House Prices

[Yel]

I'm just watching and waiting for an inevitable drop

There will have to be some kind of correction to bring things back in line. But what form it takes is anyone's guess! Recent years have shown they get away with printing of money to devalue it even though it's theft of those with savings.

They did drop after the last recession in the UK and we're only just about to face reality with furlough and all that now being turned off.

 

[Homebird44]

There will have to be some kind of correction to bring things back in line. But what form it takes is anyone's guess! Recent years have shown they get away with printing of money to devalue it even though it's theft of those with savings.

They did drop after the last recession in the UK and we're only just about to face reality with furlough and all that now being turned off.

Its only been a week since the stamp duty holiday ended. I was popping on Right move most days and houses were showing as sold the day they were on the app. Houses that went on a week ago are still for sale. It will slow down now.

 

[Yel]

The sooner the stamp duty changes end the better.

Richi gets so much support, but it was madness to start Stoke the housing market as it reopened and before anyone knew if it needed some petrol poured all over it.

 

[Homebird44]

The sooner the stamp duty changes end the better.

Richi gets so much support, but it was madness to start Stoke the housing market as it reopened and before anyone knew if it needed some petrol poured all over it.

Its helped a lot with the savings but the prices have gone mad. I'm in the south east. A new build 2 bed round the corner from me is selling for 400k.

 

[Yel]

But has it really helped? People paying 20k more for something to "save" 5k in stamp duty. Madness.

 

[heretoreaditall2019]

But has it really helped? People paying 20k more for something to "save" 5k in stamp duty. Madness.

I’m wondering if this’ll result in negative equity for some people? I know that’s only realised once you sell and no one will buy just to get rid a year or two later, but I’d be worried if I had bought in the price boom tbh.

Looking at houses that have gone near me I’d say they’re 10-20% over what I’d have said one could go for prior. Someone bought an absolutely dilapidated tit hole, like not fit for human habitation needs ripping out from the windows to the walls tit hole, for 15% more than we paid for a house that just needed re decorating 2 years ago.

 

[hollowcrown]

Landlords absolutely cannot keep pumping up rent prices. The government is trying to end work from home in order to keep people buying overpriced sandwiches and living in expensive cities and keep the property bubble growing.

 

[JoeBloggs]

Landlords absolutely cannot keep pumping up rent prices. The government is trying to end work from home in order to keep people buying overpriced sandwiches and living in expensive cities and keep the property bubble growing.

They can and will if people keep paying the rent. There are not enough homes compared to people so it is supply and demand.

I'm SE, the couple across the road have just put their 3 bed house up for £475,000 and the new builds around the corner are going for another £100-150K!

 

[hollowcrown]

They can and will if people keep paying the rent. There are not enough homes compared to people so it is supply and demand.

I'm SE, the couple across the road have just put their 3 bed house up for £475,000 and the new builds around the corner are going for another £100-150K!

There will be a breaking point eventually and that's when the bubble will burst.

 

[Homebird44]

But has it really helped? People paying 20k more for something to "save" 5k in stamp duty. Madness.

Nope. I wouldn't buy now. I'm lucky I've got a decent equity but I'd like to have a driveway and garage. Id need to spend at least 450k for that and I don't want a huge mortgage. I can see the prices going down.

Landlords absolutely cannot keep pumping up rent prices. The government is trying to end work from home in order to keep people buying overpriced sandwiches and living in expensive cities and keep the property bubble growing.

Landlords can do what they like, its a horrible situation for anybody stuck in renting. Friends of mine gave up their rental and moved back in with parents. They saved for two years and had enough for a deposit. That's great if you have family nearby happy to let you move back.

They can and will if people keep paying the rent. There are not enough homes compared to people so it is supply and demand.

I'm SE, the couple across the road have just put their 3 bed house up for £475,000 and the new builds around the corner are going for another £100-150K!

You must live near me. I bought my house in 1999 for 64K. Its now worth 385k and its only a small terraced. Crazy money.

 

[JoeBloggs]

There will be a breaking point eventually and that's when the bubble will burst.

I'm not so sure, perhaps I have a skewed view being down south. But here most of my friends who are remoted working have been told they will never go back to the office full time. Most have more money than ever and the demand for rentals is so high.

My friend relocated recently, applied for 9 properties and eventually got one but there were over 50 people viewing some of them.

 

[Yel]

Most have more money than ever and the demand for rentals is so high.

I think it's going to be very split, some people have done well and others less so. Only once tax payers support is withdrawn will the full affects be felt.

Then you have to factor in that some of these people that will never go to the office again, might find out after proving the case study their jobs are outsourced to someone on 1/5th the wages.

Very uncertain for so many people and we're in a transitory phase right now.

 

[AladdinSane]

But has it really helped? People paying 20k more for something to "save" 5k in stamp duty. Madness.

This is exactly the conversation I've had with my partner and my parents. We currently own a small new build 3 bed which over the past year has increased in value by 30k (it really hasn't, we've only improved the garden and added some colour to the walls!!) House prices are so expensive for what we want on our next home (garage and a decent garden) that I'm refusing to even consider buying just to save on stamp duty as I don't want to rush into buying a place that I'll either A. Regret and want to move early or B. If we look to potentially move in 10 years, end up losing money on it cos we jumped to save 5k.

 

[heretoreaditall2019]

Then you have to factor in that some of these people that will never go to the office again, might find out after proving the case study their jobs are outsourced to someone on 1/5th the wages.

I cringe hearing people saying how fab it is their employer has got rid of the office - I think especially for very big companies who will have a lot of “wastage” (eg employees doing very little, roles that no longer need to exist really, overpaid for their actual technical skill set management) they’ll have used the furlough scheme as a proof of concept for how much headcount they could cull.

 

[hollowcrown]

I think it's going to be very split, some people have done well and others less so. Only once tax payers support is withdrawn will the full affects be felt.

Then you have to factor in that some of these people that will never go to the office again, might find out after proving the case study their jobs are outsourced to someone on 1/5th the wages.

Very uncertain for so many people and we're in a transitory phase right now.

It will all be affected if people are sent back to the office or not. If yes then the industries surrounding commuting and going to the office won't take the hit and things will stay the same. If people are allowed to remote work more, then they will take a hit and people will move out of the cities. Commuter belt towns might become way more popular.

 

[Homebird44]

I think it's going to be very split, some people have done well and others less so. Only once tax payers support is withdrawn will the full affects be felt.

Then you have to factor in that some of these people that will never go to the office again, might find out after proving the case study their jobs are outsourced to someone on 1/5th the wages.

Very uncertain for so many people and we're in a transitory phase right now.

Banks trialed outsourcing years ago and it didn't work. My husbands job couldn't be outsourced as you need MOD security checks. Technology has changed everything, the only difference between me working at home and in the office is the chair I sit in. Meetings are online. Companies were moving to a more flexible work approach for a long time. No need to pay expensive train fares if you don't need to.

I cringe hearing people saying how fab it is their employer has got rid of the office - I think especially for very big companies who will have a lot of “wastage” (eg employees doing very little, roles that no longer need to exist really, overpaid for their actual technical skill set management) they’ll have used the furlough scheme as a proof of concept for how much headcount they could cull.

Thats what restructures and redundancies are for. No employer will keep paying staff for a job that isn't needed. Local authorities do it all the time.

 

[JoeBloggs]

Banks trialed outsourcing years ago and it didn't work. My husbands job couldn't be outsourced as you need MOD security checks. Technology has changed everything, the only difference between me working at home and in the office is the chair I sit in. Meetings are online. Companies were moving to a more flexible work approach for a long time. No need to pay expensive train fares if you don't need to.



Thats what restructures and redundancies are for. No employer will keep paying staff for a job that isn't needed. Local authorities do it all the time.

And the perks for businesses too, my friend works for a well know brewery. Their job can be done at home and she will only ever be expected in for a 50% of her working week from now on. Her company reported a monthly saving of £17,000 just because it didn't need to supply milk/coffee/tea while everyone worked from home.

 

[Anne1448]

I’m wondering if this’ll result in negative equity for some people? I know that’s only realised once you sell and no one will buy just to get rid a year or two later, but I’d be worried if I had bought in the price boom tbh.

Looking at houses that have gone near me I’d say they’re 10-20% over what I’d have said one could go for prior. Someone bought an absolutely dilapidated tit hole, like not fit for human habitation needs ripping out from the windows to the walls tit hole, for 15% more than we paid for a house that just needed re decorating 2 years ago.

This gives me PTSD from the celtic tiger period in Ireland. People who couldn't afford the negative equity are still paying their mortgages to this day.

 

[Homebird44]

And the perks for businesses too, my friend works for a well know brewery. Their job can be done at home and she will only ever be expected in for a 50% of her working week from now on. Her company reported a monthly saving of £17,000 just because it didn't need to supply milk/coffee/tea while everyone worked from home.

Yep, parking, cleaners, rent, vending machines. My place pay for all of this and will save loads of money.

 

[Yel]

I cringe hearing people saying how fab it is their employer has got rid of the office - I think especially for very big companies who will have a lot of “wastage” (eg employees doing very little, roles that no longer need to exist really, overpaid for their actual technical skill set management) they’ll have used the furlough scheme as a proof of concept for how much headcount they could cull.

Yep this exactly, even if only 1% or 2% of jobs are lost it will be monumental with how quickly the changes are being brought in.

It will all be affected if people are sent back to the office or not.

The ramifications are absolutely huge, a lot more than 90% of prets disappearing!

Algorithms were already replacing white collar tasks at a rapid rate from everything from accountancy, diagnosing medical conditions and legal work. Not every job will be replaced but the headcount will be reduced with machines doing more grunt work. That with a small increase in offshored jobs will be absolutely monumental.