How Far Will House Prices Fall? [Volume 6]
Discussion
ooid said:
Rishi is reportedly considering a six-week stamp duty holiday extension after March 31 but it could be for the ones who has already exchanged.
Thanks.cptsideways said:
Girlfriend had just sold her terraced house on the outskirts of Glasgow. Sold within a week, 12 offers, went for 30 percent over valuation to a cash buyer.
Madness
It's so sMadness
t reading stuff like this as a soon to be FTB, I have absolutely no idea how the average person can live whilst saving for a deposit with prices increasing as quickly as they are.Leicester Loyal said:
ooid said:
Rishi is reportedly considering a six-week stamp duty holiday extension after March 31 but it could be for the ones who has already exchanged.
Thanks.cptsideways said:
Girlfriend had just sold her terraced house on the outskirts of Glasgow. Sold within a week, 12 offers, went for 30 percent over valuation to a cash buyer.
Madness
It's so sMadness
t reading stuff like this as a soon to be FTB, I have absolutely no idea how the average person can live whilst saving for a deposit with prices increasing as quickly as they are.Leicester Loyal said:
It's so st reading stuff like this as a soon to be FTB, I have absolutely no idea how the average person can live whilst saving for a deposit with prices increasing as quickly as they are.
I would try and zoom out. For all we know the property could have been hugely mispriced by the agent - Scotland also has this odd system where the property has a set mortgage valuation that it usually sells above, restricting LTVs.t reading stuff like this as a soon to be FTB, I have absolutely no idea how the average person can live whilst saving for a deposit with prices increasing as quickly as they are.When I was an FTB in 2014 we probably overpaid £10k in a sealed bids process due to FOMO. Our thinking at the time was total capitulation as we had seen the sort of places we wanted rise from £450 to £525k in about 9 months and we got convinced the same would happen in the next 9 months. We sold for the same price 6 years later so we really shouldn't have worried!
Leicester Loyal said:
Yeah you're probably both right, it's just annoying having seen prices go up by like 8% in the areas I'm looking at in the past 9 months or so.
Last year round these parts (north east of Greater Manchester) 11% 2020 and 8% 2019. Painful numbers when a 90k house four or five years ago is now 140k but wages have not kept anywhere near that rate of increase. I don’t understand where the money is coming from for people buying houses round here at 300k plus as it’s not an affluent area at all.DickP said:
Leicester Loyal said:
Yeah you're probably both right, it's just annoying having seen prices go up by like 8% in the areas I'm looking at in the past 9 months or so.
Last year round these parts (north east of Greater Manchester) 11% 2020 and 8% 2019. Painful numbers when a 90k house four or five years ago is now 140k but wages have not kept anywhere near that rate of increase. I don’t understand where the money is coming from for people buying houses round here at 300k plus as it’s not an affluent area at all.It was bought by a couple in their 20’s
She had a beauty/nails place in the high st and he worked locally in a normal job. Both had brand new Audi’s. I really don’t know where they got the money from, they were both local and it’s not the sort of area where parents are wealthy
The average wage in NE GManc and E Lancs is around £19k which is way below the national average
Earthdweller said:
We sold a 4 bed detached in East Lancs last year for over £300k, really top end in the town really where there are lots of £60k terraced
It was bought by a couple in their 20’s
She had a beauty/nails place in the high st and he worked locally in a normal job. Both had brand new Audi’s. I really don’t know where they got the money from, they were both local and it’s not the sort of area where parents are wealthy
The average wage in NE GManc and E Lancs is around £19k which is way below the national average
Must be nice to have a cash business...It was bought by a couple in their 20’s
She had a beauty/nails place in the high st and he worked locally in a normal job. Both had brand new Audi’s. I really don’t know where they got the money from, they were both local and it’s not the sort of area where parents are wealthy
The average wage in NE GManc and E Lancs is around £19k which is way below the national average
Earthdweller said:
DickP said:
Leicester Loyal said:
Yeah you're probably both right, it's just annoying having seen prices go up by like 8% in the areas I'm looking at in the past 9 months or so.
Last year round these parts (north east of Greater Manchester) 11% 2020 and 8% 2019. Painful numbers when a 90k house four or five years ago is now 140k but wages have not kept anywhere near that rate of increase. I don’t understand where the money is coming from for people buying houses round here at 300k plus as it’s not an affluent area at all.It was bought by a couple in their 20’s
She had a beauty/nails place in the high st and he worked locally in a normal job. Both had brand new Audi’s. I really don’t know where they got the money from, they were both local and it’s not the sort of area where parents are wealthy
The average wage in NE GManc and E Lancs is around £19k which is way below the national average
Joey Deacon said:
It truly is a different world.
Oh they might even be paupers compared to people I trained with... Look at it this way the conversations on a Thursday were about which country they wanted to spend the weekend in. Do we go skiiing at the house by Rupert's parents in Austria (or the one in France - I guess they really, really liked skiiing) or head to South Africa to the little ranch owned by Millicent's mum. Oh, and they lived in Chelsea/Kensington - one of them in the penthouse of a block of flats owned by daddy. And many drove brand new cars.. But not a Golf. One had a Ferrari 360, one a BMW M3, actually one did have a Golf Gti IIRC but she was too scared to drive so it lived in the underground car park for her flat....... I was asked if I wanted to go to the South Africa place over a term holiday.. As if I could even afford the flights let alone losing the week working .....
Is anyone seeing the fallout from the building safety crisis starting to make a meaningful impact on prices?
No one in my block has been able to sell for over two years now due to a failed EWS1 inspection, and my mate who has much younger flat (built 2005 I think) has also found that his block has failed, so none of those flats can be sold either. Seems to be repeated up and down the land, and impacts an enormous number of properties.
In the short term, there's obviously a lot of people stuck which I guess may be holding up sales higher up the chain as well. Of course as soon as the flats start geting fixed (IF they start getting fixed seeing as it currently relies on all the leaseholders committing to pulling out tens of thousands of pounds, no cash no fix) then we will see an absolute tidal wave of pent up flat vendors putting their properties on the market.
My current plan is to hope that somehow or other mine gets fixed, then allow some of the pent up sales to flow through before trying to flog mine as well, I don't really want to be competing with my neighbours when likely 20% of the development will all want to sell at the same time.
Will the knowledge that under the current system, you have to have a brand new fire risk assessment up to modern standards done every 5 years fundamentally damage people's faith in the concept of buying a flat at all I wonder? I certainly wouldn't buy another one, ever, although that will probably be a moot point as currently it looks like I'll be stuck in it forever anyway!
No one in my block has been able to sell for over two years now due to a failed EWS1 inspection, and my mate who has much younger flat (built 2005 I think) has also found that his block has failed, so none of those flats can be sold either. Seems to be repeated up and down the land, and impacts an enormous number of properties.
In the short term, there's obviously a lot of people stuck which I guess may be holding up sales higher up the chain as well. Of course as soon as the flats start geting fixed (IF they start getting fixed seeing as it currently relies on all the leaseholders committing to pulling out tens of thousands of pounds, no cash no fix) then we will see an absolute tidal wave of pent up flat vendors putting their properties on the market.
My current plan is to hope that somehow or other mine gets fixed, then allow some of the pent up sales to flow through before trying to flog mine as well, I don't really want to be competing with my neighbours when likely 20% of the development will all want to sell at the same time.
Will the knowledge that under the current system, you have to have a brand new fire risk assessment up to modern standards done every 5 years fundamentally damage people's faith in the concept of buying a flat at all I wonder? I certainly wouldn't buy another one, ever, although that will probably be a moot point as currently it looks like I'll be stuck in it forever anyway!
https://www.telegraph.co.uk/property/house-prices/...
'Rush to meet stamp duty deadline pushed up house prices by £58k'
'Properties bought by homemovers – those who aren't first-time buyers – climbed in value by 15.5pc in the six months to December 2020'
'Rush to meet stamp duty deadline pushed up house prices by £58k'
'Properties bought by homemovers – those who aren't first-time buyers – climbed in value by 15.5pc in the six months to December 2020'
Edited by Leicester Loyal on Wednesday 24th February 00:53
Blue Oval84 said:
Is anyone seeing the fallout from the building safety crisis starting to make a meaningful impact on prices?
No one in my block has been able to sell for over two years now due to a failed EWS1 inspection, and my mate who has much younger flat (built 2005 I think) has also found that his block has failed, so none of those flats can be sold either. Seems to be repeated up and down the land, and impacts an enormous number of properties.
In the short term, there's obviously a lot of people stuck which I guess may be holding up sales higher up the chain as well. Of course as soon as the flats start geting fixed (IF they start getting fixed seeing as it currently relies on all the leaseholders committing to pulling out tens of thousands of pounds, no cash no fix) then we will see an absolute tidal wave of pent up flat vendors putting their properties on the market.
My current plan is to hope that somehow or other mine gets fixed, then allow some of the pent up sales to flow through before trying to flog mine as well, I don't really want to be competing with my neighbours when likely 20% of the development will all want to sell at the same time.
Will the knowledge that under the current system, you have to have a brand new fire risk assessment up to modern standards done every 5 years fundamentally damage people's faith in the concept of buying a flat at all I wonder? I certainly wouldn't buy another one, ever, although that will probably be a moot point as currently it looks like I'll be stuck in it forever anyway!
I am seeing it but far less to the extent I would have envisaged. Only real signs I am seeing so far are a few flats at 75% - 80% market value coming to market clearly headlined as cash purchasers only. I must say I was surprised as I expected a bigger rush to the exits. I personally know of a few caught up in it and one in particular motivated to get rid not only due to continuing stamp duty and potential additional pay in to the fund to repairs, but also for the ability to recover stamp duty that he will otherwise be in line for as second property. No one in my block has been able to sell for over two years now due to a failed EWS1 inspection, and my mate who has much younger flat (built 2005 I think) has also found that his block has failed, so none of those flats can be sold either. Seems to be repeated up and down the land, and impacts an enormous number of properties.
In the short term, there's obviously a lot of people stuck which I guess may be holding up sales higher up the chain as well. Of course as soon as the flats start geting fixed (IF they start getting fixed seeing as it currently relies on all the leaseholders committing to pulling out tens of thousands of pounds, no cash no fix) then we will see an absolute tidal wave of pent up flat vendors putting their properties on the market.
My current plan is to hope that somehow or other mine gets fixed, then allow some of the pent up sales to flow through before trying to flog mine as well, I don't really want to be competing with my neighbours when likely 20% of the development will all want to sell at the same time.
Will the knowledge that under the current system, you have to have a brand new fire risk assessment up to modern standards done every 5 years fundamentally damage people's faith in the concept of buying a flat at all I wonder? I certainly wouldn't buy another one, ever, although that will probably be a moot point as currently it looks like I'll be stuck in it forever anyway!
Nasty situation that has made less headlines than I was expecting for the reasons you say, can see many on that level of the chain stuck, and if they are stuck, the next layer becomes stuck and so on.
What is the position on remortgage? If that presents as much of an issue as a primary mortgage on these properties I can see a whole host of issues as people come off fixed terms with no resolution in sight.
I need to catch up with another mate of mine whose block's only solution was a resident fire warden 24/7. Not a massive block and it was costing them all a packet to employ a company on site to have someone sat there extinguisher in hand month on month. Not sure if they have managed to sort that yet.
Leicester Loyal][ur]https://www.telegraph.co.uk/property/house-prices/rush-meet-stamp-duty-deadline-pushed-house-prices-58k/[/url said:
'Rush to meet stamp duty deadline pushed up house prices by £58k'
'Properties bought by homemovers – those who aren't first-time buyers – climbed in value by 15.5pc in the six months to December 2020'
Brings this to mind 'Properties bought by homemovers – those who aren't first-time buyers – climbed in value by 15.5pc in the six months to December 2020'
https://www.thedailymash.co.uk/news/business/house...
Shnozz said:
The satire writers have quite an easy job when it comes to the housing market.DickP said:
Times are reporting Stamp Duty Holiday being extended until end of June.
To keep the property market ‘firing’ apparently.I knew from the start of the first SD holiday that it would be extended, but I’m still surprised it wasn’t announced earlier.
I don’t think end of June is long enough though. He’ll dress it up as allowing existing transactions to complete, but if people are that worried about saving £15k it will only create another cliff-edge then.
The only upside is that it’s not really a big enough relief for the economy to become addicted to and not be able to survive without it like Help to Buy and the furlough scheme.
Shnozz said:
I am seeing it but far less to the extent I would have envisaged. Only real signs I am seeing so far are a few flats at 75% - 80% market value coming to market clearly headlined as cash purchasers only. I must say I was surprised as I expected a bigger rush to the exits. I personally know of a few caught up in it and one in particular motivated to get rid not only due to continuing stamp duty and potential additional pay in to the fund to repairs, but also for the ability to recover stamp duty that he will otherwise be in line for as second property.
Nasty situation that has made less headlines than I was expecting for the reasons you say, can see many on that level of the chain stuck, and if they are stuck, the next layer becomes stuck and so on.
What is the position on remortgage? If that presents as much of an issue as a primary mortgage on these properties I can see a whole host of issues as people come off fixed terms with no resolution in sight.
I need to catch up with another mate of mine whose block's only solution was a resident fire warden 24/7. Not a massive block and it was costing them all a packet to employ a company on site to have someone sat there extinguisher in hand month on month. Not sure if they have managed to sort that yet.
Re-mortgage allows you to do a product switch with the same lender (if they will allow it) - but otherwise, it's standard variable rate with all the resultant cost rises (on top of Waking Watch, on top of remediation). If you want to re-mortgage to free up equity (say to fund repairs for example) then you're up a creek.Nasty situation that has made less headlines than I was expecting for the reasons you say, can see many on that level of the chain stuck, and if they are stuck, the next layer becomes stuck and so on.
What is the position on remortgage? If that presents as much of an issue as a primary mortgage on these properties I can see a whole host of issues as people come off fixed terms with no resolution in sight.
I need to catch up with another mate of mine whose block's only solution was a resident fire warden 24/7. Not a massive block and it was costing them all a packet to employ a company on site to have someone sat there extinguisher in hand month on month. Not sure if they have managed to sort that yet.
I know the penthouse on our block is currently on the markt and is down quite a bit from the last time I saw it up (sure it was about £700K last time and now on at £540k - but no mention of cash buyers in either of the agent's ads so anyone who tries to proceed is going to get a surprise) They're probably very keen to shift it as they will be on the hook for a significant portion of our remediation bill.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff