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/

@Smallgoon she can definitely afford to buy in Camden, just not such a big house. A 4 bed terraced house in Finchley is 800k and much more expensive than most flats in Camden. Actually I think she is right in waiting because those terraced houses are likely to come down much more than flats or detached homes. And yes renting a house like that is far cheaper than buying. A budget of £800k is double the budget of an average London first time buyer. A young family with £800k would be able to afford two rail season tickets so the home counties is an option and you get a bigger house for £800k. So the target market for a £800k terraced house is quite small-maybe a local family who wants to stay for the schools (mainly faith schools in the area). Landlords are quite squeezed at the moment too and Finchley isn't a natural destination for foreign investors .

India is cheaper. That's what a lot of banks are doing. Or the Phillipines.

I guess it depends on time differences & what operations are needed whether stuff can be moved abroad.

The boss of Barclays has talked about city offices
www.google.co.uk/amp/s/www.bbc.co.uk/news/amp/business-52467965

Google have said most employees can wfh until 2021.

I don't see how prolonged wfh won't have some kind of impact.

@foggybits it may. Could also lead to more offshoring.

But as I indicated upthread, people do stay in London for more reasons than work. My MIL has been working from home since the 1990s and not earning a London wage at all but she can't move outside London as her synagogue, community are all here.

Wait and see how many international companies and their jobs leave the UK for EU bases once Brexit interim period is complete.
Our housing is very overpriced. The economy (globally) is falling; jobs disappearing, companies going under (will banks even lend on a furlough salary?), and even surveyors have no idea what to value properties.
I wouldn't be rushing into any purchases just yet.
Imagine buying a new bike and the builder goes under before completion. Nightmare.

• new build not bike

@Desiringonlychild - London has been an international powerhouse, yes, I agree. However, things do change and it seems like a combination of covid and Brexit will cause uncertainty.

Increased home working will mean a lot of companies, including some of the banking sector, can save money on office space and international business travel etc.

In addition, the government have been investing in HS2 transport links between North, Midlands and London for a reason. A lot of the larger firms have started looking at hubs up North, particularly Birmingham. People get more bang for their buck outside London; if home-working is the future, then having more living space to enjoy life and also a bigger garden will start to take priority. Quality of life may start taking priority, but balanced by location. London will always still be London, but I'm not convinced that past patterns of a quick crash and fast recovery are guaranteed. The game is changing and it's a paradigm shift.

Of course people will always want & need to stay in London but it may not be quite so dominant in future.

The game is changing and it's a paradigm shift.

I agree

@Smallgoon “I wouldn't bother arguing with @thequantofmontecarlo she is a quanto something or other mathematician. She's right and everyone else is wrong, because she rents in camden and can't afford to buy in camden, therefore must be right“

I model (predict) prices of assets based on economic, geopolitical and productivity conditions. But, what do I know right? After all, I can’t afford to buy a 4 bedroom house in Camden in our early 30s.

@Desiringonlychild - Another point about community and faith based facilities like the synagogue etc. I agree that it's really important and my parents are very similar tbh. However, my siblings and I are very different, so what you may also be describing is a generational thing that may not continue as strongly going forwards. Covid restrictions has made faith based activities a bit more challenging, so maybe it's a case that faith organisations will adjust and adapt in the post-coved world so that they can still be present but more digitally?

A lot of the major cities and towns outside London have similar communities that are welcoming of newcomers etc. It is obviously harder to move once settled etc. Sadly, nothing lasts forever and like I said the game is changing and it's a paradigm shift. So, just gotta roll with the punches, ride out the waves and do our best to survive well!

@thequantofmontecarlo

Would it be cheaper for you to rent a 4 bed terraced house in finchley than to pay off a mortgage on the same property?

Sorry from the daily fail but new article ..

Property market will reopen TOMORROW... but online viewings advised mol.im/a/8313167 via dailym.ai/android

@ChocoTrio can't speak for other communities but young Jews like myself are still v engaged. A lot of younger Jews have moved to borehamwood but it's still zone 6. My sister in law has moved to Manchester, another one to Tel Aviv (which is also very expensive!). But most people still stay in London cos kosher supermarkets, synagogues, schools all require some economies of scale. And it's not so easy to transpose a whole community to the countryside.

As for digital engagement, it's impossible for the orthodox community as they can't use electricty on Saturday. For liberal Jews like myself it's easier but I still want to live in a community. Also schools.

Does anyone know that they are still accepting furloughed employees for mortgages. Between this and the extension of the mortgage schemes the crash may be delayed.

I’m also interested if they’ll lend on furlough. Our AIP ends 31st of May 😩

I would doubt it, furlough is essentially just bigger benefits which have an expiry of October.

@Winnipegdreamer they are still lending money to furloughed workers.

@Hiddentree122 yes furlough would end in October but it means that people are unlikely to lose their homes by October. By October, the curve might have flattened and more businesses can operate. So less people lose their jobs

And of course the property market opens today. I find it laughable we can't visit relatives but we can view a property. Just shows that the government would protect the property market at all costs. Even if it means sacrificing lives.

Visiting a relative is completely different to looking round a house with no one on it

@Oliversmumsarmy from what I understand, they are conducting socially distanced viewings

@Oliversmumsarmy The reason the government asked us not to visit anyone in their home is due to concerns that the virus could live for a certain period of time on clothing, furniture etc. This is why all meet ups with another household must be outdoors.

Unless the house being viewed has not been lived in for a period of time, this risk remains.

I have found the posters here interesting to read - especially thequantofmontecarlo . Maths modellers can be wrong - but actually not very often - which is why what you are saying has weight. Housing is not simple though as emotional, cultural and other factors play a significant role. (It is only simple for developers or traders - not when it is also your home).

Estate agent friends seem to think, especially in small corners of London, that the demand will stay steady and prices will dip but not much. They still have sales pushing through and are optimistic that this is just another panic. I am not so sure.

The emotional aspect cannot be under estimated, I’m still getting paid and had the lump sum self employed help scheme and have a cracking pipeline of business. Tenants are still paying me their rent. Life is going on much to some people’s disappointment. But literally the last thing I would allow would be repossession of my nice 4 bed semi with a huge garden. I’d electrify the fence first

I don't blame you Chrissie

I have friends who are looking to move out of London.

But they have been looking to move out for as long as I have known them.

The issue is they have a very nice house here and where they want to move to they want a seriously nice house and a bundle in the bank

The only problem is the type of house they want either costs similar or more.

The children are all grown up and are at uni or work in London and live at home so they don’t want to move away
I doubt they will ever move