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!

A lot of people are losing their jobs. There will be repossessions unfortunately. The status quo is not maintainable

@ZaraW

Common sense from an estate agent. He’s right though, the property market is facing a lot of headwinds and I can’t see how current prices will be sustainable.

Houses are overpriced in this country compared with many others. We're due a fall to make prices more reasonable.
If prices do crash then it will help quite a few people. A lot of sellers are also buying so they'll benefit. Obviously all buyers and maybe renters too in the long run.
It's mainly property developers, estate agents and investors that will suffer.

You're wrong. It will help some. It will help buyers (first time buyers, those moving up) and will hurt sellers (those leaving the market or trading down).

Your argument that it won't help anyone as sellers will refuse to sell doesn't make sense as if sellers are refusing to sell the house prices won't fall!!

And even if buyers need a bigger deposit it doesnt mean that some people at least won't be a better off. Mortgages will be smaller.

Falling/increasing prices always benefit/harm people on the buying/selling side of the market. Houses are no different.

However, house prices will be falling not because of increased supply (good) but because of decreased demand/ability to pay (bad). So it is an indication of problems in the economy and so not fundamentally a good thing overall. If houses prices were falling because of a boom in supply that would be different.

There is no inflation. The bank of England are still threatening a negative base rate. If the economy is in serious recssion (it is) then house prices need to fall.

The Website housepricecrash has been around for a long time.
They are still waiting.
In Japan there was no crash - just a three decade stagnation.

In the UK one of the drivers will not be resident sales but landlord sales
as
modern high rise flats are effectively unsellable at the moment
and those who can are moving out of cities
(as it was in the early 80's for old folks like me)
so there will be a correction
but not a crash

very few families are moving their old folks into nursing homes at the moment
but they ARE moving into sheltered flats
and the family are taking over the bigger house
and freeing up the smaller city centre one

hidden chains allow corrections

Those who don’t think the biggest property crash we’ve ever seen isn't coming are beyond deluded.

Hold tight!

@raingoaway7

I don’t disagree that house prices can’t be sustained at their current levels, given the headwinds facing the economy at the moment.

Could you expand on why you think it will be the biggest property price crash we’ve ever seen?

[quote TazMac]@raingoaway7

I don’t disagree that house prices can’t be sustained at their current levels, given the headwinds facing the economy at the moment.

Could you expand on why you think it will be the biggest property price crash we’ve ever seen?[/quote]
Because it is the biggest bubble we have ever seen?

@ivykaty44

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

@ivykaty44

I do not agree. Show me the boom.

We are on a 10 year cusp of real estate rises in the UK. After that our wealth is in this thing called the Cloud.

Do your homework and look at forecasts for population growth. The world will shrink over the next few decades and there is no reason why UK real property should benefit from that amelioration. In fact quite the opposite and because we do not invest in property ownership across society, the demands will be on the property-rich to transfer wealth.

@DeadHouseBounce

I don’t disagree with your statement. There is something fundamentally wrong when normal people on normal salaries can’t afford to buy a standard family house in a lot of areas. I would like to see house prices drop. A house price drop would help a lot of people, not just first time buyers, if house prices drop then the difference between a starter home becomes less and therefore an easier step to make, for example. A house price drop would hurt speculators, which I don’t have a problem with because I don’t think housing (shelter is a basic human need) should be something to be speculated on.

I think there are a number of headwinds facing the housing market, including rising unemployment but we have still had a big population increase over the last 20 years and housing supply hasn’t kept up, plus interest rates are at rock bottom, meaning that credit is cheap. For those reasons, I’m not sure that we’ll see a big crash.

I would genuinely like to hear you and @raingoaway7 reasons for predicting a big crash.

@ivykaty44

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

Because unemployment will be very high- when that happens demand drops as most people need a job to get a mortgage.

Because unemployment will be very high- when that happens demand drops as most people need a job to get a mortgage.

I’m not sure that high unemployment Is across the board though. A lot of it seems to be in hospitality, which has affected young people who wouldn’t be at the point in life where they would be buying a house.

It would help me lots. It would help my children lots.

Houses are ridiculously overpriced relative to historic norms and wages.

Because unemployment will be very high- when that happens demand drops as most people need a job to get a mortgage

In which case pressure on rented housing will rise and buy to letters will fill the gap.

@VinylDetective

There have been a number of regulatory and tax changes over the past few years and buy to let isn’t as lucrative as it once was.

There have been a number of regulatory and tax changes over the past few years and buy to let isn’t as lucrative as it once was

It will be if house prices fall and rents rise.

I'm a home owner and I still wouldn't be sad if prices fell a bit across the board - it would definitely help some people. I do feel like its a bit of a privilege to own though. Having grown up in a low income family in shitty rented / council accommodation, I struggle a bit with some middle class home ownership attitudes

It will be if house prices fall and rents rise.

Landlords need a 25% deposit for a btl mortgage now. They used to be able to get a much higher loan to value, so it isn’t as easy as it once was to become a btl landlord. That combined with the tax changes. The wealthy landlords who can get a 25% deposit together may well still buy. But it is blocking amateur wannabe landlords from entering the market.

I’ve gotten a house in London this week (first time buyer) for 25k less than asking price (this house was listed for quite a bit more 3 months ago and was reduced recently) total saving for me of 65k

How is that price drop not helping me?