To think it's good news about house prices falling

[brexitstolemyfuture]

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.

I'm in the SE house prices have increased 1.12% since March.

Out of curiousity I checked my house and it's gone up by £82k in two years. FTB here are complaining because affordable homes are being built, but because they are being built prices are rising, as people rush to the area ....it's a vicious circle.

Surely house prices dropping too low could cause a negative effect on the housing market. If people are to find themselves in negative equity, surely they will be forced to stay put and nothing will shift.

The top end of the market, particularly outside prime central London, has been stagnating for the past 18 months. It slowed a while ago; I worked for a well known house builder and was selling my own house, and properties which would have been snapped up at around the £1m mark have sat for sale for some considerable time. It seems like this is now trickling further down and everything is slowing.

Of course money launderers don't actually live in RBKC and pop into Peter Jones that's why there's so many empty houses there (walk around Eaton Sq at night) Plenty of social housing in RBKC and people who bought their houses prior to the mania of the last 6 years or so but they are unlikely to be affected by any crash. People who bought recently are hardly "ordinary" £££ and of course no one wants hard working people to lose money but that's precisely why the money laundering should have been stopped. It's money robbed from those countries and money robbed from housebuyers here who have to pay inflated prices.

We're first-time buyers and moved to a much cheaper area so that we could buy a property that's big enough for us to stay in forever, if necessary, for this very reason - negative equity scares me to death.

hopeless Eton Square is actually in the City of Westminster not RBKC.

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.

Wasn't there a thread on here yesterday about people who had interest only mortgages with quite a few people saying they still had one?

Lots of people end up in bad situations because of poor choices, not just financial ones. The usual thought process around here seems to be we should support each other in a decent society and not take pleasure in people's suffering even if we deem it to be 'deserved'. That is unless people dared to take out a mortgage and then they are the scum of the earth and deserve everything they have coming to them if something goes wrong.

It wasn't millionaires that truly suffered last time the U.K. was really hit by negative equity. I wouldn't wish it on anyone.

Bit of a coincidence that when China imposes Capital Controls about moving money out and sanctions are imposed against Russia that Chelsea & Kensington get hammered and Nine Elms dies. Absolutely no one can afford those prices and of course they have rippled out. It's FTBs who will bear the brunt of NE if it spreads and they should rightly be very angry that this situation has been allowed to develop.

Snoopy it's EATON Sq not Eton! And yes it's technically in Belgravia and about 20 meter away from the dividing line for RBKC....

But a lot of that is bollocks, hopeless. 3 of the flats in my block sold recently - all for asking price, btw - and I have about 20 friends who've all upsized in the borough in the last 12 months since having kids. They've all taken on big mortgages and will all be fucked if prices drop far. Mostly it really is just ordinary people living here. Don't think that because there are more foreign billionaires there than in a lot of places that they are still more than a very tiny minority.

Oh hopeless, so quick to anger.

Maybe you need to take a few minutes to actually consider the implications of NE on the average person. As sionella pointed out, Central London isn't populated solely by money launderers and you're conflating the two issues.

If NE hits hard you won't be seeing bailiffs in EATON BLOODY SQUARE.

If you want to start a spelling war I suggest you also look up how to spell 'bluebird'

Sionella, you have 20 friends who have bought recently in RBKC...ordinary folk with kids...all forking out £3m plus ...all 20 of them
Snoopy, if you are going to point out a technical error don't make a technical error doing so.
So house prices are not falling in RBKC. Money laundering has not inflated prices. Everyone is imaginging it. FTB should not be angry at being made to pay inflated prices.
Either of you EAs by any chance? In RBKC maybe?

Hopeless - er no. None of them have paid £3m plus. What planet do you live on?! Read my words: not everyone in RBKC is buying mansion houses. You are acting as if the whole borough should be punished because some rich foreign people have bought expensive houses there. Bitter and vindictive much?

Some prices have softened. It's just wrong to say the entire borough has crashycrashed. Stop reading the daily mirror and try reading something sensible, eh?!

www.rightmove.co.uk/property-for-sale/property-63718574.html

In Dorset by the cost full of oldies who don't have mortgages, a mate has just brought a flat same block same size as the one my mum brought 9 years ago for roughly the same price she paid, so prices pretty stagnant here

It's a bargain! Only £800k so close to the Westway.

Who'd have thought it eh? A perfectly ordinary boring house. In a borough that only has £3,000,000 plus luxury empty squares and tower blocks?!

No, I'm not an estate agent. I'm a police officer. I'm sure you have some choice words about police officers as well.

You've ruined what was an interesting discussion about negative equity and it's effects with your nonsense about money laundering. I'd give you a in return but you seem like such a bad tempered person you'd probably chuck it back at me.

Have a nice day.

Sionella l think that was sarcasm. Very few people can get anywhere near £800k even in London.
Question...if l do find myself in NE then is it so easy to sell cheap & buy cheap? I mean say l bought for £100k with a £10k deposit. If l sell for £85k can l just roll up my £5k negative equity into my next house? Also, if l've lost my desposit in NE then it won't be so easy to move will it ?even if the next house up has fallen in price? Anybody who suffered NE in the past have any insight on this? If it is going to be possible to trade up the loss a lot of us FTBs will not be so worried.

If it was, then hopeless is even more - well - hopeless. There are lots of people in RBKC who've stretched themselves to buy that sort of house. Most of my friends who've bought there have bought in the £900-1.2 bracket. Now I'm not saying that's what most people in the U.K. do. They are high earners. But it's crystal clear that the picture painted by hopeless of a borough populated solely by money grabbing launderers and filled with empty £3m houses who deserve to lose their money is just pure hairy bollocks! There's a few of them, sure. But it's not the norm and it's not right to rub your hands gleefully at the thought of everyone else in that borough suffering as a consequence.

In answer to your question - no, I don't think you can. Not least because in a falling market, with an effective debt around your neck, you'd struggle to get a new mortgage. People in NE are generally stuck or bankrupt. Hence the fact that only people wanting to buy for the first time or people who don't get the economy hope for a crash!

I own and live in central London (not prime though) and agree that falling prices is a good thing (but don't think we are really seeing much of a fall).

Prices are completely detached from local wages because it's a place for the wealthy to park money. that's not a functional housing system.

The government let this get out of control and when it pops, it will be bad. And it has to.

Noone wants to see hard working people suffer obviously. That's why the situation should not have been allowed to develop. A blind eye has been turned for too long and allowed too much dodgy money to be parked in London inflating the prices for everyone else (yes even those "ordinary folk" in RBKC). And what happens now? A crash that leaves so many in NE though no fault of their own? Prices to stay high and forever cut off the younger generation from owning a home? It's an absolute disgrace that this situation has been allowed to develop unchecked. FTB and recent buyers should rightly be absolutely be furious if they end up in NE and those prices out forever even more so.

We're first-time buyers and moved to a much cheaper area so that we could buy a property that's big enough for us to stay in forever, if necessary, for this very reason - negative equity scares me to death.
Why would negative equity scare you if you don't intend to move? Just stay there pay the mortgage off and then the house is yours doesn't matter if it's worth £500k or £50k

Jupitar Yes, that's my point - that's why we're buying a house where we don't have to move again if we don't want to / aren't able to.