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

@RollerCoaster2020 again how exactly do you think this is going to help you you won’t pass the affordability tests. They are gonna stress test you up to a 10% mortgage rate to see whether you can afford it or not, so if you can’t afford it now you won’t be able to afford it then either or more to the point, the bank won’t lend it to you.

@DeadHouseBounce its still easy to evict. Rent is still high in comparison to mortgages even pricing in increases

you are mis informed

1. If there is a recession rents will be going down, or can you name a previous recession when this didn`t happen?
2. What poster are you talking about?
3. You are wrong on inflation, until recently the only serious inflation was in house prices, meaning people were taking on a principal mortgage debt that was WAY above historical norms, but now that inflation has entered the general economic system and rates need to be hiked up the cost of borrowing, the cost to rent the money from the bank rather than the house from the landlord, will skyrocket meaning that wage rises won`t offset the cost of servicing the mortgage debt as they once would have, plus general cost of living increases mean it is even harder to service a mortgage debt and stay solvent. In a recession your rent will get cheaper or you can find a cheaper rental because that is based on wages and ability to pay but your mortgage will get more expensive as interest rates rise because that is based on general inflation and the bond market, not something you want to be on the wrong side of leverage with at all.

Nonsense. Much much more needs to be done to regulate the private sector. I have had countless friends who have had an utterly miserable time thanks to private landlords.

A well regulated secure private rented sector would be amazing, let's not pretend that's what we currently have.

So the banks will stop lending to the majority of potential borrowers in your scenario? I don`t think so, more likely is that house prices will crash to a level that banks are comfortable lending at.

Bad timing it may be, but we haven't had the privilege of choice. We bought when we could. Unfortunately we didn't have a crystal ball.
Have you rented recently? Because it is utterly shit.
I disagree that rents will go down. If anything they will go up.
We will be fine, we service our mortgage on a single income, and are investing the (£18k over 2 years) difference in our rent and current mortgage.
And if I'm wrong and we loose it all, I'm sure I'll be very grateful to everyone telling us how silly we've been 👍

You can walk away from a bad landlord, you cant walk away from a bad bubble debt as interest rate rises kick in, lets not pretend that isn`t the case.

Do you have any recent experience of the rental market?

No, I think you are hoping against hope that somehow it will be alright to have borrowed too much, it wont, not this time, they cant bail out the over-borrowed like they did in 2008 ( and the borrowing now is so much bigger!) The recession hasn`t even started yet, and the price drops on this thread are from transactions done before the mini-budget, you are jumping the gun before the real economic lessons arrive.

Yes, and it has been an absolutely excellent experience in both price and service, sorry if that bursts your bubble.

If you were trying to claim that previous performance is an indicator of future performance. What happened in the last two blips was that the banks pull down the hatches and refused to lend. It was only government intervention that restarted the cogs again.
This is what always makes me laugh about you, people you will not benefit from this if Doomsday and Armageddon do appear, the only people who will benefit will be the landlords be that corporate landlord or, individuals.

You will own nothing and be happy 🙄

You are utterly delusional.

Didnt have a crystal ball? Maybe, but people have been warning for some time what would happen when they eventually lost control of rates. it wasnt totally unexpected.
You cant generalise your experience of renting to every renter in the UK, that is just isnt realistic.

Why do you think rents will go up?

🤣🤣🤣 they have been warning for sometime, about 23 years to be exact. 🤣🤣🤣

No, delusional is telling a complete starnger on the internet that you know more about their experience than they do.

@DeadHouseBounce have you mistakenly wandered over from the daily Mail comments section?

i would bet more on the chance of you being an angry middle aged man who has made poor financial choices than that rents will meaningfullly go down in the next couple of years….

14 would be more realistic, but after the initial shock that the PTB would do almost anything to keep the debt bubble afloat sensible people realised that come the day of reckoning it would be those holding the biggest debt bags that would see their financial lives implode the most, what individuals did in that time to protect themselves is down to the individuals, better to be an individual though than to be brainwashed into massive life altering debt obligations?

People have warning of a crash for my entire adult life. What on earth were we supposed to do?
Generally renting is shit. If you've experienced otherwise you're lucky. Part of the reason we bought was because our rent was going up and there was nowhere more affordable. Our landlord was also elderly, not to be crass but drop dead any moment elderly, so very insecure.

There is a lot of anger on here, most of it is triggered by rising interest rates popping the biggest property bubble in history though? How did people ever buy the Fairy Tale that multiple decades worth of debt for basic shelter was a good thing or could ever hope to end well?

@DeadHouseBounce i agree - it is a shame you didn’t buy 20 years ago.

You still have tenants rights if the landlord dies, or even if the house is repossessed.

not me. I have a fix for 5 years at 2.69 and by then my mortgage will be paid off. I always went in with my eyes wide open to the potential for volatility.

But people are stuck between a rock and a hard place. Renting is dire and uncontrollably expensive. Buying not much better.

Not indefinitely though. And the lack of permanency is awful for people with children particularly.

Yeah, for a few months until it goes through the courts. Then you'll never be approved to rent again.

You obviously won`t have experienced quickly rising interest rates either, that is a critical gap in your learning experience. What factors do you think will push up rents?