House Prices

[Homebird44]

Are you a drug dealer?

how funny. Id imagine they use pay as you go!! No i have kids and they have phones.

 

[Boutros-Boutros Ghali]

Another update! We went to see another house this morning. Unfortunately it wasn't for us. It was made of wood and had a flat roof and looked very rotten on the outside, which worried us. Estate agent said it's already under offer. It's been on the market for less than a week. If they want to buy a house made of wood, more power to them.

Wood?!?! Is it a beach hut

 

[Moe]

Yeah, apparently 30 mins after we put an offer in for a very run down property with some serious potential, someone else counter offered but the agent was very open with saying its literally JUST over ours. My other half seems to think he's just lying to get us to commit or go a bit higher to asking price - House hunting is a perpetual headache!!

Experience has taught me if there’s an offer in place they aren’t lying. I fix a price when I offer and stick to it. I’ve lost out on two bids this week but I’m not emotionally involved so I walk away.
All I can say is if you really want it and it’s a future home and you can afford it do what you can.
I’ve had one home that I loved with all my heart but had to sell. Everything else to me now is bricks and mortar.

 

[hnoz]

The thing is house prices are largely linked to how easy it is to get credit / the money supply. High LTV mortgages aren't your friend as they push up the prices.

I'd rather have a house for 150k with an 80% mortgage than the same house costing 300k with a 95% mortgage.

I’m sure everyone would rather have the same house for £150k and 80% LTV than if it cost 300k but there are huge areas of the country where this just isn’t a choice and property just costs more.

 

[Moe]

The market has started to slow down now the last few weeks. Stamp duty holiday finishes end of June.
I’m concerned about inflation with all that money that has been pumped into the economy. How many billions?
I know I’ve always said there are too many vested interests from high up wanting property to stay ridiculously expensive but can you imagine if interest rates go up what then?
Most people won’t remember 15% interest rate but so many people lost their homes handed back keys to banks and building societies and never ever recovered or got back on the ladder.
I don’t expect it to go back to that level but would most people with a mortgage be able to cope with say a rate of 6%.
Any thoughts folks.

 

[Yel]

I blame Homes Under The Hammer.

I blame Kirsty and Phil, remember when she accused sir lord Alan sugar of looking at her tits during the apprentice on twitter then claimed she had been hacked

But the daytime and evening schedule for over a decade has been full of property ramping shite

 

[WeepingCassandra]

It's £950k for a 3 bed semi around here. Just an ordinary semi detached. I've lived here my entire life, and we're having to leave and live elsewhere because house prices are so ridiculous. It just feels, unfair somehow?

I would love to move back to the town I grew up in - or one of the villages nearby - but it’s the same situation there. The town centre is dead; there’s about five shops open in the massive 80s shopping centre that was thriving when I was a kid, the historic buildings are being sold off for retirement properties and the traffic in town is insanely bad (it takes my Mum 55 minutes to commute 3.5 miles across town some days) but yet a 3 bedroom house with a postage stamp garden and one parking space in a dodgy part of town is at least £450k. A four bed in the nice part of town with a decent driveway near the local grammar schools will set you back nearly a million if you’re lucky. It’s absolutely insane.

 

[Yel]

I cannot cope with house prices in the area I want, I put my flat back on market, 2 offers way under asking price, both declined, but the area I’m looking in currently only has 3 shit houses all needing work done that are 30-40k more expensive then they were last summer! The stress is real

It almost feels criminal what the government are doing.

They let house prices go out of control without intervention. Then intervine like there's no tomorrow to prop them up.

As much as "homeowners" (many of whom I'd call debt holders) celebrate every time house prices rise it's really detrimental to society. It's not something good that house prices bare little relationship to earnings and that people need help from tax payers and/or family to afford one. But so many MPs are into buy to let, with friends in fiance and they're the real winners out of this all.

It’s completely unsustainable but also means there must be loads of people in negative equity and/or willing to pay the shortfall in cash?

I do agree although it's a bit like buying a new build that will instantly be worth less as it's not new anymore.

In recent months it's probably the worst time to buy during a frenzy. But with the easy money taps on we're just going to have ever more house price inflation.

 

[kazizzle]

You can set up an alert for the post code and then you get an email as soon as it is listed.

I have one set up for my postcode,
my post code + 1/4 mile and my old postcode (in case my old house comes up) both for sale and renting...not a stalker at all

Amazing! Thanks for the tip I have my house as a “saved property” so I can still view the listing and discovered the option where you can see nearby sold prices so I think I’ve looked at all the past listings for houses on my street but I’m ready for some updated photos now

 

[JoeBloggs]

Hi all. I was wondering if there was anyone with a good level of knowledge in this area? My fiance and I were trying to move house before the stamp duty deadline. It seems that the level of demand is well ahead of the level of supply of houses for the level we are looking at (up to £410k) given the stamp duty relief in place. We were determined not to pay well over the odds for a house as we were concerned at the resale price in 5 or so years when we would be looking to upsize again, and therefore we have decided to wait until next year to look for a house.

My question would be are house prices still expected to fall, and if so by how much? I seem to recall a recent article where house prices were not actually forecast to fall by much at all after June. For context we are looking in Hertfordshire.

Thanks!

No one can ever really tell but to be honest as the economy begins to recover, any fall will most likely level. People expected house prices to fall but they haven’t near me as people are moving out of London due to the new remote and WFH trend we seem to be keeping.

We were always told there would be a crash and to wait to buy, we didn’t and the market never crashed for us.

 

[Tublet83]

Also to add not all leaseholds are bad, I live in 1950s surburban semi estate that was built as all leasehold, no fees to pay etc as it’s a peppercorn rent. Mine is actually freehold because the previous owner bought it, but most of the houses are still leasehold and have a large amount of years left.

Your issue comes with buying a less with a short amount of years and you can’t get a mortgage on it and service charges on newer leasehold properties

 

[Lanavalentine]

This is a sombre but excellent read for anyone who fails to understand the relationship between property prices, rental property costs and poverty rates:

The current poverty rate is at its highest ever in the UK.

I don’t know how anyone can look at these figures and justify continuing the system as it currently stands.

Oops, that was a typo on my post. Should have said not bitter. I'm not it going to apologise for owning my home, I've gone without a lot and continue to do so. I feel bad for anybody that is stuck in renting.

I don’t think anyone has asked you to apologise for owning a home. I own a home and yet I’m still very much in disagreement with most of what you say.

Despite the typo, your post implies that people who can’t afford to be landlords might be bitter about it, which is rather ignorant of the actual issues being discussed here. Hope you read the article I’ve linked above.

 

[Pixipoppy]

Well we don't know how this will pan out.

5% ltv was the bar in our near zero interest rates with an inflated housing bubble. Historically it's been more like 20%-25%. I know lots that have bought with deposits that site, many are with gifts from parents.

The only thing I'm sure about is the future is unsure.

I’m gonna see what happens, we were meant to be buying this year but it’s all gone tits up. If we still can’t get a 90% LTV into the new year we’re gonna have to go down the new build route. Depends where you live as well, a few people I know in the north put down larger deposits but their entire house cost like £120k lol. Need to start searching for wealthy family members

 

[HoGi]

Yeah, possibly. Its still a 3 bedroom family home that could house a family in need, and they could go to a 1 bed. This is what I mean about things being managed better. We cant provide social housing to everyone in need permanently - we would run out of houses and flats anyway. They do need to be reused as and when possible.

Oh I know. I totally agree.

And the fact the bedroom tax has an upper age limit, to me, is madness. As it is most likely to be older people in large homes who's children have left home!

 

[Ninteydayfiance]

I’m in a similar situation and I’ve been listening to podcasts and watching YouTube videos of property experts to see what the predictions are and they all say different things which isn’t helpful! I’m in the north west but also have a property to sell before we buy our new house so hoping prices don’t go down too much as my current house will also drop! Not a great situation to be in I know!

 

[SansaStark]

Ah thanks, some say I'm pretty pessimistic but I'd say realistic

Sounds like you're doing the right thing, building up as much cash as possible.

As for first time buyers I'd not get too worried about the current situation and wait to see what happens in the spring.

Looking at this
View attachment 214315
And you can see how much they fell in the 90s and 2008.

So it seems wishful thinking that they'll carry on going up throughout a recession that's wildly accepted to be far far worse than either of those

Worth remembering in 2008 they manipulated the market so much and those tools are now spent as we never recovered from then. So there's limited intervention they can do going forward.

Even before covid prices looked about to fall:

View attachment 214317

Anyway don't get too disheartened, it can't carry on with house prices being so out of sync with wages. How it all unravels is anyone's guess - inflation, deflation, stagflation, hyperinflation

Thank you I’ll take a little pessimism with reality over the opposite every time. I don’t want anyone to lose money if they sell, but making loads of profit while others struggle to get the deposit together isn’t right either.

 

[Yel]

Nationwide report they're down 1.4% last month.

That's 3.1% down in two months, while all the furlough money is being paid out. Now job cuts are happening en mass and furlough is coming to the end I can't see it slowing down.

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2020/Jun_Q2_2020.pdf

 

[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"

 

[JoeBloggs]

I've definitely heard of it, who knows how prevalent it actually is.

Renting: How landlords can refuse to let to tenants with children

Landlords can decide to rule out tenants with children when letting a home, but some say that is unfair.

www.bbc.co.uk

Refusing to rent to people with children is not the same as requiring permission for someone to have a child while already in the rental. They cannot kick you out because you have a baby.

 

[Yel]

Nice properties around here are now starting to sell since the samp duty cut. Lots of overpriced stuff not shifting though.

I wonder how long this surge will last for? I think all this talk of rising prices is very wishful thinking as the steam won't last for long imo. The job cuts are coming in thick and fast even with months of furlough left. Whatever the opposite of the multiplier affect is, I worry about when that starts to kick in at the end of the year.

Economy wise I've not bought anything apart from supermarket food recently, shops and pubs are not enjoyable to go to at the moment.