People talking about houses dropping 30%

[ayvian]

AIBU to think they should shut up.

Banks are still lending, furlough has saved millions of jobs and no one is going to sell their biggest asset at a 30% loss. It just won't happen all it will create is a mexican standoff that will freeze the market until buyers get a sense of reality. We want to move, but not that desperate to accept a loss of what something was worth a few weeks ago. We'll hold on. It's wishful thinking that anyone can get a bargain right now

In the 1990s they fell by at least 30% so its not unheard of, many people had to hand back the keys and then the bank could chase you for 6 years for the difference so anything is possible really.

Obviously this would not affect OP too much as she has a lot of equity like we did in the 90s so when we did move although our house had gone down iirc from £52k to £30k the house we bought had gone down also but many had paid £50+k for the now £30k houses

I've taken a 20% drop on my house. I've been trying to sell it for 5 years.

Thing is people on furlough are the silent unemployed right now, next week is when all the redundancy's will start rolling out. The extension is just smoke and mirrors as furloughed are getting holiday and are costing employers money so they will start to get them off furlough sooner than they think. The scheme is flawed and is being abused by many large business.

So it's going to be a case of waiting to see what happens, the market could drop but the government can't loose the income from stamp duty and house sales as well as everything else so they will try and prop up the markets.

I think there will be a flood of people selling up to downsize, so lots of large expensive homes on the market, I did also hear from a London agent that many people with flats in London are looking to live out to places with space. So you could find a boom happening in commuter spaces.

Who knows! It's going to be very interesting times.

Difference was @EffOrf in the 90’s there was emergency council housing available. The government will do everything in its powers to keep people in their homes

I think those might be gone anyway tbh dibble. The Tories were already aware they'd need to improve public services to have a chance of keeping those seats after Brexit, they said as much, and even before the pandemic it was going to be a very fine line to walk. The MPs themselves were talking about the seats being borrowed, probably conscious of the knife edge majorities in most of them. There clearly isn't going to be any of that now.

if we all had refuse to buy undesirable properties in undesirable areas, make financial sacrifices to save enough for our deposit, claiming that it's just not possible, most of us would still be renting.

If you have chosen to have a family first, are renting an expensive house, then yes, it's harder, but why do you think you could have it both ways

@rowantree2020 so how's that going for all those who have already lost their jobs?

How will that work alongside the fiscal policies to pay for all of the intervention?

I keep repeating this but a huge issue in expensive markets is the fact that the ladder doesn't exist any more & people are stuck on it.

@sanityisamyth at least you've sold now so can look forward to a new chapter.

I still standby the fact that the issue is with wages not housing.

wages are an issue & one of the legacies of 08

@dibble15 I've accepted the offer and the solicitors are doing what they need to do, but it's now held up by HM land registry so I'm in limbo again. Just hoping the buyer doesn't pull out!

completely unreasonable to ask people to work hard and save for their first house.

Fucking hell!

fingers x @sanityisamyth it's so stressful.

@dibble15 clearly employment figures will be important and we await the data. More importantly, what will the trend be as furlough is wound down? Will there be sufficient unemployment to trigger a housing market crisis? Historically low interest rates mean housing remains affordable for many who are actually on the ladder. That said, the UK’s household savings rate is low and will have been eroded further over the last couple of months. Anecdotally there is plenty of evidence of job losses but that doesn’t equal data. There will be strong regional elements to this and undoubtedly variance between different types of housing stock.

@ChandlerIsTheBestFriend - I think you missed the sarcasm that post was dripping in

@dibble15 thanks :) it really is!

@ChandlerIsTheBestFriend that comment was born out of frustration with those on here who think a sudden massive market correction will fix everything and those with an extraordinary sense of entitlement to home ownership. We can (but seemingly won’t) bring house prices down in a managed way that brings ownership back within reach of the majority of the population, but it will always be at the cost of hard work and a degree of sacrifice.

I keep repeating this but a huge issue in expensive markets is the fact that the ladder doesn't exist any more & people are stuck on it.

How can they be stuck on something that doesn't exist?

www.google.co.uk/amp/s/amp.ft.com/content/5c49931e-9ddd-3db3-8a67-3fc2bc18f0d2

I think you missed the sarcasm that post was dripping in

Nope.

Your wilful ignorance is quite unpleasant @Rowantree2020

those with an extraordinary sense of entitlement to home ownership

I don't think it's an extraordinary sense of entitlement to want secure housing & many people pay more rent then they would for a mortgage.

I agree it is entitlement

Margaret thatcher created that entitlement with right to buy

Prior to that most people in U.K. like still the case in other European countries long term rented

It became aspirational and people do feel entitled to it because of right to buy

When houses were easy to buy because of shoddy lending practices it caused a whole recession of its own

That is not a sensible way for the lending market or housing market to ever be again

The British like yo have something to show for their lives work. To be king of their castle. It’s not unreasonable is it ?

@chandleristhebestfriend All I’m suggesting is that with the right policies we could bring homeownership back within reach of the majority in a managed fashion and this would be preferable to a sudden market correction which is what some on Mumsnet would relish. I am relatively young and have worked immensely hard to get my foot on the “ladder”. I recognise that homeownership is beyond the means of a huge proportion of the population and that needs to be addressed. But some people ( and I stress some) need to realise that it will always require hard work and sacrifices. That is simply reality. Im sorry if you disagree.

@dibble15 that conflates homeownership with housing security which is inevitable in the current UK market but not in other countries. Housing security could be addressed in the UK if there was a rebalancing of the relative powers in the landlord/tenant relationship and we stopped treating homeownership as an investment opportunity.