The property market looks like its going to collapse and that's a good thing

[Ellreejeee]

Surely this madness is going to end soon and it will benefit the country?

Shed for sale in Somerset in someone back garden for 150k. Look at the pictures www.rightmove.co.uk/property-for-sale/property-37137567.html

London is insane, most overvalued many are saying www.bbc.co.uk/news/business-34676643

The average london house has earnt 2 pounds an hour for the last decade. And that's tax free if its your own home!

Shed for sale in Somerset in someone back garden for 150k. Look at the pictures www.rightmove.co.uk/property-for-sale/property-37137567.html

London is insane, most overvalued many are saying www.bbc.co.uk/news/business-34676643

Sorry first links weren't clicky!

That shed is bonkers no matter what.

But there's too much money flooding in from o/s for London to collapse. It will keep going up due to investment.

Not completely tax free though is it. Ie stamp duty, inheritance tax, capital gains.

They aren't overvalued if someone is willing to pay it! I'm in the midlands and it's definitely a sellers market, houses sell within days, it's crazy.

Money can easily stop flowing into london k&c sales volumes and amounts are already down massively.

Once confidence goes could easily crash.

There may be a short term collapse but the reality is that prices just keep rising. My neighbours (in an outer London suburb) were telling me how they bought their fairly bog-standard semi for £35K in the early 1980s - their house is worth at least £600K now, and that's after two recessions.

Laughs. I grow up in somerset and that shed is very overpriced for the area.

What makes you think it looks like the market is going to crash?

I really can't see it any time soon.

I'm not sure about a crash but I do think there will be a point where houses prices reach a ceiling point as people just won't be able to get a mortgage.

Yes, houses are overpriced, but Is the market really ready to collapse? I doubt it. Weren't house prices in London on the way up again about a month ago or did I get that wrong?

Hmm Compton Rd is considered one of the nicer areas in Shepton Mallet to live, but that's not saying much.
Shepton Mallet's known around here as Shit-N-Smell-It & not the most desirable town to live in.
I can't see it selling for that, there are 3-bed houses in Shepton for approx £180k!

Considering that the population growth forecast released a couple of days ago (www.ons.gov.uk/ons/rel/npp/national-population-projections/2014-based-projections/sty-2.html) is that the population will increase by around ten million over the next twenty years or so, it would seem a crash, over the medium term at least, is unlikely.

Supply is unlikely to keep pace with that sort of demand so prices should stay high. There are of course huge regional variations.

Says who ?

It's demand driving prices- whatever people deem worth paying, so long as mortgages available- although I was surprised when we were on market around age selling price, at just how many people were cash

I think talk of a crash is irresponsible. Prices will keep marching upwards, with occasional periods of stagnation.

I live in Edinburgh, prices have been insane here for decades. I know countless people who have missed the boat because they thought oh this madness can't go on, I'll wait until prices are more sensible.

Unless they can start building houses underground or in the sky, prices will never become more sensible.

Even during the 'credit crunch', prices merely softened slightly then marched upwards again.

It's shit and it's unfair, but it won't change.

I thought you were exaggerating but that is an actual shed in someone's back garden

The spiders!!! Ach!

I can't see an all out massive crash soon.

I live in the north. Houses on our street go for asking price within 2 weeks.

Someone is obviously buying.

And please, don't think that a housing crash will solve anything. I lived through the misery of the last one. Guess what happened? Young people, a few years into their mortgages, who had taken the maximum the banks would lend, lost their homes. Anyone with a lower mortgage, and older mortgage or more savings, was fine.

And when all of that settled, house prices shot up and the madness started again.

It won't, population will grow further and we already have a shortage of housing. That is what's fuelling it in most of the country not foreign speculation.

Anyone who believes an investment can only go up is kidding themselves. House prices in the US crashed by over 50% post 2008 and they still haven't recovered. It can happen here.

It is a nice shed though.

Hmm, I don't think I'd pay that much to live in Shepton Mallet even in one of the nicer areas. Most people I know who live there can't wait to leave.

I wonder why the owner built it, it's going to make their own house much harder to sell with another property in the back garden.

While parents are still giving their children large amounts of money for house deposits, prices will not fall low enough so that people without wealthy parents can buy a house for themselves.

House prices in the US crashed by over 50% post 2008 and they still haven't recovered

The U.S. construction boom meant there was an oversupply of houses by 2007, hence the phenomenon of people just walking away from their properties. The same thing happened in Ireland and Spain. We have built less property than we need for decades and there's no sign that will change soon.