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

But in order to have a "huge mortgage" you need to have a huge income. So no, IO will not be "a lot" to those people. I'm a homeowner myself, but these arguments are just silly.

There is no differentiation in “an asset crash” between the bet that you paid off with your own money and the capital gains from HPI.

They're not examples of hardworking, hard-done-by people who deserve pity because their property market gamble didn't pay off then. 😂

'It's fake money though the 2008 crash and emergency rates , QE stopped the market from correcting. It artificially made us seem wealthier than what we are.'

Exactly this and what @doorheckk about young professionals earning lower salaries which can buy much less than the previous couple of generations. A lot of those people with good qualifications and skills will leave the UK.

I'm afraid I have very limited sympathy from those who decided to take a big gamble and live above their means on IO mortgages or self certify and exaggerate their incomes. They have been very lucky so far because the government and BOE have deliberately introduced policies that have caused massive asset price growth. And there doesn't 'need' to be equity to buy two houses after a divorce. Obviously, in ideal circumstances, there would be, but there is no greater need for these people than there is for young, hard working people who want to live independently in their 30s and maybe start a family. A lot of these people have been altogether excluded from the housing market through no fault of their own while others have speculated and gained.

We fortunately saw our forever house and bought it in 1997. Nice enough, but it needed work, which we have had done when we could afford it. Now it's what's in demand, in a beautiful area, it's worth 8x what we paid. Although we have probably spent several times the purchase price on upgrading the fabric. So we could be quids in, but we still like the house better than any other. Until something else ticks all the boxes, we're here for the duration. If I could move it closer to my family, I would, otherwise it is perfect.

Exactly my house earned something like 75 k in the madness of the last 2 years. I didn't work hard for that I sat in my house 🤣🤣🤣

Very true, my house has earned more than me for a decade. But that just means I can share the unearned bonus with my DS before I die. When we sell the family home, he'll be getting a hefty chunk for a deposit on his first property. For the record, neither DH nor I were gifted anything in the 1980s. What we have, we earned. But it is a lot tougher to do so now.

My neighbours property sale has just fallen through, now it's back up for the same price they listed it for in May. They're in for a rude awakening IMO.

Not true. When we lived in London we rented a house for 1750 PCM. We could afford this easily. But when we bought we could only afford a flat because the house we were renting was worth around 800k and we didn't have a deposit big enough, even though we could have paid the mortgage.

Lots of renters can afford the rent and therefore the mortgage on a high value property, but they don't have the deposit required to purchase.

They are on paper profits. Meaningless 🙄
and even then you’ve still got a live somewhere, haven’t you? Unless you’re dead of course in which case somebody else’s benefiting and good for them.

I hope that DS buys a two-bed property and chooses a sensible person as a lodger when the time comes. However, my concern is that he prefers to live solo... and I don't think that is particularly healthy. I don't really think it matters whether it's a friend or a partner or an acquaintance, as long as they are tolerable, most of us need some company.

I think you have failed to grasp the other poster's point.

I have a firm grasp of everything, including reality on like some on this post

That's not really apparent from your responses.

Probably all a bit too high brow for you

I see that you have run out remotely sensible things to say. I'm afraid, once the ad hominem comments kick in, it suggests that you have lost the argument.

We bought 25 years ago, and for most of those years, our house just pegged along with the market, up a bit and down a bit. But more up than down. With COVID and WFH, our distant location stopped being an issue and broadband speed was more important. Suddenly everyone wants to live here. for the quality of life. So house prices are escalating through the roof. I have/am benefiting but all we have done is improve/maintain our property to now standards.

Unfortunately that money vanished as soon as the interest rate hikes started, you can`t cash in from a house like you can with stocks and shares.

That's why I'm not bothered it was never my money it's a market. My house is paid off I don't owe anything so what if prices drop. It's better if it drops as I want to move to a bigger house the more expensive the house the bigger the drop.

Not a bad thing that prices stop shooting up.
Location is everything though, particularly with more remote working now, so I expect properties in really great locations will continue to carry a premium

You’re not wrong about remote working, however my partner’s employer ( global. 120k employees) just issued guidelines of 3 days in the office from January.

Most companies are doing this, the whole remote working thing was a farce anyway, to think some people were saying that it was a permanent change LOL.
How many people actually moved and now cant get a job because they cant commute, hopefully not many?

Hybrid working is going strong in many sectors! And there's been a definite shift in people's values and aspirations... lots more people moving away from London to get a better quality of life.
And Have you seen the figures for people in their 50s who've ditched work early, drawn their pensions and moved to more attractive areas rather than grinding away til they're 65

Our work has confirmed they only require 1 day a week in the office going forward. However , I find ambitious people make sure they are in more frequently than that!

You realise guidelines are precisely that guidance, not rules, law, or anything that would stand up against an employment contract that anybody in their right mind would have secured before moving to the arse end of nowhere.