Housing Market News And Views Kirstie and Phil On House Prices

Comments

1. In my work place we often rave about location, location, location and relocation, relocation...and discuss enthusiastically what Kristy and Phil advice. However, what happened to Northern Ireland in this episode??? We've had dramatic changes in our housing market in the last three years and there wasn't a reference to our market at all!! We (all at my work) are so disappointed that NI appeared on the map throughout the programme but were not referred to at all!

   Posted by What about Us? on 21/11/2008 11:24:54

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2. This show was very disappointing. I've been a fan of P&K for years, I enjoyed their shows, I even bought their book; How To Buy A House. I don't blame them for the advice they've given over the years. I didn't think prices would crash, so I can respect that they didn't they would either. However last nights episode left me quite angry. The dogs on the street know now that prices are crashing so a lot on this show was very irresponsible. Showing year on year prices from Apr 07 - 08 was purposefully misleading. Showing a time period which included rises in the early part of that period gave a skewed picture of the current situation. There was no proper discussion of what alternatives any of the participants had in lieu of buying. The case with the young woman, Claudia, was baffling. The reasons given for her to buy now "as she may miss her chance" were entirely spurious. If P&K had come out and said prices are falling, lets look at all the options. But after that if the participants were still adamant about buying, then P&K should have been helping them to look at everything out there and driving a hard bargain (as Phil later did with the two couples). Then shown them auction options, and even rentals available. It would have been a good, honest show. But what was shown was dangerous nonsense. You've lost a fan.

   Posted by AceOB on 18/11/2008 22:32:54

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3. I'm not sure why the news of falling prices of property should be be 'terrifying'. Surely most buyers are either new to the market (first time buyers) or trading up and so gain due to lower prices. Many people selling up and not re-entering the market are either moving into care or have died so the price attained for the house at sale is immaterial. Especially the latter group!

   Posted by Generali on 18/11/2008 21:34:37

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4. There's lies, damn lies and statistics. The only thing that matters is how much cold hard cash is actually being forked over for a property. The rest (asking prices etc) is irrelevant. The low level of transactions at the moment might skew the picture a bit admittedly but the truth is out there.

   Posted by StatsPhD on 18/11/2008 17:16:15

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5. Phil was intimating that rents are robust. I follow rents in the SW using propertybee, and they are reducing. They also intimated that prices were increasing in isolated pockets. Lets see where things are in 12 months. ALL prices would have crumbled by then. The couple who took on 2 mortgages were very badly advised. Their rental income will reduce, and when interest rates shoot up because of the pounds slide, the two mortgages will probably send them into bankruptcy. They should have rented a second property, or offloaded the first property at reduced price. They ended up too leveraged. The flat the single lady purchased was a dump. Can't quite remember what happened to the third hapless guinea pigs. All these people will lose tens of thousands, especially the London flat. London prices are falling the greatest now when a few months ago we were told they were immune. Another mantra is 'in it for the long term'. This recession (where banks are going bust, that's how serious things are) will make sure that 2007 prices will not return for at least 20 years, and then it is just numbers coming back with inflation. The actual high values are lost forever, unless there is another bubble, but that would be a generation away. To take on additional debt now is a big mistake. Job security (even in the forces) is at a minimum. They should have been advised to rent at their new locations until the prices bottom out. Then buy. They will be paying for 25 years for a bad decision today. So the overall advice should have been 'don't buy now'. But then there would not have been a program. Any fool can see that now is not the time to buy. People will lose a substantial part of their wealth, all linked to the highest priced asset we ever buy.

   Posted by Np on 18/11/2008 16:00:06

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6. I'm sure there was mention early on in the programme that asking prices in the South West were £70K over selling prices. There was a comment that it would be covered later on, but it never was. What happened there?

   Posted by Tim on 18/11/2008 14:09:02

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7. A suggestion. There is nothing in the tittle of the show to preclude you finding RENTED accommodation for people. There are many pitfalls to help us avoid, dodgy landlords, bad contracts, lost deposits etc. and many nice rental properties up for grabs. Go on redeem yourselves!!!

   Posted by Abdullah on 18/11/2008 13:30:17

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8. Why does this article only state halifax and Nationwide figures from April 07 to April 2008. Thefigure now as stated by those companies is now close to 15% for October 07 to October 08. Anyone buying now needs to put a bid in at least another 20-30% below the asking price to be getting anything like a deal! Wait for the reposessions to start in full is my advice!!!

   Posted by Gooders on 18/11/2008 12:28:07

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9. The prices are still way too high for a first time buyer. They need to half before I get interested.

   Posted by Howard on 18/11/2008 12:17:12

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10. Why is hous eprice inflation a good thing. HPI is at the root of our current problems. People have indebted themselves on the basis of illusory housing valuations. Lets all welcome a return to houses costing a realsitic multiple of earnings and consign the property rampers and spivs into touch. Remember we as a nation can not get wealthier by selling overpriced houses to each other!

    Posted by david a on 18/11/2008 12:16:12

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11. Absolutely shocking ..... maybe you need to sit down and watch some re-runs of previous shows ... relating to the market the could never crash. Property guru's, your having a laugh ...... ?????

    Posted by Kenny4315 on 18/11/2008 12:11:24

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12. How can i seriously believe the financial advice of a man whose simplistic understanding of market forces leads him to think rents are going up because people can't buy. (Phil last night) Today the BBC talks of rents crashing due to a glut unsellable houses flooding the rental market. Add to that no one is changing jobs, we're in a recession remember so no one is moving house, anyone looking to re-let their house or flat will have to be very competitively priced. So rents are coming down fast.

    Posted by Athom on 18/11/2008 11:48:16

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13. Thankfully people are beginning to realise the gravity of the situation: Banks collapsing or bailed out. Massive job losses (particularly the financial sector). Please, both of you, look at what happened to Japan (also a small island with limited building land) in the 1990s and ask an independent financial advisor to explain to you the similarities to what the UK economy is now experiencing. The property market will bottom out when prices reach a sensible level for cash buyers who want to invest in BTL and when first time buyers can get a sensible (3x salary) mortgage. Therefore look for a 50-60% fall from peak.

    Posted by Terry on 18/11/2008 11:47:52

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14. I thought your show last night was interesting but I can't understand why the offers made were so low, the majority of houses on the market at the moment have been there for quite a while and if anything like the areas surrounding Brighton have already had there prices adjusted more than the average advised, however they are still not getting any viewings. To see Phill putting in ridiculously low offers was a big dissapointment. The only way I see to fix the problem is that we should all take our property off the market causing a shortage! This would help stabilise the prices and kick start the market again, The time to buy is now without being to greedy.

    Posted by Brad Duncan on 18/11/2008 11:25:41

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15. If either of you two charlatans had an ounce of decency you would apologise to the millions of people you helped in no small way get into the misery of negative equity. And give all the money you got to charities for the homeless

    Posted by ad44downey on 18/11/2008 10:12:42

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16. No mention of the collapse of N.Ireland prices. No mention of new-build flats having 20-40% off. No mention of auctions around 30% off. Phil negotiating says allow for 10% off since June, but then the map & stats say 7% since peak - something doesn't add up. Please have a follow up show, just after Xmas, which will show double-digit falls across the board.

    Posted by C Fodder on 18/11/2008 10:07:01

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17. I was watching the show last night and was wondering if you were going to be publishing the map showing how much house prices had risen and fallen within the last year?

    Posted by Matthew Bonner on 18/11/2008 08:46:20

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18. I have just finished watching the location x 3 credit crunch edition. I totally disagree with the statement that was made about Hartlepool. I live in Hartlepool and I am a first time buyer and for me this housing crash has been a long time coming. As we all agree that the prices are out of a lot of peoples reach. I have been scouring the market for months and I have seen the prices just tumble down. Only to find that the mortgages cant be had. Who would think you would have seen a house in Masefield road for £50,000? I only hope with what Phil & Kirstie say doesn't increase the house prices in Hartlepool. Why don't they come to Hartlepool and help me? I'm serial!!!

    Posted by Potter12 on 17/11/2008 23:11:47

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19. We once considered asking Phil and Kirsty to find us our dream retirement home in Germany, but eventually found it ourselves on the internet and purchased it for 220,000 Euros last December. As I was still working, we didn't try to sell our semi in Mole Valley until June 2008 and then asked for £339,950. Two reductions later we realise that the 1% stamp duty limit of £250,000 meant we were not going to get offers above that, so have cut our losses to avoid keeping 2 houses. Hopefully we should move before Christmas, a little poorer, but a lot happier!

    Posted by L. Schmidt on 17/11/2008 22:53:47

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