House prices

[Newbie1999]

Realistically, how much do you think house prices will fall over the next couple of years?

What have they been doing for at least the past 12 years?
Saving a deposit!! What do you think?

@Petiolaris

Furlough is only guaranteed until 31st May. Many more companies than the government had expected are using furlough, so it’s already over budget. How long do you seriously think the government will be able to pay furlough for?

@mochojoes it's probably a bit of an exaggeration to say 'cramped house'. As you said the average is 1 million and it probably gets you a decent sized flat or (if you are lucky),a 2-3 bed terraced house (depending on which part of Camden). 1 million gets you quite a nice house in other parts of London (though I must say it's quite an average budget in Finchley for a family house!) But definitely in the home counties, you could probably get a larger home.

They traded space for a more central location and that's because Camden/Kensington are great areas to live in. Esp if you like going out, not so much if you are a suburbite. Even during covid, I am thinking longingly of the Korean supermarket in Camden town (which I unfortunately can't visit now). Also my favourite Japanese restaurant in Camden town (it probably does takeaway now).

Hope no one on here has recently bought a house. My renewal is due in october so I hope interest rates dont go up as my payments are due to go down by 100 a month !

@Healthyandhappy I bought a 2 bed flat in Finchley London last year with 15% deposit. Would probably be in negative equity. Though tbh the houses here are a million pounds so I don't think even covid would place them within my reach

Gosh that's alot. I'm in rotherham big private estate with a big lake on the big 500k ones overlooking lake are 300k!
Mines a townhouse I paid 122k owe 98k so still hoping it stays at 80 to 100 reduction in mortgage. X

What have they been doing for at least the past 12 years?

Why didn’t they start off with a flat and work their way up.

You really need me to explain this to you?

I would advise anyone buying don't buy a flat, buy something you can future proof so can stay as long as possible. Also if you have to rent due to working in expensive areas buy elsewhere & rent it out so at least you are on the ladder.

30 years ago you could go straight into buying your 3/4 bed ‘forever’ house if you had a half decent job

Why do people completely make this stuff up ??

What do you mean?

Most people started out in tiny studios or 1 bed flats and worked up

Quite. This is my experience, and that of everyone I know, of my age.

10%
If there are really the predicted job losses then it follows that the houses market will fall.
Money needs to be used for more important things than keeping house values artificially high! In the past governments have helped keep the housing bubble going and going.

To buy a home one needs an income. Benefit income isn't great.

I’m at least one example where it’s been possible. I chose to do this rather than spend my savings on gap years and cars like friends did

Well I'm in a 900k plus property that has about 650k equity. I got on the ladder in my early 20s in the 00s before prices exploded. I did this because I was born in London so could live rent free & save & my parents gave me a chunky deposit. I met DH who also had a flat because his parents gave him a big deposit & then we sold & bought our house. Gee, why can't everyone do it , it's not hard. 🙄

Well going by the chancellors live questions tonight on the daily breif they are expecting the economy to shrink by 35% with a possible 2 million jobs lost, that in it's self will have a major effect on house prices, those who have over leveraged themselves are most at risk, with small deposits, max amount borrowed from Bank, use of help to buy for even more borrowed money, major lenders are now requiring at least a 20% deposit, I think they know what is coming, very uncertain times ahead.
As for people not selling during a recession, they usually don't have a choice in the matter when the time comes unfortunately.

Why didn’t they start off with a flat and work their way up.

Because a lot of people can't afford to save for a mortgage, even on a flat, due to rental prices.

I can't even believe someone asked what have they been doing for the last 12 years!! Not a chance we could have ever even considered buying until recently and were 35and 40 years old now and only 18 months into our first house purchase. We still only just get by now really (although lockdown is making me see how much money I waste normally)

Why didn’t they start off with a flat and work their way up.

I'm pretty sure this poster worked/works in property, flipping or something & has a dc that lives at home but has a buy to let. They get very angry on property threads when people suggest things are harder for young people.

If I had to rent I wouldn't have got on the ladder so quickly & then the prices would have run away from me.

I think also a lot of people have been stung by leasehold charges on flats. I know I wouldn't advise buying one if even the tiniest freehold terrace came up on the market instead.

We bought a 2 bed starter home and kind of wish we had just saved a bit longer and moved into somewhere bigger to avoid the faff and cost of moving.

Our house has barely increased in value, and will probably lose value due to corona and stamp duty on the next house up will be £7/8K which is a lot when you consider FTBers don’t have to pay it!

I think we will be in a worse position trying to buy a ‘family’ house by trading up than say, my sister who is still saving to get on the ladder but with the benefit of help to buy and no stamp duty.

We exchanged before this kicked off and recently completed and moved in. I can't say this worries me a whole lot. We were FTB but bought a house we love, in a hugely up and coming area that we know very well and is massively in demand. We are planning to extend in a few years if we need to but we bought a home.

We've had people telling us for the last 2 years not to buy because of brexit so have already spent thousands in rent that could have been chipping away from our mortgage. House prices may dip, but they always come back and if you're buying a home to live in for a few years I don't think there's need for concern.

But if they can save for a house why couldn’t they save for a flat years before

But if they can save for a house why couldn’t they save for a flat years before

Because they were at University
or
Because they were on an apprenticeship
or
Because they were starting out on their career and not earning a lot
or
Because they were earning for the first time and had different priorities for spending
or
The needed to work long enough to be in a position to be earning enough to even think about a mortgage
or
they just didn't feel ready

(Just off the top of my head)

Also high prices, slow growth & stamp duty make moving up the ladder harder & the UK has a big problem with people stuck on the ladder. Far better particularly for good earners to skip the flat stage & go straight to a house.

A flat costs a lot less than a house so I am presuming they could have bought a flat years before and saved a ton of money on rent so saving even more money in the long term.

Lots of people have children and rent a house over buying a flat.

A flat costs a lot less than a house

Depends on the area though

We have been looking to buy for ages. Wanted to buy this year so a drop would be good but its completely unaffordable here right now.