House Prices

[Pumpkinpie0991]

What do you guys think will happen to mortgages on the market and house prices in light of the upcoming lockdown?

Unsure. But someone I know who has only paid two years into their mortgage has since got a second mortgage with 15 grand deposit (10 percent) the same for her first mortgage

it’s crazy becuase I have unofficially been advised to not apply until I have around 20 grand (20 percent) but this person and I both have same backgrounds in the sense of no debt high credit score and same yearly wage. She is a single buyer.

I hope in a couple years it will go back to ten percent deposit but tbh I am no way clued up about it enough.

 

[Italy2]

Unsure. But someone I know who has only paid two years into their mortgage has since got a second mortgage with 15 grand deposit (10 percent) the same for her first mortgage

it’s crazy becuase I have unofficially been advised to not apply until I have around 20 grand (20 percent) but this person and I both have same backgrounds in the sense of no debt high credit score and same yearly wage. She is a single buyer.

I hope in a couple years it will go back to ten percent deposit but tbh I am no way clued up about it enough.

Interesting. Few lends are offering 90% LTV mortgages though such as NatWest and Nationwide etc

 

[Rmd0609]

https://petition.parliament.uk/petitions/550545
If anyone wouldn’t mind signing this petition to extend the stamp duty holiday an extra 6 months that would be great, thanks!

 

[Lanavalentine]

https://petition.parliament.uk/petitions/550545
If anyone wouldn’t mind signing this petition to extend the stamp duty holiday an extra 6 months that would be great, thanks!

I’m not saying I wouldn’t sign it, but I’m interested in the guy’s reasoning that without the stamp duty cut, many people cannot afford a house?

I would have thought mortgages with 90% LTV all but disappearing from the market is the real issue here? I can’t imagine many people are in the same situation he is, especially since it pertains specifically to purchasing a new build, but I don’t know.

 

[idk2]

https://petition.parliament.uk/petitions/550545
If anyone wouldn’t mind signing this petition to extend the stamp duty holiday an extra 6 months that would be great, thanks!

These people who are snapping up properties to renovate then sell (without the added stamp duty cost) are the reason why I've struggled so much since this was introduced. I'm specifically looking for reno properties in the area I am currently living in yet they are being bought for at least 20k over asking price bc these people have bigger budgets

 

[Yel]

Lenders slash thousands of pounds from value of homes

A report by the mortgage comparison website Bankrate UK has found that up to 46 per cent of buyers have seen the value of their prospective properties drop since March.

www.dailymail.co.uk

So surprised

I think most of the people that wanted to move and have the finances have done so by now. So coming next year with lots of the demand pushed forward to this year will many still be moving and prices still staying high?

I can see the stamp duty holiday being extended else transitions will be very low as unless things move quickly not much time left to complete. But that's a double edge sword and will also make some people think no rush.

Even asking prices are falling (and right move index I don't think takes into account when prices are reduced - just uses the first listing value so often used to say prices are increasing, when that's asking prices)

Rightmove records first house price fall in four months

Property portal says price dipped 0.5% in the last month, despite continued strong demand

www.housingtoday.co.uk

House prices start to fall with a £1,505 drop since October from sellers

After setting new records in October, asking prices on Rightmove have started to fall, dropping £1,505 in November as sellers drop their demands in an effort to beat the stamp duty deadline

www.mirror.co.uk

 

[Lanavalentine]

I have to say, this temporary “boom” that EAs were reporting I always felt was just the natural effect of two things - people who were planning to move anyway but had to wait due to the pandemic (I and everyone I know who has bought a house post-March fall into this category) and those who decided to chance it as they’d had enough of their small spaces after Lockdown 1.

I’m not convinced stamp duty cuts really came into it, beyond having a few chancers who ultimately did not actually move. Without wanting to sound incredibly harsh, I think anyone who was only able to buy a house due to the stamp duty cut probably shouldn’t be doing so. Too financially precarious.

I can only see a further fall now. I agree, everyone who wanted to and was financially able to buy a new house has done so.

I’d also be really fascinated to see how many of those London exodus buyers offering well over asking price in smaller towns actually followed through with their purchases?

 

[orange club biscuit]

I’d also be really fascinated to see how many of those London exodus buyers offering well over asking price in smaller towns actually followed through with their purchases?

This is anecdotal only, but I have been trying to buy a house in an ‘affluent’ area of a northern city since early September and have been out bid on five houses so far (all of our offers have been at or over asking price!) and recently have been noticing quite a number of houses we’ve viewed have ‘unexpectedly come back on the market’. I’d be so interested to hear if this has been others’ experiences too. The current house we live in was down valued by £10k but we had to go with it as otherwise we’d have lost our buyers. I imagine this is happening quite a bit elsewhere...

IMO (for us) extending the stamp duty break won’t really help. Tbh I am divided as to whether i’d rather pay hmrc or a vendor trying to start a bidding war and cash in on all of this!

 

[Yel]

I think lots are fooled by the stamp duty cut, the amount of times I've heard that it's a great thing to save money. Sure let's "save" 5k by paying 15k more for something than it was worth before the saving came in and probably how much it will fall in value come q1 2021.

Seeing lots here coming back up for sale and reductions of stuff that has been sitting around.

Once falls start to come through in the figures (even though they will be highly massaged away with adjustments) it could pickup steam as people hold off.

I don't think there will be a crash, but falls of 10-20% a year are very possible. In many cases that only puts back the rises of a single year, so hardly a crash. It's a rigged market with near zero interest rates and money printers going brrrrrrrr, but real falls still likely considering everything.

 

[idk2]

This is anecdotal only, but I have been trying to buy a house in an ‘affluent’ area of a northern city since early September and have been out bid on five houses so far (all of our offers have been at or over asking price!) and recently have been noticing quite a number of houses we’ve viewed have ‘unexpectedly come back on the market’. I’d be so interested to hear if this has been others’ experiences too. The current house we live in was down valued by £10k but we had to go with it as otherwise we’d have lost our buyers. I imagine this is happening quite a bit elsewhere...

IMO (for us) extending the stamp duty break won’t really help. Tbh I am divided as to whether i’d rather pay hmrc or a vendor trying to start a bidding war and cash in on all of this!

We are in exactly the same position. Looking in a pretty affluent area in the Midlands and like you said, getting beaten on asking price and over and then the houses come back on the market months later. We've had 3 property's we viewed in August come back on the market this month alone after the agent said the mortgages fell through or vender changed their minds?!

 

[fireflies]

Whats everyone opinions on rishi updates

Don't think stamp duty was mentioned.

What's the general consensus on decreasing intentions aid fund.

 

[Yel]

Another record breaking month for house prices. But if you actaully look at the report it's the upper end of the market that is pushing up prices which makes sence.

UK house prices have risen at their fastest rate in almost six years, with properties in national parks attracting a higher premium, according to Britain’s biggest building society.

The average price of a home rose 0.9% to £229,721 in November from October, taking the annual growth rate to 6.5% from 5.8% – the highest since January 2015, said Nationwide.

 

[ClockworkDolly]

If you have a deposit saved, have a mortgage in principle and are looking to buy a home to actually live in, put down a few roots, then I would strike whilst the iron is hot.

You have until the end of March 2021 to capitalise on no Stamp Duty payable on any property under £500,000. Anything above that figure you only pay 5% Stamp Duty. Stamp Duty can really be the dampener when you have found your ideal home, it certainly brings you back down to Earth that’s for sure. Plus, you will have solicitors fee and estate agents fees on top of that.

I would also recommend you buying a second-hand house, rather than paying a premium on a brand new house. Also many new estates these days will charge you a management fee (even with a freehold property!), plus you are paying Council Tax, plus your mortgage! You will soon be out of pocket buying a brand new house. Plus they’re usually built so quickly, are riddled with faults (I‘ve been there many times) and the builders are rather slow in addressing those snagging issues!

Do yourselves a favour and avoid a brand new house.

 

[Yel]

Do yourselves a favour and avoid a brand new house.

Totally agree.

If you have a deposit saved, have a mortgage in principle and are looking to buy a home to actually live in, put down a few roots, then I would strike whilst the iron is hot.

You have until the end of March 2021 to capitalise on no Stamp Duty payable on any property under £500,000. Anything above that figure you only pay 5% Stamp Duty. Stamp Duty can really be the dampener when you have found your ideal home, it certainly brings you back down to Earth that’s for sure. Plus, you will have solicitors fee and estate agents fees on top of that.

Totally disagree. Firstly as it will be difficult to actually get it completed by March now. The stamp duty will most likely be extended and no point rushing now during a frenzy when prices if anything are likely to fall. "Save" 5k by overpaying 20k. The Nationwide says this

“Housing market activity is likely to slow in the coming quarters, perhaps sharply, if the labour market weakens as most analysts expect"

 

[ClockworkDolly]

Totally agree.

Totally disagree. Firstly as it will be difficult to actually get it completed by March now. The stamp duty will most likely be extended and no point rushing now during a frenzy when prices if anything are likely to fall. "Save" 5k by overpaying 20k. The Nationwide says this

“Housing market activity is likely to slow in the coming quarters, perhaps sharply, if the labour market weakens as most analysts expect"

I sold my house by mid June to first time buyers.

I moved into my new house at beginning of October. Three people in the chain.

 

[Yel]

Yes but over Christmas and new year there is a shut down for several weeks where things grind to a halt that you don't have in the summer. Plus there might be a rush of people trying to get it through as March approaches.

So while it's still possible to go from an offer accepted to completing before the end of March, it's also pretty likely it won't go through in that time.

Not that it matters as the stamp duty will be extended

 

[KINGAA]

This is anecdotal only, but I have been trying to buy a house in an ‘affluent’ area of a northern city since early September and have been out bid on five houses so far (all of our offers have been at or over asking price!) and recently have been noticing quite a number of houses we’ve viewed have ‘unexpectedly come back on the market’. I’d be so interested to hear if this has been others’ experiences too. The current house we live in was down valued by £10k but we had to go with it as otherwise we’d have lost our buyers. I imagine this is happening quite a bit elsewhere...

IMO (for us) extending the stamp duty break won’t really help. Tbh I am divided as to whether i’d rather pay hmrc or a vendor trying to start a bidding war and cash in on all of this!

I’ve noticed this too, tons are coming back on the market in my area, even auction houses. I’m guessing they’re all being down valued with the mortgage survey and the sellers don’t want less so they pull out and put it back on but it’s a vicious cycle as the same will keep happening unless someone comes with cash or they get someone with a lender who doesn’t downvalue it!

Also, estate agents aren’t helpful.. they will value properties unrealistically in order just to get you to sell with them... they are all super dodgy.

 

[orange club biscuit]

I’ve noticed this too, tons are coming back on the market in my area, even auction houses. I’m guessing they’re all being down valued with the mortgage survey and the sellers don’t want less so they pull out and put it back on but it’s a vicious cycle as the same will keep happening unless someone comes with cash or they get someone with a lender who doesn’t downvalue it!

Also, estate agents aren’t helpful.. they will value properties unrealistically in order just to get you to sell with them... they are all super dodgy.

Yeah don’t get me started on the estate agents! I haven’t met one I trust yet (sorry to any estate agent tattlers...)

One house came back on the market just around the corner from me this week - it was originally bought at auction in Jan 2019 (probs with someone with cash I am guessing) for £160k. It was put on the market in July for £475k - massively overvalued IMO because although it’s had a full reno it’s not that nice...now it’s back on for £485k! The housing market truly is a mug’s game right now, everyone is out to make some cash. Not that I blame them but some people are truly taking the piss!

I also tend to agree that anyone trying to sell right now is not going to get through the deadline. Unless they’ve got cash

 

[Be creative]

I’d just like to fly the flag here for genuine estate agents, like myself. I have lost many instructions due to “honest & factual” valuations only to see the advertising drop down to what was initially my suggested valuation after ages on the market. I agree there are many sharks and overvaluers out there, but we do get a super bad rep and for some of us, it’s simply not justified. Anyhoo... just shouting out to the good guys

 

[KINGAA]

I’d just like to fly the flag here for genuine estate agents, like myself. I have lost many instructions due to “honest & factual” valuations only to see the advertising drop down to what was initially my suggested valuation after ages on the market. I agree there are many sharks and overvaluers out there, but we do get a super bad rep and for some of us, it’s simply not justified. Anyhoo... just shouting out to the good guys

That’s the issue isn’t it, sellers will go for the higher price because it’s more money... and you get the ones like my neighbour who thinks their 70s shack is a mansion and will get egged on by purple bricks and end on the market for months never accepting anything else!

Will be very interested in seeing how the market turns out next year as something is going on with devaluing for sure from lenders but the houses arent meeting the lenders values it seems... something will give! I just hope prices don’t Sky rocket!