Interesting article on how much house prices have fallen in some areas

[LavenderOregano]

Why your home’s value has fallen more than you think

https://www.thetimes.com/article/503c235d-9977-468f-8867-2f21f1fd4c90?shareToken=0ebf76fff94d10ca96325cdbc26d4544

Interesting article on how much prices have fallen in parts of the country. It’s amazing how little this is cutting through.

Delighted to see the slow deflation of the bubble. I am a homeowner but have three DC to think about.
20% off in real terms since 2022 feels about right around here (Surrey commuter town). The landlords are getting out. Nobody wants the renovation projects.
Council have allowed building of 5000+ new flats in the borough which is interesting. They are very expensive so don’t know who’s buying them.

Some of those flats won’t be privately bought @Lumpycat

Sales volumes and mortgage approvals are the best measure, headline price stats are just noise. Not sure a 35 year political career could ever be defined as a "vanity" project, they all have egos but Farage has had a consistent message for all that time, AB is just chancing a promotion to the top job after bumbling about in politics for a few years, it shows how absolutely desperate Labour are though. Everything so far is just "Look at Us! Big Up The North! Cheap buses to go and sign on!" Terrifying as it is to say, he is going to be worse than 2Tier, and that is REALLY saying something.

Yep, hopefully it will start unravelling pretty quickly now, AB is definitely good for a Truss 2 The Sequel moment (although yields went higher under RS but the media didn"t seem to want to talk about it too much for some reason)

Lots of new build in our area. No wonder house prices are dropping.

20% barely takes the froth off the top, for a sensible price correction we need mortgage rates at 7 - 8%, that will really focus buyers on getting price reductions.

Clearly, you are not old enough to remember the early 1990s as an adult. Negative equity destroyed savings at a frightening rate. Everyone clung on because there was no alternative, but it was quite terrifying at the time.

It hit especially hard for the youngest buyers, who were hardest stretched. Honestly, it was the toughest recession I've known, and I have lived through them all since 1977.

Of course, I am now 70, and it is my pleasure to transfer my carefully cultivated finances down a generation, hopefully seven years before I pop me clogs.

I bought my first flat in 1991.

I put aside savings to cover any possible shortfall and focuused on the pleasure of having a secure home.

The problems of negative equity are real but not enough to justify the societal damage of ever increasing house prices.

All I'm seeing (and I'm actively looking to move
..) is probate/elderly peoples homes and houses bought during the stamp duty freeze/<1% mortage rates/covid madness.
All of which are overpriced by at least 30%.
So I'm staying put.

I’ve seen plenty of properties for sale due to landlords selling up. Flats are difficult to sell because of unpredictable leasehold and service charges. Typical ‘landlord portfolio’ 2-bed houses are on the market for far less than in 2021/2022. There’s a real shift in the market after Covid, the Truss budget, the Renter’s Rights Act and the Iran war.

I seem to remember that savings rates were quite high? Negative equity destroyed people with too much property debt, houses are not savings accounts.

I would have said the early 80"s was worse from a jobs/economy point of view? late 80"s into 90"s was the classic house price crash, but mainly affected London, and of course the property debt people had back then was tiny compared to now?

Affordability does matter so interest rates are having an impact. Lots of people in flats have little equity due to stagnant prices so this is feeding through up the chain as people can’t make the jump up to the next property.

I'm sure estate agents would like the fall to be nominal only but in a lot of areas it is real. Being a rightmove and house prices io addict for various scenarios, I came across a flat in London recently that had been on the market at £200k and had eventually sold for £123k. I mean, it was a tower block leasehold 1 bed in Tottenham and I wouldn’t want my ds to buy it, so £123k still seems fairly substantial, but that’s a big fall. Quite encouraging, perhaps if ds wants to he will be able to live in London without paying rent forever.

Thinking about it, during the early 80s I was living overseas, so I missed that one!

It is all on YouTube, pretty bleak, music was good though.

Friend has just had riccs survey and valuation and told to take 20% off that price to get it sold now !!

Where in the country though?

Yes, still substantial for a basic sky box but encouraging though, nice price drop, you can almost taste it.

manchester.

Is it because the Mayor has moved on?

Yep, there is always someone at the bottom of the chain expected to put themselves into 40 years of debt serfdom on a basic house so someone up the chain can scoop out their "equity". Sickening really, hopefully we get the bond market blow up that will end this absolute nonsense soon.

Good point, are any of the main parties talking about this?