UK house prices falling as property experts predict more gloom ahead

[qwertyflirty]

Continued from:

www.mumsnet.com/Talk/am_i_being_unreasonable/3250736-To-think-that-big-house-price-falls-finally-on-the-way?pg=1

As I predicted at the start of the last thread, two weeks ago, house prices are continuing to fall nationally month by month and in London and the SE we are now seeing annual falls.

www.independent.co.uk/news/business/news/uk-house-prices-property-may-nationwide-index-mortgages-a8376961.html

www.cityam.com/286273/london-house-prices-see-worst-annual-slowdown-nearly-decade

Experts predict these price falls will continue as sales volumes fall (which always precedes a dip in prices), given the interest rate rises on the horizon, low wage growth and increases in the cost of living.

The prices in the cheaper parts of the UK are still rising and I suspect those parts that didn't rise much or even fell in recent years will be largely unaffected. But logically, if your house price doubled in the last few years and local wages went up by say 10% in the same time, then those price rises are ultimately unsustainable.

It's definitely a buyers' market at the moment in London and the SE.

"London property experts say buyers are “sensing blood in the water”, with sellers forced to cut prices steeply"

www.theguardian.com/business/2018/may/23/uk-house-prices-fall-by-02-for-march-says-land-registry

I used to live in London for many years and now live in the back of beyond. London is a completely separate entity from the rest of the country and whilst I can sympathise with anyone who has to undersell their house, for too long people have relied too much on the values going up and up and up. Not taking into account ever the fact that what goes up must come down. people have bought houses to let as investments and again don't realise that they are risky just like anything on the stock market.

no sign of massive growth where I live in the last 5 years and no sign of a decline.

Good news if true. May help to make property affordable for this and future generations and at the same time reduce the fortunes of those who have purchased large amounts of property to exploit others by charging large rents.

Ah, just re- read the post and sounds a bit like daily mail fodder to me!

Something has to change in regard to housing.

a crash might make public sector building projects look more attractive and we might at last actually see proper real affordable homes for local people built in my rural area.

Is it Brexit wot done it, or the natural cycle of boom and bust I wonder?

It's looking perking in the Midlands.

*perky

You again? You’re so obsessed with house prices crashing it’s weird. You posted the same thing last week. Are you from that crazy housepricecrash website and hoping you are powerful enough to spook the market?

User, I concur. Hopefully prices will go down, and some btl landlords will start to sell off some of their properties.

Er not here. Sadly (deepest Norfolk).

Oh FFS OP, are you hoping your thread becomes a self fulfilling prophecy?

But they’ve still risen 4.2% compared to last year. People are twitchy about Brexit (probably).

In my area (SE) prices have gone up 0.8% this month... but the schools are good and I think it’s anxious parents moving out from zones 3&4 so they don’t have to go private, but with still a manageable commute.

Too many flats have been built. No one wants flats. I think starter homes are dying on their arse. Not one person I know who has been through the mortgage process in the past few years wants to go through it again; we’ve all got plans to rennovate/improve rather than make money on the houses and then use that as leverage to ‘buy up’. People want houses they can live in forever in my opinion.

Morning, folks. We're going to move this thread over to our property topic now, where we think it will probably sit better.

Good move MN. No one will see it here

Similar article in today's Times. Plus another on the same page about a lot of landlords selling up because of tax changes. Many of them will have left it too late, IMO - if they actually need to sell because they're over-leveraged. I'm already seeing the price of 2 bed flats drop a fair bit in the SW London area I keep the eye on the most.

The fact is, London prices have become ridiculously unaffordable. There's a lot of bleating about Brexit, which is a convenient excuse for people who don't want to accept that there's a limit to what most people can afford - and many were already priced out some years ago.

Yes, there are far too many newbuild flats, many of which were aimed at overseas investors. I get regular email notifications of 'price releases' i.e. reductions (they can't bring themselves to say it) on newbuild flats.

And what's all this talk of 'gloom'?

It's certainly not gloomy for the many who are priced out!

Agreed, GETTING.

Think it's great news for all those except over-leveraged landlords (a large number of whom I suspect have been posting rude comments and personal attacks on this and the previous thread).

Perky in the south east.

Yes miss.

Back to the topic - and no, childish offensive insults are not going to make me run away and cry, they are going to make me more determined that anyone considering what is probably the most expensive purchase they will ever make has access to intelligent and open discussions of the topic and to all the evidence currently available.

www.dailymail.co.uk/news/article-5797207/British-families-owe-200billion-High-Street-lenders-mortgages.html

"British families owe £200billion to High Street lenders on interest-only mortgages, sparking fears of debt timebomb
Families owe more than £200billion to lenders on interest-only mortgages
Nearly a quarter of all mortgages from major banks are interest-only
It means millions of customers face a huge bill when their loan term ends"

This really surprised me, to be honest. I had absolutely no idea that as many as a quarter of all UK mortgages are interest only, but this clearly does add extra danger to the system, as any fall in house prices would obviously be potentially more dangerous to people who might not have made provision to pay off their mortgages elsewhere.

It's surprising as new borrowers are not even allowed to take out these loans.

Do you know anyone who has this type of mortgage? Or why? Or for how long?

ThroughThickAndThin01 - how old are you that you think that kind of post is funny? I don't find vicious, sexualised and misogynist attacks remotely amusing, especially on a women's forum.

No sign of it here in the Midlands.

I do think the economy will change with Brexit and this will have a knock on effect on people's finances and thus potentially not quite so many people able to afford to buy (plus fewer new entrants to the country) which will ultimately lead to the market stabilising. But I think its awful how you post these repeat threads over and over in the hope presumably of worrying people. Yes if house prices drop there might be some who have managed to save deposits but are not quite there who can afford to get onto the ladder but that in itself would push the market back up anyway. But the far bigger impact would be on the hundreds of thousands of families pushed into negative equity which is not a good place to be. That combined with the fact that interest rates are likely to rise could create awful situations where people lose their homes.

Bt unfortunately most people in this world seem to be "me, me, me" hence the multiple threads and the same old responses.