Page 2 | Anyone able to give me an educated guess as to what will happen with the housing market....

PraiseBee · 2021-04-13T18:37:21+00:00

... In the next year or two? We're first time buyers, renting a lovely house. The market is crazy at the moment and house prices have jumped by £50 in the last 6 months. There are so many cash buyers offering over the asking price, we can't compete. What do you think might happen after stamp duty ----disaster holiday ends?!

Howshouldibehave · 16/04/2021 13:01

When I asked what 'luxuries' he was referring to, he said holidays, cars, expensive clothes, that sort of thing.

Did he see your point after you explained?

Some people just spout crap they’ve read in the Mail about ‘stupid youths’ who just need to stop getting takeaway coffees and getting their nails done and they’d be able to buy a house!

MasterGland · 16/04/2021 13:17

Houses will always increases in value in the long term, but the current rate of increase can not be sustained for much longer.
I bought my house for £260k this time last year. It needed renovating, about 40k worth of work. It is 3 bedrooms. A 2 bed house across the road just sold for 400k, in reasonable condition. Madness.

RedPoppy89 · 16/04/2021 16:06

I think it's really hard to work out what will happen. Part of me thinks we are due a crash as there's a mini bubble right now. But I've thought that in the past and it didn't happen!

Smokeahontas · 16/04/2021 16:15

I’m putting mine on next week. It was my FTB 10.5 years ago. As a previous poster said, I’m not hung up on short term gains and flipping. Hopefully I’ll be there for as long as I have been here.

Magnificentmug12 · 16/04/2021 16:24

It just won’t ever crash, those waiting it out will find themselves left behind. Maybe in 30 years time something will happen....just as I’m about to sell up and use the “investment” to fund my retirement probably, knowing my luck!!

tanguero · 16/04/2021 16:37

MasterGland Fri 16-Apr-21 13:17:54
'Houses will always increases in value in the long term.'

Depends how long is your long-term ? When I look at the sales record of individual houses in various streets/towns in the North, which are of interest to me, I see that some individual house prices have only just recovered to 2008 'house price crash' levels, and quite a few have not even reached that.

UK inflation 2008 - 2021 was 23%, so a house would had to have increased by a quarter in value since then to retain it's 2008 value, and many simply haven't.

tanguero · 16/04/2021 16:59

www.allagents.co.uk/house-prices-adjusted/

Have looked at this graph - which shows average UK house prices 2008 - 2020.
2008 ave. price = 214K
2020 ave. price = 230K

So ave. UK prices have increased 7% btwn 2008 -2020.
But UK inflation 2008 - 2021 was 23%, so ave. UK house prices would have had to increase to 263K, to keep pace with inflation, and they have lagged behind that by some distance.

PicsInRed · 16/04/2021 17:47

@tanguero

www.allagents.co.uk/house-prices-adjusted/

Have looked at this graph - which shows average UK house prices 2008 - 2020.
2008 ave. price = 214K
2020 ave. price = 230K

So ave. UK prices have increased 7% btwn 2008 -2020.
But UK inflation 2008 - 2021 was 23%, so ave. UK house prices would have had to increase to 263K, to keep pace with inflation, and they have lagged behind that by some distance.

The graph is already adjusted for inflation so house prices rose at a greater rate than monetary inflation.

tanguero · 16/04/2021 17:59

You're right !

Nightshade26 · 19/04/2021 11:07

@Howshouldibehave the person who levelled those comments at me migrated off to America in the 90s and has been living there ever since. He has several houses that he flips, others he rents, a large plot of land, and several businesses. He comes from the era where there was more upward mobility in a company and when a living wage was a wage you could actually live on, and a flat didn't cost a quarter of a million quid. He's very out of touch with the way things are in England.

tentative3 · 19/04/2021 11:21

We have just made an over asking price offer on a house, having watched in astonishment as prices rose over the last year. We are probably priced out of what we would have liked but are very fortunate to still be able to afford a great house. I do occasionally have a wobble about the amount we have offered (and the valuation hasn't been done yet!) but when I take into account rent etc, the price becomes a bit more manageable.

One thing I would suggest is that you buy something easily resellable. So obviously depending on your budget and location there will always be compromises but in the price bracket we are looking at we would only buy off street parking for example, regardless of whether we ourselves would compromise on it or not, because if we should have to sell in the future and the market is not what it is now, I want to have something which is easy to shift.

NoToast · 19/04/2021 11:55

Our market has been hot but last week lots were showing reduced prices.

Some are returning to the market for the third time and plenty are back on for a second time. Hopefully signs the market is starting to run out of steam.

pppp0p0p777 · 21/04/2021 16:00

buy something easily resellable

So right.
I was a victim of negative equity in the early 90s and was stuck for years next to neighbours from hell while we took in lodgers and saved like demons to be able to make up the gap and move.

Buy something not only easily resellable, but somewhere you are OK with staying for an indefinite period. If anyone is bringing down the tone of the neighbourhood make sure that it's you 😎

IpanemaChic · 21/04/2021 16:16

It’s also lack of new properties coming on. Speaking to a few agents, they sold all their stock by the end of last year.

I think it will level off and be a flat market for a few years once this flurry of demand is over.

Proudboomer · 21/04/2021 17:21

I am on the south coast and houses are selling fast. The really desirable ones in 24 hours. I have estate agents leaflets through the door at least weekly asking if we are thinking of selling as they have clients waiting.
But the sale of flats is flatlined. Even with price reductions no one wants them.

ManyMaybes · 21/04/2021 20:25

I’ve seen barely any houses coming onto the market over the past fortnight where I’m looking (south London, £1.5m+).

My concern is when anything good does come up it will sell for literally hundreds of thousands more than it would have 12-15 months ago. We started looking in early 2020, just before lockdown 1, so it’s pretty tough looking at the houses that sold a month or two before then for so much less than they are selling for now.

mklanch · 21/04/2021 21:16

@ManyMaybes

I’ve seen barely any houses coming onto the market over the past fortnight where I’m looking (south London, £1.5m+).

My concern is when anything good does come up it will sell for literally hundreds of thousands more than it would have 12-15 months ago. We started looking in early 2020, just before lockdown 1, so it’s pretty tough looking at the houses that sold a month or two before then for so much less than they are selling for now.

this is so right. i dont understand why people are panic buying houses! i hope they realize they may have saved stamp duty costs but they have paid more than that to the seller!

DblEspresso · 21/04/2021 21:28

There is a flight from Zone 1-3 of London to rest of England. With ability to work from home, everyone is making a beeline for their favourite property out in the country or the coast. This type of demand was never there in the past in such locations, but the lockdown and WFH has turned everything upside down.
Maybe in 2 years time when London is back to normality, they will all get bored and make their way back to the City.