Possible effect of Covid/Brexit of 2020/21 property prices - AIBU to ask for tour thoughts?

[Bellsandwhistles202]

OH and I are looking to buy a house in London if we can (both work in central London, and have family in/around London).

We’ve been looking for properties since the start of the year but not yet settled on something, although we are continuing to search.

What I’m wondering is if it makes sense to prioritise buying before the stamp duty freeze ends in April next year, or to not worry too much about this deadline?

I’m wondering what effect the current situation of Covid and a potential no-deal Brexit might have on property prices, and we’ve both been trying to research this, but not found anything as it’s pretty much all been speculation.

We don’t have a massive deposit saved, although it’s okay, and are able to get reasonably sized mortgages. I’m wondering if the situation with Brexit and Covid might push the housing market over the next few months into negative equity, which would be a big concern? If there’s a risk of that, we would probably want to continue renting rather than buying somewhere.

I realise this thread too will essentially be speculation, but would be interested to hear people’s thoughts, especially if you’re also thinking about buying property over the next few months.

Anyone?

The thing about negative equity is it's only a problem is you want to sell or your can't meet the mortgage repayments. I would say you are always better to get onto the housing market than twenty as usually a mortgage is much cheaper.

We are going up a few brackets and even if the house we buy goes down I'm sure it will level up again.

I think it’s unlikely that a Tory government will allow the housing market to tank - they’ll prop it up to support their property developer mates and to keep their voters happy, if they can. Interest rates are incredibly low so if get a long term fixed mortgage then you wouldn’t be at the mercy of rising interest. Do not get a tracker mortgage. You may be more secure owning as landlords may feel the pinch and raise rents. However, the real question isn’t what will happen to the housing market, it’s whether your jobs are secure in the coming recession. A mortgage tends to be easier then rent as you can go to interest only in emergencies, but if you may lose one or both of your jobs, how easy would it be to get another and could one of you pay the whole mortgage?

There may be a slight decline for a year or so before things pick up again and prices continue to rise. Unless your "flipping" your house within the next 24 months don't worry about it.

I've said this before, but the only way there would be a drastic and sustained fall would be if supply suddenly outstrips demand. We'd need a mass removal of immigrants, including children of immigrants who have lived here their whole lives. There is no political will or widespread public thirst to achieve this. Alternatively a huge building programme might do it, but again this is unlikely because the eco-freaks will disrupt it and anyway it doesn't make financial sense. (Why build 20 houses for half price when you can build 10 for full price?)

Like others have said, unless you're planning on moving on quickly, just buy now. Better to be on the ladder than putting your money into renting if you're able to buy.

What % deposit are you looking at?

Negative equity isn't a major problem unless you have a very small deposit/equity in your house and then want to move again.
Eg if what is owing on your mortgage becomes MORE than the value of the house you are buying because then you are trapped.

Yes you could continue renting but then that's also dead money. Paying out rent because of a fear of your house value not rising doesn't make much sense to me.

Assuming your jobs are pretty stable and you don't want to try and move again for a while, I would go for it