What do you think will happen property prices.

[Laineymc7]

We recently sold our two bed flat. It wasn’t big enough for the 4 of us. We are now sending a house so everyone has their own rooms which is great. We have the deposit for a new place

I am rathet confused about this value thing Bluntness.

My house sold twice for £475,000. Both times got to exchange. So that was tbe value of the house. At the time, equivalent houses had similar sale prices. We had 3 other offers as well.

Now, my house is not worth this. The estate agent will not put the house on tbe market at this price. Noone would pay it now. So the value has, in fact, gone down.

I agree that it will only be temporary though. There is nothing much on the market round here. I think everyone is waiting for Brexit.

Lainey, also if you get a fixer upper than the added value will offset a potential fall in prices.

With children in nursery, don't you intend to stay put for a while in the new house? Even if prices were to fall in the short term, it really won't matter over, say, 15 years.

I can see what your agent is saying about the big houses being less resilient but I'd say different criteria apply to those and to affordable 3 bed houses or ftb flats.

Loveka that much be so frustrating. I hope the price goes up again for you. This has happened a few people I know. Their houses either haven’t sold so they’ve had to stay put or they have got crazy low offers.

Jojo I think a fixer upper would be a good idea. I wouldn’t want to live their while doing it up so we could stay renting while it’s done.

They are already falling in London/the South East. People are not moving now unless they have to especially if they feel their job may be insecure. With Brexit it is anyone's guess. The government has made buy to let more difficult recently as they want prices to fall but not too much as there are millions on high mortgages and a slump would be a disaster. many people want to downsize from bigger homes eg single people or older people but there is a shortage of suitable size properties. The other problem is the ailing public services and the fact that we will be required to pay more Council tax etc I think we have invested too much in property over the past 20 years and now we are in danger of losing the NHS as a result. Remember when we pay Housing Benefit etc it is costing us a fortune as well and we taxpayers pay £6 billion per annum to private landlords

I just today had an offer accepted on a house in Leeds. Prices are crazy. The market is moving so fast, it's really a sellers market. Most houses I've viewed sold within a day or so. Areas that were affordable for first time buyers a year ago or so are not totally out of reach.

I think people are putting on high as they need to get as much as they can to move up. We’re trying to sell at the moment to buy our dream house which is 200k more than we’ve put our house on for.
Nothing seems to be selling round here though (SE Surrey) it’s rhe same houses coming up on right move over and over.

That’s a weird comment sall74 as this thread has been running since Tuesday and no one is coming on to say buy buy buy.

Are you over from housepricecrashers by any chance?

I think that entry level will stay high but one of the big problems in London is that a lot of places have gentrified (even if just on paper). The 500k flat you buy today is unlikely to be worth 700k in 3 years & allow you to buy a house in another part of London.

Also people would often move from London to surrounding counties & get a bigger property for much less. Now prices are more in line & when you add commute costs/time it’s not always worth it.

As other posters have said I agree we will see big growth in other cities & companies will increase their presence there as they will still want to attract bright young people. Loads of my friends have moved to other cities, people also want to feel they are getting value for money.

I honestly think what has happened in the last 10 years is not sustainable (apart from cheaper areas/hot spots). Wages have been stagnating & I think it’s very likely we will see income tax rises to fund NHS/social care.

ThroughThickAndThin01 - Not a weird comment at all, just a response to Sporkinthetoaster (and yourself it seems) who obviously regard anyone as a ''houseprice crashist'' if they don't necessarily think that rampant, policy driven house price inflation which far outstrips wage growth and leaves people with huge mortgages to service for virtually their entire working lives, or not even able to buy at all, as not a particularly good thing for society or the wider economy.

Look at what happened in the late 80's when property in London generally dropped by 30% and interest rates rose to 15%!

Yep valid. So you make sure you likely want to be there for a while, you get your longer interest rate fix, overpay and protect yourself now.

Also, it's quite different now from the 80s. Far less housing stock available. Far few council homes available. More people physically in the country. That just gives you basic supply and demand.

I'm not saying I have a crystal ball and can say prices will never drop. But do you put your life on hold for however many years waiting to see?

Last June, after the second fell through the agent said the maximum it would now achieve is £435,000. He said accept £420,000!

And so your onward purchase will likely have dropped by the same proportion, which in money terms is more.

No I hadnt commented at all on this thread sall74, I haven’t a clue what’s going to happen in the immediate future, no one does. In the long term buying your own home has been a good investment as history shows us. Your post has a similar posting style to many on hpc, and I know they are always over here looking at our property threads. They can’t seem to help themselves.

Where the market got overheated like London I think prices will drop. In other areas the prices of less expensive first time buyer houses seem to have gone up a bit in the last couple of years. People will start moving out of London in the next ten years and we could see a big slump there especially if more and more people start working from home and hardly ever need to go into the workplace.

Depends.

We are not in London but in our area prices are rising very, very steeply as people ( except hipsters ) realise London is actually a bit shit.

Here is the link to the uk house price index, which is based on sale prices and average values.

landregistry.data.gov.uk/app/ukhpi

People will start moving out of London in the next ten years and we could see a big slump there especially if more and more people start working from home and hardly ever need to go into the workplace.

Another thing everyone's been waiting for for twenty years...

We are not in London but in our area prices are rising very, very steeply as people ( except hipsters ) realise London is actually a bit shit.

Interesting. Didn't realise I was a hipster. Thought I was just someone who likes using the world class free museums and art galleries, incredibly convinient transport system, massive range of restaurants, beautiful parks, and innumerable other things that attach millions of tourists each year.

But yeah, it's a bit shit.

Stars, no, our onward purchase price has not fallen at all. It is 250 miles away and prices are the same there as they were 6 months ago.

I'm sure they will drop at some stage where we are going, but at the moment the figures don't work.

I'm sorry to hear that loveka, that is tough. Fingers crossed for you that there is a resolution.

We're in east London/Essex. Prices are
Coming down a bit here. But nobody seems to have told the owners of the larger properties. All the 2/3 bed houses are coming down in price but nobody can afford to buy the next house up because they aren't dropping their prices. When something that is reasonably priced comes on the market it sells in days but others are on for 50/60k more and have been on for over a year. (These are all similar 4/5 bed homes). We have just taken ours off the market as we can't make it work unless the larger properties come down as well as us.

StarsBrokenAgain

So much of the historic London house market has been fuelled by someone buying a flat in Clapham for 400k selling it for 700k & buying a house in zone 4/5. So many buyers have been helped by the bank of mum & dad whose own house has gone up xxxx amount.

Who is going to pay 520k for a house in Mitcham?

We have thought about moving but we rely on family as born & bred. 2 of my friends who moved cities have 1m budget, they don’t want to pay that for a terrace with no off street parking. Yes their salaries have reduced but not by more than 15%.

The major article in the Times property section today is headlined 'Time To Take A Price Reality Check'.

In other words, a lot are way overpriced.

Until not so long ago, the property section was very 'optimistic' on house prices, I.e. the fact that they were still soaring was only cause for glee, never mind those who were priced out.
Articles like today's are a good indicator IMO of how much sentiment has changed.

However I think there are still plenty of people who stubbornly cling to what they like to imagine their house is 'worth' - never mind that nobody is going to be mug enough to pay it - not now.

Having said that, a lot will depend on the area, and I know some are still going up. London and suburbs are definitely coming down, though, and about time too.

Nowater, I wouldn’t pay 520k for a house in Mitcham nor would I pay that for a flat in Streatham or Brixton... And yet a lot of people seem to do so...