To think the housing market is about to collapse

[sandrabedminster]

We seem to be getting almost daily story's about it on the edge, no surprise really given the ridiculous prices.

Now standard life have suspended their commercial property fund.

Is it about to go back to 2008 all again?

When we bought our house we looked at a few more expensive ones and DH and I both agreed not to push ourselves financially; we could have bought a far bigger house in a plush area, but chose the lovely home we're in now, where we're able to afford to save money, pay extra off the mortgage each month and generally live a good standard of life. Going back into a recession won't hurt us much, but for families locally it could cause long-term damage to many.

There us likely to be a retracement. Unlikely to be a collapse as mortgage rates will fall again before the end of the year. As someone pointed out on another thread, the weaker pound will make UK (London) property cheaper for overseas buyers.

The property market always goes in cycles. I have lived through two property crashes while we have been in the EU.

It only really a problem for those that are distressed sellers in negative equity, if you are buying another property, that will come down proportionately.

The London market cannot keep going up in a straight line.

I wish someone had a crystal ball. I am in the process of buying my first home. South East but not London. I am letting it roll on for now as it's fairly early days so no looming exchange etc, but am scared of ending up in negative equity. Originally applied for a 2 year fixed price mortgage but don't know whether that's the right option now. Don't know whether the vendor would accept a lower offer if things do start to crash, in order not to lose the sale. It's not my forever home, it's ideally for 5 years tops, so I don't want to get stuck in it, particularly.

I can't see a crash happening in our art if London. We weren't affected in the slightest in 2008 and even if there's a dip I seriously doubt it will have much impact. Houses still going for a ridiculous fortune here

I'm negotiating a sale to a property group at the mo, they said they are putting a hold on their London, and higher value deals at the mo while they think further.

Alcon

The two retracements/crashes I have lived through lasted around 5-6 years (ie, before the property has recovered to the price I paid).

Just keep your eyes peeled on other similar properties in your area. If you see them starting to head lower you can reevaluate.

Don't think so I work for a well know builder and we're about to put prices across sites in the midlands up by 2-3.5% depending on the site.

Where we are in SE London, they were already falling back, because of the changes to taxing of BTL in the last budget.

I think that they will now fall further, because the London property market is no longer a safe investment for international investors.

To be honest, I think it's probably a good thing for many people.

Oh, and rents are falling, because those that can't sell but need to move are having no choice but to let.

PIL are in the middle of selling in the Midlands. I have a feeling they've left it too late. They had a good offer, but their sale's all slowing down a bit, now. They did vote leave, as the good disciples of the daily mail that they are. They're bregretting it now, though.

Bristol is massively overheated at the moment. I know someone who made 100k on his two up two down in 4 years his house sold in 1 day!

I haven't notice any decrease in houses coming into the market or any reductions where I live yet (in SW not Bristol)

I think the general mood in the property industry is one of slight twitchy-ness but nonetheless business as usual.

I expect there will at least be a stagnation for a while, but at the same time demand is massively outstripping supply. Sensibly priced family homes round here sell almost as soon as they go on the market.

Rural SW with a lot of second home owners.
There seem to be far more houses on the market, which suggests that the private sales aren't so popular and many have reduced their prices by at least 10%.

On a personal level I hope it does so I can snap up a bigger house without selling my current house.

On a societal level it'd be completely devastating so I really hope it doesn't.

Umm, OP aren't you a HPC'er who has started a lot of similar threads?

what does HPC'ER mean please
Purple pants?

I hope so. Houses are hugely overpriced. If young people are ever going to afford a home, prices need to fall considerably.

Pragmatically, the B of E has indicated it will cut interest rates. There are no inflationary pressures. Sterling is weak. Demand far outstrips supply, houses can't be built fast enough.

That would indicate that the market will remain healthy.

Buyers may become jittery, and builders need capital, although the banks are far better funded now than in 2008.

I'm not so sure we face a crisis, but who knows at present with all this uncertainty.

Why is it a bad thing for the country to be building more homes? Surely this is a good thing or is it ok to expect people to rent all their lives paying huge amounts in rent so that others can reap all that unearned income from house price rises? Aren't houses meant to be homes, not investments at the cost of pricing out the younger generation forever?

I am old enough to have lived through previous crashes and one thing I have learned is that it comes back up in time

London prices didn't crash, though, did they? In 2008?
Lots of development stopped, because developers couldn't afford to build out on land they had...and supply stopped. So then there was a quick property boom.
And with a weak pound, foreign investors will find London property a good long term investment.

Oh, is it that plot to keep telling people that house prices will crash.....so that it becomes a self-fulfilling prophecy?

Standard and life is a commercial fund there are no residential properties in the portfolio, anyways anyone investing in the likes of this is well versed on risk, at least they should be.
I see, the usual posts about Not enough homes every bubble is built on buyers caught up in the belief if they don't buy now they will never buy, the amount of intervention into the market to keep this afloat is ridiclous.

I'm an estate agent and we are busier than ever. Really praying it continues. Getting good sales and loads of new properties to the market. I'm surprised too.

There needs to be a crash in London. The likes of this is utterly appalling:

www.rightmove.co.uk/property-for-sale/property-60109538.html

I don't think so.
We attempted to sell a central London property in 2008. The market hadn't crashed, as such, but there weren't in real terms huge numbers of people looking to spend (what was then) £700k on a small flat. Once those people stop looking the market just stops. Not crash as such- 3 agents told us they wouldn't be able to sell even if we reduced it to say £4/500k. There were just no buyers. When people toughened up
A bit it went back up and we sold in 2011 for £900k.
We went onto the mortgage tracker rate which obviously was tiny compared to previous fix of 6% and tbh, did fine. That's the reality of much of central London. The papers don't know anything. They're not the ones buying up premium London property

So, whilst in The rest of the country there were certainly falls in over inflated prices, they not driven by, or related to, London. Don't worry what happens in London unless you live there- and even then, with London being basically a network of unique villages there is no one size fits all.