to think all this nonsense about house prices being too high is just that - Nonsense!

[RazahFluffy]

DH and I have long been in the property game. We actually met whilst working as Estate Agents back in 1999!

I've seen a lot in my time as an agent - 2008/2009 were a bit of a blip, but overall, there's one thing I've always had faith in, and that's bricks and mortar and that prices always go up. They aren't making more land after all 😁

As well as working in property, we've got a few of our own. We started off as accidental landlords after we got together and kept both our homes to rent out when we decided it was time to move in together and find a place of our own. Over time we've added a few more to the portfolio.

We are lovely landlords. We let our tenants have our houses as their homes, and we like to do little things like send them Christmas hampers, and know their birthdays so we can send a card and usually a Pizza Express voucher.

Anyway, there's a lot of rubbish being written recently about interest rates and the economy affecting the market. Nothing could be further from the truth where we are!

It's still buoyant and the buyers registering at the agency are no different to usual - excited to either 'get on the ladder' or move to their next step towards their eventual forever home😊Vendors are still confident. They agree with us that houses are actually a bit too cheap, all things considered because inflation is quite high.

The one thing I'd have to say is if you can't afford a mortgage at the moment - think about your expectations. You might have thought previously that you could afford a 4 bed, but if you can only get a 3 bed for now is that really so bad? First time buyers especially I feel need to be realistic!

Property always goes up and it's no different now. We're really confident and having seen it all in this game, we really think it's time to believe in the market💪

I don't think OP is a troll, I don't think she's goady, I don't think she's a windup merchant.

I think she's shitting herself.

She's mortgaged to the hilt and her investments are all tied up in one asset class, not diversified at all. Those mortgage payments are going to increase substantially, one by one as they come up for renewal. All that equity is going to fall significantly as the market slows or crashes.

House sales are grinding to a halt here, and I'm guessing it's the same everywhere due to fear over interest rates. That's that income stream gone.

She's awake at night panicking she's about to go under, and desperately trying to shore up confidence in the market by posting on MN.

WTAF? Of course people can’t ‘always’ afford property!

And property is not purely a supply and demand market, because relatively few people buy outright. PEOPLE NEED MORTGAGES! And if the mortgage companies won’t lend, you can’t buy the house, no matter how high ‘demand’ is. If interests rates are high, people can’t afford to repay their mortgages. Lenders largely control the demand. So while rates were low and lenders were profligate, house prices could be high. Now rates are up, and other costs are rocketing, lenders are cautious and that will increase the cost of borrowing and reduce demand, pushing house prices down. Which is fine for first time or second home buyers, but for people who’ve already borrowed on their only property it can be a disaster, trapping you in a property that’s worth less than the debt on it, with increasingly unaffordable interest payments.

You also also seem to be struggling with time. People who say ‘they couldn’t afford it now’ mean that people in their starting out position now, can’t afford to buy. I started out on £15k in 2001. I bought a house with that and a small inheritance of £20k. Today (almost literally. I am re-negotiating a sale practically as we speak) that house is worth £270k. People in my job now earn £25k. Can you really not see that someone with the same job and same deposit now, couldn’t afford the same house? (even though interest rates are similar for the periods). Even if someone would lend me £255k (that’s 10 times salary and a 93% mortgage. Ish). The repayments would be around 15k a year at 5/6 percent. Leaving remaining pay of around 400 a month (assuming a small pension contribution) Actually, in 2001, as a couple our house bills were around £600 a month, so we’d be ok, providing we could fund food, transport costs, clothes and other fripperies on £100 a month. Except most people couldn’t, and secondly, NOW £600 wouldn’t pay Council tax and energy.

That’s what people mean when they say they couldn’t afford it now.

Supply and demand and ‘just buy a smaller house’. Are gross over simplifications of both the economic issues and real people’s problems. And basic school economics is not enough to understand and manage an economy. Are you the Chancellor?!

Why SHOULD you do it is a better question. Why not sell the properties you don't live in and there'd be more to go around for those that want to own a house..... you know, to live in - rather than hoard.

You simply sound like any sales persons in a difficult market - just talk up the market, chat shit and hope that some of it sticks!!

That's why you are an estate agent and not a rocket scientist or a brain surgeon..

OP must be on a wind up, no one is this thick.

Clearly extremely goady and definitely trying to wind people up.

The exclamation marks alone have ruined my morning.

She/he/it sounds like a bot though.

Is there anything worse than a smug arse bot?

Tone-deaf, OP.

Do not get infuriated if what she is saying is deluded. Doesn’t people just laugh when someone is talking non sense. MMMMM

The exclamation marks alone have ruined my morning.

Yes, me too (that really needed an exclamation mark, but am leaving it out in over-punctuation solidarity protest.)

I've only skim read the thread because I'm astounded at the I'm alright Jack attitude of the OP. And I'm a landlord! But to start by saying you buy them gifts etc is so bloody patronising when in another post it was a case of we'll increase the rent and if they can't afford it someone else will.
I'm in the North West, small two up two down terrace in a low cost area round here that doesn't require any immediate work is about 120k. For a 10 % deposit that's 12k. That's before solicitor's fees and any furniture or kitchen appliances. The same house would fetch about 650 a month rent. The couple on nmw would take forever to save that deposit while they rent a similar house.
The whole of the OP posts scream of living in another world and being out of touch with reality. Yes the market moves up and down but to suggest there's not a crisis on at the minute is ridiculous. And as for not understanding what people mean when they say they couldn't afford their own house now... My house is now worth more than 4 times what I paid..... I do not earn anything like 4 times what I did. It's that straightforward! Get out of your own arse!
No wonder people don't like landlords.

Jesus Christ. Suggesting that people ask their parents to SELL THEIR PENSIONS to help them buy a property.

OP, you sound like an absolute loonball and not very bright.

Struggling to believe anything you say now to be honest.

Completely out of touch.

Your post is very Marie Antoinette OP. "Let them eat cake".

OP is a goady idiot and seems not to understand economics (not surprising from an estate agent really, apologies to the good estate agents on here, they are very rare indeed).

OP, house prices WILL go down. Can we speak again in 12 months and you confirm how much they have gone down?

I didn't think of that. Very good point.

And I suppose that rental demand goes up when people can't afford mortgages, but as we know, it's often costlier per month to rent. And when LLs have to up the rent to cover their own increasing costs so that's not affordable either, well, everyone's a loser.

“there's one thing I've always had faith in, and that's bricks and mortar and that prices always go up. They aren't making more land after all”

This stood out for me in the op.
Prices don’t always go up.
There have been 2 crashes so far in my lifetime that impacted a lot of people who lost their homes.

From above: “People saying 'I couldn't afford the house I'm in now if I had to buy it today', sorry but this is just classic rubbish. You're in the house?! So you could afford it. It's the same for people today, they just need to adjust their expectations.”

🤦🏼‍♀️😂

'believe in the market' ?????
We seriously need a facepalm emoji on this forum.
Markets go up and they go down, due to many factors, most of them national, some even international. They will do that without regard to the personal circumstances of any individual, regardless of what any poor saps choose to 'believe'.
If you want a prediction of how the market will change, read up what economists think; estate agents a) have an agenda and may not be telling the truth, and b) only know their own little bit of the economy. Economists won't all agree, and thy won't give you hard figures because that's impossible, but there will be a general consensus about the most likely trends in direction of things like mortgage rates and house prices if other factors like government intervention etc. remain the same, and there is no massive unpredictable 'black swan' event like covid. From my reading right now, they seem mostly to think that in the short term, UK growth will slow or negative, interest rates will stay up or may go up further, and house price rises will slow, stop, and prices may possibly even fall, as always this depends on the area and the part of the market concerned and how overheated it currently is.

Very goady and preachy. Prices are heading for a tumble - I bought a 3-bed terrace in East Dulwich in 1989 with my brother for 89k. 2 years later I bought out his share when he got married and had our house valued at the downturn at 70k and interest rates were I seem to remember 12%! The next year is going to be brutal and can see similar downturns happening again. The era of ultra-low interest rates and money printing is over and house prices will fall appropriately.

Are you joking, houses 10 years ago when I was first buying we're realistic. 2 bed terrace you could get in a nice area £120 might need some work, 4% interest rates. Realistic.
Or 5 years ago a big stblandard 3 bed semi again good area £170k again 4% interest.
Now the same properties are £50k more, they've not changed inside or out, no more sq footage, just more expensive with higher rates to boot. Frankly they're not worth more money.
I despair for my children if they're paying such money for property like this when their time comes, as what once was affordable is not.

Don’t worry folks just buy a house it’s worth it.
Don’t expect a decent house, just buy a shed its worth it.
However if you don’t have parents that own a house or have investments then just be happy that landlords like me exist and if I feel
like it I might even send you a voucher for pizza 🍕
fuck off

Guess we’ve just seen different things- it’s not unusual

"As an agent, and a landlord we've heard it all. People constantly want to suggest it's difficult to get on the ladder, but this talk does no-one any favours. It's better to be an optimist! Believe in yourself and you can always get yourself a home. Sometimes you have to hold your nose and just go for it. But if you take the plunge into the property market, no-one, no-one will ever say they've regretted it."

I worked in LA housing in the 80s and there were many people who regretted it as they were posting their keys through the building society door. Ordinary people who had wanted to own one home, not BTL landlords.

The difference then was there was still something of a safety net for families in terms of affordable public sector housing.

@MNHQ if this is in the spirit of the site I'm Kate Moss.

OP you’re living in cloud cookoo land. I too am an agent operating in a high wealth area, lots of proceedable and cash rich buyers. Hardly anything is selling and now sales are falling through where mortgages are required. Try and talk the market up all you like, the reality is very different and we’re deeply concerned what the coming months holds for us and our teams. You clearly have a total lack of understanding of the economy right now.