House Prices

[JoJo76]

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.

Manchester here too, Chorlton. The prices around here are impossible for younger ones.

 

[Yel]

Even estate agents are predicting falls next year. Of course they say 5% so you can pretty much multiply that by 5 for what they really think

How much will prices fall?
It is widely expected that property prices will fall, but experts disagree by how much.

The Centre for Economics and Business Research warns of a drop in prices of up to 13 per cent, due to people worried about their post-Covid futures holding off making such big expenditures.

Meanwhile, estate agent Savills is expecting a far smaller decrease, of just five per cent.

The Office for Budget R esponsibility has produced three scenarios for the housing market in the wake of the pandemic.

Their most optimistic outlook would see a two per cent fall in 2020, followed by a rapid recovery to the pre-pandemic trend, followed by growth.


The middle scenario would see prices fall by 11 per cent by the end of 2021, before flatlining.

And their most negative outlook predicts a 22 per cent dip by the third quarter of 2021.

What experts have said about when property prices might fall after market hits record high

Prices rose by two per cent in August according to Nationwide, taking the average up to £224,123.

inews.co.uk

People like to blame it all on BTL,

I don't think anyone is blaming it all on one thing as it's a complicated picture that no economists will agree on. House prices are pretty much an indication of the money supply. If they print lots money supply increases and house prices go up. It's not benefited society at all by this Ponzi scheme of remortgaging your home to buy something to let out. Now anyone that can raise a deposit thinks they're the next Jeff bezos and the government should bail them out if they don't make a profit every month.

 

[Yel]

Savils have gone from saying 0% rises this year to 4%, but it's not like they have vested interests

• Average UK property price set to grow by 4% in 2021, an average of £10,000
• Forecasts have been revised since stamp duty holiday was extended in Budget
• Vaccine roll-out and lockdown easing also set to have an impact, says Savills

With no increases in tax allowance more will be spent on tax, it's a small change but it all impacts affordability.

Until furlough ends and stamp duty holidays end it's all up in the air what will happen.

 

[Pixipoppy]

Out of curiosity does anyone here has a new build house and what do you guys think of it? I know so many people have bought new houses in our social circle and they love it. Some of them have bought them on help to buy and some have as their forever home because they are nice and clean. I know they are more expensive than an old house but they are clean and no one has ever lived there before. What do you guys think of them?

Don’t have experience myself but also interested in the answers!

 

[Be creative]

It's not exactly the same though because someone winning the lottery and having money doesn't really have a knock off effect on others?

I disagree, but as Yel says, I don’t wanna derail the thread any further. So will respectfully agree to disagree

 

[HoGi]

Hello Tattle gurus. I am looking for some advice on home report valuations (we are in Scotland) I guess the English equivalent would be the structural survey/ mortgage valuation. We are selling our house but the bathroom needs to be completely retiled as there was a gap in the sealant in the shower over bath which meant small amounts of water is escaping down the side and ended up collecting under the floor. We have had to take up the flooring to dry it all out. The tiles are in ok condition but we decided a while back just to go for the full retile as some have small cracks. This job can’t be done until restrictions are lifted here which are likely to be around 5th April. Anyway, we are selling and our estate agent (job title is senior valuer. Although he isn’t a surveyor ) said that the tiles/ flooring wouldn’t affect the value of the house for the home report so we should just proceed with the sale and we can tell buyers the job will be done imminently possibly have it condition of the sale etc, otherwise we lose time in an excellent market. He has obvious motive for getting the property on ASAP and I’m wondering if this actually will affect the value but not enough to make a difference to their commission. I kind of wanted to be able to sell with the nice shiny retiled bathroom all done but nor do I want to wait a month when I may be able to achieve a good price now! Does anyone have any advice to offer?

It might not affect the price, but as a buyer I would be put off.

 

[Yel]

Just as covid hit house prices were stalling and not increasing. Then the biggest economic shock since a world war and they've sky rocketed. Is it really like for like or have lots of changes in the upper end skewed the figures?

 

[Homebird44]

Yep, the cost of living is too high for any person to reproduce safely at least. Young people are too busy trying to survive in apartments that they share with complete strangers. Let's not ignore the fact that salaries are also not increasing. So currently there is no logical reason to have kids without going straight to poverty.

Retirement funds will probably be empty when governments realise that there isn't enough young people to fund them. So by the time we reach 60 we'll receive peanuts.

If governments do not push property prices back to a healthy level they will deal with low birth rates, an insane homeless population and increasing poverty. Cities such as Los Angeles and Hong Kong already reached insanity.

How would a government push prices back? If somebody is willing to pay silly money for a house then that's what it would sell for. The market often moves up and down. Cheaper areas will go up too and full time WFH can move anywhere they want too. My home town is full of young London families all looking to renovate and settle with young kids. I had to move from there as its so expensive.

 

[Yel]

In 2008 certain areas seemed to be immune. London M4 corridor Brighton and Hove.

Brighton did fall in 2008, by 20% at the most from land registry figures. But with all the printing of money it bounced back, graph from land registry below:

But much of London and the south east stoped increasing a few years ago. People were already tapped out even before covid. So I really wouldn't rush into anything at all if you're boring a large amount of money.

 

[Lanavalentine]

Thank you for the advice! No, definitely no bidding wars here. For all the properties (three) we've offered on so far in the last 2 years, we've made it clear this is our first and last offer so don't want to hear about making another one. Thankfully my dad has been doing the talking on behalf, otherwise, I would be living in a 500k shed by now

I'm a first-time buyer so I'm hoping to sway the seller by saying there's no chain and I'm not in any rush to move so no deadline for him either. A lot of the properties we have been beaten out on are well over asking price - we checked one the other day, it was sold in Oct 2020 for 425k but was on at the time for 305k!

We were planning on waiting until the latter part of the year to look properly but the perfect house has come up so I'm rolling with it and if it doesn't pan out, no harm. I think the most annoying thing is the scrutiny on my finances. Feel like even though I've got well over the 10% deposit, I cant buy things spontaneously like I love to do. And yes, Right Move is definitely an addiction now! I'm on it constantly.

It sounds like you’re in a really strong position, then. Also sounds like the market is crazy where you are, wow! Best of luck with it all, fingers crossed you get the perfect house!

 

[Bumblebee]

We brought a new build last year and I think it will lose money if we sold now but we don’t intend to. We will stay here forever now.
the rooms aren’t huge but the dc are all almost grown up and will move out at some point and so we won’t need tonnes of space. The only reason I could see us selling would be to move to a much smaller more manageable property.
Our first house was shared ownership and it’s nothing like you’ve said above. It was a new build and most of the shared ownership properties around here seem to be new builds unless a part owner is selling their share.
This was in 1996/7 though. We brought 50%!at a good price and the rent was much less than the mortgage. We were also liable for the buildings insurance and had to prove we had content insurance as well.
the downside for us was when it came to selling. The housing association had to have 6 months to sell it and they did nothing. Not a thing! We sold privately in the end but a long time after initially wanting to sell. We could have staircased but the property was 2 bed and no garden and we were selling as baby number 2 was on the way. Well he’d arrived by the time we moved.
It’s also misleading to say that those buying shared ownership would be entitled to council/housing associations housing. The area I live in has so little housing stock that even if we had been anywhere near being eligible for a house from them it’s on average a 10/12 year wait. And no guarantee even then.
there are not many authorities now especially in the south that can and will house people/families that are working.
We have friends stuck renting as they have had to private rent and have moderate salaries of say £25-30k that can’t save and haven’t had inheritances or parents that can give them money.

 

[Pissedoffwithinfluencers]

I don’t want to be rude but surely this is just the risk you have to take, being a landlord?

You can’t micromanage your property when it’s someone’s home. Good landlords should factor in the costs of wear and tear, repairs and end of tenancy professional cleaning into their maintenance expenses, surely?

Also, I thought landlords were allowed to charge up to 5x weeks of rent as a security deposit. Yours sounds very low, although I don’t know where your property is nor the condition it is in. The national average deposit is about £900.

A months rent value was the standard here . The rent was purposefully low not reflective of the state of property, it’s a decent flat and well maintained , just to make it more realistic and longer term tenant . Anyway my point it is respect. Not eveyone knows how to or chooses to treat home rentals with respect, so for thst reason the inspections are needed, in my view and experience. I get they can be invasive so they need to be within the terms of the lease & done at a realistic abs discreet levels. There’s also the safety aspect, make sure fire alarms , gas etc not blocked . I will never excuse the state it was left on that occasion as wear and tear or a landlords downside, irrespective of how much it cost to put right, it was disgusting. It’s one example of bad tenants though, we have had mainly decent people who treat it like their own. It was to make the point that inspections have their place . I agree also with the above it’s not just rentals some
Owners will be the same of course , or even down to if you rent a holiday place . I guess it’s just galling when someone treats your place like c*** when you are trying to keep it in a good condition yourself longer term.
Anyways house prices are still shocking and I still
Hope they come crashing down to reality!

 

[Hertfordshire_home]

The fact that people still believe that poor people should not be allowed to have a good phone, one holiday a year and new clothes at least once is absolutely appalling. Are poor people supposed to never be able to take a break from poverty and have the worst things because they are born poor?

Poverty is not a choice and poor people should have the right to enjoy life too. The few hundreds that they spend on a phone or a holiday doesn't come close to what they could save when house prices went up 91% in 8 years (these are real figures in Ireland) but their salaries didn't. Why are poor people supposed to suffer in silence when they simply want to buy a roof over their head?

The fact that some people in this thread are trying to justify the greed of a few at the cost of a basic need for humanity reeks of privilege and an absolute if not total lack of empathy.

Where has anyone said that?

 

[SoulRebel]

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.

I still think that it will affect the market. Mortgage lenders are going to get more wary of first time buyers and increase deposits, they are going to prefer people with a house to sell and equity.

 

[Italy2]

What do you guys think will happen to mortgages on the market and house prices in light of the upcoming lockdown?

 

[Moe]

Purely anecdotal. I requested via Rightmove to view a one bed flat Brighton area. No sooner had I sent the request when the phone rang from the agents.
Usually they’ll get back to you later in the day not 10 seconds later.

 

[idk2]

They may allow people who have booked viewings to consider making an offer , and give a deadline to get everyone to make their best and final offer before accepting one. That happened when we looked at a house with a lot of interest

I'm hoping so!

 

[Homebird44]

The problem is that happens in the long run and governments only cafe about the next few years.

I expect once the demographics change and people realise all these "help" schemes are actually screwing them over and only helping house builders and financial institutions then their priorities will change.

My niece used the help to buy for her house. She had it valued last week and its increased by 40k in two years. She'll move soon but you have to pay something back, not too sure if its the deposit. Think if you sell in the first five years you pay something back.

 

[JoeBloggs]

The cut off can be 14 years for some trusts or if they suspect tax evasion as part of it they can go back over 20 years.

I just wouldn't take the risk, if I have an asset and need help that it is unrealistic for tax payers to pick up (as contributions don't touch the side) I'd be happy to use that asset to provide choice and not be at the mercy of the local authority.

Under UK law, 'people you give gifts to might have to pay Inheritance Tax, but only if you give away more than £325,000 and die within 7 years.'.

What trusts are you referring to?

 

[Hertfordshire_home]

I mean I’ll take it as a compliment that I’ve decided to take my own path, thanks x

Omg this discussion is such bad Tory vibes

Oh god now that’s one thing I just cannot get involved in, politics. Whichever side it is it’s just liars calling others liars and it does my head in