 16.06% from a high of £410,577 in November 2007 to a low of £344,635 in March 2009, London house prices have made up all the ground lost in the downturn and now stand at £418,802. London house prices have risen by a remarkable 21.52% over the past 16 months.       

Semi-detached properties faring best

The rebound in house prices since March 2009 has been strongest for semi-detached properties, which have risen by 12.83% over the past 16 months. The average semi is now worth £191,019. At the other end of the scale, flats across the UK have been much slower to rebound and have only gained 7.78% in value over the past 16 months, having fallen by 17.34% in the prior 16-month period. The average flat in Britain is now worth £199,573, down from a peak of £224,021 in Nov 2007.

excellent research and very accurate

A country average is a useless comparison for property values. Please check prices in your own area and forget red-top stats.

Zoopla??????

2 identical properties in my area--

According to Zoopla 1 is worth £137K and the other is worth
£201K.

They should start charging for such accuracy.


Never thought you'd get so desperate as to quote Zoopla.

Get a fcuking grip.

Chisel - sorry mate, but with all due respect

you cite Zoopla as a basis to your argument?

that's like asking KFC to produce quality chicken products!

2 bed terraced.in s.wales..bought for 72k 2 years ago..valued last week 80k....rental approx 350 pcm.

Bank
o
LOL!!  I agree, but the point is this

1) Prices vary and inflation varies fronm one area to another
2) If you take flats out of teh property market, prices have not fallen as much as some would like you to believe

Having said that , Zoopla states facts, and bases estimates on sale price and adds on the house price inflation in the area. There is no reason that its average forecasts are any more or less accurate than anyone elses. The more properties that are included in their average, the more accurate it is!

i cant get my head around that since the credit crunch, nearly 50% of morgages are advanced without the need to show proof of income.

and a 100% of bankers turned out to be useless...without any proof in the bank industry.

Golfboy

I have explained already, but here goes again..

At low loan to values lenders may not ask for proof of income. However, the mortgage broker is expected to have proof of income on file. The FSA or teh lender will ask for proof when auditing a file. My compliance officer will not pay ANY COMMISSION to us unless we have proof of income on file. This is EVERY SINGLE FILE

If banks do not ask for proof of income they will look at employer, job title etc and decided if the salary is in line with job description.

what about the bloke on the beebs money programmewho,s job pays 22,000 ,but has managed a buy to let portfollio where he,s borroed over 5.5 million,lets hope interest rates hit 10 %,and watch the fun

I saw that, and teh guy did not know that he was born!!
Inevitably that chap is paying low mortgage rates, as if he has 5 million most must be with Mortgage Express, whose variable rate is 2.25%.. If I were him I would have been selling as many properties as possible to reduce his risk..Do you think he has done that?

what do youthink...didnt look daft did he.................maybe for the t,v cameras he was...lol.

Crediter

I would think you are right!! He has probably sold a few and thought himself lucky!! Kept the good properties that pay him a good yield. Being in Bournemouth he probaby rents to students and does very well!

A house bought a short distance from me was on homes from hell on tv last week.

Young couple bought off plan in a new development. Paid £175k for a four bedroom house in 2007.

Developer stopped building the rest of the development in 2008 leaving the young couple with a house in a half built estate with vacant houses all around them vandalised and infested with rats.

The house they paid 175k for would be worth about 100k now but only if the rest of the development was finished. As it is you could not give the property away now.

The house i am living in now ( renting ) would have fetched about £170-180k in 2007. Now it would be on the market for about 110k and the owner would probably take less than 100k for it.

During a recent talk with a local estate agent i was told that property prices are rebounding up. Which may be true in certain areas but not where i live. I have seen 90% plus of the houses on local estate agents websites still on the market over 2 years after they were first put up. I looked at a property last week which was on for 375k 18 months ago but has dropped in price to 265k and was told an offer well below that would probably get it.

sounds like a good time to buy.....

saw the on-plan spanish resorts



suicide job

Paddletoe

Sounds horrendous!! Where abouts a you living?

paddle sounds overpriced in the first place.

I am in the north of ireland, Chisel. And yes, Creditor it was well over priced to begin with, in my eyes, at least. But in the two years prior to 2007 prices here went through the roof. I think the northern ireland region had the biggest % increase in house prices in any area. I watched in astonishment as prices here just kept increasing but still the houses were being sold at what seemed crazy prices for an area where average wages were relatively low.

As mentioned quite a few times i would love to buy a house but its seems very hard to measure what is a fair price where i live. I cant find any comparisons on the prices of houses sold as houses are simply not selling full stop.

How do i know what a fair price is? Do i measure things against average wages or yields? Any thoughts would be appreciated.

I am renting at the moment but have the cash to buy without a mortgage.

Looking at just the next year i could buy the house i am renting for approx 100,000 k and affectively get a net yield of 5%. In other words my yield would be the money i would save in rent. £,5000.

On the face of it that would seem better in pure money terms than keeping the same 100k in the bank and receiving a net yield of under 2.5%. I would be £2,500 better off buying.

Except, i cant see the capital value of houses here staying the same never mind increasing. Even at record low interest rates it would just take a 3% drop in house prices this year to make my decision to buy now a bad one. And, i can see the possibility of a quite big dip in house prices here.

Next year could be even worse if interest rates rise and house prices fall further. My rental yield on my house may be the same as savings interest while the capital value of my house would be falling.

Paddletoe

It is a difficult decision to make, and all you can do is try and find a distressed seller and get a real bargain. If you can buy below market value even if prices fall you will still not lose out..

All I can say to you is that your decision is a lot easier than someone that needs a mortgage.. If you plan on keeping the property long term, you can bet your bottom dollar that your home will be worth more in 10 years than now! Whatever you decide to do I wish you good luck!

Thanks Chisel.

The reason i feel in such a difficult position is that house prices in northern ireland are very different to those in other regions.

According to the latest figures by the nationwide building society northern ireland was the only region to see a fall in house prices during the second quarter of 2010. Prices fell by 5.7% during this quarter. This followed a previous fall in prices in the first quarter of 2010.

edinburgh--top end ---nice house/flats sell quickly--fair price

lower end---taking weeks/months