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

@XingMing my colleagues parents have gone down rapidly. They are paying nearly 3k a week for a live in carer, luckily they can afford it.

that you are not liable for IHT as long as they live for at least 7 years after gifting you the house.

I don't think anyone here is unaware of this, but obviously this can be messy as one has to "guarantee" they live for 7 years & that within
those 7 years care is not required so that the gift of the home isn't seen as deprivation of assets. And then for anyone who does inherit an additional property when you come to sell you have a CGT bill.

Obviously there are more complex ways of avoiding tax eg trusts but a couple can leave the family home to descendants with 1m being IHT free which covers the vast majority of people.

'We’ll have to agree to disagree. I just don’t agree that houses rose that much in the pandemic (700k to a million) or that they will fall that dramatically now. The consensus amongst property experts seems to be a likely fall of about 10% next year in most areas, and then a modest growth. But there’s no point discussing it any more with you.'

Yes, sounds sensible.

Property experts, LOL, you are completely in denial Im afraid, central bank policy around the world has changed, Japan has just changed their policy on controlling bond yields, that is massive really, and mortgages are going to get a lot more expensive, you cant sustain prices built on cheap debt with interest rates rising at their fastest pace on record, and when did the UK market EVER stagnate at "modest growth"? It is either boom or bust, stupid stupid borrowing (this last period of the market is historically stupid and will be written about for decades) or crash and tumbleweed, so many people are about to have a really rude awakening to the realities and economics of debt.

you wish

Let me guess is it different this time @DeadHouseBounce 🙄

I didnt think you could do this if the parent still lived in the property as they were still benefitting from the use of the asset?

Either way what happens with Stamp duty? Can't see the government allowing a million pound property to pass over for £0 and they get no duty.
And then what, when you sell you pay cgt on the whole sale price!!

When you sell you pay CGT on the amount the property has gained in value from the date it was gifted to you, not on the whole sale price.
The rules are very complicated & I’m sure most people on this thread have no interest in it so I won’t talk about it any more. Suffice to say rich people employ tax lawyers to manage their tax affairs & inheritance planning in a “tax efficient” but legal way.

Inheriting a property to avoid paying future tax or care fees is quite complicated. My cousin looked into it but it was decided it was better for his parents to downsize & gift money that way.

Obviously the 1% have (often) expensive methods to avoid anything but they are not the majority. Being able to inherit a 1m home without having to do anything is fine for most people & obviously most people don't have a 1m plus mortgage free house in the first place.

I'm also not sure on the moral aspect of trying to avoid paying for care in order to gift more money away, I thought the Tory care cap should have been a % not a figure. If Labour get in this may change.

The NHS is in crisis & will only get worse, personally I'd rather my parents use their house to fund any future care/medical if necessary. My fil has just done his cataracts privately, mil is doing the same next year & my dad had a private knee op last year. This is all because waiting lists were too long, they are lucky they had the option.

But if it is your primary residence there's no cgt to pay

That’s what I mean about the rules being complicated- many different scenarios hence the need for personal tax advice for the minority in that position. Think we should get back to the topic of this thread now which is the current fall in U.K. house prices

I would say the 10% drop has already happened, as the flippers are finding out.
Now we will have a few months of inactivity, and next year is anyone’s call. Rates are still going up, inflation is still over 10%, recession incoming, ‘full’ employment includes benefit claimants, war in Ukraine, work from home adjustments, Brexit, Hong Kong
House prices have defied gravity before though.
‘They’re not building any more land!’

Round my way I see places that have been sold subject to contract for about a year now still clinging on for a ridiculously overpriced amount, and some others that have made multiple tiny drops to no avail ....
Yes I've got that app that shows you all the price drops .....it's very illuminating👀

They’re not building any more land!’

LOL. I think they used to say that in Japan in the late 80`s, before it crashed 90% or something like that.

"Yes I've got that app that shows you all the price drops .....it's very illuminating"

Yep, makes it much harder for sellers to give you their B.S when you can see who else is dropping prices in the area at a glance.

What is the app please? I’m checking Zoopla daily, which shows price reductions.

Currently looking to buy in London.

I can't remember where I got the link from but hopefully someone will have it ,it's definitely worth getting because it shows a very different picture of what's going on..... The behind the scenes stuff is suddenly no longer behind the scenes 👀

Is it ProprtyLion?

UK has a LOT of building land. I used to fly about as a PPL holder, and there is no shortage of land.
Whether it should be built in is another matter, but any shortage is political and deliberate.

A reduced asking price is not a price drop.
A sale at a price lower than some other house sold for in the area is not a price drop.
The only thing that counts as a price drop is when the same house sells twice, and the later price is lower than the earlier one.
This scenario is as rare as hen's teeth.
Everything else is just different amounts of price increases ...

I agree that this is the only scenario that is a genuine drop, but it's not actually as rare as hen's teeth! Outside of London and the SE, there are areas which took a decade or more to work back up to the highs of 2007, and plenty of properties bought at the peak were subsequently sold for a lower value.

plenty of flats in London sold for less than the previous sold price in the last few years.

Really? Can you show me which ones? (Same flat, sold twice, second sale for a lower price than the first). All I need is a postcode …

Just search for flats in Wandsworth, Lambeth, Islington Lewisham etc (I doubt any borough was immune) that have been sold twice in the last 5 ish yrs.