To shout that house prices falling won't help ANYONE

[Marg33t]

Lots are starting to get happy that prices could fall a bit next year.

But really that won't help anyone as sellers will refuse to sell if they fall and buyers will need a bigger deposit. It won't help! They have to keep increasing at at least inflation for a healthy economy.

Falls may help 0.00001% of those that have a huge amount of cash, but that's it. Everyone else will not benefit!

Housing market is booming, why would prices fall when demand isn’t met?

House prices are falling in some over populated areas and rising in some more rural areas as people are looking to leave cities to get more space, after experiencing 6 months working from home in gardenless flats etc.
There isn't likely to be a big crash unless we have another recession which I guess is possible...and anyone who thinks that will be good for them is a bit deluded

It will help quite a few. First time buyers who have been saving ad may then have a higher deposit simply because the property has gone down in value, not because they need more money.
People always have to move for some reason - death, dept, divorce and simply because they want to. If people lose on their sale they may well make up that loss on their purchase.

You are right. Some house prices will fall and others will rise, I think it will depend on area and type/size of house.

Ivy near me (London Zone 2) it isn't, though it may be in other places.

I don't think most people would be happy about house prices falling because they don't happen in a vacuum. Right now banks are / already have withdrawn a lot of low-deposit products and there are fears of redundancy in many industries as furlough ends and a recession kicks in. So a lot of prospective buyers find they can't buy anyway, even if prices are lower.

The current situation reminds me of 2006 and the crash happened a year or so later. The market was rising rapidly and prices were inflated. The stamp duty freeze has increased sales but see what happens in a few months when unemployment increases after furlough ends.

I'm not sure there will be a crash but prices are predicted to fall.

I’d not really bother about this, there is always folks hoping and praying for a drop to help them get on thr ladder. There is always folks hoping they won’t drop. It is what it is. Neither impact on what actually happens.

People who can’t buy are already frozen out of the market because of required deposit increase. If prices come under pressure, people who can wait, will. That then keeps prices high. We probably won’t see major increases for the next few years but no falls either.

A lot of houses are going to be repossessed. therefore, some house owners won't have a choice but to sell.

We are looking to move , our house is probably a typical second or third house. We have been here 22 years , prices are definitely softening loads of reductions yesterday .

This actually does suit us , we have a very small mortgage and so long as the next house costs less that’s fine .

House prices have rocketed where I am. People are looking for outside spaces and a good quality of life within an easy commute to London My children have no chance of getting on the housing ladder
Our town used to be anonymous

I'm surprised people think house prices won't fall. How much of an impact will Brexit have as well as high unemployment?

The "experts" predict falls of 5% but others think it will be higher

inews-co-uk.cdn.ampproject.org/v/s/inews.co.uk/news/uk/house-prices-uk-fall-when-will-property-values-start-drop-prediction-641688/amp?amp_js_v=a2&amp_gsa=1&usqp=mq331AQFKAGwASA%3D#aoh=16010177281121&amp_ct=1601017772568&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Finews.co.uk%2Fnews%2Fuk%2Fhouse-prices-uk-fall-when-will-property-values-start-drop-prediction-641688

Falling prices = higher interest rates and higher deposits. Banks don't want to lend in a falling market because it puts them at much greater risk. Lending criteria get much stricter - anyone who has been furloughed or on other government schemes can basically forget it, their jobs are too precarious.

@contrmary

Falling prices = higher interest rates and higher deposits. Banks don't want to lend in a falling market because it puts them at much greater risk. Lending criteria get much stricter - anyone who has been furloughed or on other government schemes can basically forget it, their jobs are too precarious.

Exactly. Also, people who have taken pay,ent holidays will be at the back of the queue too.

[quote ZaraW]I'm surprised people think house prices won't fall. How much of an impact will Brexit have as well as high unemployment?

The "experts" predict falls of 5% but others think it will be higher

inews-co-uk.cdn.ampproject.org/v/s/inews.co.uk/news/uk/house-prices-uk-fall-when-will-property-values-start-drop-prediction-641688/amp?amp_js_v=a2&amp_gsa=1&usqp=mq331AQFKAGwASA%3D#aoh=16010177281121&amp_ct=1601017772568&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Finews.co.uk%2Fnews%2Fuk%2Fhouse-prices-uk-fall-when-will-property-values-start-drop-prediction-641688[/quote]
Well let's be honest what do the experts actually know? They could go up by 5% as so many nice house in nice areas are roaring up. City centre flats might be the only to fall

We shall see what happens in the next few months with end of furlough ending and Brexit.

‘Sellers won’t sell’ never stands up for any length of time. If they were sellers it’s because they had reasons for needing or wanting to sell. Those reasons won’t go away.

House prices rose because the anchor of council / social housing for the poor was removed by right to buy.
Councils need the right to build rental homes for the needy.

Private rental prices need to drop (those who bought houses for £90k and rent them out for £2500 a month to students)

and then those who want to buy will have a better choice of more reasonable properties

in central London, prices have been massively distorted by buy to leave investors

but the ideal would be for prices to drop by the rate of inflation (so effectively double inflation) each year
until they are back in kilter with earnings

I think @Bluntness100 is right.

If they fall (I think they will) some people will benefit; others will suffer. It's tough, but it is what it is and there's no point getting angry with other people who may be hoping they'll be in the group who do benefit.

Shouting (even metaphorically, online) is just like stamping your feet because someone complained about their mortgage rate and you can't afford not to rent, or getting cross because the woman down the street is fed up with her naughty toddler and you're struggling to TTC. It makes you feel sore, but they're not doing anything wrong!

Difficult to predict house prices. Over the years they rise and fall, but always increase over time, that's inflation.

Wishing for a market crash is odd, as lenders won't lend ir have really high lending criteria also requiring huge deposits.
Plus people don't sell just because their house price has reduced, they do the opposite thus pushing up demand, thus pushing up prices.

@PersonaNonGarter

‘Sellers won’t sell’ never stands up for any length of time. If they were sellers it’s because they had reasons for needing or wanting to sell. Those reasons won’t go away.

Yes it does, lots refused to sell in 80s and 2008 at a loss. So they waited it out and a few years later they sold for record levels. Mortgage rates are low so people just have to wait it out for a year or two for a fraction of what renting costs. People won't be scooping up nice houses for a bargain price! Won't happen, it never does

I think as to whether or not house prices fall will be dependant on the area.
I was listening to an interview just yesterday on local radio interviewing one of the larger estate agents in the Brighton and hove area who stated they were really busy With out of area applicants. 9% of their current applicants searching for property to buy were from London and this percentage increased to 14% for rentals. Brighton and hove isn’t cheap now but if we continue to see this tend prices will only increase. Local people are already being priced out and look further along the coast to buy so that means property prices also increase in lancing, Worthing and other West Sussex areas.

Yes I think Bluntness has nailed it. There will be winners and losers whatever happens. Certainly plenty of losers in a soaring market.

It will help some.

To add, I'm now in my forever home, bought it 2 years ago and the neighbours have just sold theirs for £50k more than i paid in 2018. Mine had a huge 1 storey extension, attic conversation and off road parking/drive, next door didnt.
But i won't be selling to get that profit, nor selling for a loss. Im just not selling