House Prices

[Choupette]

I would buy immediately if I could, but being an expat and away for over 6 years I need to come back and sort out my credit rating .
Calculating the amount of interest on mortgages over 20+ years makes me feel sick... It's a shame but I know after a year or two i'll probably move abroad again just so I can pay off my mortgage as quick as possible.

 

[Tublet83]

The market where I am up north (nice area in a big city) is still absolute nonsense tbh - we’ve now lost out on countless houses which have been sold for well over the price they’ve been valued at (talking 20k-50k). 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 mean in some situations it may be worth it but this has literally now happened to us six times in the last six months and I’m sure it’s not just happening round here.

Yes same for me “up north” I live in a nice suburb of a big city, houses have always sold quickly, but now literally everything is sold in days in closed bids way over asking prices.

 

[Former_Antelopee]

If something is ‘over over’ does anyone have and advice of how much over to offer? I don’t know if it’s worth viewing as my limit is only 5k over really I could go ever so slightly over that

 

[heretoreaditall2019]

Read on that other site it would be better if you did actually do this even if it was a faff.

Thankfully even working a few months of each tax year prior & post mat leave I’ve made my contribution so it’s not worth it. It’s not really fair on mums earning below that tho as it’s a lot of stress for literally nothing

 

[mindlessness]

The local agents might also know through the grapevine how much the neighbours place went for @heretoreaditall2019 ? In my experience agents are real gossips - may as well take advantage of that

 

[Boutros-Boutros Ghali]

Interestingly I’m up north and prices have seen an increase here already, there is also an increase in buyers, mainly people looking to move from the southeast, so demand is outstripping supply. I’m not sure it’ll be an easy one to call as to what will happen

 

[a.pain]

Depends on what they’re planning to do and the state of the bathroom as a whole...
If they would redo it themselves quickly after purchasing then as long as it’s only costmekc damage it shouldn’t be a problem. However if it’s either caused structural damage or potential buyers would be planning to use the bathroom as is for a longer period then I can see it would be a deal breaker

I’m hoping it will be ok- by the time we get the house on the market it should only be a couple of weeks until the work gets done. The wall tiles look completely fine as they are, there’s no structural damage. The cracks are tiny and you could get away with just redoing the sealant but we already committed to the full retile as we booked it before we decided to move and I think it would still be a good thing to do. If the floor was ok then I’d have no hesitation because it would look fine. It’s just a bit of the floor is bare until I can get it relaid with the tiles. Just aware it’s in the middle of getting a job done so I fully appreciate some people would want to see the finished article. We aren’t in any rush so even if people were put off then fingers crossed it would be done soon then any subsequent viewers will see the finished job! Bloody covid and I’m aware that this is a relatively small problem but it’s feeling like is there nothing that will just to smoothly right now!

 

[Gembo]

NatWest (I think) are now making all new home buyers prove that at least 75% of their deposit is from their own savings and not a gift/loan etc from parents. I’m so worried all banks will start doing this - I don’t know ANYONE that bought their first home without some help. We have maybe £12k between us (which has taken us 5 years to save! Due to high rent prices) but are relying on another £10k from my parents who have had it in a savings account ready for me to buy my first home for 10 years now! I can’t believe that at this point when I’m finally ready they go and do something like this! First they pulled all 95% and 90% LTV mortgages and now this! I see other people with houses they’ve bought and just feel like it’s never going to happen for us now

I might be wrong but I’m not sure if it’s to do with whether the money is a gift or a loan. If it’s a loan then they take into account your affordability on you also having to pay that back. Worth checking to see if the lender you go with makes a distinction.

 

[Allthevest20]

I had literally no choice but to get a shared ownership property - I got a new build. My situation was that I was living with my Mum in a HA property and when she died they evicted me and I had 4 weeks to get out (I didn't tell them until I had sorted somewhere to live so gave myself 8 weeks). Rent where I am is extortionate and I was being asked for 40/50k for a deposit for a full mortgage which I didn't have and couldn't get in that time. My mum unfortunately had no insurances/savings etc either only her death in service grant which enabled me to buy via shared ownership. My only hope is that house prices slump now to a level I can staircase my other half otherwise I've got a few years of saving ahead of me (and I went through my lease with a relative who is in housing So know the leasehold etc rules and if I buy the final % I then obtain the freehold at no fee which is positive ish). Desperately need prices to drop selfishly!

 

[Anne1448]

I suppose it’s because defined benefit pensions have had such a bad press after the Arcadia, and other, scandals that now these people are using it to cover their historic inability to save money. I worry about my pension - I’m not paid enough to make chunky contributions!

Same over here. I worry a lot about my pension. Which is why I want to buy next year. Just knowing that my mortgage will be lower than my rent makes a huge difference financially.

Thankfully I work from home, so I can live anywhere.

 

[HoGi]

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

Yeh my neighbour put hers up for 40k more than the other 4 houses on the road that are up for sale. Hers isn't any bigger or better. Unsurprisingly the other 4 have sold and hers hasn't.

 

[Italy2]

I mean there's no chance they'll increase and anyone that says they will probably is trying to offload their own overpriced houses.

"Property expert" is pretty meaningless. Estate agents is just sales job with a very low barrier of entry that attracts people looking to make a quick buck. And that ghastly Kirsty makes a cheeky offer of 1000 under the asking price for a 400k flat in penge has no qualifications other than interior design. Phil's "property empire" it consisted of 2 full-time staff close to the last downturn. I can't stand those two and the untold misery they've caused by millions

Thanks for your reply. I agree that I don't see how prices can agree considering how lots of people have lost their jobs due to covid.

What’s everyone’s thoughts on the housing market post COVID? Obviously no one can predict the future but wondering if there is likely to be a housing crash? Recession has been confirmed I believe.

Just seen there is already a thread on this please delete if needed.

Well the house prices did fall during the 2008 recession so there might be a decrease in the house prices again?

 

[Kim Mild]

I need to rant. My husband was doing some work on a house on a street we could potentially move to as it is in budget and fits criteria. I asked him what it was like inside but he said he didn't notice. I bet that's because he doesn't like that street. However, he wants to go for a viewing of a house that's up for auction, just to see what it's like , even though we aren't at a position to buy at auction yet.

 

[Caffeine Fiend]

I'm constantly looking at houses as we are going to upsize in the next few years. In this area any houses which have gone on the market which we'd be looking at have sold within 3 or 4 days. Some have sold before theyve even hit the market. I cant say what theyve sold for of course.

We are saving like mad to have a good amount to put down on our next house so we wont be moving in the immediate future anyway.

 

[Italy2]

I had literally no choice but to get a shared ownership property - I got a new build. My situation was that I was living with my Mum in a HA property and when she died they evicted me and I had 4 weeks to get out (I didn't tell them until I had sorted somewhere to live so gave myself 8 weeks). Rent where I am is extortionate and I was being asked for 40/50k for a deposit for a full mortgage which I didn't have and couldn't get in that time. My mum unfortunately had no insurances/savings etc either only her death in service grant which enabled me to buy via shared ownership. My only hope is that house prices slump now to a level I can staircase my other half otherwise I've got a few years of saving ahead of me (and I went through my lease with a relative who is in housing So know the leasehold etc rules and if I buy the final % I then obtain the freehold at no fee which is positive ish). Desperately need prices to drop selfishly!

Aw I'm glad you got yourself sorted. It is really hard to buy a house and you did what you thought was right so don't beat yourself about it. Please may I ask what percentage did you initially buy your share for and what percentage would you like to buy? You don't have to share! Just interested to see how people work this scheme out.

 

[Yel]

Austin and Wyatt saying how busy the last two months are, hardly a surprise as everything was frozen for months. If anything a 20% rise in volume last month over same month in 2019 is a bit low.

But they're unsurprisingly confident it will continue, well turkey's aren't going to vote for Christmas . Someone should tell them we haven't actually gone through Brexit yet.

Newsletter:


So, will it continue?
With a perfect storm of pent up demand from lock-down, and the support of tax relief, the property market has been abuzz over the last few months with August being the busiest month in 10 years.

The question remains whether we can expect the surge in activity to continue.

As always, speculation is fraught with uncertainty, but this is a market that has seen itself move confidently through Brexit, political uncertainty, and multiple general elections; so there is likelihood that the ‘mini-boom’ will continue its momentum into the intermediate future.

 

[Nebbymoo]

Where about s do you like for houses to be so cheap? The cheapest where I live is 250k. Currently priced out and rents are skyrocketing…….

In a very run down poor area on the coast

 

[Homebird44]

Nope,

I can’t fully understand what you write, sorry, but I think your argument depends on the idea that everyone who could afford to become a landlord, would? It’s an awful asset class tbh even ignoring the human exploitation & suffering, I wouldn’t touch it with a barge pole even though we could.

I thought about buying a holiday home in Ireland (we’re both second gen) that would never be rented but even that didn’t sit right due to the conditions of their housing market. Some people are capable of thinking of others.

Nope, somebody mentioned about pensions and I said that my relatives that do own properties that rent out, will use that as their pension. I can just about afford my own house, I wouldn't be able to buy another just to rent out. My sisters landlord was brilliant, used to do all the DIY so that they wouldn't risk losing their deposit.

 

[idk2]

Whats everyones thoughts on obtaining mortgages? Is there wiggle room? Currently we have a mortgage in principle for a certain amount but would like to borrow maybe 20k more as this would open us to an even better area with larger scope for equity in the future.

I think banks will become more tight in regards to how much they can borrow to potential buyers.
My salary is laughable atm but will be going up significantly in September. I don't know whether to wait and apply for another mortgage in principle with my higher salary as that would mean we could borrow more OR take what we have now as banks won't be willing to lend more after this?

We have 20% deposit but really want to live in a certain area and are willing to wait and save more. Based in Midlands.

 

[Italy2]

Look's like 90% LTV have been pulled again after a short re-introduction, so could mean lenders are factoring at least 10% reduction in house prices

First-time buyers frozen out as 90pc mortgages pulled from sale

One bank said it had experienced its two busiest days in 17 years of business – with some daily deals gone by 8.30am

www.telegraph.co.uk

How do you think it would affect mortgages and LTV offered?