When do you expect to see the "green shoots" of life in the UK property market?

[investor89]

With a lot of people on this thread agreeing that the 'green shoots' will be emerging in the next few years something i have been seriously looking into is land as an investment. We are all aware of the housing shortage this country has, George Osbourne declared in his spending review on wednesday that 150,000 homes will be built in the UK by 2014. He also stated that the spending review would make it simpler to get permission to build new homes. I have seen that there are a number of shady land investment companies out there, but having looked into it there are also just as many reputable business' that are making lots of money investing in land in areas that are under massive pressure to develop. What are other peoples opinion on this sort of investment, it is something i think would be a great investment as we are coming out of the reccession. Land prices are still 40% below their peak in 2007. Surely the only way to go is up.

 

[punitalemon]

Yeah I do agree that there are significant signs that the market is already in recovery but still it will take time to be in normal situation.

 

[bkkguy]

hi,
i would like to say that the only green shoots we going to see is WEED and nothing else. prices will have to fall by another 25-30% and that's not going to be hard.

when payrolls are being cut and private sector being told to take pay freeze this is a wake up call to united kingdom that we are no longer in a european market we are now in a global market. we can not compete with the world with high wages. so if were not going to have high wages for the next several years and as u.k tax will be at it highest to pay off borrowed debt and a cut back on public sector workers how can prices go up.

if i was looking to buy i would stop renting is the best form at this moment of time 12 months max on contract and see what happens.

what i see is life getting tough and tough and we will see the streeets of u.k in total bloodshed as law and order breaks down.

it will be madness out there as people start to dump properties.

ok we .5% base rate but as inflation starts to increase very rapidly as the governments quantitive esasing comes into play the inflation could reach double digits and forcing the bank of england to raise rates over 7% which is way less as normal.

we got a way with the pound not falling against other major currencies except euro where we got battered, but when other economies pick up our pound will suffer and that will also raise interest rates.

many lender won't even look at the banks base rate they will look at libor rate as this will be the true rate of borrowing and if you all remember while the b.o.e was reducing their rates the libor was still going up it's only after several months it's come down,
so please there are no green shoots only green weeds.
hey thanks for letting me post here...cheers

I see all your predictions were way off the mark. The property market is doing fine, there is no bloodshed and no breakdown of law and order. Not sure why you think £GBP didn't fall against any major currency, as it was down almost 30% against the $USD and was also down against many other currencies.

Inflation is low and base rates will stay low for a good while yet.

It's not all doom and gloom as you suggest. The majority of people are better off than they were before the recession started.

 

[Damian George]

the problem is the LTV at 20% plus

if LTV's were back at 10% you would see a lot more movement with those with reasonable credit scores

 

[bkkguy]

the problem is the LTV at 20% plus

if LTV's were back at 10% you would see a lot more movement with those with reasonable credit scores

Most LTVs are around 80%. If they were 20% you'd need an 80% deposit.

 

[Damian George]

sorry being thick

10% deposits

 

[faca5]

This year? Meybe market get normalized?!Right?

 

[docmood]

I've been living abroad for several years with my family and now am considering moving back to the UK from Dubai. I found that property prices are back at the ranges they were in 2001/2 and interest rates are very low so affordability seems pretty good to me.

Can anyone tell me what the best way is for a non-domiciled brit to move back to the UK is? For example, I have a studio in Dubai that is providing a rental income (sometimes!!) so if I move back, do i then have to start paying taxes on that income?

What about capital I bring back to the UK to buy a house and furniture etc.?

Any other advice or whatever viewpoints would be interesting...like some people have asked me if I'm crazy wanting to go back to the UK !!!

 

[AMSNZ]

February 2011 is here and it's just all bad news for houseing in the UK. I cannot see a recovery in the housing market until the end of 2012/13.

Let's hope the Olympics can bring the feel good factor to the economy.

 

[bkkguy]

February 2011 is here and it's just all bad news for houseing in the UK. I cannot see a recovery in the housing market until the end of 2012/13.

Let's hope the Olympics can bring the feel good factor to the economy.

So you don't know much about the property market judging from your over-generalisation. Property prices are rising in some areas. It's not all bad news at all. In fact it's pretty good. UK property is very affordable. It's a great time to be buying property.

 

[AMSNZ]

So you don't know much about the property market judging from your over-generalisation. Property prices are rising in some areas. It's not all bad news at all. In fact it's pretty good. UK property is very affordable. It's a great time to be buying property.

Earth calling.....? Personal attacks will not change the fact the UK is in it up to their necks, possibly why according to your flags you live overseas. Try this - it was only published an hour ago.

Hopes for Europe real estate recovery wane -survey | Reuters

 

[bkkguy]

Earth calling.....? Personal attacks will not change the fact the UK is in it up to their necks, possibly why according to your flags you live overseas. Try this - it was only published an hour ago.

Hopes for Europe real estate recovery wane -survey | Reuters

Expain how it can be ALL bad news when some areas are seeing prices rises. Who are you claiming iti s all bad news for? Buyers or sellers. Some areas have prices rises and some have price falls. I still don't see how this is all bad. The UK property market has done very well over the last couple of years. A few not so good months is goodto me not bad, because the market isn't getting overheated and there aren't large price falls either, except for a few areas.

So you think this means it's all bad. Perhaps you could be a bit more specific and also say what you think makes a good market. Perhaps I can then understand what you mean.

I din't mean my comment as a personal attack, but what you said is just ridiculous and not what's happening at all.

The UK is up to their necks in what? Sounds like you read the papers too much. Most people that I know in the UK are doing very well.

I din't leave the UK because I think the housing market or the country is bad. I think the UK is one of the best countries in the world to live. But I love travelling and experiencing new cultures so have decided to live in a variety of places around the world over the next few years.

 

[bkkguy]

Earth calling.....? Personal attacks will not change the fact the UK is in it up to their necks, possibly why according to your flags you live overseas. Try this - it was only published an hour ago.

Hopes for Europe real estate recovery wane -survey | Reuters

Forgot to add that the link you posted is about confidence in European property. There isn't a single property market. Different countries have different markets. Even countries have different property markets in different regions. And even regions have ups and downs within them. Some area in London are up 5-10% in the last year. There's nothing bad about that. And the link is about what people think will happen in the future, not what actually is happening or what will happen. Perhaps you should be reminded that confidence levels were almost at an all time high just months before the credit crunch and recession. Whether people are confident about the econonmy or housing is often the opposite of what happens.

It's great if people in the UK think property price will go down because that's a great opportunity to by prime property at lower prices. There are always opportunities in any market. You may see it as bad, but I and many others see it as excellent. I hope there are many more like you so I can grab a few more bargains in the UK.

The other thing is that most people are never happy. When prices are rising they complain and when prices are falling they complain. But the professionals just make money while the rest sit around and complain.

What exactly do you want?

 

[bkkguy]

Earth calling.....? Personal attacks will not change the fact the UK is in it up to their necks, possibly why according to your flags you live overseas. Try this - it was only published an hour ago.

Hopes for Europe real estate recovery wane -survey | Reuters

You obviously missed this --> UK house prices rose 0.8% in January.

I suppose you think this is bad as well.

 

[jtrader]

I see a turn around this year ad do he UK press.

 

[jtrader]

However there was a slump in mortgage accpetance and house buying in December 2010 to January 2011.

 

[fazerboy]

It all depends where in the UK , in N.ireland they are dropping all the time to 5/6 years ago .
one mans drop is another mans gain.

 

[proprateanalyst]

I think green shoots will begin by 2013 Q1. I think we have another 2 years or so of a downward slow bleed. However, if interest rate rise and along with interest rate expectations then we could have higher repossessions and an increase in new sell instructions resulting in faster decline in prices.

 

[fazerboy]

Thank goodness the rate stayed the same today,, i,ll be ok ,as ive only a small mortgage ,but i know a few who would go to the wall ,and very quitely .
It could be another 5/6 years before things pick up here , unemployment a big problem .ive a mate who lost his job in a hospital after 26 years ,now hes washing dishes 2 nights a week .

 

[HolidayHomeInformation]

SW England

We're in South West England where the property market is skewed by second homes and is less influenced by the local and regional economy.

Observations are:
1. Owners are holding out for their asking prices, not being forced to sell.
2. Estate Agents aren't closing down, just seeing a slower rate of sales.
3. Feels like there are a lot people waiting to buy down here should prices fall, or a bargain come onto the market.

So would say that the market has slowed, but prices are resilient, expect to see a recovery in demand sooner rather than later.