How Far Will House Prices Fall? [Volume 6]

[soxboy]

GreatGranny said:

May be O/T but a house near me is up for sale with the option of reduced price for people aged over 60 through Homewise's Home for Life Plan.

Says savings can be between 8% and 59% depending on age and other circumstances.

Never heard of this.

House hasn't got a for sale board outside but is also advertised by a local 'normal' EA for £300k.

Is this similar to the companies who will remortgage part of your house and let you stay in it?

Pretty much. Basically (I think) you are buying the opportunity to stay in the house rent-free until you shuffle off, then it’s theirs.

[ooid]

Resolution Foundation chair is proposing to offer £10,000 capital grant for everyone reaching the age of 30. (ideally to be used against house deposit)

https://conservativehome.com/2023/03/28/david-will...

The issue is, I think the average first-time buyer deposit in the UK is around £60,000.

[Tango13]

ooid said:

Resolution Foundation chair is proposing to offer £10,000 capital grant for everyone reaching the age of 30. (ideally to be used against house deposit)

https://conservativehome.com/2023/03/28/david-will...

The issue is, I think the average first-time buyer deposit in the UK is around £60,000.

About 20 years behind the times, I put a £10k deposit down on a £83k flat back in 2000, when I sold in 2018 the buyer needed a £65k deposit!!

[princeperch]

The poor sods who I sold my old flat to (in 2014 for 435k) almost got it over the line for 410k. A few months into the process the buyer then pulled out because there is apparently no cap on the ground rent (I can't remember what the lease said but it definitely didn't double every few years or whatever it is which is usually the problematic clause lenders don't like).

To compound their woes their neighbours have now also put their flat up for sale for the same price. So two flats identical layout and size now both up for sale at the same time for the same price.

Nightmare for them.

[greggy50]

Tango13 said:

ooid said:

Resolution Foundation chair is proposing to offer £10,000 capital grant for everyone reaching the age of 30. (ideally to be used against house deposit)

https://conservativehome.com/2023/03/28/david-will...

The issue is, I think the average first-time buyer deposit in the UK is around £60,000.

About 20 years behind the times, I put a £10k deposit down on a £83k flat back in 2000, when I sold in 2018 the buyer needed a £65k deposit!!

If 5% deposit mortgages are still a thing £15k can still get you a starter home in most places.

[Tango13]

greggy50 said:

If 5% deposit mortgages are still a thing £15k can still get you a starter home in most places.

I must be getting old, the thought of a £285k mortgage terrifies me!

[G-wiz]

Tango13 said:

greggy50 said:

If 5% deposit mortgages are still a thing £15k can still get you a starter home in most places.

I must be getting old, the thought of a £285k mortgage terrifies me!

Maybe a £285k death pledge sounds better.

[Tango13]

G-wiz said:

Tango13 said:

greggy50 said:

If 5% deposit mortgages are still a thing £15k can still get you a starter home in most places.

I must be getting old, the thought of a £285k mortgage terrifies me!

Maybe a £285k death pledge sounds better.

Or go Japanese and let the kids or even grandkids inherit the mortgage...

The way things are going a hundred years from now kids will be dreading the grandparents dying 'cos they'll inherit a big chunk of debt instead of a chunk of change.

[skwdenyer]

ooid said:

Resolution Foundation chair is proposing to offer £10,000 capital grant for everyone reaching the age of 30. (ideally to be used against house deposit)

https://conservativehome.com/2023/03/28/david-will...

The issue is, I think the average first-time buyer deposit in the UK is around £60,000.

What, magic money free stuff again? Redistribution of wealth? Marxism, I tell you! That Corbyn’s always wanting to give our hard-earned away.

Oh wait, Conservative Home you said? Sorry. Yes. Fine idea, carry on

[Rick1.8t]

ooid said:

Resolution Foundation chair is proposing to offer £10,000 capital grant for everyone reaching the age of 30. (ideally to be used against house deposit)

https://conservativehome.com/2023/03/28/david-will...

The issue is, I think the average first-time buyer deposit in the UK is around £60,000.

If the average house price in the UK is around £290k, how the hell is the average first time buyer deposit £60k? (genuine question, not a poke at you)

Surely a London-centric point again? - Outside of the strange world that is our capital first time buyers are absolutely not earning more than £120k as a couple, finding £60k deposits and taking on £600k houses.

If they gave £10k to people on the provision that it was only used for a house deposit a couple would be almost instantly able to purchase a nice apartment / small house in many areas of the UK with a small top-up.

Edited by Rick1.8t on Wednesday 29th March 23:38

[glazbagun]

skwdenyer said:

ooid said:

Resolution Foundation chair is proposing to offer £10,000 capital grant for everyone reaching the age of 30. (ideally to be used against house deposit)

https://conservativehome.com/2023/03/28/david-will...

The issue is, I think the average first-time buyer deposit in the UK is around £60,000.

What, magic money free stuff again? Redistribution of wealth? Marxism, I tell you! That Corbyn’s always wanting to give our hard-earned away.

Oh wait, Conservative Home you said? Sorry. Yes. Fine idea, carry on

They nuked Brown's baby bond, but it always struck me as a pretty good idea. Maybe this linked with the Lifetime ISA and an access age of 30 would be an idea :

https://www.thisismoney.co.uk/money/saving/article...

All to late for me. I'll die in the rental trap.

[okgo]

Avg FTB buyer deposit in London is £115k. £60k SE and the lowest North East is £26k.

Mad really. But gives me hope I’ll probably make some money on my house

More here - https://www.money.co.uk/mortgages/first-time-buyer...

[brickwall]

Tango13 said:

I must be getting old, the thought of a £285k mortgage terrifies me!

I know this was half in jest, but in all seriousness there does seem to be a mental disconnect between what people see as a reasonable house price and what they regard as a reasonable mortgage.

If you don’t blink at a £400k house price, you shouldn’t blink at a £300k mortgage.

[Siko]

Friend and former neighbour of mine in Shropshire has just put his 4 bed executive detached house on the market for £825k, bought for £490k in 2015 and other than a lick of paint and a new kitchen, has had nothing done to it since it was built. Lovely house and location but plenty of those in Shropshire; it strikes me they are 18 months too late for the speculative price business and I think it is easily £100-150k overpriced. Will be an interesting one to watch though whether it flies off the market or stagnates, with a rapid series of price cuts....

[okgo]

Lol. What is an executive house when it’s at home?

[ooid]

Rick1.8t said:

If the average house price in the UK is around £290k, how the hell is the average first time buyer deposit £60k? (genuine question, not a poke at you)

Edited by Rick1.8t on Wednesday 29th March 23:38

Average first time buyer's deposit in the North East was £26,769 on 2021, ONS Data. Perhaps more in 2022.

[okgo]

Data all posted above. £26k now

[Siko]

okgo said:

Lol. What is an executive house when it’s at home?

lol. Small estate for upwardly mobile types who wear open necked shirts to work - perfect manicured small gardens, EV charging points, new SUVs etc etc

[Tango13]

brickwall said:

Tango13 said:

I must be getting old, the thought of a £285k mortgage terrifies me!

I know this was half in jest, but in all seriousness there does seem to be a mental disconnect between what people see as a reasonable house price and what they regard as a reasonable mortgage.

If you don’t blink at a £400k house price, you shouldn’t blink at a £300k mortgage.

I've never been a 'six fig' earner like some on here and I was brought up in the days of fixed mortgage multiples and double digit interest rates so I've always been cautious when it comes to borrowing money.

I'm definitely getting old...

[ARHarh]

okgo said:

Avg FTB buyer deposit in London is £115k. £60k SE and the lowest North East is £26k.

Mad really. But gives me hope I’ll probably make some money on my house

More here - https://www.money.co.uk/mortgages/first-time-buyer...

I put a £9k deposit down on my first flat in 1987. It was a years take home pay. and you could only get 3 times what you earned. If i was earning the equivalent today I could still buy that flat after saving for a couple or 3 years.