To think property prices will go down in next year?

[WagathaChristieMystery]

With the ongoing cost of living crisis and the possibility of a recession, I wonder if house prices in the UK will fall over the next couple of years?

I know we have a really serious shortage of houses in the UK, which is one of the reasons house prices are particularly high, but I’m wondering whether the cost of living crisis will lead to house prices dropping.

I've said it before but i'll say it again.

In the long term, property always increases in value.

In the short term, it might increase. Or it might decrease.

I wish they would but expect the government will keep propping them up.

"I wish for lower housing prices."

Monkey paw closes

Property prices collapse, and with it, the entire economy. No one can afford to buy property. Fin.

I think they're more likely to stagnate in certain areas. Maybe come down by £10/15k but I can't see them dropping dramatically, as much as I would love that for many many people.

Doubt they will decrease: inflation is on the up, the cost of building has gone up and continues to rise, and demand is super high. Such conditions will keep prices up.
They may plateau, or dip just a little, but not significantly.

They will never come down, the government will not allow it, the amount of prop up schemes at tax payers expense just over the past 8 years is horrendous. Help to buy, shared ownership, help to buy isa's, stamp duty holidays etc

It is interesting to hear your thoughts on this because, although I agree the govt will intervene to prop up house prices so perhaps they won’t drop that much, I don’t understand how the energy prices increases won’t affect house prices. Surely the energy price increase will mean people will need to downsize/sell their houses, so there’ll be more houses coming onto the market?

We bought this house in the Home Counties in 2000 for the very top end of our budget, (£250K) Three bedrooms, decent garden, off road parking,
the road was and still is like something out of the Truman show it is sooooooooooo slow, but we love it.
2022 and the house is worth a conservative £800k.
I have posted this before but will again, years and years ago (probably about ten) DS and I went to Sunday rugby practice, as per it was raining, we came home, it was still raining, we stayed in and lit a fire, I was bored, (and come from a financial background) sooo for fun,
I tracked our property value increase via Nationwide Property calculator and the only quarter of the only year in the whole time it didn't increase was December 2008 when it stagnated for a quarter and started rising again.

Bricks and mortar are always a good investment.

People with money usually put it either where they get a good return or at least where it won't lose value.

Shares are pretty volatile and unpredictable at the moment. Interest rates on savings accounts are still low (although rising). Gold is 40% up on 2019 so not likely to return much more profit.

But there is a housing shortage and rents are rocketing. So if you had £10m to invest, buying rental properties is quite attractive. You know you'll be able to let them, and property always holds its value in the long run. Plus construction companies ease off building during recessions, so there is poor supply, pushing prices higher

So no, I doubt it.

🙄🙄🙄

I think lower price houses will hold their price, the ones that sell within days of being advertised like ex council homes & homes that first time buyers typically buy. But higher price homes, ones that are bought by buyers moving up the property ladder will suffer the biggest percentage fall in prices. Less people will be wanting to take out bigger mortgages due to the increased cost of living & the expected increase in mortgage rates.

Downsizing over the energy crisis would be the very last resort. It would cost me £40k to move - stamp duty, fees, moving schools etc. Even at today's prices, that's 8 years utility bills.

I'll choose to heat fewer rooms, wear two sweaters. As @EllenWaiteourkid says, most years, net, my house earns more than I do.

Even if house prices drop it won’t help buyers as the interest rates have gone up. If we bought our house now (instead of 2018) with exact same deposit etc our monthly mortgage would be £300 more expensive. The house price might have dropped but the amount the bank will lend will be less too. They will be more cautious with who they give a mortgage to. It won’t help first time buyers

Massive interest rate increases will usually trigger property price crash when people can’t afford their homes anymore/ can’t afford to buy. But as pp said, usually it will still increase over a long period.

Good point from pp on entry level market staying stable as demand is still so high. Also, I’ve seen press recently on banks relaxing lending restrictions (eg offering 5x income) to wealthy customers so this, together with choices of where to put cash if you have it, may well keep the upper end of the market (£1m+ level) going. IMO, the market In between (£250k-£1m) has most chance of stagnation/temporary drop imo.

In my area, houses up to £300k are still in huge demand and going over asking.

Houses between £300-500k are going quickly, at around asking price.

Properties £500k-£Mil are staying on the market for a few weeks, then being reduced by 10%.

Properties over £Mil are being reduced by 20%.

I think older, larger properties that are expensive to heat/run will decrease in demand slightly as due to the rising energy costs, they'll be less attractive. So prices of these may dip/stagnate.

It won’t happen. Even if it did it wouldn’t help, interest rates have gone up, people’s affordability will go down due to energy prices so the amount people can borrow will be even less than it is now so they still won’t be able to get a mortgage.

Property values on the whole always increase.

If you are a cash buyer, or get in early you may “get lucky” with some of the early repossessions which come on the market as people start to lose their homes. Hideous thought, but I know a couple of people who managed this at the very beginning of the last recession in 2008, early 2009.

It is going to be a rough and awful time for a great many people.

Undoubtedly they will come down. Prices are not sustainable and the interest rate increases coupled with buyers confidence in making a purchase will result in less sales and therefore they will reduce.

I hope they do as I could do with buying something decent at a price which is actually fair and not £50k more than it’s worth.

It's very unlikely to happen - in the UK the market rests on supply and demand, and there's always under-supply.

I think people will be stuck as it’s too expensive to move.

our neighbor has just sold his house and is moving his family into a much smaller property for a year before they retire to France. He was advised that his house would make£200.000 more this year than next ( on market for 1.2 million)
As he had no pension, this was his opportunity to get himself one!!
We will see what happens... he obviously took a gamble but seemed convinced.

I don't see how they can't crash. Interest rates will just keep going up and up (18% inflation next year according to some predictions). The property market is built on selling to people who can access credit. Its a house of cards in my opinion.

They will undoubtedly reduce, too many economic factors for them not too.

I think they will stagnate for a bit, possibly drop for a while.

But high inflation and high cost of materials anyway means that building costs are high, and we are likely to see a slow down in the number of houses being built.

It also means organisations that deliver new affordable housing (social rent /shared ownership etc) won't be able to deliver anywhere near the numbers they were planning to, due to higher build costs and higher borrowing costs.

So it's not exactly a situation to celebrate

(on a separate note, have reported the spam posts)