I’m not looking at house values, since the choice of buying or not buying based on price makes one a property speculator, rather than a would-be homeowner.
I look at the affordability of Mortgage Payments ONLY.
Because I got a good deal mortgage-wise, I get to keep my house when payments go up (because mine go up less…) and don’t skin myself alive trying to make such payments when others are being re-possessed just as selling prices are coming DOWN…
“Buy low, never sell” works for property like “Buy low, sell high” does for Stocks and shares.
Mortgage payments though?
Houses were cheap throughout the 1990’s, especially from 1994-97. The payments fell when Blair got in, even though prices continued to advance.
I now have a 155k mortgage with a payment lower than what it was when I took out the mortgage.
That lower payment - keeps my house affordable for ME.
I’m not selling, so the value of my house - is irrelevant.
Payment Trends are easier to predict than house prices, as the lenders set that trend to start with.
Right now, rates are expected to fall with a Labour government later this year, but fall slower, or remain static if there’s a hung parliament.
Rates will only rise if the Tories unexpectedly win.
The Bank of England has already made policy that they’ll “Help Labour” electorally then - but not the Tories.
It’s just a question among pollsters at “how many seats the Tories will lose” with them losing even if they only drop a handful of seats, Sunak tries to stay as PM, but gets turfed out by an immediate vote of no confidence…
I won’t be voting for Starmer unless and until he comfirms BoE policy is what I’ve just read it as.
I would imagine that many will either not believe it (voting Labour anyways) or not believe it (voting Tory anyways) with only the floating voters like myself - caring anything at all about the future direction of mortgage payments, rather than house prices then.
franglais
3 April |
winseer:
Inflation is already down,
It is down from where it was a year ago.
It is still higher than before the current Gov was in power and is still higher than under most of the last Lab gov. United Kingdom Inflation Rate.
winseer:
but so far that hasn’t been passed onto lower interest rates.
But remains much higher than when many took out their mortgages. United Kingdom Interest Rate.
winseer:
INTEREST RATES are what puts Housing in the range of ordinary workers like Us lot…
In 1999 a house in London cost about 10 times workers salary.
Now it’s about 26 times their salary.
it is all broken down for different regions and by years etc
Housing Purchase Affordability, UK - Office for National Statistics.
As Zac will doubtless point out a Northerner may be on less wages but cheaper housing more than makes up for any regional decrease.