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.

Ah, I see. That isn’t an issue at all as we don’t intend to sell for a couple of decades!

There are currently fifty six houses on the market in our area,a third of them have been reduced and half a dozen of them have been for sale for over a year.For a long time the amount of properties available here hovered around the twenty five to twenty eight mark and it was a disaster if they hadn't sold within two weeks.

When were mortgages last at 6.5%, or 8.5%? That is the price you are going back to, a magic fairy doesn`t suspend prices at Bubble Turbo Forever when rates rise, wages have certainly not kept up, house prices are going to crash....a lot.

Looks like they will have to reduce a bit more if they want to sell.

With the way interest rates are going, I am not surprised at the number of reductions on rightmove in our area. I can imagine is going to get worse.

We’re in London, there are plenty of people who can afford £6000-8000 per month mortgage payments. Unfortunately we can’t, but plenty can.

I would be amazed if prices crashed. They literally haven’t fallen in this area of London at any point over the last 40 years. Prices might stop rising, people might stop putting their houses on the market, but they won’t crash. Too much overseas money/banker’s bonuses to prop up prices.

Prices started easing in some areas back in the early summer, when we put ours for sale. That has now spread to other parts of UK.
Prices for different types of houses also move slightly differently.

Indeed. It couldn't possibly be due to us leaving the largest trading block within spitting distance, of course.....😕

If literally, then can you provide references to data please?

jan-byers
SEPTEMBER 27, 2022 AT 12:25#25
I am a developer
We have had 5 mortgage offers cancelled today by Halifax and NW
They have withdrawn the product
They are going to offer the buyers a new product at a higher rate
The buyers are totally spooked

propertyindustryeye.com/banks-are-preparing-for-house-prices-to-fall-by-a-third/#comments

Yep sure. Small blip in 2008, otherwise up and up.

@oiltrader
Oh lordy. Just offered on a house today.
Thanks for the article.

Gloomily waiting for our mortgage offer to be retracted. We are with Halifax and it’s a high risk contractor mortgage so feel we are very likely in line for this.

My mortgage advisor spent much of his day reassuring clients that their mortgage offers won’t be retracted. However, he urged anyone in the process of applying to get their application in today, as he couldn’t guarantee the interest rate would be the same tomorrow!

It’s worrying to read on this thread that some offers have been retracted. I have chased my solicitor to send me my mortgage deed form and will send it back ASAP.

I’m about to sell a fairly modern but small 2-bed end terrace house. One of those bog standard builds with the stairs in the living room that you can find anywhere. Prob value iro £170-180k.

I’d say mainly a first time buyer/professional couple without kids or MAYBE someone moving from a flat would be interested. Very good location in terms of proximity to town/facilities.

Do you think these cheaper/smaller houses are going to be hit as hard as the bigger, more expensive properties?? I have to sell but for various reasons couldn’t go to market until now (nearly ready). But we could do with selling asap!! Properties like mine still seem to be shifting in my area….at the moment.

Phil and Kirsty would advise to ‘future-proof’ your purchase, so buy a house over a flat, as you can live there longer, so you may be okay.

That really makes little sense if the 'next property' is a more valuable one. In a rising market, it costs more to trade up, because the gap you're bridging gets bigger. If you want to trade up, you actually need prices to fall. It's the size of the gap that matters, not the absolute price.
Outside of property speculators, the only people who gain from a rising market are people trading down, or inheriting.

Lets hope so.

Especially now the pound is worth fuck all

Except that the super rich will now see the UK is an incredibly risky investment and therefore far less attractive.

I don’t think London property is generally seen as a risky long-term investment is it?

The issue currently is mortgage affordability. Overseas buyers aren’t getting mortgages, they are buying outright. So a price drop and weak pound, with rising rental prices, is a good thing for them.

To be clear, I am a buyer and all of this is terrible for me. I am not in favour. But I’m not sure it is a major issue for somebody buying up multiple flats to rent out in central London.

The government would be more popular if they stopped non-residents and off shored companies from buying UK residential property.

@Changechangychange -it hasn't been thought of as a risky investment but I think that situation has changed now. The UK is seen as a much more risky investment by those with money.

That's true, they have been doing British people a great disservice.
Unfortunately, as the UK has been living above its means for decades, successive governments have been positively encouraging wealthy foreigners to launder their dirty money in the London property market (obviously not all is dirty money but you understand the point).

@yaxe
Hello OP can I ask if your purchase went through? Lots coming back to the market in our southern market down. No price reductions of any note.