House Prices #4 Property market, buying and selling

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YetAnotherObsessionx said:
Exactly that! We went for a bigger garden and 1 bedroom less, let's face it we don't get so many visitors that we wanted to pay loads extra for another spare bedroom that just needs dusting. We want a home, not an investment, so ultimately we don't really care if the overall value goes up or down a few times while we live in it, as long as it's not a loss should we ever want to sell it to buy something else. Other people just don't understand that logic, but to us it's important that we're not spending every penny we have on a mortgage. It's still better than renting, at the end of the day.
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I think a lot of people get bigger houses so they don’t have to move when they have kids. That’s why I went for a three bed rather than a two. If I move in less than 5 years I’d probably lose money.
 
I think these forecasts seem about right, basically wiping off the covid gains and putting prices back to 2019.

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Folkevermore said:
I think as soon as rates go down, the government is gonna provide more stamp duty holidays or help to buy schemes to drive prices right back up (this is assuming a conservative government, if labour wins this may be different)
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Yeah they'll definitely intervene to have some stability. Although it's so big I expect they'll soften it rather than drive prices up. I wouldn't even call a return to 2019 prices a crash, it's a small correction.
 
Yel said:
Yeah they'll definitely intervene to have some stability. Although it's so big I expect they'll soften it rather than drive prices up. I wouldn't even call a return to 2019 prices a crash, it's a small correction.
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Regardless of what their interventions will be, I think that people will be less willing to take out the maximum mortgage possible going forward. That alone should prevent a repeat of 2020/2021
 
YetAnotherObsessionx said:
Exactly that! We went for a bigger garden and 1 bedroom less, let's face it we don't get so many visitors that we wanted to pay loads extra for another spare bedroom that just needs dusting. We want a home, not an investment, so ultimately we don't really care if the overall value goes up or down a few times while we live in it, as long as it's not a loss should we ever want to sell it to buy something else. Other people just don't understand that logic, but to us it's important that we're not spending every penny we have on a mortgage. It's still better than renting, at the end of the day.
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Exactly my logic too! I’ve got a one bedroom apartment and I have probably outgrown it now, but it’s a roof over my head and a foot on the ladder so it’ll do for now. I live in Yorkshire so I bought it for a small amount and the mortgage is only 1/5 of my wage meaning I have room for movement should interest rates be crazy when my term is up! I’d much rather be living small and sleep at night 🫣

But I understand what a struggle it must be for those who want families and now can’t afford to move up the ladder! 😬
 
Looking at a house this week, converted silk mill. Has the bedrooms on the ground floor and kitchen and sitting room upstairs. Does anyone know why this might be? Feels a bit topsy turvey to me?
 
thegirlscout said:
Looking at a house this week, converted silk mill. Has the bedrooms on the ground floor and kitchen and sitting room upstairs. Does anyone know why this might be? Feels a bit topsy turvey to me?
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Are the ceiling heights downstairs lower so its a bit darker - the lighter/brighter bits might make better living room/kitchen accommodation? Or as someone else just suggested, because of a nice view? It sounds quite quirky and like it could be a bit different which might be nice. I think I'd find it weird going downstairs to bed though.
 
I think the Covid support which was followed by the universal winter fuel support has left a proportion of our population with the mistaken belief that the Government is there to bail them out and pay their bills. We all need to take personal responsibility. Its going to be bloody tough but it is absolutely not the Government's job to keep you in the style to which you have become accustomed. In times of economic peril we all need to cut our cloth accordingly.

What I do not understand is how long the bank of England will keep flogging argument that they must increase rates to reduce inflation. This inflation rate is stubborn as a mule - and its not working. How high do they intend to go - has anyone seen a prediction - 8%??
 
It's funny with house prices; many people have an entitlement to privatise profits but want any losses to be nationalised.

Had the bank of England not waited until inflation got out of control before raising rates they couldn't have prevented it being to sticky. But they were on the back foot, pretending there wasn't an issue for way too long.
 
thegirlscout said:
Looking at a house this week, converted silk mill. Has the bedrooms on the ground floor and kitchen and sitting room upstairs. Does anyone know why this might be? Feels a bit topsy turvey to me?
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Our house is upside down and I love it. The upstairs open plan kitchen, dining and living room is always warmer and downstairs always cooler (better for sleeping for me). Upstairs we have nearly floor to ceiling windows and skylights meaning the natural light is gorgeous and actually appreciated in our living room which we spend more time in than the bedrooms. The only downside is that access to our courtyard isn't off the living area which it would be in a conventional house so if you want to eat outside in summer you have to go downstairs with all your stuff and upstairs to the kitchen to get anything.
 
I'm still on my fix for another 3 years however only have a small-ish mortgage and will owe approx £95k when my fix is up, if rates are still at 6% that's an extra £200 a month on quite a small mortgage. I'd dread to owe £300k and facing however much extra that would be. I'd look into downsizing in that scenario xx
 
SpindleWhorl said:
I'm still on my fix for another 3 years however only have a small-ish mortgage and will owe approx £95k when my fix is up, if rates are still at 6% that's an extra £200 a month on quite a small mortgage. I'd dread to owe £300k and facing however much extra that would be. I'd look into downsizing in that scenario xx
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10 year fixes are around 4% which suggests that there is an expectation rates will fall. I wouldn't worry but if you have spare income, most mortgages allow a 10% overpayment per year.
Anyone in a good position now but planning changes such as children would be wise to pay extra on their mortgage while they can. A small overpayment at the beginning of the term can knock quite a lot off the term. For example, when I bought in 2001 my mortgage was £87,000 for 25 years at 6.49% so my monthly repayment was around £650, when I got my 1st statement I was horrified to see that my mortgage had only reduced by a few hundred pounds so I called them up and they advised I reduce my term. I think I reduced it by 3 years and it added £50 a month to my payment
 
Notworthy said:
10 year fixes are around 4% which suggests that there is an expectation rates will fall. I wouldn't worry but if you have spare income, most mortgages allow a 10% overpayment per year.
Anyone in a good position now but planning changes such as children would be wise to pay extra on their mortgage while they can. A small overpayment at the beginning of the term can knock quite a lot off the term. For example, when I bought in 2001 my mortgage was £87,000 for 25 years at 6.49% so my monthly repayment was around £650, when I got my 1st statement I was horrified to see that my mortgage had only reduced by a few hundred pounds so I called them up and they advised I reduce my term. I think I reduced it by 3 years and it added £50 a month to my payment
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That's our plan, we can overpay by 10% and fully intend to do so, to be mortgage-free sooner rather than later, while we're still young & healthy enough to work the jobs we do & earn enough money to do it.
 
Yel said:
What they really need is to build a lot of medium density social housing, in areas where there's the infrastructure to support it (or in combination with improving the infrastructure) and to not sell it off. Now prices are reducing the house builders are slowing down to dampen the supply. But they've been needing to do this for the last few decades.

At the moment the UK has lots of people wanting to live and work there, with so many issues I can't see this keeping up with so many other countries now having a lot to offer. Especially the eastern European countries that have used the EU subs to improve infrastructure and industry.
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The house builder I work for is slowing down on private and accelerating build on social plots instead.
 
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