UK house prices post biggest fall since October 2008 - Halifax data today Weds 7th Dec

[jimmyjammy001]

Just a quick note for anyone looking to buy, in particular first time buyers who run the extreme risk of running into negative equity if buying with a low deposit

UK house prices post biggest fall since October 2008

Also its important to note that "Property prices are up more than £12,000 compared to this time last year, and well above pre-pandemic levels (+£46,403 vs March 2020). "

I suspect there will be bigger falls yet still to come as well

its growth fell isn’t it - not prices? Ie still grew but at a slower rate?

i do agree the market is likely to have real price falla
rhoigh

Wonderful..thanks for sh*ing on our morning.

This can't be a surprise to anyone given the fallout from the mini budget raising mortgage rates. Our neighbour wants to sell in the spring and local estate agents are pressuring her to do it now to list a higher price but few buyers are going to offer now once they've seen this drop. Neighbour doesn't want the hassle of a buyer offering now then trying to get the price down right before exchange so are prepared to hold out and take a lesser offer in the spring.

Well we've been trying to move this autumn from one part of London to another - well it's 2miles really. House prices in our area have definitely fallen - houses/flats in the other area certainly havent. We've offered on seven properties since Sept and they have all gone to best and final. Very depressing. No idea what to do now as we've not found anywhere to buy but if our buyers pull out then we wont be able to afford the move with a new lower price on our property

This won’t be the drop caused by the mini budget, these sales would have been agreed May-August as I yes completion data. We won’t see the impact of the mini budget until Jan/Feb/March - hold on tight for that! Around me I think asking prices already about 10-15% less than the post covid boom peak.

The news should be welcomed by most after the crazy mayhem in the last 2 years with people falling over each other to bid on properties and in some cases paying far more than what they would have saved from stamp duty holiday.

If trends are any indicator, prices lag the drop in transactions and therefore we should expect to see more drops in months ahead as house prices are 'sticky' in nature.

The same trend is being seen in countries such as Canada, Australia and New Zealand. Note the last 2 countries are islands and all of them have significant immigration. UK being a small island with lots of immigration are factors that have been touted as the reason why there is limited supply and all increasing demand and why prices will never fall. Yet these countries above have had significant falls and more to happen. This just shows that ultimate driver of property prices is cost of credit availability.

Some posters here would feel angry as to why this might be happening. But if they are those who bought few years ago, they need not worry. They would only worry if their house is now lesser than the 'imagined worth' despite making significant equity gains over the years.

The only challenge will be for people who bought recently by over leveraging themselves in the so called 'race for space'. But that too should be irrelevant if they wish to stay in their houses for many years.

Overall, gradual decline in house prices should be welcomed by all. And they are long overdue.

I still cannot think why high house prices are a benefit to anyone. Obviously now we have high house prices (due to successive government policies, or lack of), but once that unwinds, why would I want to pay say £500k for a house that could be £300k? I’d have to finance another £200k of debt for 25 years. All money I could spend in the economy or invest in companies, pension, money that could be taxed multiple times as it flows about.

Pretty big reductions in my naice part of London. Flats in prestigious blocks are not moving. Saw three flats being offloaded by a landlord - former rentals but now empty. All require refurb. Might stick in -20% offer.

Nope, the price of an average house fell by 7000 in one month. There’s obviously regional variations, but based on this data our London terrace has lost 20k.

By the way, I really hate forums like House Price Crash - and am personally affected here as a purchaser this year - but even I found your comment amusing because it fits so perfectly their description of Mumsnet and other middle class homeowners (or debtors as they call us). “House prices only ever go up”. To the extent we can’t even process it when they don’t!

Kind of glad mine fell through now, although obvs I will get less for mine.

Sorry to sound borish but yippee. There needed to be some correction to the madness over the last 2 years. People falling over themselves to bid 10-15 percent over asking. I hope there's not a massive crash but stagnation certainly.

@Housebuyingfamily well you certainly fit the smug patronising mumsnet stereotype

there was a whole spate of articles a couple of months ago which weee misleading because it was about a reduction in the rate of growth rather than real prices. Obviously I read this article too quickly.

We have been viewing to buy for the past 6mths in London (within zone 3)
and we found a new trend recently from agents
bc a lot of sellers are very attached to recent comparables (so pre mini budget sales prices), they just refuse to compromise on the prices so the agents post them at the 'inflated' prices but still asking us to view them even though they are like 100k below asking price!

this has been happening really frequently since last month and we are so confused...like agents keep calling us to show us flats and houses that are like 900k or even 950k when our max budget is under 800k....

That`s right, high prices benefit money lenders more than anyone, the best thing for ordinary people is very cheap property, this is great news today BTW!

Could have written this myself. Experiencing the same in Hampshire

The UK property market doesnt do "stagnation", it runs mainly on sentiment and does boom and bust and not much else, you cant "stagnate" at these price levels with interest rates climbing around the world, that is fantasy thinking I`m afraid. And the madness is over the last 15 years, not just the last two, this crash is going to be MASSIVE.

Are you using PropertyLog to monitor the asking price drops?

Fifteen years of QE and no significant growth, only asset inflation... I fear a severe crash is coming.

@Peedoffo not borish at all. What's boring is people banging on about how much their house price has risen and people being trapped in the rental market unable to buy.

House price falls are good news for people hoping to buy. Good news for people moving to trade up (10% off your next property is more than 10% off your current property= less debt/borrowing and stamp duty). It doesn't matter to anyone on average to low LTV (loan to property value), or people with no mortgage.

It does matter to people using property as investment vehicles and people who dont have much equity as it can effect your mortgage LTV deal.

Yep, the QE experiment was a totally failure, cant see it being repeated TBH, Furlough was the final printing party it looks like, I think the U.S are just going to crank rates and see what breaks, they wont care at all if the UK property market breaks (it was already broken for most people anyway)

"What's boring is people banging on about how much their house price has risen"

Going to be a lot less of them about soon, LOL, just need the punters who have a phone in their face all day to fuck off and things will be getting back to how they should be.

While I don't disagree with the principle that high house prices benefit no one other than the banks the tone of these threads always ends up being massively distasteful. The glee and hand-rubbing about real people's lives and economic circumstances is grim, the people that will mostly be impacted by this are first time buyers who've stretched themselves to put a secure roof over their heads and those who don't have a large amount of disposable income to soak up interest and cost of living increases.

It's such small dick energy.

We bought in July. Will be devastating for us if there's a crash. We didn't have any choice but to overpay.
I do hope there is stagnation though.
Having said that prices round us do seem to be stable for now at least.

My mortgage bank value tracker shows my house value as going up in November. Perhaps it is regional but we don't live in a posh area (don't know if that makes a difference). I don't think it will crash, just slow for a bit.

Hmm from about 2008- the COVID boom my area stagnated with small gains. We are in the north west though. I bought my house for 1.5k more in 2016 Vs the 2007 price ouch. I have a feeling the same will happen again. After the initial drop it will stagnate for a long time. I don't really care as my house is paid off and I'm waiting to upsize