House Prices

[hnoz]

That’s great news for you! Every area will be different I am sure.

Honestly it isn't good or bad really, when you are staying put the house price doesn't matter in the slightest! We are no better off, I was just surprised that it came back high after everything I've been reading.

 

[Yel]

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

Same here, some really have their heads in the sand - those working in industries that show no sign of recovery and they expect furlough to end and things to go back to normal.

And those who work in jobs that have been carrying on fine and think that'll continue unaffected, when every industry will be squeezed if we enter a deep recession.

It's the uncertainty that's making me apprehensive, wish the can kicking would end to as it's just going to make it worse in the long run.

 

[idk2]

Yeah we were planning to buy this summer if we found anything but we're most likely going to play the waiting game now, unless something magically undervalued comes up and ticks most the boxes! We have 25% deposit (of the house prices we are looking at) and are first time buyers but unfortunately, our income isn't as high as it needs to be right now to qualify for the mortgage we want, partly because of Covid but also because I'm doing my masters so part time. I doubt many banks will be lending us much now either as our mortgage in principle expires in a month.
September 2021, I'll get back on it then.

 

[Yel]

I think let's draw a line leave the ethics of landlords. It's not really what this thread is about.

Some find it exploitative because it's unlike many other businesses as it's speculating on an essential service and stripping people of a choice. Landlords think they're providing a service that people should be thankful for and it's their right, all businesses make money and all that.

Let's agree to disagree.

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Mortgage deals plummet as lenders play safe

First-time buyers unable to offer a large deposit could find their options squeezed, figures show.

www.bbc.co.uk

“However, there is an expectation that this mini-boom will not last as job losses mount and finances are stretched as government support schemes are wound down.”

Looks like the amount of 90% mortgage products was 800 in March and now it's 60. Lenders do seem concerned that the future isn't ever increasing house price inflation.

I know someone in a "safe" industry that they've implemented a pay cut of 20% across the board. Airports like Gatwick and Southampton are saying crazy things like nearly all of their staff might be out of a job soon.

 

[Yel]

Nothing not already leaked in the budget.

I wonder if they now do want house prices to have some relationship to earnings as the have-nots is a rapidly growing segment?

 

[HoGi]

But really, they should be moved you know? 3 beds and more are like gold dust.

If she has been there 45 years then she is probably old enough to be exempt from the "bedroom tax".

 

[Bubble10]

I hope the prices don't drop too much we're hoping to put our house on the market by August at the latest. We are just trying to get the new bathroom finished and refresh all the paint work so at least it's ready to move into, lots of buyers seem to want to unpack without doing any diy these days. The houses where we live seem to still be selling, a couple have went on the market on Friday and offers accepted by Monday. Here's hoping

 

[Yel]

It's a mini prop for the market. I don't think there's the political will to now keep them so high.

Countrywide are (as you would expect) very bullish in an email they just sent out with their cherry picked stats. Of course they look at Zoopla rather than agreed prices and ignore that interest does always bounce in the spring. But if my buisness was selling houses I'd blaze on ahead with stats that suit the agenda.


Countrywide
Applicant demand was the first metric to pick up and has surpassed pre-Covid levels. It seems that lockdown has made many of us reassess what type of home we want to live in, where we want to be, and, perhaps more importantly, what we can afford.

With the Welsh market recently reopening, it is also worth noting that demand in Wales has already caught up with English levels. Meanwhile demand in Scotland has returned to early March levels, despite only officially re-opening on Monday.

UK house price growth
According to Zoopla, the average house price in the UK rose 2.1% in May compared to the same period as last year, and up from 1.4% at the start of the year due to an influx in market activity following the ‘Boris Bounce’.

Nottingham recorded the strongest rate of growth (4.3%), followed by Manchester (3.9%). Whilst Aberdeen (-2.0%) in Scotland recorded the largest fall across the UK.

However it seems buyers hoping for a big discount are having to take a reality check. Amid the ‘Boris Bounce’ of January and February, the UK asking-to-achieved ratio (that is, the price of a property compared to its sold price) averaged 98.9%, slightly higher than in the same period of 2019.

 

[Holidaybobs]

Are the mortgages agreeing with the valuation on these properties?

A few years back lots of people i know, myself included, were having properties down valued. So our example house was up for 300 which is average for the area. We offered 295 and it was accepted. Mortgage came back and said the house was only worth 280. So as first time buyers we had to pull out as the sellers wouldn't drop the price.

So I wonder with these houses where people are offering tens of thousands over the asking price are the banks agreeing the value?

Ones I’ve been involved in or heard of, the mortgage was valued lower than the offer and the provider would not increase the mortgage offer. I always know some people have inflated their finances to make it appear they can afford the house but, in actual fact they cannot. Very strange times.

 

[Clickbait]

I do think that's a very dangerous mindset, especially now. They fell in 2008 and end of the 90s.

It is and it isn’t: if they get a sensible mortgage that doesn’t overstretch themselves on a property they like and are happy living in then they can ride the wave should there be a downturn. They should be able to afford the mortgage/bills and they are not at the whim of a landlord who can hike the price every 6 months, or decide to sell and then they have the moving costs.

Their circumstances may change but they may then buy with a partner, rent out their flat etc. as long as they don’t make the mistake of the shared ownership route.

If there is a spectacular crash there may be more houses being repossessed, possibly some bargains to be had but people in negative equity will be forced to sit tight and there will be fewer houses built so the issue with the lack of affordable housing stock will remain and rent will continue to go up meaning less chance of saving for a deposit which will need to be even bigger than it is now.

 

[Holidaybobs]

As they ever are! It's a sales job with a low barrier of entry.

Selling something in the millions can take years even without all this turmoil. Around here there's the ones for millions that have been on and off the market for years ever swapping agents.

I do think lots are paying 30k more to "save" 15k on the stamp duty and as the 30k is added to the mortgage it's not as ludicrous as it sounds if thats paid pack slowly over decades with such low interest rates rather than paying the stamp duty when you buy.

All this talk about pay increases, ultra low LTV and it misses the real story that house prices are too expensive and out of sync with wages

Exactly, the left hand doesn’t talk to the right hand.

Yes, they do take longer than usual I think. We have had a lot of interest but, my partner heard the estate agent doing the tour as he forgot something and he was hopeless. He didn’t know how the light system worked or anything and it tells you on the switches We could have a renter tomorrow but, would rather sell.

That makes sense the stamp duty has really encouraged people as has this new 95% mortgage. It’s worrying really.

A couple of years ago I did my dissertation on house prices and it’s shocking how low wages are in comparison to house prices. It looks like it’ll only get worse as well.

 

[Italy2]

Sorry to rant but not sure how a stamp duty holiday would help first time buyers? First time buyers need deposit and high LTV mortgages to come back and cheaper house prices. Stamp duty was already exempted for first time buyers anyway. The only group that would be benefitted by this scheme are landlord or help to buy people. Majority of home owners are probably going to stay put anyway until furlough ends and economy stabilises.

Does anyone else have a different opinion or what do you guys think?

 

[Moe]

Thank you for this, can confirm the anti social behaviour people were the ones who stopped the weed smoking from happening in the house, they were fab! They even sorted out the front garden which was a miracle there were weeds about 5 foot high spilling over onto the pavements too. It turned out they were known to the police & social services, one of the adults has a 13 year old who has run away repeatedly, so sometimes you see another child around the property - absurdly she's always really scantily clad so I dread to think what's happening there the poor girl.

Thankfully they've shafted their landlord way, way worse than they've shafted the street so they'll be gone as soon as the covid restrictions on evictions are lifted apparently (allegedly they've not paid rent in 8 months?!). I dread to think how that'll happen, their neighbour is a friend and when I've been round hers I've heard banging and shouting from their house, apparently it's constant so the neighbour reckons it's trashed anyway. She's asked to come over ours when the eviction happens because she's scared (she lives alone). I just can't understand how the landlord ever thought this would be a viable business, did they not do any references or CRB or anything?!

Something doesn’t add up here regards to rent. Surely in this type of situation undesirable tenants, the council would pay the money direct to the landlord.
I’ll ask around to see if this is confirmed.
The next door neighbour has probably gone through hell and if on their own it can be quite scary.
You all need to stick together and report report report every little thing just to piss the council off and let them know you are not going to be pushed over.
One example you see streets kept pristine and others strewn with rubbish and that’s because some people won’t tolerate it. Good luck x

 

[hollowcrown]

I think Estate Agents are whipping both buyers and sellers up into a frenzy. I rang an estate agent out of curiosity as a house in my mums road had gone on sale at a very high price and I pretended to be interested to find out if it would sell at that price and they were like 'Oh yes we have had twenty million viewings* and offers over the asking price so act quick'. The house came off the market and I rang again and they were all 'oh for GDPR purposes we cant tell you ANYTHING'.

Landlords are ending tenancies and selling properties while the prices are at a premium. This is leaving less properties in the private rented sector causing rent levels to rise (its like a bidding war just to rent a 3 bed where I live because of the schools catchment are). Landlords who are keeping their properties to rent out are seeing the increased rent levels and are putting up rents for their own tenants or asking them to leave and advertising at a higher rate. It put so much pressure on people who are currently renting and trying to buy from all angles - higher rents, higher house prices = home ownership is unattainable for many even though it was within their grasp not so long ago.

*approximate figure

And because everyone in the government is either a landlord or has their own property they will do nothing to fix it.

 

[Homebird44]

I think there's been so many problems with the cladding scandal and people left hanging for years in unsalable property. The shared ownership has compounded an already very difficult system.

Buy to let full stop is a ghastly system, nothing more than a Ponzi scheme that allows people to remortgage and speculate on housing to push up values. Causing an untold amount of misery. But that's the dream for many - people farming. Exploitative.

Its a business like may others. Most landlords are fantastic. I have family that own houses and its their pension pot. They are amazing with their tenants.

 

[Yel]

They will come back eventually I don’t know anyone who managed to buy their first house with a 15% deposit. The whole housing market will grind to a halt if no one can get on the property ladder. It feels like a football match and no one will pass you the ball

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.

 

[Yel]

https://www.archive.is/oldest/https...test-rate-since-2016-says-nationwide-covid-19

This is hard news for first time buyers.

It's hardly surprising after months of things shut shop and it's only since 2016. I think the steam has pretty much all been spent, let's see what happens in the next few months.

 

[Clickbait]

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.

I think people who are first time buyers have probably managed to save during the lockdowns. There have been people who will have moved home too to save. A lot of people want to get their foot on the ladder as they’re worried prices will spiral even more.

I’m hopefully selling my flat in Z4 in the next few weeks. Planning on getting valuations next week. I’m not sure what the market is like round here, all I know is it’s taken off enormously where I want to move to and houses are now at least £150k more than they were 18m ago particularly galling as I had wanted to move 4 years ago and could probably have got a property for £200k less at least with likely less variation in what my flat might be worth.

It is a lovely flat in an urban area though and I’ve spent a fair bit on it!

 

[Boutros-Boutros Ghali]

If prices fall massively it’ll cause a massive shortage, people will choose to stay put and extend or just live with what they have rather than lose thousands, so it could effectively stagnate. We’re lucky we’ve recently bought the home we plan to stay in for a very long time, that we can extend and grow into, having sold a property in London and moved North, but I feel for people trying to get on/move up the ladder

 

[Mejustme]

My daughter's house is up for sale and had an interesting conversation with her estate agent yesterday. He said that banks have withdrawn 95% mortgages and are now only offering 90%, so first time buyers who have saved a deposit now don't have enough. If they can't afford to buy them the next lot of people can't sell and move up, so it's just stagnant