To think saying house prices could crash if we brexit will be a plus for many

(419 Posts)
feellikeahugefailure Wed 30-Mar-16 07:31:06

The BoE and other banks say this as if it is universally bad news. If it stops the vast amount of foreign speculation on UK property then many will see it as a good thing.

Even if you own your own home, its paper gains unless you sell it. So even homeowners might want prices to fall as otherwise their children may never own a home.

WineOrSleep Wed 30-Mar-16 07:35:18

Errrrr. No thank you. Negative equity is not something I wish for

Goady

Pollyputhtekettleon Wed 30-Mar-16 07:35:34

I think a house crash would have far greater implications than houses being worth less so YABU to be so simplistic.

raininginspringtime Wed 30-Mar-16 07:36:33

I see what you mean Op and in some ways I agree, however the concern is people with existing mortgages. Ideally I would like house prices to 'level off' and for wages to come in line with them over the next two decades or so.

JassyRadlett Wed 30-Mar-16 07:38:03

Even if you own your own home, its paper gains unless you sell it. So even homeowners might want prices to fall as otherwise their children may never own a home.

That's not really true. The equity in your home has a huge bearing on your ability to remortgage and at what level - and therefore your future mortgage payments.

BarbaraofSeville Wed 30-Mar-16 07:39:41

For every person who benefits from being able to buy a cheaper house, there are probably many more that will either go into reduced or negative equity so won't be able to move without paying off their negative equity so won't necessarily help the housing market.

Isn't good for banks either because the property values all the loans are supported by reduce and their balance sheets start to look worse.

raininginspringtime Wed 30-Mar-16 07:41:26

I'd be interested to see the source claiming prices will crash should Brexit happen.

FatimaLovesBread Wed 30-Mar-16 07:42:27

Errr no thanks. I'd like to move house in the next 5 years from a 2 to 3 bed. We're already looking at doubling house price just to do that. If house prices fall I'll have no chance of selling this and buying another as it will wipe out any equity.

RubbleBubble00 Wed 30-Mar-16 07:45:19

Many people are in negative equity still, unable to remortgage and stuck on their banks svr which in some cases is 5%. So it's incredibly stupid to wish for another housing crash as we haven't even slightly recovered from the last one. There thousands trapped in starter homes unable to move up the housing ladder.

witsender Wed 30-Mar-16 07:47:41

Errrr, no. This would be awful for the economy.

feellikeahugefailure Wed 30-Mar-16 07:48:10

There thousands trapped in starter homes unable to move up the housing ladder.

Because prices are out of control.

I'm not the one being simplistic, its got good and bad affects. Its the banks saying its just got bad affects!

CosyNook Wed 30-Mar-16 07:48:12

I'd like interest rates to rise instead. Something for the savers and a slow down in the housing market.

Piemernator Wed 30-Mar-16 07:48:47

It would be great for some and a disaster for others.

We would be in the lose a lot of money that's been made on our house as it's worth 3 times what we paid for it but we live in it and didn't plan to use it as a specific pension pot.

BirthdayBetty Wed 30-Mar-16 07:50:58

That'll teach them to vote to leave the EU!

BarbaraofSeville Wed 30-Mar-16 07:56:58

For anyone doubting Rubbles statement, house prices haven't been rising over the last few years everywhere in the country. Prices have been falling or flat where I am for years (Yorkshire)

We last bought in 2006 and the house was probably worth less than the price we paid until a couple of years ago at least, but prices do seem to have risen over the past year or two. Luckily we had equity from a previous house but anyone buying without a deposit at that time, where mortgages of up to 125% were available, could still be in negative equity, or not have much equity.

If someone had bought a house like ours in 2006 for £120k with a £150k mortgage, the house will now be worth £130k at most and I CBA to work out what their outstanding mortgage would be, but it will probably be about £110/120k.

If prices for houses like mine fell to £100k, which is what they were about 5 years ago, they wouldn't be able to move without paying out ££££s, which they are unlikely to be able to do. So there would be less houses available to buy too.

One of my other fears about Brexit is that we will start to lose a lot of the employment rights that being in the EU has given us. if more people have unstable employment, because we know what our government thinks of people who have to work for a living, it will be much harder to get mortgages anyway.

Figmentofmyimagination Wed 30-Mar-16 07:59:20

If the conservatives hadn't blown up the housing market like a giant balloon, we wouldn't be in this mess. Something is going to make it burst, and a vote to leave looks like a likely trigger.

You would have to be mad to wish for a housing crash. There should be more support for the rental market, such as proper security of tenure, much more on a par with the security of owning - ie 'if you pay you stay'. That would help bring down prices. Some element of rent control would also be helpful. Even if it is just in places like London and oxford where rents are out of control, it will send a message that houses are primarily supposed to be lived in.

Runner05 Wed 30-Mar-16 08:00:02

Err, so if there's a housing crash that's fine for people who want to get onto the housing ladder except that all the people in starter homes (one or two bed) will be in reduced or negative equity so they won't be able to move up the ladder and as a result there won't be many starter homes on the market which will drive up prices due to demand causing the housing market to recover. hmm

Fluffyears Wed 30-Mar-16 08:01:42

We'd lose out massively as we have £35k equity right now and for that to be simply wiped out would be a disaster as we hope to move to a house rather than an apartment soon.

IPityThePontipines Wed 30-Mar-16 08:02:42

YABU OP, for the reasons stated above.

Also this:

One of my other fears about Brexit is that we will start to lose a lot of the employment rights that being in the EU has given us. if more people have unstable employment, because we know what our government thinks of people who have to work for a living, it will be much harder to get mortgages anyway.

A Brexit would be like turkeys voting for Christmas for most people.

mollie123 Wed 30-Mar-16 08:05:16

figment
If the conservatives hadn't blown up the housing market like a giant balloon, we wouldn't be in this mess.
Err - who presided over the great house price boom that had a mini bust in 2008
yes - it was nulabour (1997-2010) and a certain GB who was in the driving seat (and of course the BOE with the insane low interest rates and the banks with their self cert IO mortgages).

mollie123 Wed 30-Mar-16 08:07:44

And to you who worry about losing your equity - if you lose £20K of your selling price - maybe just maybe the house you are buying will lose £30K of their selling price. hmm
why should leaving the EU have any impact on house prices??

redhat Wed 30-Mar-16 08:08:21

OP this is your pet subject isn't it. You've started a number of threads on the housing market. I suspect that you're influenced by the fact that you are unable to buy and feel priced out of the market.

One of my other fears about Brexit is that we will start to lose a lot of the employment rights that being in the EU has given us. if more people have unstable employment, because we know what our government thinks of people who have to work for a living, it will be much harder to get mortgages anyway.

As an employment lawyer I disagree about this entirely. Most of our employment law protections are actually England/Wales based (employment law is slightly different in Scotland and Northern Ireland).

redhat Wed 30-Mar-16 08:09:30

The argument that the house you are buying becomes cheaper doesn't work if you have a high mortgage. Negative equity is the real danger for thousands.

ThroughThickAndThin01 Wed 30-Mar-16 08:09:39

Yabu.

A crash might help my teenagers get on the housing ladder at some stage. Except it wouldn't. They aren't in a position to save up a deposit. A housing crash would be a symptom of the economy and would therefore reflect unemployment, company closures, shop closures, meaning more and more wouldn't be in a position to buy.

Downsizers might be ok, except people would be stuck in the houses they want to buy so no housing stock to buy anyway.

So simplistic to wish for a housing crash. Simplistic and rather stupid.

Helmetbymidnight Wed 30-Mar-16 08:12:19

How can you say it was the conservatives who blew up the housing market? My god.

New labour did it and all their buy-to-let cronies (cherie!) prospered massively from it.

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