Is this the start of the house price plummet?

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Slowly but surely the papers are reporting reductions in line with the projected economic difficulties.

The Telegraph has today published an article which says those under offer should 'definitely try to negotiate a reduction'. The 'expert' then goes on to suggest trying for a reduction of 10-20%.

Is this the start of things to come?

www.telegraph.co.uk/property/buy/buying-house-coronavirus-advice-lockdown/

I don't see how house prices can not fall, with the worst recession in 300 years.

At the same time, I am not sure how many people can benefit from this as many people would be in negative equity and banks are unwilling to lend- why would you give a 90% loan on an asset that is rapidly falling.

Saving for my first home next year and keeping an eye on a new build in the area. Not sure whether to go ahead due to the chance of negative equity or not... I wonder how long this would effect the market for?

A previous poster said her remortgage rate had been reduced by 15% so that's what the banks must have been projecting at the very least. That was about 2 weeks ago.

A lot of posters still seem to be progressing on sales at the existing price offered, so it'll be interesting to get an idea of whether that thinking is starting to change.

It sounds like madness to me, however, that view still seems to be limited on Mumsnet.

@turkeyburgers I suspect new build developers will be worst him. I also suspect your timing will be perfect!

I'd be mindful of the financial situation of the developer however. New builds are notorious for dreadful snag lists and worse. You may want to make sure they remain accountable/in business should you need anything rectified.

A lot of people seem to think house prices would rise in the countryside and fall in the cities as there is an exodus out of the cities. I am unsure that with the unprecedented economic gloom, if most people would be prepared to take on the financial commitment of moving, stamp duty if they are fearful of losing their jobs.

I’m waiting for my buyer to come and ask for a reduction. Then we won’t be moving.

Its scaremongering. House prices may freeze or slightly fall for a bit, maybe for this year, but it want last

@lessismoreorless how can house prices not fall when 1 out of 5 people are either unemployed or furloughed with an uncertain job future. House prices would fall. The only question is whether it's 10% or 30%.

I say this as someone who bought a 2 bed London flat and would almost definitely be in negative equity.

We’ve just started house hunting after being approved in principle. We’ve had a very bumpy year financially but we’ve just been gifted a deposit. Once we use that we’ll have no savings and we’ll never have this kind of money again so we can’t afford to make any poor decisions. I’m not sure whether to ride the wave and wait to see what happens with property prices or whether I should shove an offer on a house and grab my mortgage before the banks change their minds!? I was thinking of making an offer 13% below the asking price of the house we’re considering because of the current climate. I don’t want to be in negative equity. The house is overpriced for the area but has been newly renovated and only just come on the market. Anyone have any advice? I’m a first time buyer and the whole thing is terrifying me :/

@Angharad07 I would wait. If you have a substantial deposit, you may be able to afford the property when prices fall even if you can only get a smaller mortgage. In this climate, I would be very cheeky and give a lowball offer to see how the seller reacts.

Well I would definitely over under, I don't think 13% is outrageous

Some friends have moved, deal went through just before lockdown. I think they are brave considering one job is definitely at risk (hospitality).

Some family are selling a property, they have had online viewings & 1 real life. Buyers keen but buyer been told to wait as market so uncertain.

@Angharad07 I bought during the brexit negotiations when everyone was convinced we would crash out of the EU and there would be an instant reduction. I took the chance, Boris won the election, there was a tiny increase and then covid.

People predicted brexit would induce a 25% price fall. This only happened in certain parts of London and to be fair those parts were far above the reach of the average first time buyer anyway. Foreigners were still buying because the fall in sterling made UK property very attractive. My flat was £450k in 2017 and I bought it for £392k, a discount for sure but it was hardly a clearance sale. However brexit didn't affect unemployment in the same way that covid did so it may well have a bigger impact.

I agree that job losses & economic pain will be much greater than 08 & Brexit

The one thing I would say is that if you can afford the property & it suits you - offer what you can afford. A lot of people buy where they want to live and over the long term - you can ride out with highs and lows . A squidge here and there to get a "deal" may not matter 10 years on. If the sellers don't like what you are offering they will say so - and in the mean time - I shall phone my grandmother / eggs etc seriously - forget what you have read - if the people selling want to move they may take a lesser offer so give it a go - they can say no. But my one bit of advice would be - make sure you actually want the house / flat and want to live there for a while. Even without Brexit / Covid etc - to think buying a house is short term is IMHO not great ( Other opinions are available) - but best of all to you whatever happens

buying a house is short term is IMHO not great

I have the same view, in this day & age is all about future proofing.

i would love to buy....however, no properties on market.
the reduction people talking about is a merely a wish.
i see a surge just like post brexit.

people here were betting on brexit fall, February was the highest property sale in a decade.

Interesting topic OP 👍

Yes please. People were fine with them going up and up and up, screwing the next generations and tying up far too much money which could be better spent elsewhere in the economy. They like it because it makes them feel wealthier (and who doesn’t like that). Years of absurdly low “emergency” interest rates and government props have all but ensured this trajectory. If at least one good thing comes out of this horrible illness, let it be enforced sanity on the house price front, to save us from the vultures permanently rooting for the cancer of house price inflation.

It really depends on what happens. If enough people can’t meet their mortgage repayments/get a big enough mortgage to cover current prices they will drop.

Without higher interest rates there wont be many forced sellers so there probably wont be any major falls.
The government have a track record of working with the banks to keep the market going up up up and I wouldnt be surprised if there was some collusion to keep this going, ie payment holidays , extending help to buy to 2nd hand houses etc