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Will house prices ever go down?

Hi all!

Firstly I am not sure if this is the right place to be asking this question but there are lot of clever people here so I would love to hear everyone's views :smile:

How likely is it that house prices will actually go down, when are they likely to go down, and what can cause this to happen?

I remember the pre-Brexit speculation back in May about house prices falling if we voted Brexit - and here we are!

Thanks!
Original post by vicki2000
Hi all!

Firstly I am not sure if this is the right place to be asking this question but there are lot of clever people here so I would love to hear everyone's views :smile:

How likely is it that house prices will actually go down, when are they likely to go down, and what can cause this to happen?

I remember the pre-Brexit speculation back in May about house prices falling if we voted Brexit - and here we are!

Thanks!


Well the value of property will always be naturally going up because due to inflation but during recession like in 2008 house prices can fall but then naturally over time return to their true value as long as not over valued
If they did, it would be a really big deal for a lot of people. Too many people have too much tied up in property.

The main issue would be under supply.
Not while we're still overrun with foreigners.
Reply 4
The private sector with current tax and planning law can only construct 150,000-200,000 homes a year while demand is a little over 300,000 homes per year. This means that there is underlying pressure for house prices to increase over time.

The real thing pushing up house prices though is mortgage/credit availability and until the end of the year at least (help to buy is being scrapped) government intends to continue pushing banks to lend.

If the banks are free of government interference then we could see a situation like 2010-2012 where house prices grew at more or less the same rate as wages nationally (declining in most of the country a little, rising still in London) but it will be a slow process for house prices to become more available for the average person.
Reply 5
Original post by #ChaosKass
Not while we're still overrun with foreigners.


You're American. You're a foreigner.
We need another property crash

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