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Anyone noticed the market has changed?

787 replies

yaxe · 16/06/2022 18:17

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.

OP posts:
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7
Overthebow · 28/10/2022 06:38

Lastwhisper · 27/10/2022 18:45

8% - I think that sounds like good news. In fact so good, I can’t see why Lloyds would bother setting aside money for bad debts.

I saw this. 8% is reasonable given the massive jump that has occurred in the last year or two. Our house has gone up over 10% since we bought it 18 months ago. It’s also realistic given that the UK has such an under supply of houses so the market will struggle to have too big a drop.

Lastwhisper · 28/10/2022 09:40

I do worry about this under supply of houses adage. When they are going up in price, lots of people want one, or a better one. In fact, they are cheap.

But does anyone want a house when prices are falling? At these prices, any fall is expensive.

oiltrader · 28/10/2022 11:19

Overthebow · 28/10/2022 06:38

I saw this. 8% is reasonable given the massive jump that has occurred in the last year or two. Our house has gone up over 10% since we bought it 18 months ago. It’s also realistic given that the UK has such an under supply of houses so the market will struggle to have too big a drop.

has it gone up? did you sell? if not then thats a figure in the air

Postapocalypticcowgirl · 28/10/2022 11:55

Around me (popular tourist destination) some ex-holiday lets and possible ex-second homes are going onto the market (which is unusual). I wonder if the cost of heating them over the winter has become prohibitive for some? Or perhaps they are expecting less demand next year.

It's just to say the supply of residential housing isn't totally fixed everywhere, because in some locations, there's a lot of housing used for non-residential purposes.

Also, there are some very cheap properties which have come onto the market, which I think might be btl landlords getting out.

NoWordForFluffy · 28/10/2022 12:52

The tenanted houses here will not shift, even when dropped to bargain prices. Seems like not many landlords want in!

rainingsnoring · 28/10/2022 14:41

Postapocalypticcowgirl · 28/10/2022 11:55

Around me (popular tourist destination) some ex-holiday lets and possible ex-second homes are going onto the market (which is unusual). I wonder if the cost of heating them over the winter has become prohibitive for some? Or perhaps they are expecting less demand next year.

It's just to say the supply of residential housing isn't totally fixed everywhere, because in some locations, there's a lot of housing used for non-residential purposes.

Also, there are some very cheap properties which have come onto the market, which I think might be btl landlords getting out.

I expect we will see more BTL properties and short term let (AirBnB, etc) properties being marketed. I think AirBnB is a sector that will be in trouble shortly. I believe this Summer was less busy and next Summer will be even less so as people tighten their belts. Obviously, some BTL landlords are in trouble too with interest only mortgages and may decide to sell. There is only so much they can push rents up before tenants can't afford to pay so will default.

OhSunnyMorning · 28/10/2022 21:20

National agent was very rude. Lots of 'my client expected more'

Suggest that they sell it to the bidder who has offered more....oh there isn't one?.......

saltnvinegarpringles · 28/10/2022 21:51

Biggest clue for me so far, I've had three estate agents call this week asking if we are still looking to see if we are interested in any of their properties. 3 months ago they were so busy they didn't even call you back.

Starseeking · 28/10/2022 22:56

Definitely shifted in my area.

An estate agent called me today to ask if I'd still be interested in buying an overpriced property on their books, for which my perfectly reasonable offer was rejected.

I was pleased to advise the estate agent that I'd completed on another property following the vendor's rejection of my offer, and a reminder that I'd told them I could move quickly.

Paddingtonthebear · 28/10/2022 23:38

I thought it had shifted in my area. Loads of reductions on rightmove and I’ve been getting agent calls again to see if I’m still looking. However we viewed a new listing today that had multiple viewings booked in for day one and has now gone to best and final already. Needs a lot of work too. We were hoping to be in a better position with properties being reduced lately but I’m not so sure now.

Postapocalypticcowgirl · 29/10/2022 11:42

NoWordForFluffy · 28/10/2022 12:52

The tenanted houses here will not shift, even when dropped to bargain prices. Seems like not many landlords want in!

I don't know much about it, but I'd assume if they need a mortgage, it will be quite high interest rates now, which the existing rent may not cover? So you'd be buying a property, having to put up rents straight away, and potentially the tenants would then give notice, or just not be able to pay, and then you'd be a bit stuck? It seems like a risky proposition right now- and better to wait and see if interest rates fall?

Postapocalypticcowgirl · 29/10/2022 11:49

rainingsnoring · 28/10/2022 14:41

I expect we will see more BTL properties and short term let (AirBnB, etc) properties being marketed. I think AirBnB is a sector that will be in trouble shortly. I believe this Summer was less busy and next Summer will be even less so as people tighten their belts. Obviously, some BTL landlords are in trouble too with interest only mortgages and may decide to sell. There is only so much they can push rents up before tenants can't afford to pay so will default.

Yes, I think around here the Air BnB owners had two really good summers due to the reduction in people flying/taking foreign holidays. But the downside was that because they'd turned all the cheap accommodation into Air BnBs, local attractions/restaurants etc were struggling for staff so visitors had a less good experience, and potentially won't return. This summer was still busy, but I agree less so, and as you say, next summer more people won't have holidays, or will ditch their cheap weekend in the UK and just have one holiday etc. A lot of people do Air BnB on a residential mortgage, too- and I think at some point, someone will clamp down on this.

Around here, they won't get many bookings over winter, but will probably need to run the heating etc on some occasions to help maintain the property, so increased winter costs, too.

I agree about landlords, too, and my understanding is that they can only raise rents once a year- so if they went for an increase in, say April, which now won't cover their expenses, then they're presumably in a very difficult situation. There have been a few threads on mumsnet posted by landlords who are making a loss on certain properties.

Anyway, my perception is definitely that some of these properties are now being sold- there's quite a lot of property available in the local area, which given it's a rubbish time to sell, and arguably even more so in this part of the country is interesting. And some really cheap stuff on the market which wasn't there at all in the spring/start of the summer.

Some places are definitely getting snapped up quickly, but those which need a bit of work or are a bit "quirky" appear to be sticking around longer.

CountryClaire · 29/10/2022 11:54

@OhSunnyMorning

I had another rude email yesterday telling me that it had been 'extensively refurbished' Their details promised me a bespoke kitchen. It was a Howden's with sprayed particleboard doors. It looks fine but it's not a £70k monty. I know these geeky facts as I used to work for Smallbone when I was a student. This agent has gazumped me before and is a nasty old git who doesn't like women. He would do anything to sell a house to another party but me. The problem is he overvalues to get the instruction then insults everyone who says it is overpriced. He relies on people being too embarrassed to question anything in our smart market town.
They are the only agent not to ring me this week!

rainingsnoring · 29/10/2022 12:04

CountryClaire · 29/10/2022 11:54

@OhSunnyMorning

I had another rude email yesterday telling me that it had been 'extensively refurbished' Their details promised me a bespoke kitchen. It was a Howden's with sprayed particleboard doors. It looks fine but it's not a £70k monty. I know these geeky facts as I used to work for Smallbone when I was a student. This agent has gazumped me before and is a nasty old git who doesn't like women. He would do anything to sell a house to another party but me. The problem is he overvalues to get the instruction then insults everyone who says it is overpriced. He relies on people being too embarrassed to question anything in our smart market town.
They are the only agent not to ring me this week!

The agent is a total arse sending you rude emails. He should be aware that this is a business transaction. You make an offer, he passes it on and the seller accepts/ declines/ negotiates. He is supposed to be the professional in the equation. I would disengage completely and attempt to buy through another agent if at all possible but preferably not until next year.

DeadHouseBounce · 31/10/2022 14:49

Overthebow · 28/10/2022 06:38

I saw this. 8% is reasonable given the massive jump that has occurred in the last year or two. Our house has gone up over 10% since we bought it 18 months ago. It’s also realistic given that the UK has such an under supply of houses so the market will struggle to have too big a drop.

"the UK has such an under supply of houses so the market will struggle to have too big a drop."

Even if there was an undersupply, how would people pay prices that they can`t afford? Prices still come down to what people can afford, undersupply or not. These sorts of silly memes (Not making any more land anyone? LOL) are one of the reasons that so many economically dumb people are in trouble with their mortgage now.

DeadHouseBounce · 31/10/2022 14:53

OhSunnyMorning · 28/10/2022 21:20

National agent was very rude. Lots of 'my client expected more'

Suggest that they sell it to the bidder who has offered more....oh there isn't one?.......

LOL.

HiveBee · 01/11/2022 22:02

“Great work by Nationwide Building Society leading the way on this and dropping rates by up to 1.30% for existing client rate switches from today.”

They didnt get the House Price Crash 2022 memo it seems

Lightscribe · 02/11/2022 05:21

HiveBee · 01/11/2022 22:02

“Great work by Nationwide Building Society leading the way on this and dropping rates by up to 1.30% for existing client rate switches from today.”

They didnt get the House Price Crash 2022 memo it seems

Again it’s just adjusting to the swap rates nothing more. This isn’t down to some voodoo magic that Rishi has managed to stabilise the economy with, it’s entirely down the treasury yields falling back slightly. US leads the way here, and the Fed should be coming to pause soon (with one more possible hike) in the rate hikes (as it’s coming towards the treasury yield rate)

www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx

When the data confirms that we are going into a recession (we already in it) inflation will slow due to demand dropping off. This won’t however have an effect on the inflation of core cost of living i.e. energy, food, bills etc so essentially will be stagflation.

What that means is that the causes of inflation haven’t been ‘fixed’. This temporary lull (in time for the US midterms surprise) could see a rally in assets and the stock market. But next year inflation will compound on top of last years inflation causing a second spike combined with job losses and business closures.

Never before in history has inflation ever been bought under control once above 5% without the base rate being raised over inflation (currently 10%). So that means 5%+ mortgage rates are here for the foreseeable unless the central banks are forced to raise above that, in which mortgage rates will increase again.

Twiglets1 · 02/11/2022 07:08

Sheenqueen · 02/10/2022 18:07

Thank you for this - very interesting article updated in November

HiveBee · 02/11/2022 07:43

Twiglets1 · 02/11/2022 07:08

Thank you for this - very interesting article updated in November

All in, it takes the average price of a house in the UK to £268,282. Despite the drop, this is still more than a fifth higher than at the start of the pandemic.

This update ?

5% mortgages wont be a consideration for another 3 years minimum for many, another 12 - 18 months for most.

Twiglets1 · 02/11/2022 08:45

HiveBee · 02/11/2022 07:43

All in, it takes the average price of a house in the UK to £268,282. Despite the drop, this is still more than a fifth higher than at the start of the pandemic.

This update ?

5% mortgages wont be a consideration for another 3 years minimum for many, another 12 - 18 months for most.

Thought the article was interesting but it wouldn't put me off buying if I needed to. Then again I've been buying and selling properties since 1988, seen prices rise & fall but over time I've made a good profit from home ownership, which I've used to help my children get on the property ladder.
My daughter bought her first flat in May, got a good interest rate locked in for 3 years after which the market will be different again in all liklihood as things don't stay the same. It was definitely a better option for her than paying sky high rents in London for smaller flats or a room in a shared house which was the alternative as she didn't want to live at home at 30, oddly enough!

DeadHouseBounce · 02/11/2022 21:47

FED just cranked rates up by another 0.75%, keep em comin` boys!

DeadHouseBounce · 03/11/2022 18:09

Bailey on Bloomberg just now saying that mortgage debt holders are not getting a bailout this time, they should re-christen him No Bailey Bailey. It looks like we have finally reached Suck It Up time?

CountryClaire · 03/11/2022 19:34

Just an update.
Today we offered and had accepted on a property at £125k under July price. 20% reduction from ex landlord. Not a pretty but good value and easy to sell in any market with updating. Last offer rejected on period house with a near 200% mark up in 3 years. No increase in square footage but very lux. I thought we were being stiffed. Still not sold 3 months in, in a location 50 minutes from London with 'outstanding schools'. I went for the safe bet!

MsGus · 03/11/2022 21:03

Financial Times

www.ft.com/content/ce61d3e9-2a32-4cca-b97b-92c563f7dbef