AIBU to move up the property ladder at the moment. Are we heading for a housing crash?

[Gingernutss]

I know, I know... you can't predict these things and can only say what has happened when looking in the rear view window but would you move up the property ladder to the tune of a house costing £100k or more than our current one at the moment?

I ask this outside of my own personal situation more as a do you think the property market outside London is about to crash? I live an hour or so away from London. Thanks in advance. Apologies to anyone who finds this offensive re the money side of things. I am not trying to offend!

Doesn’t matter if you’re planning to stay in the house for a long time, and can weather any interest rate increases. We’re about to do the same thing: we need the space and the change of location. Knowing our luck it’ll all crash right after we buy, but we’re hoping to find somewhere to stay forever, and have – touch wood!! – secure careers and savings. So we’re going for it.

Just don’t overstretch yourself mortgage wise, and using up all savings. Give yourself a buffer in case of a crash.

The demand for housing other than in a very few locations is always outstripping supply, interest rates are low in real terms. I cannot see any return to the negative equity of the 1990s.

@ThroughThickAndThin01

Just don’t overstretch yourself mortgage wise, and using up all savings. Give yourself a buffer in case of a crash.

^ This. It’s not the house, it’s can you afford the mortgage of interest rates hit 10-15% (they were 8% or so about 2000 IIRC, and 17% in early 80s

I moved last year: am REALLY glad I didn’t massively overstretched as I expect my non mortgage cost of living to go up maybe 20% this year (fuel, petrol, food), and pay rise - maybe 2%?

I need that buffer and I think most people would want to have some room in the budget

I’m not expecting prices to crash, more the market to stagnate as people will try to avoid the very significant cost of moving

Keep the payments affordable and fix the interest.

We bought it brexit and fixed for 10 years.
We could have borrowed an extra 300k but didn't and I am really glad as it would have added a lot of pressure.

However we do still have a big mortgage - as our home was a long term move (like 10 years at least) we were comfortable with the risk of negative equity as a. We could ride it out and b. This purchase was a home not an investment so we were happy to break even or sell at small loss if it came to it

Don’t overstretch yourself. I’m just thanking my lucky stars that we took our mortgage broker’s advice and fixed for 5 years rather than 2. We’d debated the 2 years as it was very slightly lower interest but we wanted longer term security and now I’m so glad. This was about 6 months ago so before this all kicked off so plenty of time left on the term.

There will not be a housing crash in UK until the discrepancy between supply and demand for housing is addressed.

Since 2000 there has been a net increase of 8.2 million people in UK. We would have needed to build eight cities the size of Leeds to keep up with that increase. We did not.

Rate of increase may slow in a financial crisis but the price will not crash.

Thanks everyone, very insightful. We need more space and to enjoy a garden as the current one is overlooked by about 7 houses... definitely time for a change.

No. Property seems to withstand anything that gets thrown at it.
We moved at a time when there was supposed to be an uncertain market and upcoming crash. It didn't happen.
From your update you obviously want and need to move and have already decided really. Go for it.