Housing market

[Fundamentallyfuckeed]

what do you think will happen to the property market over the coming year, what with cost of living and interest rates rising? Do you think house prices will drop, or given lack of supply continue to rise?

No. I think investors will keep the value of houses rising.

That’s interesting, do you think the market will be mainly driven by investors / cash buyers then?

House prices never drop in the long term. They may dip for a while. But not for long.

From experience I'd say it depends where in the country you are. I bought a flat in the North West in 2005 and sold at a loss of £40K in 2016. Prices have risen but not by much.

I'm not an expert but I do think this will happen. I have friends in the south east who still can't afford to get out of rental from 2008. Unless the banks introduce 0% mortgage (unlikely) investors will snap up the opportunity.

Where I am they slowed after Brexit & were then boosted by stamp duty. I don't see how you can have high interest rates & ever increasing house prices.

If your an investor/cash buyer interest rates are irrelevant.

If your an investor/cash buyer interest rates are irrelevant.

who said otherwise?

I was assuming they would have to come down given getting a mortgage is becoming less and less affordable for so many. However there is a real housing shortage so I guess when there is limited supply it could mean that prices will remain high

I have a friend who just pulled out of a circa 1m house because the cost of borrowing was too much now.

I've lived through 3 recessions.. house prices do dip or stagnate.. but after the 90's crash with huge interest rates, lots of people could afford to buy houses.

If you can stick it out, get a fixed rate it will improve in time.

Beware negative equity.

You need to look at a longer time period. 25 years of quantitative easing and cheap money has just come to an end. That only started in the late 1990's after we reached the bottom of high inflation in 1995. We are entering a period similar to pre-1995 now. Tinkering with SDLT at the lower margins is not going to do much to how properties are financed over the next 25 years. Generally, Governments are deliberately engineering a recession.

So what's the outlook for the market in the next year, say?

shit

Concise!

but how so? Price increase or decrease? Lots of activity or stagnation?

I'd say anyone in the process will want to complete so that still needs to feed through. But I think the uncertainty will make people nervous as to know what to do so some stagnation with falls later. I think it will take a while to see the impact of today due to fixes that haven't ended yet etc.

CNN

If banks are removing there mortgages then I can't see how it's not going to fall

We are in the process of buying after looking for a very long time. I am very very nervous about interest rate increases. The location of house is v good so expect medium to longer term would hold its value or increase even if it dipped for a while over the next couple of years. My worry is - what are interest rates going to be in 5 years when we come to remortgage? Now wishing we fixed for 10 years. Also don’t love the house but best we could get in this market. Bit dismayed about paying through the nose for a house I’m not in love with. My understanding is that a large proportion of housing is going to cash buyers who don’t need to worry about interest rate increases so not sure there will a sudden crash. I feel for people are coming up to remortgage now though, I wonder if we will see forced sales soon.