Page 22 | Housing price crash

Eucalyptusbee · 2022-05-12T08:58:48+00:00

It's happening! AIBU to be excited

Thebeastofsleep · 21/05/2022 15:55

MidnightMeltdown · 21/05/2022 15:22

Unfortunately, mortgages taken out before and at the beginning of the pandemic were not stress-tested for the inflation we have today.

@TonyTeacake how do you know? When I took my mortgage out they told me what the repayments would be if interest rates hit double digits. Eye watering, yes, but still possible to pay.

Lots of people talk about people 'overstretching' themselves on a mortgage, but you can't do that these days.

Same. I distinctly remember the broker having a conversation about the highest rates in the last 15 years and modeling that out.

Shanghai1 · 21/05/2022 17:34

Haven't RTFT but I don't think YABU at all. I first bought in 2009, and although lending criteria tightened then, there was still a drop large enough that we could afford a (previously unobtainable) small house. Be aware that a crash will negatively affect many people as well as the wider economy, however, obviously you are your main concern and I don't think you are being unreasonable for hoping for a drop.

Maddiemademe · 21/05/2022 18:27

Here it is getting higher every week (Devon). We live down the road from a lot of estate agents. My dp is good friends with one of them and he told us that they can’t keep up. The demand for homes here is far higher than what is available. Our home, even though I bought it as a renovation has gone from 300k to 600k in 4 years (next door just sold for 625). We don’t have any plans to move but even if we wanted to, the only house available in the city that would be an actual upgrade costs 950k. These numbers sounds insane to me but the estate agents says it is a lot of people from London etc looking for larger properties that would cost over triple in some areas. Feel sorry for anyone trying to get on the ladder as it doesn’t seem to stop rising dramatically.

ancientgran · 21/05/2022 19:17

Maddiemademe · 21/05/2022 18:27

Here it is getting higher every week (Devon). We live down the road from a lot of estate agents. My dp is good friends with one of them and he told us that they can’t keep up. The demand for homes here is far higher than what is available. Our home, even though I bought it as a renovation has gone from 300k to 600k in 4 years (next door just sold for 625). We don’t have any plans to move but even if we wanted to, the only house available in the city that would be an actual upgrade costs 950k. These numbers sounds insane to me but the estate agents says it is a lot of people from London etc looking for larger properties that would cost over triple in some areas. Feel sorry for anyone trying to get on the ladder as it doesn’t seem to stop rising dramatically.

I'm in Devon and it has slowed down where I am. Nearly half the houses within a mile of my house have been reduced on Rightmove.

Dillydollydingdong · 21/05/2022 19:20

Never heard anything about that! Still going up in my area.

TwinklingFairyLights · 22/05/2022 08:32

Dillydollydingdong · 21/05/2022 19:20

Never heard anything about that! Still going up in my area.

Have you seen the land registry figures? In my area you can only see them until Feb. Bit of a lag. Appreciate it may be different in your area.

Nothappyatwork · 22/05/2022 08:40

TonyTeacake · 21/05/2022 13:57

I am sure some of the over 50s have left employment. But the main reason I was given by a gentleman who works for one of the big pension companies is that many are really struggling hence the reason for cashing in. I do believe there will be some people moving their pension pots out of stocks because they are very risky at the moment and into something safer.

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I do believe there will be some people moving their pension pots out of stocks because they are very risky at the moment and into something safer.

Like property for example ?

StageRage · 22/05/2022 09:57

Exactly.

Plenty of people with money now choosing to put it into property.

A house is always worth the value of a house.

TonyTeacake · 22/05/2022 15:05

Nothappyatwork · 22/05/2022 08:40

I do believe there will be some people moving their pension pots out of stocks because they are very risky at the moment and into something safer.

Like property for example ?

Show quote history

I would say some of them have transferred their pension pots and purchased a BTL. But I'm sure for some this could be a very risky bet at this moment in time as the economy takes a big downturn.