Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think it's good news about house prices falling

216 replies

brexitstolemyfuture · 02/06/2017 08:43

The sentiment has really changed in comments sections all over the place.

It is a bubble, no way can something keep rising indefinitely. From my area in the south it's been 10% increases for years yet wages are the same. Average wage is 26k where I am, average house is over 300k.

A slow poping of them would be best for the economy and give hope to those not born when they were affordable. I speak as someone that owns.

OP posts:
Jellymuffin · 02/06/2017 08:51

It's rubbish London figures - house prices in my town are climbing faster than ever. We are being marketed as a commuter town (50 mins direct to Euston my mainline) £400k + for a 4 bed - having lived in a house that made no money in 7 years due to buying in 2007 my current house has now made 70k in less then 3 years. It's mental but we had to save TWO deposits. You can do it at current prices - you just have to commit, unfair to wish dropping equity for people who have struggled to get to where they are currently.

Ifailed · 02/06/2017 08:54

I remember negative equity in the 90s, not much fun being stuck in a small 1 bed flat with two toddlers.

BeyondThePage · 02/06/2017 08:57

We are over in the West and house prices are still rising. It would be good news if they fell here (overall good news, not for some individuals - I understand some would be in deep doo-doo), would also be good if interest rates rose (and THAT would drop the house prices after a bit - and discourage the buy-to-let scourge!)

Original poster
brexitstolemyfuture · 02/06/2017 08:59

Well next to noone will be trapped in ne with a slow decline as interest only is a thing of the past along with 100% or 125% mortgages.

OP posts:
PaintingOwls · 02/06/2017 08:59

I think it obviously depends on where you are on the fence. Personally I'm happy as it gives me hope that I could buy a house, but if I was already a home owner I suppose I would be less impressed.

Original poster
brexitstolemyfuture · 02/06/2017 09:01

If your a home owner that can't afford the next step it's good news.

Mainly people downsizing it will be not great news.

OP posts:
PaintingByNumbers · 02/06/2017 09:02

my house is still worth less than it was 12 years ago, its not great if prices decline further.

MackerelOfFact · 02/06/2017 09:03

I think it's a good thing if prices slow or drop. It's a ridiculous situation we have currently where people expect their homes to increase in value - I can't think of a single other essential purchase (not that house ownership is essential, but something bought out of necessity rather than an investment) where someone would think it was 'unfair' that it's value depreciated while they got use from it.

I don't own a property and can't afford to, yet pay more in rent that I would pay towards a mortgage on the same property. I don't have a huge amount of sympathy for those who might find themselves in negative equity, TBH.

Jellymuffin · 02/06/2017 09:04

I disagree - we had a 95% mortgage on our first house. During the recession our house values dropped by 20k - on a 125k house! I remember my friend selling for a 32k loss and she didn't have 100% mortgage either. Do you not understand the concept of house prices dropping? So much of your mortgage payment is interest anyway that it takes YEARS to make a dent in the actual balance. And interest rates rising would be a DISASTER! I thought the whole problem was wages not keeping up - do you want widespread repossessions?

CrispyBathTowel · 02/06/2017 09:08

Well it's good news for first time buyers. Not great news for anyone else really.

KanielOutis · 02/06/2017 09:10

I'm in the South East, about an hour from London and prices aren't going to drop any time soon. I'd love them to drop, so my children have a hope of buying somewhere. I'm quite happy to stay put, but can see why a house that increases in value by £1k a month isn't sustainable.

Jellymuffin · 02/06/2017 09:10

And don't be jealous - it's not like people who own were GIVEN houses! We had to save while paying rent too (and paying a mortgage the second time round!) I hate the way that some people have no regards for the welfare of others 'I don't have a huge amount of sympathy for people who go into NE' likewise - try harder!

Sionella · 02/06/2017 09:13

Oh aye, house price crashes are always a great sign. They don't mean people being stuck in negative equity, being unable to move even if their families have outgrown where they live, having banks chasing them years later, no no, nothing like that.

why don't we have an eyeroll/facepalm emoticon?!

Original poster
brexitstolemyfuture · 02/06/2017 09:14

KanielOutis - where is that - kent? Prices across the whole south east are looking very dodgy at the moment.

OP posts:
Jupitar · 02/06/2017 09:16

It's good news if it means people will finally start seeing houses as somewhere to live not an investment which will just keep increasing in value.

The original idea of buying your home was that you pay the mortgage for 25 years and then it's paid off and you own you home outright. It shouldnt matter if the house if still worth the same as what you bought it for, it just matters that you no longer need to pay for rent or a mortgage.

MackerelOfFact · 02/06/2017 09:23

I hate the way that some people have no regards for the welfare of others 'I don't have a huge amount of sympathy for people who go into NE' likewise - try harder!

I wasn't asking for sympathy for renters! Just that it's not a wholly different situation - paying to live somewhere and finding that you haven't actually paid anything towards owning it, and being tens of thousands of pounds poorer by the time you move out.

I totally care about people's welfare. But home ownership is a risk - a risk that nobody is forced into taking.

KanielOutis · 02/06/2017 09:27

Brexit - Southend. I bought in 2008 for £100k and had a recent valuation of £180k. I can't see that prices here will drop any time soon. There is a huge influx of people moving here who can't afford London prices.

MaryPoppinsPenguins · 02/06/2017 09:30

OP where in the southeast? We've just sold and bought in the southeast and prices haven't slowed one bit.

BakewellSliceAgain · 02/06/2017 09:31

I have children so I would welcome house price stabilisation and a slow decline in prices. I wouldn't wish negative equity on anyone though.

BarbaraofSeville · 02/06/2017 09:36

Maybe the areas where prices have gone up most will be most effected, because fewer and fewer people can afford the higher prices.

I don't know how prices have changed in London/SE over last 10 years, but in a lot of places, prices have only just got back up to peak levels and in others haven't even done that, so prices have been more stable, haven't inflated as much, so might not suffer such a crash this time?

Probably also the case that due to unaffordable housing, people are not seeing the benefit of living in London if they have to spend the high wages they earn on housing so might prefer to earn less elsewhere, but actually have more diposable income, due to cheaper housing, thus taking some of the pressure off demand? Plus also uncertainty over Brexit putting off foreign investors.

BabyNeedsHelp · 02/06/2017 09:38

This is currently a huge Prime Central London problem. Offers a million below asking price are being accepted. 20% off asking price generally however that is only for motivated sellers. Most seem happy to let their house sit on the market forever and won't budge. New stock is being pitched at ever higher asking prices as EAs desperately compete knowing that the property has no chance of selling at that price. Once they have vendors on their books they hope they'll make an eventual sale or convince them to rent. When l try to contact EAs that l've done viewings with, invariably they've been made redundant. One well known EA office in Belgravia is closed down in past month. I'm surprised at the muted write ups in the press but it doesn't seem to have rippled out yet.

HipsterRaccoon · 02/06/2017 09:38

Well, the problem is that house prices have soared ridiculously, totally outstripping wages and creating a national housing crisis. It would have been better if the government had stepped in long ago to stabilise prices, as they didn't it seems like a crash is the only thing that will put prices back to anything like they should be. And I say this as someone lucky enough to get on the housing ladder when prices weren't astronomical.

Original poster
brexitstolemyfuture · 02/06/2017 09:38

Sussex area. Looking at land registry prices in Southend have been decreasing month on month since January, but the annual change is still posative. These are three months out of date though and the reports now are apparently based on last month. Time will tell I guess.

OP posts:
Oliversmumsarmy · 02/06/2017 09:44

Just been pipped to the post. Was about to view a house yesterday and it had gone. Not only are prices rising but they are also selling

Hopeless432 · 02/06/2017 09:49

Chelsea & Kensington has already totally crashed and is going to get even crashier. Boo hoo. All that foreign corrupt money flushed through off shore companies making a loss. The snooty EAs losing their jobs. Oh the humanity !