House Prices

[Holidaybobs]

Prices where we live have gone absolutely nuts. There is no way on earth we could afford our house now, we paid £380k in 2015 and they are selling on our street for £600k +

Such a pity that my daughter and her boyfriend will never be able to afford here, you can't even find a 2 bed flat for less than £250k. This is in the North by the way.

Both us and her boyfriends parents have always said never rent. Stay at home and save. They are 22 and just about to finish Uni, so it will be hard for them to adjust to full time at home after having found independence but at least they can split their time between houses. We've also given her the biggest bedroom in the attic and had the en-suite done up, plus I've made one section of the basement into a second living room for them to use if they want to be away from us. With rent prices around here it's the only way they'll be able to get a deposit together, and even then there will be help from the bank of Mum and Dad.

It’s honestly so worth it, they will appreciate it in the long run. I have friends who did this and are so happy they did. Whilst, others rented as well and regret it massively. It’s not that bad living at home, especially if you have your own space. I missed my mum when I left home!

I’m from Manchester and the regeneration is having a huge impact on prices. Areas people wouldn’t walk in 10 years ago are now selling places for a minimum 300k.

 

[fireflies]

I'm gonna sound heartless here but I hope the housing market crashes so I can get on the property ladder. Its SO hard for my age group to buy decent houses in decent areas especially when grad jobs are barely over 23k for the first year. I don't want a new build as they're too small for my liking and the bigger ones are obscenely expensive where I live (700k+).

I've been looking at houses for the last 2 years now and have resorted to looking to buy a fixer upper in a good area with a large garden and driveway. We've found two so far and both were put on auction which everyone seems to be doing now to get even more bang for their buck. They both had so much potential but the owners wanted way more than they were worth for the first one and the second one had 100+ bids raising it 100k from bidding start price!! I don't even know where to start anymore.

Not heartless at all we got property ladder end 2018 in our 40s.
We brought a doer upper in so so area.
Now they al gone up just year later we be priced out the market.
Out mortgage is lower than local rents for 3 beds same area.
We lcuky during pandemic we haf option mortgage break.

I think 2021 once mortgage holidays and rent breaks ended we will see lots of buy to let properties selling.
We no wish to move so dont care if prices drop ours is secure home not a investment.

News being so stupid today of course be massive drop.
Unemployment be high.
Food retails probably done well.
Some restaurants and fashion retailers were already struggling before tbe virus.
We work longest hours Europe
Low wages and job security
Hugh housing costs and education.
Many middle class people have no or lottle disposable income left to spend after rent and bills

 

[AllSeeingEye123]

https://www.archive.is/oldest/https...build-TINY-home-lockdown-30-000.html#comments

Good on them. They have worked hard to create something for themselves and avoid paying out too much rent to some robber known as a landlord.

 

[Hertfordshire_home]

And for those wondering my family actually grew up on benefits, neither went uni and neither were in well paid jobs. The fact you’ve assumed the opposite “speaks volumes”

 

[Bronx]

going back to the help to buy schemes.
my husband and I bought our flat with the 5% help to buy scheme and it’s worked out well for us, as we’ll make around £50k when we sell (we had it valued just before COVID). My brother in law and his wife did the help to buy scheme where they put down a deposit but the company owns a large percentage still, ie they’re essentially renting part of their house. They’ll make around £15k if they sell it. They cannot afford to move now.We told them while they were thinking about buying it to wait, save up more of a deposit and just do the 5% help to buy scheme but they couldn’t afford to live where they live without it. It’s ridiculous.

 

[Former_Antelopee]

If you cant buy the freehold ask for the cost of extending the lease but only if you are happy with the associated leasehold costs per year.

We spoke to some people who lived there and my dads friend used to. Most said they didn’t look into buying it but one did say they think you have to have it two years before buying it so I’ll probably buy it after the 2years if I couldn’t buy it now. Nothing on the leases has changed in the 14years since they’ve been built so hopefully should be ok.
The council who own the freehold don’t seem to do anything. They cut the grass near the flats there but the people who own the houses end up doing the gras in front of their homes. Some areas with trees and bushes probably could do with cutting but it’s not too bad and gives more privacy. The housing company that built them went bust when they completed the houses (did everything but the final premium layer on the road, you can’t tell just seems like a normal road) but they left the sign up that way new houses and it’s still there 14years later!

 

[OnlyHereForTheLolz]

Prices won’t drop. The best thing is to buy straight away. They are expecting the economy to recover quick and also VAT will be slashed. It is difficult to predict housinf crashes and if everybody waited then you’d never end up buying anything. Rather pull the trigger on a house you love

 

[fireflies]

If people dont have secure jobs or high deposits banks won't lend mortgages despite low interest and no stamp duty.

 

[Sickofinstacrap]

Same here. So long as things haven't been stupidly overpriced (like my next door neighbours house) things are selling within 48 hours of going on the market

Yea it’s 100% all about pricing too but houses are now even more expensive then they were in feb! It’s mental! I’ve a bid on a house now, find out today if it was accepted! We bid on it when it was on the market 4 hours- after viewing of course that’s how mad it is

 

[actuallyeducated]

Oh I'm sorry I was born in late 90s when the house prices now are not proportionate to people's salaries than in 1980s when they were cheaper and 90-95% LTV mortgages for landlords were easy to get. It's definitely my fault that I'm born at a wrong time when houses are looked upon as investment vehicles and businesses for profit making and not as a home for a little family who works hard.

I was also born in the 90’s. But I have worked hard and saved and have now sold my first home looking to buy my second. (On my own I might add with one income) It’s what you make of it. If you were able to do something that would make you money I’m sure you would. It just comes across as very bitter saying that landlords want to not work and have others pay their mortgage - of course, who wouldn’t want that?! I have been a student and rented. Landlords are necessary and it’s a service that wouldn’t be there but for these people able to buy a second property and rent it out to you

 

[heretoreaditall2019]

Weird question but is there such a thing as selling a property with no for sale sign & no online listing for it?! My noisy neighbours have officially left but absolutely no trace of a house sale online… how bizarre? Have noticed a lot of houses for sale locally don’t have for sale signs outside either, it’s only the shit heaps that do, does anyone know why this is? Is it just because they’re selling that quick these days you’ve not even got time to put the wooden sign up?!

 

[hollowcrown]

Pay rise is approved of this month, doubt it will be enough to get a mortgage though. Maybe not even nans inheritance will help/

 

[Yel]

I think it’s greedy and disgusting that UK women have and had to pay higher tax on sanitary products. It is being lowered down from next year, but it is a Necessity like toilet paper. Oh, this greedy and disgusting government taking advantage of poor women!

I'm not sure if you're being serious?

Sanitary products are 5% VAT and toilet paper is 20%. You could by a tabloid to use as toilet paper as that's VAT free. The VAT system is a tricky mess, see pringles and jaffa cakes. And the VAT on sanitary products has been around for a lot longer than the current government so can't really solely blame them.

 

[LinaLamont]

It’s such a frustrating time as a first time buyer. I held out hoping the market would dip a little but prices are still through the roof and I refuse to pay 20/30 grand more than the house is worth. I think there will be serious consequences for the upcoming generation because of all of this. I also hate the ‘offers over’ system we have in Scotland.

 

[Yel]

It’s honestly so worth it, they will appreciate it in the long run. I have friends who did this and are so happy they did.

No one really knows what the future will hold. Just because it worked well for people in the past that's no guarantee it will in the future. Everything is uncertain.

If the future was to keep repeating it's self then the falls at the end of the 90s and in 2008 when there were economic shocks would happen again. But that's not certain either.

 

[Lanavalentine]

If you have a large amount of cash / equity it makes sense to carry on now as inflation quite likely counteract any falls and it's better to just get it sorted.

If you're borrowing hundreds of thousands to pay back over several decades it probably is wise to wait 6 months.

I do think lots of people think they're unaffected because they've carried on working from home without much change. But even those in industries that you'd think are safe will quite likely find out they're affected by all the knock on affects that will rapidly start over the next few months. We've not really seen anything yet.

Yes, we own our current house outright, so obviously a lot of equity. If our current house was mortgaged I think we’d definitely be staying put, no matter how strong our finances and partner’s employment are.

Looking around at my friends and family, I can see that some really have their heads in the sand.

 

[Yel]

The Centre for Economics and Business Research is predicting falls of 14% next year, specifically when the stamp duty holiday ends and the effects of the recession filter through. Although I'm sure some other scheme like the stamp duty holiday will come in, so who knows.

“Our analysis suggests that prices will start to fall significantly towards the end of the year and the first half of 2021, though there might be a short spike as the stamp duty reduction comes to an end, with average house prices forecast to be 13.8 per cent lower in 2021 than 2020,” the CEBR said.

Verifying Device

 

[heretoreaditall2019]

Not sure if this is the right thread - but just watching Martin Lewis' show from yesterday, really shocked that the green improvement scheme doesn't look as shockingly shit as Sunak's tweets initially suggested? He said that it was for low income households which felt ridiculous, how many home owners are going to be low income in this era of house prices, minus pensioners? Apparently they'll fund 2/3rds of green improvements up to £5k, for low income households 100% up to £10k.

Wondering what work you'll be able to get done with it though...

 

[hnoz]

When do you guys think the 5-10% LTV mortgages would be back? Are you guys anticipating end of the year or maybe next year?

Lots of banks are still offering mortgages with 5 + 10% deposits, they have only been pulling them temporarily. I think YBS announced this week they were back and Nationwide said their reason for pulling them for a few weeks was due to unprecedented demand and low call centre numbers so they needed to catch up processing. 90%LTV is still not available through intermediaries, so brokers but if you go direct many of the big ones are doing them.

 

[Mrs McCarthy]

Their ability to lie is one of the requirements for the job.
If I were you I would just go ahead and view the property as long as you keep in mind it will be a shit hole but look past that and imagine what you could do with it.

I am sorry but it is not a nice thing to say. My friend is an estate agent who is training to be a surveyor and this stereotype really hurts him and his colleagues.
the corporate chains do lie a lot more than small local agencies purely because of the way they work. In any sales job you need to sell whatever you are selling and you need to make it appealing.

So a house went up on Rightmove for sale last week with 2 photos, one at the front and another of an overgrown garden. I rang the estate agents today to ask whether they would be putting more pictures up soon so people can have a better idea. The estate agent told me that they won't be putting any more pictures up yet because the house is cluttered at the moment and they have the keys for a viewing. Apparently they have already had an offer on the house but it's under negotiation because it's too low. I asked her how can people make an offer without pictures in a week and she said oh they have viewed the house. I think they are just lying. Why do estate agents lie so much!?

If the offer is low, they may have made an offer without looking at it. Also, if they have viewed the house (which is also possible) then they don’t need the pictures to make the offer. Also the offer could have come from a friend of the person who is selling or people who have registered their interest with the agent - before the property goes on Zoopla/Rightmove the agent may contact the people who are interested in particular type of property and have registered with the estate agent.