Page 2 | For those saying Brexit will not have an impact...

freshstart22 · 2016-09-05T08:05:25+00:00

On housing prices you are mad! You might not notice anything now but I think a storm is coming. If anyone is even thinking about selling I would get moving asap.

LyraMortalia · 06/09/2016 09:09

^^ personally I'd not like to see a crash but some downward readjustment will be good this housing ponzi scheme has to stop. As for worrying about the London bankers and foreign investors in London property meh really can't get worked up over them. Try experiencing the rest of the country OP it might open your mind

sonlypuppyfat · 06/09/2016 09:17

What's wrong with house prices dropping, when I left school everyone I knew could buy a house just on shop assistant and factory worker wages you can't know. I fail to see how inflated house prices are a good thing

YelloDraw · 06/09/2016 09:36

I think quite a lot of people would welcome a housing crash. It's ridiculous that it's impossible to buy a property on a normal salary.

#brokenrecord

You're a fool to think a housing crash will come without any other negative impacts (like, a massive recession - remember how awesome it was for 'normal' people in the last recession? Huh? Declining wages in real terms, banks not lending unless you had a big deposit etc. Yeah THAT was ace). A crash will not help people priced out now.

Did you see loads of people in

YelloDraw · 06/09/2016 09:44

Did you see loads of people in 2008 saying how amazing it was that they were picking up cheap houses?

No... because it was much harder to get access to mortgage finance.

YelloDraw · 06/09/2016 09:45

when I left school everyone I knew could buy a house just on shop assistant and factory worker wages you can't know.

Yes you can. Just not in london.

You can buy a 2 bed house in Leeds for £100k. Two low wage earners at £16k a year can easily afford the debt to buy something like that if they have actually tried to save a deposit and haven't gone and had children before they had sorted their financial situation out.

Anyway, I do think a stabilization is certainly needed - but if you are hoping for a crash you are an idiot.

GinIsIn · 06/09/2016 09:46

As I said before - a housing price crash will not help because it will prevent home owners from selling, which will stall the market.

hooliodancer · 06/09/2016 10:07

We put our house on the market 2 weeks before he vote.

We have had 6 viewings and have dropped the price by 8%. The estate agent said the market has been totally dead.

We are in an area where houses like ours usually sell in a few weeks. In home counties.

I heard one of our viewers say to the agent "I don't think prices are reflecting that there is going to be a property crash"!!!

It's really frustrating as we have found a perfect house in a perfect place and if we can't sell we'll lose it.

ReallyTired · 06/09/2016 10:35

"As I said before - a housing price crash will not help because it will prevent home owners from selling, which will stall the market."

Those people will still have to pay their mortgages and some people are forced/sell to move by job relocation, divorce, death, needing more space etc. Removal of tax relief for mortgages will put pressure on people to sell. The govement needs to remove all tax relief on mortgages for Btl, rather than insisting tax relief is at basic level. However it's a balance between cooling the property market and causing a crash.

kirinm · 06/09/2016 11:00

Buyers are expecting a property crash because they've been told there will be one. Until there's actually evidence of a crash, why would a seller accept a ridiculously low offer?

I've just bought but keep checking rightmove - it's a bad habit - and there is very little coming on the market in my budget (we were FTB in London). If I was still looking I'd be very worried that competition would be fierce for anything decent as the market seems dead.

I'm very pleased we aren't looking anymore. The process was soul destroying.

dynevoran · 06/09/2016 12:10

The problem with saying that there needs to be q crash for normal people to get on the ladder is that if there was a crash the people hit first and worst would be the people who scrimped and saved and just managed to get on recently. They would be the ones in negative equity not the babyboomer generation with hundreds of thousands of equity built up over the years of rises. So it really isn't a nice thing to wish for. It's the politics of envy. Aimed at the people who you have the least reason to envy.

kirinm · 06/09/2016 12:52

I agree. As I said, we've just bought a typical FTB place in London. If the market crashes, do people suddenly think I'll sell? No. I'll hold on to it. I think a FTB's best hope is a landlord selling but as rentals are so in demand, I'm not sure that's going to happen in droves.

I understand why people think a crash is a good idea - I don't agree and think it's pretty selfish - but I also don't think it'll have the results people are hoping for.

alazuli · 06/09/2016 13:10

I think people wishing for a crash probably don't realise that they probably won't be able to get a mortgage on any of these suddenly dirt cheap houses.

I can understand the desperation as a FTB though. I'm in my late 30s but most of my friends still rent unless they're in a couple.

likeaboss · 06/09/2016 13:14

This reply has been deleted

Message withdrawn at poster's request.

ExConstance · 06/09/2016 13:14

Yippee, our sons will be able to afford to buy and it will not affect us as we have all but paid off our mortgage. This is not selfish, if you think of it most mortgage holders are well past the point of every facing negative equity and the younger people do need some hope of being able to buy. My older son is involved in important govt work that he has to do in London, he is paying far more to rent one room than we pay for a large 4 bed 3 bathroom house on mortgage.

likeaboss · 06/09/2016 13:17

This reply has been deleted

Message withdrawn at poster's request.

kirinm · 06/09/2016 13:20

I'd hazard a guess and say there are quite a few people, if they've bought in the last year or so, that will face negative equity if there's a crash.

Believe me, I understand the desperation of FTB. Up until 3 weeks ago I was one. I'm nearly 39! But I can't see how a crash will help. Lack of supply seems to be an issue - within my budget at least.

YelloDraw · 06/09/2016 13:43

Yippee, our sons will be able to afford to buy and it will not affect us as we have all but paid off our mortgage. This is not selfish,

PMSL
That is the very definition of selfish.

Have you actually read up on the issue and seen why if there is a 'crash' people still wont be able to buy? A stabilization and a small decline combined with real wage increases is the best hope for narrowing the gap between earnings and houses without fucking it up.

I'm sure your son on his very important government work will be ok tho :-)

GinIsIn · 06/09/2016 13:49

ExConstance - firstly, you need to have a quick glance at a dictionary regarding the definition of selfish...

Secondly, if your son was that bloody important surely he'd already be able to afford to buy.

Thirdly, what exactly do you think your sons will be buying? If the market crashes, those in the FTB type properties are going to have to stay put to avoid negative equity, and there won't be any new builds being built.

sarahgreeny · 06/09/2016 14:05

It's a tricky one, the government will be doing everything they can to prop up house prices given they now part-own a lot of housing through the Help To Buy scheme.

My only concern is that more and more overseas buyers keep snapping up houses that should be going to hard working people, who instead have to rent rather than get a chance to own a home.

Muddle2000 · 06/09/2016 14:10

I agree property correction will come
1 global recession
2 Uk btl deliberately made more difficult to cool the market
3 Brexit -detering foreign investors wanting a quick profit in housing
4 Brexit is not seen favourably by many in EU and outside EU
hence withdrawal/lack of investment in the UK leading to job losses etc
5 Lower £ makes raw materials and imports expensive so prices will
rise
6 Interest rate will rise to protect the £ so borrowing for all -not just
home owners -will increase
7 The problem with the property market being such a big part of the
economy is that when it stagnates it has a huge knock on effect
so job losses
8 Any loss of immigrants in the care sector will force NHS to take
more elderly into hospitals causing huge problems in the sector
unless GB residents willing to do those jobs

Imperialleather2 · 06/09/2016 14:40

OK so I work in the property sector as a development lawyer.

Developers are still buying land and things have really picked up.

We've just sold a bulk load of flats to Hong Kong investors that weren't even marketed to UK buyers.

The buy to let market has definitely cooled.

The whole market needed to cool. A crash will not do anyone any favours but a gradual slowdown/correction over the next 10 years can only be a good thing.

We couldn't afford to buy our house now.
We bought it for 400k 5 years ago spent 120k on it and it's just been valued at 850k.

That is not good news for anyone. The type.of.house we want to move to has gone up and the gap is too big so we are effectively stuck.

I really worry about my children's future housing options.

ExConstance · 06/09/2016 15:56

Nonsense, the young people have been shafted by the greedy for far too long. If DS1 could do his job where we live he could afford to buy, but he can't because he works for a government department in central London. When I was his age I was working in London and bought my first house for £23,500, a nice little two bedroomed terrace with an apple tree in the garden. I earned £7,000 pa and lived well. DS1 pays £750 for his room in a shred flat and would have to pay around £500,000 for my old house (wish I'd kept it) I suspect that unless they have re-mortgaged most of the London based property owners who have lived in this type of house have 50% equity or more just through the increases over the last few years. Outside the south west I think people buy houses to live in and the prices will not be so badly affected. The "young mums" age profile on this site really means that the views of those starting out in life and those of us 60+ are not fully considered by most people who post. For the first time in many years the balance seems to be swinging in our favour on the housing front, which makes a nice change.

kirinm · 06/09/2016 16:15

What about those of us who don't have 50% equity in their homes? We are just collateral damage for you?

Please do tell me where you buy a 2-bed house in London for £500k.

YelloDraw · 06/09/2016 16:27

Please do tell me where you buy a 2-bed house in London for £500k

Leyton still has 2 bed terraces (mainly with downstairs bathrooms) on for not tooooo much more than £500. There is a small 2 bed terrace on Stewart road on RM for £450k at the moment.

ExConstance · 06/09/2016 16:29

Walthamstow - near Blackhorse Road Tube. The tiny Warner flats near the park are well over £400k now. If you don't have a decent amount of equity you are stuck anyway - if you are heavily mortgaged you can't afford to move now, with the differentials between 1/2/3 bedroom properties being as they are. I don't actually believe it will happen, but m real point is it is swings and roundabouts and a big drop will benefit some, just as huge price increases have benefited others. Let's face it there are parts of the southeast where a fairly decent income of £50k is not enough to buy.