So will the prices start going down soon?

[Notmyyearthisyear]

Because right now they seem to increase by at the rate of 10% a month!!! Every time I look, and I look every day, I can afford less than the day before 🤣🤣 Surely this cannot continue…

Doubt it

The UK is a small island. House prices in cities and suburbs will only ever keep increasing. You might find blips every now and again but overall the trend will always be up.

No.

Brexit didn't bring them down.
Covid didn't bring them down.

Not sure what will really!

Nobody knows

Higher cost of living (inflation / energy prices) coupled with higher interest rates will make mortgages less affordable

However there is a lack of supply of property to both buy and rent in the this country

So, they might fall but I wouldn’t expect it to be anytime soon

I doubt it. Households are becoming smaller. The number of single person homes is increasing, so demand is higher than ever. Supply issues remain. The two combined mean we are unlikely to see serious falls during our generation (unless we have a very long recession).

People can still clearly afford them and there's no Indication of that not being the case in the near future (mortgages remain the cheapest ever). For those with cash there's the current rush to physical assets too which isn't helping.

Best case is priced might stabilise & become outpaced by inflation so become cheaper in real terms, but a widespread drop is not happening IMO.

Im also trying to buy here but can’t figure it out. When did the U.K./England last have a housing crash? Did the global sub prime mortgages issue not impact here? (Im not from here - thanks). Watching the market too, trying to buy.

No, I don’t think they will ever go down.

It’s baffling too how opinions vary on what so about to happen. My mortgage broker sold her house 18 months ago as she anticipated a crash - she told me she got it all wrong and the house would sell for 60k more on todays market.

An EA told me sales are falling though because solicitors are so busy they can’t keep up with demand.

Another EA told me it’s due to financing and chains collapsing, to about 30% of offers, not solicitors.

I don’t know who to put faith in!

I'm in the same boat as you OP, and no, I don't think prices will go down any time soon, or in fact, ever.

Supply is so limited that there's a bunfight over every decent property, and once you're into "best and final" territory, you're having to go well over the asking, which was already at a peak.

I've noticed that there are more price reductions because houses aren't selling at the inflated price. There is an ex council none standard construction house nr me which was on for £550k in Jan. It's now been reduced to £475 probably because its in a dodgy area. Also, no bank was willing to lend over half a million for it so you'll see a lot of reductions soon. Some EA's are over valuing but some are being sensible about it. The change will happen when lenders and surveyors start to refuse to accept the inflated prices.

I don't think there will be a crash, but I do think prices might stagnate or perhaps drop a little. Depending on the area.

It's so hard to predict though and as a PP said everyone seems to have a different view! I'm just another random person on the internet..

Once the money is no longer cheap prices will drop.

Until then they will continue.

Huge LTV and low interest rates.

Currently money is too cheap and so its value decreases

Houses aren't more expensive its just that the money in your pocket is no longer worth what it was a year or 2 ago.

I doubt it. The only time I have seen prices drop significantly in the last 40 years was in 2009 and they rebounded by 2011.

Demand is high, in some parts of the country you need to be a cash buyer just to get a viewing.

But they aren't going up 10% a month, was 11.8% in 2021.

Agreed with the pps and the stretch pricing trend of offers above hasn't helped either. Mainly because its cultivated a bidding war culture and houses end up selling way over their original price. Good for the seller but not the buyer nor the economy as its created too much of a gap between each rung of the ladder. In my area there is at least a £150k gap between a starter home and a family home. Too much, its not sustainable.

I know it’s the wrong way of thinking about it but it just really upsets me that a house I could have bought a but above 250k last year is now selling for 300 plus… the difference is equivalent to my life’s savings! I guess it’s just a matter of biting the bullet and paying what it takes now…

I’m seeing reductions now but there is very little new housing coming onto the market. Anything priced well goes under offer quickly.

I do think there will be a price correction but not a crash as such.

I just don't know OP. I keep thinking they will and it just doesn't seem to happen.

They're not increasing by 10% a month. The average increase was 10% for 2021. I've just written a thrilling article on this very topic.

The big estate agency chains are predicting 3-5% growth this year (but have an incentive to say that). The general consensus seems to be flat or a possible fall as high inflation and rising interest rates take their toll (forecast interest rates are 1.25% by the end of the year). Plus landlords selling up due to the tax squeeze and increased regulations on BTL.

Sorry 12%, not 10%. The ONS has just released their house prices report.

Can’t speak for London as they are a different ball game, but in my very average northern town I have only ever seen house prices drop once and I’ve been a home owner 34 years.

Sometimes they stabilise for a few years with very little movement and sometimes they increase ridiculously fast like now.

The nearest to any drop here was 2008 when they fell, but the biggest drops were the most expensive houses. Your three bed semi barely changed.

Don’t hold your breath.

@FurierTransform

People can still clearly afford them and there's no Indication of that not being the case in the near future (mortgages remain the cheapest ever). For those with cash there's the current rush to physical assets too which isn't helping.

Best case is priced might stabilise & become outpaced by inflation so become cheaper in real terms, but a widespread drop is not happening IMO.

I agree, and added to this lenders are starting to offer mortgages over 50 yrs and 7 x salary. That indicates to me they expect house prices to rise.

Actually, yes, after reading a pp it was 2009 not 2008 but it was as a result of the 2008 crash. My friend moved away in 2010 and I remember thinking, shit, you’ve only lived in that house three years and you’ve lost 35k.

If interest rates go up a lot and salaries don't go up then prices are likely to stop rising. At the moment mortgage rates are still very low and salaries have been going up and this is what is driving prices. Also rents have been increasing which makes buying a cheaper option.

If you keep waiting for them to drop you’ll never buy and be totally priced out the market.