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Original poster

We're about to get a huge slump aren't we?

131 replies

Potatoduster · 21/08/2019 08:27

My sale has just fallen through as my renegotiated price on the place I'm buying has been agreed!

There has been a rush to exchange before September and brexit. But now any new buyer isn't going to exchange before then

Anyone else think the slump will start soon? I was getting ready to move in a month. Now I'm thinking it could be at least another 6 months

OP posts:
wherewithal · 22/08/2019 10:50

it’s really selfish of other people hoping prices come down it’s the way the housing market has always worked, prices should always go up and allow those to move up the ladder. For those saying 90% is reasonable offer, that’s over 50k for us which we would need as the deposit for a new place.

it’s really selfish of other people hoping prices come down ?!

I’ve read this often enough, and still can’t quite get my head around it. I understand: nobody wants to lose money on their house; everybody wants to make as much money as possible; to move up the (more and more mythical) ladder, you need more and more money.

But to condemn the next generation, not to mention those who for whatever reason didn’t or couldn’t buy at the right time (ie, before the current era of what anybody sensible agrees is over-inflation), to insupportable amounts of debt to service your needs, is frankly beyond selfish and into the realms of the sociopathic.

Neron · 22/08/2019 10:51

@FeeFee832 where have I said that? People worked hard all the time and still cannot afford to get on the ladder. People who bought at the last dip are now sitting on big financial gains - did they do anything to deserve that? It's all swings and roundabouts. If you have a house, you want the prices to keep going up. If you want to get on the ladder, you need it to be affordable.
Right now, it looks like houses in some areas are not worth what people bought them for.

Mildura · 22/08/2019 10:59

@Neron

There can't be many places where prices tripled in a few short years.

Original poster
Potatoduster · 22/08/2019 11:02

Realistically where I am in the south west they need to at least half to get back in sync with wages. People 10 years younger have had it so much worse and it really isn't fair. I don't want to live in such an unfair society as that will have repercussions.

House prices don't always rise, they could slump for a decade or longer.

I've had mine for almost 10 years and it's almost mortgage free with overpaying but I would have spent about the same just renting. Crazy.

I think there's lots of people that saw buying a house as buying a money making tree and will be in for a shock.

OP posts:
Neron · 22/08/2019 11:06

I don't know how many @Mildura, but there are certainly places that have tripled because or the introduction or bettering or railway systems for example. You have counties in the SE where prices have doubled due to London gentrification.

MrsPworkingmummy · 22/08/2019 11:07

I think it depends where you are in the country. I lived in North Tyneside and house prices are skyrocketing as its becoming increasingly desirable. We put our house up on the Tuesday, by Wednesday it had a 90% offer and we had an asking price offer by the Friday. That was in May and we've just moved last Monday. We've moved into a bigger house in a much cheaper city. We've halved our mortgage in anticipation of what might happen with Brexit.

Neron · 22/08/2019 11:08

because of/introduction of

FeeFee832 · 22/08/2019 11:27

@Neron absolutely they deserve that!

They made a good financial decision and have been rewarded!

Neron · 22/08/2019 11:36

Seriously? They made a good financial decision and have been rewarded? Or have they just been lucky? How about all the people selling dead relatives properties, are they being rewarded too?
The property market is always a touchy subject as this thread clearly shows.

wherewithal · 22/08/2019 11:41

They were in the right place at the right time with the right series of financially illiterate governments/a BOE keen to keep this class of assets highly valued, and got rewarded. Those a little further down the gravy train may not be.

Original poster
Potatoduster · 22/08/2019 11:57

It's all just about luck and timing. People like to think they were savy investors if they've done well out of property when for many generations it's just being born at the right time.

It's a bubble and all bubbles eventually pop. Annoying for people like me that want to move as I would happily accept less for my house as long as the next house will be less and there's lots of deluded sellers that will only accept the maximum value it was worth at a certain time. Houses are like shares, they'll go up and down.

OP posts:
ListeningQuietly · 22/08/2019 12:02

House prices in the UK have been disconnected from earnings because of the lack of a "floor" market of council houses
the fact that councils are allowed to buy a Mercedes garage to rent out but not a house is offensive

excessive tax breaks for BTL now being wound back
not nearly enough tax on second and empty homes

There is no shortage of housing in the UK
500,000 empty homes
1,000,000 second and third homes
400,000 houses unbuilt but permission given

the problem is that the affordable housing (ie less than 4 times average wages) has been strangled for 30 years

allow councils to house the homeless and the poor and the property market will reset

Original poster
Potatoduster · 22/08/2019 12:06

As many MPs own a string of buy to let properties they've been wanting to keep prices high. Really sucks for those not born at the right time.

OP posts:
BlueSkiesLies · 22/08/2019 12:46

They made a good financial decision and have been rewarded!

😂

Congratulations on deciding to be be born 10 years earlier, and fuck all the young ones who’ve decided to wait until 1995+ to be born! Fools!

FeeFee832 · 22/08/2019 13:07

@BlueSkiesLies ouch, touchy subject for you?

Original poster
Potatoduster · 22/08/2019 13:09

They're just pointing out the ridiculousness of it! I've got a house, but it's not because I'm smarter than all those born 10 years later 😂

OP posts:
Span1elsRock · 22/08/2019 13:18

It's incredibly bouyant in Gloucestershire still - we're trying to move up another price bracket from where we are and property seems to be shifting really quickly. It's very depressing as we are desperate to move.

DDs BF is also trying to buy and property in his price bracket is doing the same.

BlueSkiesLies · 22/08/2019 13:57

@FeeFee832 not a touchy subject at all. I just have some compassion for people younger than me and am not so thick that I can't recognize that it is a LOT harder to get on the property 'ladder' now then it was 10 and 20 years ago.

wherewithal · 22/08/2019 14:39

Appears to be an equally touchy subject for sellers unwilling to accept their house may not be worth what they feel they need or deserve, and newly discovering that it’s an illiquid asset.

In any case, why shouldn’t it be? High house prices are a pox on this country (and if you’re already in the game, “winning” depends on maintaining the pox). Money is sucked up that could be better and more productively spent elsewhere in the economy. It makes it hard or impossible for people to do what they want with their lives, unless their lives are centred around counting their property fortune…

I realise this is the property forum, but it’s always incredible to me to find so many blinkered views on this subject on a site whose raison d'être is children. The feeling I constantly get is, as long as your own are well placed, fuck everybody else’s. Selfishly pragmatic, yes. Wise or compassionate, no.

Touchy? You’re goddamned right.

FatherBuzzCagney · 22/08/2019 15:06

They made a good financial decision and have been rewarded!

The good financial decision to be born to wealthy parents? Most people I know who own their own houses in my city had help from their parents (including me). One man down the street from me has done nothing but piss about with a non-existent music career, drink a lot of nice wine, and take a load of drugs for the last 30 years, but he's now the owner of a house worth over £1m because his dad died a couple of years ago. He wouldn't know a financially astute decision if it bit him on the arse.

ListeningQuietly · 22/08/2019 15:16

When I graduated, house prices were around three times average graduate salaries in even London.
All my friends bought houses note, not flats within a year or two of graduating.
We are all now mortgage free sitting on properties worth up to ten times what we paid.
But wages have not gone up ten fold for the average graduate.

UK property prices are a bubble.
Hopefully it will deflate in a not too painful manner.

KittenMittens1 · 22/08/2019 15:19

@BlueSkiesLies Thank you!!

We're just going through a house sale now, as first time buyers. trying to do it before brexit!

But we have been saving for 6 years 2 people with 2 jobs each, every penny we have has gone into saving, we have no social life, we don't celebrate birthdays or christmas we save the money instead and only since house prices have been coming down have we actually managed to go for a house! and we we're in a bidding war too! luckily the homeowner didn't want to sell to an buy to let buyer. it had 6 bids from landlord/ investors. completely making it impossible for our generation to get on the ladder.

My parents would of loved to help us out but can't, they even said they feel just awful for our generation as its so much more difficult now than ever before.

it’s really selfish of other people hoping prices come down please feel free to take you stupid statement and shove it where the sun doesn't shine, we're not all born with a silver spoon in our mouths.

FeeFee832 · 22/08/2019 15:24

@BlueSkiesLies why don't you sell your house and give half of the money as deposit for someone who needs it then? If you feel that compassionate about it?

Didn't think so!

KittenMittens1 · 22/08/2019 15:26

@FeeFee832

blue skies is just trying to point out how hard it is for us, and yes as that first time buyer generation I'm very happy house prices are coming down as it gives us a shot at owning our own homes! I have no shame whatsoever in saying that!

Inferiorbeing · 22/08/2019 15:34

I bought my first house last year at 21 in essex, it was hard work but I couldn't sit around waiting for the bubble to burst. My friends tried to and ended up paying only 20k less for their masionette than we paid for a large 3 bed end of terrace with a double garage. I think house prices should slump, then those with equity can wait it out and those who want to buy are given an fairer chance!