Anyone noticed the market has changed?

[yaxe]

We are in the process of buying (have sold) & it was mad in March, lots of overbidding etc. I've noticed now reductions & stuff is staying on rather than going in a wk. It's making me a bit nervous tbh.

Something else worth noting is that conveyancing in my area was taking an average of 19 weeks in May. According to my solicitor it's now down to 11 weeks, due to a substantial drop in new purchases over the last few months. That's from instructing a solicitor to completion.

House price crash is not going to happen. Furthermore, this recession is not being driven by a housing investment bubble.

Those who wait to buy, thinking they will grab a bargain are kidding themselves.

The rules implemented by the FCA allow banks to work better with people struggling to pay their mortgages. So don’t expect distress sales to drive down prices.

Any downturn is transitory. The housing stock is limited and that, that alone, ensures that in this country, especially in built up areas like London, house prices will always be rising.

Housing is both income and price inelastic in this country. The government is trying to increase the stock but it hasn’t been able to do so at a rate enough to dampen the long term trajectory of prices.

it is wildly predicted london to drop by 12-15% next year. most other places in the world, USA, Canada, Oz etc having major property price reductions but for some reason UK is different 🤔😆

Transitory vs long term.

I've noticed a few more properties coming into the market lately, but they are still selling.

Mind you, I'm in Yorkshire and any downtown is expected to be minimal here. The south might fare worse, but I don't think that they'll be a major crash.

FED chairman said interest rates will continue to go up. As is the theme on this thread, demand for occupancy versus tenure is not understood, as is the fact house price inflation is purely down to credit supply

@oiltrader

House prices haven't been related to income in a long time. Most people I know (not me unfortunately!) got significant inheritance or gifts from parents to buy. Wealth is passed down rather than earned these days.

Perhaps people with have to start with smaller houses, but I do t think they'll stop buying.

Also, with inflation so high, I think it's unlikely that nominal values will fall much

where are all these pay rises coming from? we only do services in this country.

who will buy these huge houses for inheritance cash without credit?

game is up

Why is a downturn in Yorkshire expected to be minimal? I'd be interested in links to anything you've seen on that.

Sorry but this makes absolutely no sense.

Who are all these people who are going to be purchasing UK property as real wages fall, interest rates rise, bank credit dries up, recession hits and people lose their jobs. Even worse if the £ and UK economy collapse. The boom in property values has been a relatively recent phenomenon caused, in the main, by increased availability of credit. Prices are already falling in other countries (and have started to here) as interest rates rise.

I’m in Yorkshire and read that thing too. I can’t remember where it was though!!!!

London is expected to drop the furthest. I think it said 12%. Yorkshire was 4%.

l think it’s to do with where people went after the pandemic? Sheffield was the most popular city l think?

I was wrong. It’s to do with the relation between house price and wages.

www.mirror.co.uk/news/uk-news/house-prices-expected-fall-up-27839112

Some of the regions are massive and very diverse. I'm in the north west, for instance, and I'm pretty sure our housing market here is nothing like Manchester's or Blackburn's or the Lake District's. It's a very broad brush approach to say our whole region will act as if everywhere within it is the same.

I really do think we'll have to wait and see (though signs of cooling are definitely here).

I live 40 miles outside London in an area that is popular for Londoners to move to. A house on my street was put up for sale at the beginning of August and sold in a couple of weeks. £1 million +. The market doesn’t appear to be changing here yet.

Lake District - wealthy 2nd home buyers. Not hugely affected by recessions plus shortage of new houses due to strict building controls in a national park.

Manchester is several markets too. The popular suburbs in Trafford and South Manchester will probably only drop a bit. The less popular areas will be hit harder. I'm expecting all the new and newish flats to drop though (city and surrounds) as they aren't selling well. I'm looking in Trafford and demand is down massively. No more block viewings and best and final offers.

Who are all these people who are going to be purchasing UK property as real wages fall ?
Who do you think has been buying up London for the past 10 years.
Where a bubble tea shop pops up, youll find vast sums of money in the local property market

Where a bubble tea shop pops up

Koreans?

I think some people have wishful thinking , not enough people get inheritance to fully fund a large property to keep the property market from falling. People rely on access to credit to purchase their first home, if interest rates go up people are less likely to want to bid crazy amounts. The US fed have increased their rates same as Australia their property markets are falling as is China. I don't know why people think the UK is immune some level of correction will happen the amount is anyone's guess.

There are many aspects to the property market. In a largely free market economy demand vs supply will always drive outcomes regardless of the market.

For example, some people will now choose to rent rather than buy. This will push up demand for rental properties. Rent will go up both because of the increased demand and because landlords will pass the higher mortgages charges to renters. Very quickly many people will work out that it is cheaper to buy than rent.

Once the Bank gets inflation under control, it too will eventually respond to the need to get consumer demand up again.

and so on and so forth.

The economy moves in cycles and where housing is concerned the UK does not have enough stock to either buy or rent.

The reality of the paucity of housing stock in the UK can be seen by the size of new builds. The government makes it easier to build but the rate at which these flats and houses are being build is slow and there isn’t enough available land. Even building upwards has its limits. Many people don’t want high rise buildings in their backyards. Many do not want them on brownfields let alone green fields.

People complain about new homes being build near them - some worry that the value of their property will drop.

Who are all these people who are going to be purchasing UK property as real wages fall ?
Who do you think has been buying up London for the past 10 years.
Where a bubble tea shop pops up, youll find vast sums of money in the local property market

My town had no bubble tea shops 2 years ago - it now has 4! It's not that big a place.....

People need somewhere to live. They either rent or buy. That is the reality. The stock for renting and buying are limited.

The price for properties have been riding everywhere in the UK. London price increase has been much higher and that again has been driven by the fact that in London demand outstrips supply more than anywhere else.

As we work more from home now and it is easier for people live in but work outside of London, the demand has fallen and so has the frantic increase in prices. The nature the demand has also changed with people wanting more gardens and green spaces. This also cools the demand for living in some parts of London.

As long as having a roof over one’s head is a necessity, people have to either rent or buy.

I think the poster meant shisha bar, meaning Arabs buying up property. But got mixed up and said bubble tea, which is Korean.