Hey Property Doomsayers! "House price downturn worst since slump of 1990s, surveyors report"

[WideWebWitch]

here, The Times today

TBH I'm not sure if it will be such a great thing for FTBs.

I think for most FTBs the increase in size of the deposit required and lower multiples of earnings will more than offset the down shift in prices - making it just as out of reach for most of them as it has been up until now.

I think that a lot of landlords who were wise enough to sell off their portfolios will hoover up the available properties if prices fall by more than 10-15%. Also those who have plenty savings or first mortgages paid off will find it an attractive time to buy their second homes for holiday or investment purposes.

Oh I hadn't seen this, THANK you Southutsire for the chart!

ctritter, I would wait, big time. It'll be £250 or less next year, mark my words/

I don't think it'll be bad for FTBers at all. We needed to be prevented from borrowing 5 or more times our salary without having saved up a deposit, as the temptation is to think that if the bank will lend it to you, it will be OK. People have got used to the idea that they can have whatever they want and pay some time in the future when everything will probably work out - not very healthy imo. It's the very fact that those getting their first house now will only be able to borrow a sensible amount - and have saved a deposit - that means prices can do nothing but drop.

I doubt there will be a rush to buy as soon as prices drop 10%, if the trend is still downwards - why wouldn't you wait a few more months and pay less, unless you're desperate to have it right now? Nobody's ever really forced to buy a house, only to sell one.

BTW I love the way that chart's lowest number is 1, as though they can't imagine house price inflation falling below that point... looks like they might need to redesign it next month!

But all that's really happening is that the market is correcting itself to what it would hve been had the banks/BSs not started lending ridiculous multiples of salary. Plus the 50 year mortgage idea, and clubbing together with strangers to buy. The more people thought they could spend, the more prices were going to inflate. If we're returning to what it used to be like in the "old days" when we started out, then prices have got to adjust to match. Which is only a bad thing if you're one of those people who borrowed 6X salary to buy at the top of the market and now has to sell.