House Prices

[Homebird44]

Regards to older people in their 50’s plus apart from remortgaging many took out 0% interest mortgages years back and haven’t paid a penny off the capital.
They’ve had 3 holidays a year nice cars lots of home improvements but I just don’t get the mentality.
Think the chickens will come home to roost for many.

My brother in law had an endowment mortgage. He was advised by the bank that after 25 years they'd have only paid off half. They remortgaged to a straight repayment but kept the endowment as a saving and got a payout a few years ago. They are loaded BTW!!!

 

[Italy2]

First-time buyers to get 95% mortgages in new 'Generation Buy' scheme

The PM told the virtual Tory party conference today that he hoped the mortgage plan would create two million new home owners.

metro.co.uk

Has anyone seen the announcement from Boris today? What do you guys think and when do you think he is aiming to bring these plans in place?

 

[Hertfordshire_home]

Saw another house yesterday on for £400k. We are first time buyers so good position, offered £400k and it was still rejected as there were 12 viewings tomorrow. Both of us have said we will not over pay for something so looks like thats another one we have lost out on! Our budget is £400k - we want to be able to afford to buy certain things and make changes in neccessary but looks like we will have to look for houses on at 375k to get one!

 

[Hertfordshire_home]

Being able to be politically apathetic also reeks of privilege.. just saying

(I’ll stop now, promise )

Not really

 

[Italy2]

Would the upcoming budget 2021 take into consideration the mortgages being offered and have an impact on the housing market?

 

[Italy2]

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?

 

[Hertfordshire_home]

I wish my phone was £20. I pay for four mobile phone contracts, over £100 a month.

Exactly that’s my point… no need

 

[Yel]

So a study said if GDP falls by more than 6% more people will be killed by the cure than covid. It fell 20.4% in April:

The UK's economy shrank by 20.4% in April - the largest monthly contraction on record - as the country spent its first full month in lockdown.

The Office for National Statistics (ONS) said the "historic" fall affected virtually all areas of activity.

The contraction is three times greater than the decline seen during the whole of the 2008 to 2009 economic downturn.

But analysts said April was likely to be the worst month, as the government began easing the lockdown in May.

The ONS also published figures for the three months from February to April, which showed a decline of 10.4% compared with the previous three-month period.

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

Short term high LTV products are in short supply. Long term like everything who knows. House prices are likely to fall at least 10% this year. Next year who knows with all the money printing.

 

[Mrs McCarthy]

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!

Spoiler

Landlords don’t take advantage of people. If they did, there wouldn’t be any stories about landlords not being able to evict bad tenants, landlords having to redo the entire property after tenants and so on and so on. Also what about commercial lettings? Do landlords take advantage of poor shop keepers that then take advantage of their customers? Or is the government that is crippling businesses with business rates which means that a lot of high streets are dying?

 

[Yel]

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...

I think it's just going to be an extension of the existing schemes for new boilers and insulation. Devil is always in the detail that we've yet to see. Could be a nice bailout to give companies work and reduce energy. I was expecting more in this mini budget.

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?

Yeah it's a not really a much of a help. Honestly it looks like they want house prices to fall. They've got little left to stimulate them and there's less people that want them proped up.

 

[Hertfordshire_home]

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!

 

[Caffeine Fiend]

Yeah Id get it on the market ASAP you want to be moved by Jan if the school is popular.

 

[idk2]

My neighbour put their house up on Saturday evening - around 4pm. At 6pm they had people driving past and looking directly in. Sunday was ridiculous with people driving past. On Monday a woman phoned and requested to put in an offer but, the agent refused and said they have to view it in order to buy. Not sure if this is a new thing now with the pandemic. But, just thought I’d let you know.

Do we live nearby?! Seems like exactly the same situation over here. It's been mental.

I think it must be at the owner discretion re offers without viewing as if I was to put an offer in and then view it, decided I don't like something or spot some extra exterior work that needs completion, I would back out. I can see why it would be seen as a faff.

I've thankfully booked a viewing for Weds now. Hoping to just whack in an asking price offer but really don't know how high I'm willing to go as I think some people are being so silly with offers that will end up falling through.

 

[HoGi]

This is anecdotal only but I am in the process of buying a house in a very popular area of a city in the north. We sold our first house for 270 (asking price) in October but it was down valued by 10k to 260 - which we accepted. The house we’re buying now was on the market for 425 in March, we offered 450 with the intention of covering the shortfall in cash but the bank valued it at our offer price - 450! We were pretty surprised by this as we have been house hunting for MONTHS and have put in 10 offers which have mainly been rejected for being too low (even though all of them have been at or over asking - some significantly over!).

There still must be lots of buyers out there who are covering shortfalls in cash. Tbh I know nothing about the valuation process but am wondering whether the sustained increase in prices over the last year has meant they are less conservative than they were a few months ago.

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.

Thanks both.

Interesting to hear both sides. My mortgage is due to refix in the summer. We are umming and ahhing about moving like you do when these things come up. But will most likely stay put.

But having been through it once and seeing the crazy prices some of the houses near me are going for I was interested to see what people have been experiencing this past year

 

[hnoz]

We’ve been told they’re only offering 85% mortgages at the moment! With a lot of lenders only doing 80. Think they did introduce 90% back a few weeks ago then withdrew them again. We just about had enough for a 10% deposit but now we’ve got no chance - house prices still extortionate for awful properties that need a lot of work. Spending so much more on rent than we would on a mortgage but it’s just the deposit we can’t get - and that’s with a generous contribution from my parents too. Don’t know how people do it tbh!

Natwest, Nationwide and HSBC are still doing 90%LTV but you need to go direct rather than using a broker. When lenders withdrew them they said it was due to unprecedented levels of demand so they have not pulled them permanently so you definitely don't have no chance.

 

[fireflies]

A house in my street gone on crazy price 310k 3 bed terrace small garden no off street parking.
They done a lot of work on it added 3rd bed in loft with ensuite.
They knocked about down stairs added small extension and nade it open plan diner lounge and kitchen.
Its all grey and white modern style like a new build in what is essentially a period house but devoid any original features.
The highest a house in our street reached is 287 for 3 bed bigger garden and no loft extension so scope add a 4th bed.
I dont get it.

Taylor's and heart here are worst overvalue.
Taylors for sale and offer board goes up uo and down as they delusional and over value.
Surprised when we brought how many fell through.

 

[Escapist]

We live in the south east and have decided to take a gamble and sold our house (it sold within 5days of being on the market) and have just had an offer accepted on a house. It will be depressing if the housing market collapses and our new house looses value but if this goes through we will be in a much nicer area and beautiful house.
Hopefully we will have nice neighbours and stay there for 10years or so which by then it should have increased in value.
my brother his girlfriend are looking to buy their first property in London and are now waiting it out. My brother has had to take a pay cut as he works in entertainment but his girlfriend is in a stable job earning an average London living wage. It’s so hard to know what to do. I do think it’s all going to slow down soon

 

[HoGi]

I wish it was slowing where we are looking to buy! Can’t even manage to get a viewing they sell before they even make Rightmove!

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

 

[Mamacita]

Houses up in Scotland are going for 10-40k over the asking price, it's ridiculous

 

[Pixipoppy]

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.

Oh for sure, the less we have to borrow the better! But even to get one of the cheapest houses in our area with 80% LTV we’d need a minimum of 30 odd grand which just isn’t going to happen. We could probably get a small flat with what we have now but I just don’t feel like a leasehold flat is a very good investment considering we’d have already outgrown it by the time we move in!