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Original poster

So will the prices start going down soon?

205 replies

Notmyyearthisyear · 17/02/2022 21:43

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…

OP posts:
bettycarver · 20/02/2022 16:24

Hmm... let's see... anyone in negative equity probably wouldn't be cool with it. Anyone stuck in inadequate housing, or wanting to move for employment prospects who's trapped in a house worth less than they're paying for it... oh and of course anyone who cares enough about the economy to know that we depend on consumer spending and consumer confidence ...

Seriously, how could anyone be 'cool' with a catastrophic housing crash Hmm

Stabilising - Yeap, that would be great. Most important, increase in building, increase in affordable housing schemes.

But anyone who thinks house prices dropping by 50% is 'cool' needs, in those immortal MN words, to give their head a wobble

swirlsy · 20/02/2022 16:25

this is also why inflation will not be transitory.

I'm not a expert but I disagree with the BOE that inflation is blip & they should have acted sooner imo.

swirlsy · 20/02/2022 16:29

Seriously, how could anyone be 'cool' with a catastrophic housing crash

What is a catastrophic crash?

I wouldn't have an issue with losing 40% of my house value if it meant it was easier for my dc to buy & I could buy a bigger house (don't think I will move again though).

Many homeowners have no issue with prices ever increasing so I'm not sure those who want a drop are somehow worse.

Didyousaysomethingdarling · 20/02/2022 16:31

@XVGN

Yep *@Lightscribe* (DB would be proud of you!).

I remember the 89-93 crash - buying a house in a nice part of Bristol for half the price paid by my neighbour the year before. Negative equity was a misery for some people. Of course, if you didn't have to move then you could just sweat it out. But this time, prices increasing will flush out the JAM's.

@XVGN LOL DB indeed! don't tell YellowReducedSticker et al that so many mumsnetters are dosboders too! They'd be horrified.
bettycarver · 20/02/2022 16:31

It would it easier for my children to buy houses too, but it's not just about us is it? Hmm

Seriously, think about the wider impact and the numbers of people outside your own personal circumstances who would be adversely affected

Remytherat · 20/02/2022 16:32

I would like homes to become affordable for our kids and young adults. If that means my home falls by 50% then I'm cool with that. Who wouldn't be?

What about all the young adults who have just bought at inflated prices as their first step on the ladder who are suddenly in negative equity and won't be able to buy anything bigger so are stuck in a small flat/house with a growing family? I don't think they'd be particularly happy with a 50% reduction in house prices.

Manc2 · 20/02/2022 16:34

@XVGN what about people’s children who have saved for years and recently bought a house?

swirlsy · 20/02/2022 16:35

I don't foresee a huge crash though

forcedfun · 20/02/2022 16:36

@XVGN how could you be "cool" with something that would leave lots of people in vast negative equity?

We only have 40% LTV but people who have brought recently would have a horrible time

swirlsy · 20/02/2022 16:37

and let's hope not because it'll come with all kinds of shit and ultimately favours no one on a wider scale.

But the ridiculous house price increases have caused major problems. Look at our productivity, the inter generational inequality, social mobility going backwards etc.

Viviennemary · 20/02/2022 16:37

I think they will come down a bit. And there will be the usual moaning and gnashing of teeth due to negative equity.

swirlsy · 20/02/2022 16:39

@Manc2 but surely that works both ways. What about people who were saving but increases in the last year have priced them out. Should they sell under market value because it's too difficult for FTBs?

swirlsy · 20/02/2022 16:40

Plus lending regulations tightened up after 08 and the vast majority of people were stress tested & needed good size deposits in order to buy.

Lightscribe · 20/02/2022 16:41

@bettycarver

Hmm... let's see... anyone in negative equity probably wouldn't be cool with it. Anyone stuck in inadequate housing, or wanting to move for employment prospects who's trapped in a house worth less than they're paying for it... oh and of course anyone who cares enough about the economy to know that we depend on consumer spending and consumer confidence ...

Seriously, how could anyone be 'cool' with a catastrophic housing crash Hmm

Stabilising - Yeap, that would be great. Most important, increase in building, increase in affordable housing schemes.

But anyone who thinks house prices dropping by 50% is 'cool' needs, in those immortal MN words, to give their head a wobble

You can’t have ‘affordable’ housing schemes when costs, materials, and interest rates are going up. The government always factors a route out the other side. That’s why the Help to Buy scheme loan was based on RPI and not CPI. Have you seen house builder shares recently? Estate agents online/offline? Have a look, it may give a clue of direction. Again monetary policy doesn’t care what anyone ‘wants’ to happen, it doesn’t care about the ability of people to pay debt either. It’s happened multiple times before so can happen again.
swirlsy · 20/02/2022 16:41

I think the UK will see another rate rise in March & economists are predicting they will be 1-2% by the end of the year.

bettycarver · 20/02/2022 16:42

'But the ridiculous house price increases have caused major problems. Look at our productivity, the inter generational inequality, social mobility going backwards etc.'

Absolutely. Which is why I hope things stabilise. Housing booms and busts aren't great ultimately. Of course you'll get individuals benefiting personally but it seems so utterly selfish for anyone to wish for either runaway boom prices or a crash

swirlsy · 20/02/2022 16:44

Seriously, think about the wider impact and the numbers of people outside your own personal circumstances who would be adversely affected

Why do you think people haven't been adversely affected by the increase in house prices?

swirlsy · 20/02/2022 16:48

What about all the young adults who have just bought at inflated prices as their first step on the ladder who are suddenly in negative equity and won't be able to buy anything bigger so are stuck in a small flat/house with a growing family?

House prices stagnating won't help the above particularly when you add inflation & higher taxes into the mix which is why my advice is to future proof. As I said most FTBs shouldn't be plunged into negative equity, 100% mortgages are not typical anymore.

bettycarver · 20/02/2022 16:49

@swirlsy read my posts! I don't know how to make it clearer that I think the rising house prices have been really harmful- as are crashes

Remytherat · 20/02/2022 16:51

but it seems so utterly selfish for anyone to wish for either runaway boom prices or a crash

This. I'm in the middle of buying a house at the moment. FTB, been saving for 10 years for a deposit and we can only just afford the mortgage. But it's still better than renting, and all I'm hoping for is that the house is still worth what we paid for it in 5 years time.

swirlsy · 20/02/2022 16:56

chill @bettycarver I'm still catching up on the thread. I didn't see anyone advocating for a huge crash either. As I said stagnating will cause problems as so much historic growth as been driven by equity gains.

bettycarver · 20/02/2022 17:03

@swirlsy I'm perfectly 'chill', I was just a little confused as to why you directed that question to me as if I hadn't already explained in pp that rising prices have had a harmful impact!

Riverlee · 20/02/2022 17:03

@swirlsy

How do suggest to future proof?

@Riverlee so it depends on individual circumstances & market but if I was the typical 30 yr old buyer in London who wanted dc soon I would skip the flat stage. I would buy a house near schools. Ideally a house that had room to extend if needed & when circumstances allowed. Ideally you want to make less property moves imo.

Oh dear. Dc has just brought a flat! However, he younger than thirty, single, and has managed to get a five year fix, so is cushioned against mortgage cost increases, at least for the next few years. Hopefully, he can ride the storm, or at least get a few years price increase on his flat before any crash.
worriedatthemoment · 20/02/2022 17:09

Around here though a lot of the people buying are BTL landlords all the first time buyer houses often get snapped up by them and others are left nor being able to get anything at the lower end
50 years mortgages is awful you could be paying with just a small pension not everyone has good work pensions
They are silly prices now and people are buying but really struggling and with all these increases in fuel etc some are going to struggle to hold on to their houses ,

sst1234 · 20/02/2022 17:17

@swirlsy

Seriously, how could anyone be 'cool' with a catastrophic housing crash

What is a catastrophic crash?

I wouldn't have an issue with losing 40% of my house value if it meant it was easier for my dc to buy & I could buy a bigger house (don't think I will move again though).

Many homeowners have no issue with prices ever increasing so I'm not sure those who want a drop are somehow worse.

Would you also be happy for them to face unemployment? That’s the risk that comes with what you want. House price crashes don’t happen in a vacuum.