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

[feellikeahugefailure]

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.

What a load of utter rubbish, like all of this speculation.
We are not going to stop buying german cars, french cheese etc so why is our manufacturing sector automatically going to grind to a halt? Like the property market, wtf!
Just more scaremongering, i am utterly sick of it.

If the market dips, people won't move unless they absolutely have to. So buyers at the bottom of the chain will still struggle.

Definitely not connected to brexit - government policy on this issue is a long game. I have wondered though about the speed of the referendum - almost as if they want to scapegoat prices going down on brexit concerns.

Bubbles don't grown exponentially away from wages for ever, especially when government policy is speaking directly to btl telling them to invest elsewhere. See Bank of England document yesterday as it actually says they are discouraging those btl investors through tax and mortgage disadvantages and they should look elsewhere to invest.

Have you listened to treasury committee with Osborne last week askimg if anything will be changed when the bubble does deflate. No is the answer as they said wish to level playing field from btl to first timers.

------
Not sure that I would believe Osbornes rubbish about levelling the playing field, really they want to increase taxes and using btl landlords as a excuse to do so ( smoke and mirrors)
As if the government know the bubble will deflate, look at the fucking mess they make of everything! They managed to sell off the post office for a fraction of its worth...they bailed out the banks...they continue to sell off social housing ..not smart moves.

Exactly nobody knows what will happen.
However, we are certain life will go on, and we will still need things which we dont/cant produce in this country, and vice versa with other countries. We will all need a place to live.
Scaring people into staying as we are with econmic issues is not the think to do, brexit is not solely about the economy it is about the issues within the Uk as a whole!

Milly you've made a great point. Showing the OP to be dimwitted lacking a little foresight about their situation should there be a crash

It is btl exiting market currently - ie empty properties as most mortgages won't allow you to buy somewhere with a sitting tenant.

It's what is happening anyway whether people 'agree' it's good/bad. So bottom of market is helped by a btl selling. A tenant moves on big deal, they do that regularly and that's the problem - no stability to raise a family.

Have you heard talking of right to buy being discussed in the private sector too? The government don't intend to let a whole generation continue to be unable to find a home to settle and raise a family it really is a priority for them.

Level playing field for first timers is what government policy is on this. They will be able to buy those properties coming to the market when prices reduce. The potential btl has extra 3% Stamp duty on top of other issues I've mentioned.

Some btl have fingers in their ears and some don't have capacity to trawl through all the documents on line clearly stating what's coming their way.

Doesn't mean it's not happening.

We are close to paying off our mortagage now and would welcome a fall in house prices as our two sons wil never be able to afford to buy if the present state of affairs continues. The younger generation would benefit, it would be neutral for us as if we move teh cost of the house we move to wouldhave come down too. Most people stay in their houses for years to it would only have a minimal effect on them, so yes, in general terms beneficial.

leave what are you on abour re sitting tenants? You can't have been a sitting tenant since about 1990.

Yes don't believe George, but anyway do have a look at the falling London asking prices for flats in London.

Have reported your post dusty , pretty poor show to call someone a sock puppet because they don't agree with you.

Sorry but the government don't really care or they would build social housing or would remove the right to buy and offer people who need it secure, affordable homes. You seem to believe everything the government say. ( they are liars)

The tenant that can't buy a house is badly affected by the landlord selling, where do they move to? no social housing available so they have to rent again and incur the costs. Only there are even less rental properties to choose from.

as usual the bile-spewers (landlord hate is 99% jealousy, and at least some on here admit that) and ill-informed dominate. Even those too young to remember the late 80s crash could do some homework.

BTL has been a poor choice with a mortgage for some time. It only makes sense if you are a cash buyer, and with the forthcoming changes that is even more so. Osbo refuses to acknowledge that those who have saved money are buying property because the stock market is even riskier and cash saving LOSES money due to low rates and higher inflation.

if discounted right to buy comes for the private sector, I will evict my tenant and sell the place empty. And so will most other landlords. Clearly an undesirable outcome. Be careful what you wish for...

Thank you danger mouse, I think it's just bitterness on the OP's part, which is understandable and a bit sad. A little risk can be a good thing. Of course you don't know what will happen and hindsight would be a lovely thing.

You are funny milly, you don't believe government. You don't need to believe them it is actually happening which is why the more informed btl are cutting the price in their btl to try to exit before the numpty ones realise game is up and try to off load theirs too. Look at price reductions in London - it's happening.

It's happening whether you believe government or not . It won't be financially viable for people to enter btl going forward.

I do hope you don't believe what estate agents and btl tell you? They talk market up as they try to quietly exit.

Prices would have to reduce significantly to really help first time buyers. A significant reduction in housing prices would result in negative equity for recent buyers.

'Level playing field' is just politician speak for not very much.

Btl landlords are a popular target, but these changes won't solve the housing problem. The end of the btl market has been predicted for over a decade, but landlords have continued to gamble and win.

of course at some point the bubble will burst, but it will be painful for many and will hit owner occupiers as much as btl investors (although btl investors may not lose their homes). it won't be due to a deliberate policy drawn up by a politician, because no politician wants to be responsible for negative equity or bank foreclosures.

Yesterday's FT looked at the new affordability rules for buy to let loans.

www.ft.com/cms/s/0/57981914-f588-11e5-96db-fc683b5e52db.html#axzz44PguJ8Sw
" The BoE warned on Tuesday that around a quarter of lenders were currently applying “less rigorous” underwriting standards as they scrambled to grab a share of the fast-growing sector. But the regulator said it had decided not to introduce any specific hard restrictions, such as a maximum loan-to-value ratio, “at this time”. "

Over the years I've noticed the none too bright often attribute someone disliking them or their actions as "jealousy", rather than looking at themselves and noticing that maybe they are in some way objectionable.

Concern over future generations coping with ever increasing debt levels and imbalance in society or "jealousy" . Hmm I wonder which it is?

Just because you know someone as equally dimbo that wishes they'd bet their own family home by remortgaging and betting on ever increasing house prices - please don't mistake the majority of us as "jealous".

I'm certainly not envious of anyone trying to offload an illiquid asset at a time not of their choosing. Nightmare.

But I expect being 24 nowadays with £50,000 of university debt to your name must be a nightmare too.

leave sensational bollocks.

There is a shortage of places to buy and places to rent, especially in London and the SE and bigger cities. Councils have huge waiting lists and a shortage of property so they rely on BTL landlords to provide housing. I know lots of landlords that rent flats through their local council. How will local councils fill this gap of landlords stop investing in these types of properties. Leaving Europe will not change the housing shortage in some areas for renters or buyers.

I take it you're not a whizz on tax issues then if you've digested all the documents from BoE yesterday and understood it to be "tinkering".

I can certainly tell you that HMRC, not the Bank of England, is responsible for tax.

The Bank of England is concerned about the level of exposure the banks have to a property market crash and the effect this will have on the general economy.

They are not trying to help first time buyers.

Yes it's all swings and roundabouts. Some people will be hurt by prices if they've bought at peak of bubble etc however there are just as many unhappy people who can't see a future for themselves currently and shut out of finding a permanent residence.

It really won't be viable for a btl to enter market later this year at all. I know it takes a whole for all facts to filter through etc but it really won't. The btl that have bid up London prices won't be around. Prices will be set by what people can afford to buy and repay. Interest only loans that were never going to be paid off by btl are what has got the market overheated and are not available to owner occupiers.

This is one pressure on the London market the other is the exit of the speculative foreign buyers who buy off plan and flip before built etc to a btl investor. That is the smoke and mirrors.

Believe the government or not, but the changes are happening and London prices are going down at the very top and at the very bottom. Won't be too long before the rest of the market will be affected in London too and then Home Counties will begin to realise that the Londoners aren't outbidding locals again

Leave the thread now to return to brexit issue I guess as not looking to change any btl mind for sure( impossible - bubbles only inflate for ever after all)

. Just want any prospective first time buyers in London market currently to research the issue and probably sit on their hands.

Times are changing for first time buyers at last.

I'm not funny leave the roundabout don't be a twat dear.

They do lie, consistently it's the only thing that you can bank on. It's a ploy to extract more taxes.

I don't need to believe what anyone tells me I own my home outright, I played the market and own my large, expensive house. I'm quite comfortable with my understanding of things.

What's your position? As your such an expert?

18 May 2014
Here's Mark Carney saying that house price rises are the biggest threat to the economy
www.theguardian.com/business/2014/may/18/mark-carney-house-prices-risk-economy-bank-of-england

Sep 2015
Here's Mar Carney, Governor of the Bank of England warning of a possible house price crash through over-extension of the the BTL market

www.dailymail.co.uk/news/article-3249279/Britain-s-buy-let-boom-growing-risk-economy-spark-house-price-crash-Bank-England-warns.html

3 Feb 2016
Here's Mark Carney on his biggest fear - the house price bubble (odd that, as 6 months ago he was fearing a crash)

uk.businessinsider.com/bank-of-england-buy-to-let-500000-landlords-planning-to-sell-2016-2

May 2016

Here's Mark Carney reiterating his previous warnings but linking them to Brexit this tim
Mr Carney seems to blow around like a leaf in the wind. But I suppose it's useful to hedge your bets.

www.theglobeandmail.com/report-on-business/international-business/european-business/bank-of-england-warns-on-brexit-tightens-buy-to-let-mortgages/article29414860/

Mr Carney seems to blow around like a leaf in the wind. But I suppose it's useful to hedge your bets.

Probably the Governor of the Bank of England with the least vision of the future we've had in recent years. His predictions have been pretty poor.

Here's my prediction for Mr Carney -he will get his knighthood for backing Cameron. If he plays his cards right he may even be ennobled.

Here's a former Governor of the Bank of England who already been ennobled telling us that a crash is inevitable

www.theguardian.com/business/2016/feb/28/mervyn-king-new-financial-crisis-is-certain-without-reform-of-banks

The same man's thoughts on the Eurozone - it's doomed
www.telegraph.co.uk/business/2016/02/28/mervyn-king-the-eurozone-is-doomed/

That will certainly affect UK house prices - downwards.

Here's his view that IN and OUT are both painting implausible pictures

www.thesun.co.uk/sol/homepage/news/politics/6984003/Both-sides-of-EU-debate-are-painting-implausible-pictures-of-a-post-Brexit-Britain-says-ex-Bank-of-England-chief.html

Leaving Europe will not change the housing shortage in some areas for renters or buyers.

Leaving Europe means we would not have an extra 180,000 EU migrants coming to live in UK each yer and competing for the existing accommodation that's available in this country, therefore pushing up house prices and rents.
Reduce EU migration into the UK and you reduce demand for housing and house prices and rents fall.

In 20 years time, when your own mortgage is paid and your kids want to buy their own you will be welcoming a house price fall.

Leave

If you re-read, you will see that my post referred to your non-sensical echoing of Suzanne's angry rhetoric, not any disagreement with myself. I am not concerned that you and some others disagree with my views. I can see that you are angry and disillusioned, and that's a shame, but it is leading you to misunderstand the facts of the situation and apportion blame in the wrong direction.

And if you cannot take a little crossed-out sock-puppet tease, then you are over-invested and have an abject sense of humour failure too.

I await my MNHQ rap on the knuckles with much trepidation.