To think house price madness will have to end somewhere?

(73 Posts)
Moomoomango Sun 17-Apr-16 20:40:32

House prices in my area ( and I understand most areas) have gone mad. My neighbour has just sold her bungalow with loft conversion for £415,000 - and it's not in great condition needs new flooring & a tidy up. We live in a nice area but nothing amazing like sea views etc , just a normal town with normal houses and normal people. I have many friends who cannot afford to get on the ladder at all so cannot start families etc. Aibu to think this has to end or is the shortage a sure sign prices will stay high?

enchantedfairytale Sun 17-Apr-16 20:42:11

It may level off. I don't think it will actually go down, though.

FlyingElbows Sun 17-Apr-16 20:42:24

No mad high prices round here. We've been in negative equity since the economy went tits up.

WoodleyPixie Sun 17-Apr-16 20:43:15

Yes I don't know how though. A 3b d terraced here is on the market for £415k. Ridiculous prices. Young people don't have a hope of earning enough money here to get a mortgage for smaller properties and they aren't building 1/2 bed prepped ties just 3 bed upwards and mainly 4/5/6 bed detached luxury homes.

We are stuck renting but now too old to get a mortgage even if the House prices crashes back to pre 2000 prices of £140k for a 3 bed.

maddening Sun 17-Apr-16 20:43:51

House on my road has just gone for £105k - 2 bed semi with a massive garden - we are still at £20k below what we bought it for in 2007 and possibly only just out of negative equity. Story is not the same everywhere

WoodleyPixie Sun 17-Apr-16 20:43:54

Even the so called crappy area here 3bes terraces and semis go for £300k madness!

madmother1 Sun 17-Apr-16 20:44:45

We were just talking about this today. My DS is 19 and said he cannot imagine buying a house. When I first bought a house in 1988, it was virtually a given that everyone of my friends could buy a house. I've jokingly told my son that he'll have to wait until myself and his Dad die, unless we end up in a home. My DD piped up that she'd never let me go on a home...She's 15 bless her. I hope the market goes down sone time soon.

teacher54321 Sun 17-Apr-16 20:49:08

In the SE it is crazy. We're remortgaging in the next few weeks and have been looking on rightmove to get a feel for valuations in our area. A three bed pretty average semi is around 400k. We don't live in a particularly glamorous area either.

Moomoomango Sun 17-Apr-16 21:07:50

I see it seems not everywhere the same - we are south coast and I'm pretty sure most young people leaving school now would struggle to ever buy a house in our town without a great job. Our flat has risen from 180000 to 240000 in 5 years we've lived here so it's basically gone up a 3rd in value Rents are astronomical too, average 3 bed house about £1600 a month. Crazy !

Buckinbronco Sun 17-Apr-16 21:08:59

People have been saying this for 15 years OP. Some parts of the country have stagnant or falling prices though

Buckinbronco Sun 17-Apr-16 21:09:59

What I do think will overheat is rentals. I was in a meeting with the bank last week (in a professional capacity) and they said they feel BTL in particular is about to crash.

Thisisnotausername Sun 17-Apr-16 21:11:44

Message withdrawn at poster's request.

x2boys Sun 17-Apr-16 21:13:45

Well no not everywhere you can get a nice three bed semi for about £120-150 thousand near me and a two bed terrace for about £70_80 thousand north west.

hesterton Sun 17-Apr-16 21:14:09

What areas have remained stagnant?

x2boys Sun 17-Apr-16 21:18:29

Some parts of the north west hesterton

derxa Sun 17-Apr-16 21:20:07

Two houses are up for over a million on our road. Our house has tripled in value at least in the last 15 years. Not London and not fashionable.

bakeoffcake Sun 17-Apr-16 21:29:26

There was a piece in the Times on Friday stating that nearly a third of properties for sale in some London bouroghs, have had to reduce their price.

So I do hope things are slowing down.

PickleBot Sun 17-Apr-16 21:32:56

Our house has gone up £140K in 3 years, it's madness! We woukdnt be able to buy it now as we don't ern enough to get the mortgage we would need...it's all good until we want to move to a bigger house and then we'll be stuffed! Extensions are springing up everywhere!

MisForMumNotMaid Sun 17-Apr-16 21:47:29

You could probably buy our road for a million. Many of these increases are more than my house is worth.

PrincessPeachy29 Sun 17-Apr-16 21:50:59

I was lucky enough through help from parents to buy a small studio flat in London for £180,000 in 2012. Three and a half years later it's now valued at £310,000. There's no way I could have afforded it at what it costs now. The thing is I don't want to leave London and all prices have gone up there so it's not like I've "made money" as if I wanted to move I'd have to pay the high prices to buy somewhere else. We could never afford a two bed property near whet we live for example.

I do have huge amounts of sympathy for first time buyers now.

MeUandtheOldGuitar Sun 17-Apr-16 21:52:05

When interest rates go up... If there were more companies/business centres scatters more uniformly around the UK rather than just London and the SE and if foreign investors hadn't been allowed to use prime London property as a high interest account... Then my guess is prices would be more realistic and there would be no 'property crisis'

LilyTP Sun 17-Apr-16 22:05:52

We rent a quite nice, but not spectacular, 2 bedroom ground floor flat, in a reasonable part of South London (gentrified, the type of place you had to pay people to live in the 80's) the sale value of the flat is £675,000.... More than half a million quid for a nice-ish flat, in an okay-ish area? Hence DH and I, despite working hard for the last 16 years and saving as much as we can are still renting. The only option is to move further out, but anywhere within commutable distance is still extortionate.

We're expecting our first child and I have a certain level of sadness that we can't decorate the second bedroom as it's rented and instead will have to make it work for our baby with moveable accessories that we can take with us.

Toomanycats99 Sun 17-Apr-16 22:14:01

I live on Surrey / south London borders nowhere fancy just average. We have a 2 bed and no hope of buying 3 bed. They seem to have gone up even in last couple of months. You are looking from 375 for an ex council up to 525 for a nothing special semi. There are some new builds at even more! We have no hope of affording one, I work in London so don't want to move further out

Chippednailvarnish Sun 17-Apr-16 22:17:20

I doubt my children will ever own their own home, even there was a crash tomorrow. I grew up in London, bought my own place at 26 and I despair of the situation many find themselves in.

specialsubject Sun 17-Apr-16 22:41:14

ah, MN youth/short memories. So cute.

my partner bought his first home in the SE in the mid 80s, working all the hours there are, with interest rates over 10% and house prices also whizzing up. So what's new?

everyone wants to live in London so it is supply and demand. And the population of the country as a whole has also risen greatly, with house building not keeping pace (just as well), so there's S and D again.

it will never end unless our population drops. Or is better distributed. Which means not investing solely in that bottom right hand corner. No chance.

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