House Prices

[mindlessness]

The media here (Australia) does lots of Millennials v Boomers stuff (which I dislike immensely) but it is interesting comparing:

OK Boomers, who had it easier?

It’s a battle for the ages – with Baby Boomers and Millennials pitted against each other.

www.news.com.au

Wages not increasing while property prices have (by a lot) sucks.

 

[heretoreaditall2019]

I'm not surprised that rotten houses have high offers too. It is quite common here in Ireland to see derelict homes for well over a 100k. The only way to renovate them is by throwing a grenade at it and starting from scratch.

I look at properties in Ireland weekly & I love seeing the spooky buildings!! We’re looking at big houses with land and they’re always so beautiful and far more… sympathetically (if that’s the right word??) decorated complementing their lovely period features than the big houses in England which are usually utterly foul. Just have to convince my husband

 

[heretoreaditall2019]

the carpets haven't been changed since Jesus walked on Earth.

Lmaoooo

I’m in a nice area tbf and London so priced accordingly but most houses that become available are because the owner died, so I’m used to seeing dilapidated properties that are cleared out of all belongings. Then you’ve got people who bought in the 80s/90s/early 00s who are now house rich but don’t earn as much so it’s cheaply done or verging on scruffy but nothing offensive. But I’ve never seen an active hellhole like that one. How many girls are telling us to smash their subscribe button and use their discount code and they’ve not even got flooring down in the bathroom

 

[heretoreaditall2019]

They've even started knocking down mansions near me to replace them with luxury flats

They’ve started doing this here too (east) and it’s very jarring seeing beautiful old properties with established gardens and original stained glass then some new build monstrosity in between them, I wonder how the financials of it all add up too tbh. But nodded throughout your post, I’ve said the same thing but that generation of old people dying is my biggest concern & motivator to finally leave London as I don’t want to live in an area where the community is dictated by what shit the scumbag landlords buying these properties will pull. I’m having to pay for my neighbours guttering repairs cos I don’t want to hear it anymore, essentially subsidising a small portfolio of inheritance for their LL’s kids. Fab!

They’ve really ruined London and we’re a similar age (although I’m at the later end of the 20s bracket lol) and probably grew up in a similar London that just doesn’t exist anymore. Likewise, my friends have either bought glorified new build bedsits so aren’t in a position to have a kid yet or are moving way out to have kids so it’s not even fun playing house here. With the pandemic I’ve not left the borough in however long 18 months so feels like an increasingly pointless battle to fight.

 

[hollowcrown]

House prices fall for first time this year

Average prices dropped by 0.3% in August, says Rightmove, as demand for bigger houses shrinks.

www.bbc.co.uk

Little fall in house prices

 

[Yel]

I've been getting those "properties needed for buyers asap" flyers since things started to slow down and more stuff went back for sale

I saw something I quite liked, then realised the flood risk per year was 0.1-1%. Which while it's very low we keep seeing places that have a "1 in 100 years" risk of flooding every couple of years. Too much of a gamble for me, I'd panic every time it rains and all it needs is a sudden localised downpoor and you'll need to evacuate and your home won't be insurable. Sky news were saying today 1 in 5 homes in the UK are potentially at risk of a flood

 

[Homebird44]

But has it really helped? People paying 20k more for something to "save" 5k in stamp duty. Madness.

Nope. I wouldn't buy now. I'm lucky I've got a decent equity but I'd like to have a driveway and garage. Id need to spend at least 450k for that and I don't want a huge mortgage. I can see the prices going down.

Landlords absolutely cannot keep pumping up rent prices. The government is trying to end work from home in order to keep people buying overpriced sandwiches and living in expensive cities and keep the property bubble growing.

Landlords can do what they like, its a horrible situation for anybody stuck in renting. Friends of mine gave up their rental and moved back in with parents. They saved for two years and had enough for a deposit. That's great if you have family nearby happy to let you move back.

They can and will if people keep paying the rent. There are not enough homes compared to people so it is supply and demand.

I'm SE, the couple across the road have just put their 3 bed house up for £475,000 and the new builds around the corner are going for another £100-150K!

You must live near me. I bought my house in 1999 for 64K. Its now worth 385k and its only a small terraced. Crazy money.

 

[JoeBloggs]

I can’t see interest rates rising significantly anytime soon, although I’m far from an expert. Uncertain economy and low inflation means there is little impetus for a rise in interest.

However, saying that, I think anyone who is paying a mortgage should be wary. Although we don’t get any decent returns on our savings, we still save like mad, simply because we want to be used to not living on that money if interest rates were to suddenly rise and increase the cost of our mortgage. We are very fortunate to be able to do so.

I worry a tiny bit for anyone who’s stretched themselves for a mortgage while interest rates are low, as we’re moving into such uncertain times now. I don’t think anything will change, but like I said, I’m far from an expert and the type to always err on the side of caution when it comes to finances.

I wholeheartedly agree and support the current legislation that means when taking out your mortgage, you need to be able to afford it if the rate rises by approximately 7%. However if people’s circumstances have changed or they have committed their income to other means since being granted the mortgage that is irrelevant.

I doubt the interest rates will increase much if at all because of the economy tanking. We’re on 2.1% and I expect it to drop slightly when we remortgage.

I’m a huge saver and am looking to pay off the max 10% each year and possibly move to a savings mortgage to eventually pay it off but I haven’t looked into it much yet as we have a year to go until we need to.

 

[Caffeine Fiend]

My parents bought their house in 1996 on one wage for £180K, it is now worth nearly £1mil. Their first house they bough for less than £10K on a 100% mortgage which allowed them to get on the market.

I bought in 2017 with two wages, circa £65K, we could only get a £250K mortgage and needed at least £325K to get on the ladder. Where do you get £75K from when paying £950 rent a month plus bills before the price goes up again. We were very fortunate and were gifted money but I know so many who it is not an option for them regardless of how much they work and save, especially not in the South East.

Its so depressing we were hoping to move soon but houses here are going for 25% over the home report value (In Scotland, not sure what equivalent in England is) and Im just not prepared to get into a bidding war right now. If it means we need to stay put then its what Ill do. Would be mortgage free a lot sooner if we dont move.

A relative of mine was trying to buy in London for years. Despite having a decent job and a good deposit he was continually outbid with properties going way in excess of what they were valued at and usually investors buying them. Its not like he was trying to buy anything extravagant either but didnt have 30k in addition to his deposit and you cant mortgage beyond what its worth.

 

[prinsld]

we had our heart set on a new build property 5 mins from where we live now. read all the planning permission documents on our council website and they estimated to sell the homes for £180k before covid, they’ve just gone on the market for between £216k and £230k!! How can they do this?? a three bed semi with a drive up north! It’s ridiculous

 

[hnoz]

We've just had our place valued for a remortgage and they've put it at 25K above the last valuation which was only last August so seems lenders aren't being all that cautious after all.

 

[Homebird44]

There will have to be some kind of correction to bring things back in line. But what form it takes is anyone's guess! Recent years have shown they get away with printing of money to devalue it even though it's theft of those with savings.

They did drop after the last recession in the UK and we're only just about to face reality with furlough and all that now being turned off.

Its only been a week since the stamp duty holiday ended. I was popping on Right move most days and houses were showing as sold the day they were on the app. Houses that went on a week ago are still for sale. It will slow down now.

 

[HoGi]

A lot of is for show too. We could easily move, make £100k on our house and buy something quite special. But I enjoy our current disposable income, I like our home and our area (we had to move 20 miles to buy) but the likes of my cousin, he’s just had a £35k increase (madness!!) and she’s moved up a band in the NHS. They are late 20s and looking to buy a £900k house, I can’t believe for one second they can actually afford it but like their parents that doesn’t really matter. Even if I could afford that, that debt, maintenance and possible interest rise, no thank you!

I'm much the same.

We moved 15 miles away to the next big town along. We bought a 3 bed detached and have done it up as it was a shit hole when we got it 4 years ago. We still need to do the bathroom and kitchen (both have had mini glow ups) but we were debating move or do them big jobs.

When we are looking at what's around the prices are astronomical and even with what we have made on our house, to go up to a 4 bed detached would be a huge increase in cost and I enjoy my disposable income.

In the town we left, my friend has just paid 500k for a 3 bed semi new build...half a mil and shares a wall

 

[Yel]

Nationwide report house prices down 1.7% in May.

House Price Index Headlines | Nationwide

Read the latest headlines on the house price index and download our monthly and quarterly house price index reports.

www.nationwide.co.uk

UK house prices fall at fastest rate since 2009 amid coronavirus crisis

https://www.archive.is/oldest/https...2/uk-house-prices-fall-coronavirus-nationwide

 

[Esbeepea]

I find it made that people are so keen for these 95% mortgages, yes it gets you on the ladder but it just brings back the 2008 crash. I wish they would have finances on the curriculum so people really understood these things.

But what's the alternative? You can't get a decent family home for less than £300k and that's in Yorkshire. Even if you settled for a 200K house, a 20% deposit is £40k before you've even taken other fees and costs into account. How are people supposed to rent and save at the same time if they want a decent home?

 

[heretoreaditall2019]

So many people can pay the huge prices because of the unearned money in their current home. I know people on a very normal income who recently completed on a house costing around a million.

Yep, I think the stamp duty holiday and this pushed people to move up a rung on the non existent property ladder which freed up those properties for the bank of mum & dad lot. I try to ignore the HTB or partial ownership scams but they probably help the lower income bank of mum and dad lot too.

Although I know a few families that will admit they had to over stretch themselves to afford the next property but in the next sentence are opening Reno instas and talking about extensions?? You’ll be paying that off til you’re 80 beloveds

 

[Yel]

There's tens of thousands of "luxury flats" that have been built in recent years. They're stores of wealth and it almost suits the owners better to have them empty and no one devaluing the asset - along with lots of the other London housing stock. No good comes from this.

 

[Boutros-Boutros Ghali]

Thing is if people end up in negative equity they won’t move unless they have to do that’ll mean less available housing on the market so more people staying in rented and those prices rising….it’s a mad situation right now

And used cars are absolute madness….we got offered £14k for ours a few months back. It’s now over £20k so we can potentially make £6k on what’s owed on the finance….no cars to swap it for unfortunately, can’t even test drive the one we want as they've sold all the stock of the particular model in the Uk and nothing coming in until March next year

 

[Yel]

I have a friend who is an EA in the south east and that’s how I heard the phones had started to go quiet.
It could just be a blip but the stamp duty holiday is coming to an end plus all the furlough etc
I think at the lower end of the market stuff is still moving but the higher end is slow unless it is in a really desirable area and priced right.

Sounds about right, anyone looking to complete before the first stamp duty holiday reduction ends next month will have had their offer accepted by now.

There was already so much pent up demand that the stamp duty changes have just added heat to an already overheating market. It now looks like a mistake, just as help out to eat out was.

I'm still a bit confused at who is buying all the shitty flats in urban areas that are allowing people to move to the burbs?

The end of this year once furlough and stamp duty changes are gone will let us see where things stand.

 

[HoGi]

Oh my god, so sorry but what an idiot.

I cannot abide anyone who comes out with this anti-pension myth. It drives me insane, but seems to be quite common in some circles.

It wasn't a fun few days!!

He is honestly the worst kind of person. He made me so angry I couldn't look at him. I needed another few days off work after my time in his company as he stressed me out so much.