Offer 30% below asking

[CheekyFakers]

A number of valuations all arrived at the same marketing price.

Healthy number of viewings to begin with (though feedback notes didn’t quite match who came through the door, numbers wise) but no offers. To be fair, this was right in the mini-budget aftermath.

After pressing the agent, one chap came to view. Took a few days to come back with an offer 30% below asking on a £1.7m property.

Is this pure CFery? Is the market that bad? Or have agents been known to send associates round to view and make guaranteed ‘no, thanks’ offers?

If it’s pure CFery, I’ll be making a note to try this myself!

I'd be surprised if the fall wasn't more than 20% ( which would be more in real terms due to high inflation). I believe the percentage price falls in 1990/2008 were around 20% on average (not sure if these figures are adjusted for inflation or not) but there were some much larger percentage falls depending on area. In my area, prices fell by significantly more than 20% in 2008 and, no doubt, in some areas the fall was very small.

You could buy ex-council for 12k or less in many parts of the UK in 1990, two bedders, and the 2008 price drops were followed by the biggest financial bailout in history, so I don`t think you should rely on those examples to base your worst case scenarios on. People back then had a fraction of the debt people have now, the average debt Johnny is already well under water and the real pain has yet to come IMO. Wages have gone nowhere for years so prices will fall back to the same as the last time base rates were at this level (base rates have further to rise as well IMO)

Wait out for what? Everything above drops too, so if you wait then you'll have to pay more for your next house.

Unless you're downsizing, or selling a second property. Or unless you have hardly any equity in your house in which case you have no choice but to wait out.

89/90 went on for years. Who knows how long this will drag out for or how far it will fall. Some people won't even be able to afford their energy when the price goes up next year and it doesn't look like it's coming down anytime soon. What use is a house if you can't afford to heat it.

Yes, because I hear the gas and electricity is so much cheaper in a rented property which is where you would wind up if you couldn’t afford to buy a house 🙄🙄🙄

Don't see what that's got to do with it. If anything you're making my point, who's going to be able to save for a deposit?

People will be able to raise a deposit, those who’s circumstances allow. Bank of mum and dad etc
Was always ever case.

What that has to do with it though is that most people don’t have the option to not pay for energy bills to heat a house so to say what’s the use of having a house If you can’t heat it is just ridiculous because you have to have one no matter what. The question is only whether you own it and pay down your mortgage or somebody else owns it and rents it to you.

People tend to buy bigger than they rent though. If I was renting, i would rent a 1 bed flat. I bought a 2 bed flat. And nowadays most people who buy would buy a 3 bed because they aren't sure whether they can afford to move in future.

Over most of the 20th C @socialmedia23 people rented bigger places than they could afford to buy. The whole btl finance model is relatively recent, driving up rents rather than just being content with breaking even with capital appreciation.

I agree with the pp mentioning housing not being a liquid market, more people are starting to mention this after a long period of looking at it as a shirt term asset.
I can believe we don't look at Eire & Northern Ireland more, the graphs really speak for themselves.

Shocking typos, I'm sure you can work it out!

Can't pay down your mortgage if you can't pay your energy bills can you.

Again, what's the point of having a house if you can't heat it.

@HotChoxs are you seriously not getting this? People will pay down their mortgages before they pay down their energy bills because the point is it’s an asset that they’ve sunk everything they have into and the alternative is Fafa Bleeker, so if you honestly think people will lose their homes so that they can sit in a warm rented property instead you’re off your head.

People can't survive in freezing temperatures. And neither can a house for a prolonged period of time that matter.

The Japan housing crash was a belter as well, down 90% or something in some areas? The UK bubble is definitely on borrowed time now.

Most people have sunk nothing into their "asset", they just owe a load of debt to a bank on it, not really very inspiring is it? Many people will be better off going bankrupt and getting a cheap rental.

Watching with interest, we are viewing a house today. We don’t have the asking price and they would need to accept an offer of about 8% less. We could sit tight and wait for things to drop but I’d prefer to be in somewhere and getting on with life, wouldn’t be looking to move again for years. I’ve noticed that sensibly priced things are still going by us, one we looked at last week only spent a few days on the market after previously falling through.

Isn’t someone who has gone bankrupt going to struggle to find a landlord to accept them? Also with lots of landlords selling up hasn’t that put significant pressure on the rental market and cheap rentals are few and far between?

Don’t give up the day job (trolling on Mumsnet property threads).
I don’t think Martin Lewis will be returning your call any time soon re writing for his his Money Saving Expert website.

What utter nonsense.

Youre a bloody idiot, crawl back to HPC 🧌

The temperature would be the same whether they rent or own in your world where people cant afford heat, houses have stood for 100’s of years with or without heating.
Your comments are ridiculous. The people without resources to pay utilities dont own property.

Japan houses are quite different. They are apartments that tend to only last 50 years before getting torn down as earthquake regulations keep getting better. Even the houses (outside cities) get demolished, you can buy one in the japanese countryside for a few hundred pounds, the cost of demolishing it is higher than the cost of the actual value. Due to the constant demolishing of homes, there is a renewed supply as building firms tend to build higher and smaller.

This isn't the case in the UK. my flat is from the 1930s and much of the housing stock around me is from the late 1800s.. We can't even build on empty fields as there is generally protest from the residents. The government just scrapped house building targets due to MPs representing their NIMBY residents. We have some of the oldest housing stock in Europe but yet no ability to build new homes

Who do you think is buying from the landlords?

@DeadHouseBounce by us the ex rentals don’t seem to be selling and are sitting on the market whilst people looking for rentals are struggling as local stock now depleted.

No, the Japan bubble was everything, including land prices, cities and countryside, office blocks and more ordinary houses, it was a classic cheap debt and herd sentiment bubble (just like the UK) If you are suggesting that the average UK new build debt-box will still be livable in 50 years you must be having a laugh, yet people until recently were lining up to take out decades worth of debt for this rubbish.

From Wikipedia - "The accelerating growth in terms of Japanese asset prices is closely associated with a significant drop in short-term interest rates, notably between 1986 and 1987. "