House Prices

[Homebird44]

It's getting grim, blaming people and telling them they're a failure and it's their own fault they can't buy (read sign up for a few decades of debt) a home that has gone up many multiples while wages have stagnated.

Society seems programmed to say renters are not succeeding in life.

You have to be exceptional or have help to get something very ordinary these days. Having a parents home you can live in rent free while you live like someone in a developing country is not an option for many. Nore is it something to celebrate. It gets as stupid as the numpties that tell unemployed people that all they need to do is get a bike and travel 20 miles a day and then they'd have a job.

I would have happily rented. The only concern I had was what happens when you retire. Your landlord isn't going to stop charging you rent. My children will stay with me, ill charge them rent which will go into a savings account for them and I'll also make sure they're saving.

 

[ClockworkDolly]

Totally agree.

Totally disagree. Firstly as it will be difficult to actually get it completed by March now. The stamp duty will most likely be extended and no point rushing now during a frenzy when prices if anything are likely to fall. "Save" 5k by overpaying 20k. The Nationwide says this

“Housing market activity is likely to slow in the coming quarters, perhaps sharply, if the labour market weakens as most analysts expect"

I sold my house by mid June to first time buyers.

I moved into my new house at beginning of October. Three people in the chain.

 

[Anne1448]

Yes, having the pictures of a sold property makes a huge difference. Sometimes you can see entire neighbourhood sold at a reasonable price. But you have to add 50-100k extra.

 

[Italy2]

Help to Buy Wales scheme has been extended to March 2022 with the possibility of a further extension to March 2023

So the scheme is still propping up the housing market - in Wales at least

I just don't think that the new builds are worth the 5% deposit as they are so overpriced and small in size. Although alot of houses where I live are being reduced on Rightmove at the moment, guess will have to wait and see

 

[Allthevest20]

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.

I couldn't get a HA property as they said I earned too much, clearly didn't if I couldn't get a full mortgage alone with an obscene mortgage (also in the south and work for the council lol) my building insurance is covered by the HA who have 50% and they send me the insurance certificate and then I'm liable for contents and maintenance. I do wish I could own it all but the circumstances didn't allow I was only in my 20s when I lost my Mum and had been saving but I was shocked by deposits so was probably naive by it all - however I did think I had more time to worry about it all. Without the minimal inheritance I did get I'd have been stuffed I fear but yeah all SO I've seen here are new builds too

 

[Pixipoppy]

Are house prices rising? Or is it just my area? A 2 bed terraced house that usually would go for about £200k max seem to be going up for £230/240. Honestly this just feels like I’m running through a tunnel and the exit is just getting further and further away! Plus the new build we were told would be released under £300k has just been released for over meaning we can’t use HTB. I feel like we’ve gone from having a few options to just resigning myself to renting for another couple of years which I really don’t want to do.

Surely a recession will mean a drop in prices?

 

[Boutros-Boutros Ghali]

They aren't banking all that money, they have debts including to my parents.

Threshold is about £28k so they’ll have to get rid of a lot…..

 

[Yel]

Most 90% mortgages are back now and it seems business as normal

Not really back to normal, they're being a lot more stringent about who they lend to, rates are much higher and there's way less 90% products.

 

[Yel]

Only 60% LTV would suggest they are pricing in worst case scenarios of 40% falls as they need to make sure if they repo they will make back their money.

Any repos won't start until next summer with how long they take and the mortgage holidays plus a stopping of repos for the moment.

There's some auctions coming up, will be interesting seeing what they sell for.

I don’t think this is going to have a huge impact on house prices overall

This seems like the biggest recession in living memory, will need a lot of stimulus in the budget next month to stop any impact. We will see though.

 

[Xlau90x]

Jesus this thread... difficulties buying even with a 25% mortgage ... I can’t even fathom how you can save that much, average house prices in my area for a 25% deposit I’d need over £50k... even if I was living rent free that’s not even feasible. Would probably take me another 10 years to save. Was feeling pretty happy with the £8k I’ve got now till I read this Unless we can get a very least 80% LTV mortage or do help to buy we’re not going to be able to get onto the property ladder in the foreseeable. Both on decent £30k + wages with good credit... so unfair!

I feel the same as you! We’d need £40k+ to buy and I can’t imagine having anywhere near that in the next few years. It’s hard but keep your head up. You should be proud of the money you saved and I still like to think everything will work out in the end

 

[Hertfordshire_home]

What about those people that are in low paid jobs and their wage just about covers their essential bills? Should they prioritise saving for a house over feeding their children?

You are being ignorant to the circumstances of others.

I’m not at all. I said from the start in general, obviously my point doesn’t apply to all. Again people will make it personal and say what about xyz.

My point was for a lot of people they spend far more than they need to for lots of things (phones, holidays, nights out, takeaways, pub, car, clothes).

Those are the people I was talking about

 

[Pissedoffwithinfluencers]

But if it was hundreds wouldn't the deposit cover it?

Hundreds sounds about what landlords should plan to spend between tenancies and sorting the oven and behind the sofa I'd guess isn't uncommon with how some renter's don't look after a place.

If they damaged the washing machine again that should easily be covered by the deposit and if it broke when not that old then the guarantee should cover it id of thought?

Not saying this is you, but I do know landlords that complain endlessly about ever paying a penny to maintain the property which seems very illogical. Like bemoaning the management charge off a pension.

No we had to spend jusy short of £1000 on professional cleaning , minor repairs & trades and the deposit wasn’t even half of that, about £350 . Plus it takes a whole to get it back .we also had to fully replace flooring as they didn’t report damage to laminate and it has swollen and cracked due to a spillage . It was damage and dirt that cousl have been avoided not wear and tear. They were also fairly anti social so the neighbours reported which I was embarrass about but we only got those reports when they left . It’s not all coin
Luckily we have long term tenants now who are looking after the place well.
In terms of the topic overall , house prices, all I can say is surley the bubble has to burst soon. Anyone old enough to remember the northern rock crash will remember that came down like a tonne of bricks . What I don’t get is where peopel are getting the money from to throw at offers over (Scotland anyway) ?

No we had to spend jusy short of £1000 on professional cleaning , minor repairs & trades and the deposit wasn’t even half of that, about £350 . Plus it takes a whole to get it back .we also had to fully replace flooring as they didn’t report damage to laminate and it has swollen and cracked due to a spillage . It was damage and dirt that cousl have been avoided not wear and tear. They were also fairly anti social so the neighbours reported which I was embarrass about but we only got those reports when they left . It’s not all coin
Luckily we have long term tenants now who are looking after the place well.
In terms of the topic overall , house prices, all I can say is surley the bubble has to burst soon. Anyone old enough to remember the northern rock crash will remember that came down like a tonne of bricks . What I don’t get is where peopel are getting the money from to throw at offers over (Scotland anyway) ?

Eta the washing machines x 2 was

Sounds like my previous landlord... he said that he would increase my rent so I asked what was going to be updated and he said nothing. He needed to increase to "keep up with the rentals around us". But the rentals around the neighbourhood were brand new luxury apartments owned by massive corporation. Greed really is a sickness.

we done the opposite kept it lower to
Make to more realistic and it also helps with longer tenancy.

 

[Holidaybobs]

Anyway back to house prices, otherwise we could go on all day long with landlords are providing an essential service / exploitative bottom feeders argument

House prices pretty much static in Feb. But I'd think that says prices are going to stay static? Most that wanted to move have probably done by now or were due to complete by end of March. The samp duty extension will stop a cliff edge, but can't see another frenzy being kicked off. The gov will now subsidise up to 3000 people with a low deposit every month but that feels like it will be treading water.

Will be interesting once the SD exception is removed to see what happens.


House prices dipped slightly in February, Halifax says, recording a 0.1 per cent fall.

On an annual basis, house prices grew 5.2 per cent, the lender adds, with the average house price coming to £251,697.

Quarterly, this equates to a 0.5 per cent change.

It has been a soft start to 2020, says Halifax managing director Russell Galley, and “the housing market has been at something of a crossroads.”

However, recent budget announcements, such as the extension to stamp duty and the mortgage guarantee scheme have “removed a great deal of uncertainty for buyers with transactions yet to complete”.

He adds that the long term housing market performance “remains inextricably linked to the health of the wider economy.”

James Pendleton property expert Lucy Pendleton says: “Now that the stamp duty holiday has been extended, there is nothing standing in the way of a string of new record highs over the coming months.

“While pumping up property prices is unlikely to have been the chancellor’s aim, he has effectively fired the starting gun on what is set to be a second honeymoon for house price gains.

“Annual house price growth has now been above 5% for seven consecutive months. It will be fascinating to see how long the market can hold on to that growth, but of course such a hot market isn’t welcomed by first-time buyers who will be relying heavily on the government guarantee mortgages that are now going to be available to them.”

And Radstock Property co-founder George Franks says: “March is likely to see a much more pronounced rise in house prices due to the extension of the stamp duty holiday and the new mortgage guarantee scheme.

“Since the Budget we have already noticed an uptick in prospective buyers and this is likely to continue.

“Prices are also being supported by a phenomenal lack of stock. For now, in the capital at least, properties for sale are as rare as hens’ teeth.

“London is in a log jam. The top end want to get out but there is nowhere to go, which means people can’t move up.

“The Halifax is right that the economy and jobs market are key to the trajectory of prices this year, but we believe demand will remain relatively strong as it still costs less to own than to rent and mortgage rates are extraordinarily competitive.”

House prices dip 0.1% in February: Halifax

House prices dipped slightly in February, Halifax says, recording a 0.1 per cent fall. On an annual basis, house prices grew 5.2 per cent, the lender

www.mortgagestrategy.co.uk

Our local market has seen a drastic fall in houses coming to market but, prices are still ridiculous for the houses. Way overpriced for many.

 

[Clickbait]

I did not use the phrase NHS managers.

I was referring to much higher levels than that of the NHS. I’m also talking government level and the firms who are used by the government to fulfil contracts at a vastly over charge the NHS for day to day items.

Part of my job works with NHS and it’s partners for training within universities and colleges, and I can tell you the amazing of wasted NHS funding in that sector is criminal. They are also told to adapt the spreadsheets to ensure every penny is ‘spent’.

I wasn’t suggesting you’d used it. It’s just a pet peeve of mine linked to but not related directly to your post. Sorry if you felt under attack, that was not my intention.

 

[Tublet83]

Interestingly all the houses around me (including next door) that were sold subject to contract before lockdown haven’t dropped out and are now going through. Will be interested to see if they have negotiated a reduced value or not (I live up north but locally in an area of high demand)

 

[a.pain]

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

Ok thanks! Really don’t know what the solution is

 

[Homebird44]

To many lazy fuckers these days, if only they didn't spend £20 a month for a phone that was their internet, computer, camera, calendar etc and didn't go on holiday once a year for a few hundred then they could buy a house that's gone up hundreds of thousands in recent years.

This luxury argument is a load of shit. These things have become so cheap while the essentials like a home have spiralled out of control.

I'm off to watch homes under the hammer, soon I'll remortgage to buy a few more properties and I'll never have to work again! I'll get some renter scum to people farm

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

 

[Yel]

I completely disagree. By the end of the year the economy will be going full steam.
Let’s revisit this conversation on 11 Nov 2020, set your calendar . I might end up eating a hat!

I think to might be joking

Economics rarely agree on anything but at the moment they're arguing that it will either be a deep recession or very deep recession

 

[Yel]

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

 

[Homebird44]

My mum is still in her council house. Shes been paying full rent for 45 years. She has changed the bathroom and the council have installed a Magnet kitchen and the soffits and facias have just been replaced. Its a 3 bed house in a well off town just outside London. Its only her and my step dad living in it now, two spare bedrooms. I do wonder if the council would move them to somewhere smaller so a family would move in but she said that they wouldn't do that. She ripped the bath out and installed a big walk in shower, it looks amazing but I do worry for them that it could be taken away.