Friday, November 02, 2007
Wll House Prices Continue to Go Up?
A report by the National Housing and Planning Advice Unit (NHPAU) estimates that despite government plans to build 240,000 new homes per year, house prices will reach nine times average earnings by the year 2020.
This is way up on the current figure of around seven times earnings - with wide variations nationally.
The report also said that properties in the southeast, southwest and east of England could become even more expensive compared to local salaries than those in London.
This will be due, they said to the fact that whilst “lots of jobs are being created in London, an increasing number of people are choosing to live outside the capital and commute in from surrounding areas, thus further driving up house prices across the south of England.”
This is worth taking note of because the NHPAU is not a house builders’ body. It was set up by the government last year in response to a recommendation in the housing supply review that found that, house-building rates halved while demand for new homes rose by a third over the last 30 years.
In my view, as long as you avoid flats those cities in the north which are clearly oversupplied with apartments right now, you will do OK buying property now over the long term.
If you are a first time buyer or an investor in the South, I would use the current weakness to buy property.
Finally, at last! A decent programme on the property market! Congratulations to the team who made “The Truth about Property”
It is sensible, balanced, well researched and thoughtful. The only minor criticism is that they have overlooked the affect of inward migration and inter-regional migration on the market. These are both huge factors in rising rents and house prices. But, still well done for a good programme!
If you need more advice on buying property to let or property in general please ask me. I’m David Lawrenson from property investment experts www.lettingFocus.com
I’m the author of property investing book “Successful Property Letting - How to Make Money in Buy to Let”
I’m an expert on buy to let and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property investment and mentoring service
My business is now increasingly focused on providing consulting advice to banks, building societies, housing associations and web portals. I help them with their buy to let and property products and services.
You can read more of my landlord blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London property networking meeting is on November 14th. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property investment advice because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
This is way up on the current figure of around seven times earnings - with wide variations nationally.
The report also said that properties in the southeast, southwest and east of England could become even more expensive compared to local salaries than those in London.
This will be due, they said to the fact that whilst “lots of jobs are being created in London, an increasing number of people are choosing to live outside the capital and commute in from surrounding areas, thus further driving up house prices across the south of England.”
This is worth taking note of because the NHPAU is not a house builders’ body. It was set up by the government last year in response to a recommendation in the housing supply review that found that, house-building rates halved while demand for new homes rose by a third over the last 30 years.
In my view, as long as you avoid flats those cities in the north which are clearly oversupplied with apartments right now, you will do OK buying property now over the long term.
If you are a first time buyer or an investor in the South, I would use the current weakness to buy property.
Finally, at last! A decent programme on the property market! Congratulations to the team who made “The Truth about Property”
It is sensible, balanced, well researched and thoughtful. The only minor criticism is that they have overlooked the affect of inward migration and inter-regional migration on the market. These are both huge factors in rising rents and house prices. But, still well done for a good programme!
If you need more advice on buying property to let or property in general please ask me. I’m David Lawrenson from property investment experts www.lettingFocus.com
I’m the author of property investing book “Successful Property Letting - How to Make Money in Buy to Let”
I’m an expert on buy to let and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property investment and mentoring service
My business is now increasingly focused on providing consulting advice to banks, building societies, housing associations and web portals. I help them with their buy to let and property products and services.
You can read more of my landlord blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London property networking meeting is on November 14th. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property investment advice because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
Labels: House price outlook
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