House Prices

[Pixipoppy]

Well we don't know how this will pan out.

5% ltv was the bar in our near zero interest rates with an inflated housing bubble. Historically it's been more like 20%-25%. I know lots that have bought with deposits that site, many are with gifts from parents.

The only thing I'm sure about is the future is unsure.

I’m gonna see what happens, we were meant to be buying this year but it’s all gone tits up. If we still can’t get a 90% LTV into the new year we’re gonna have to go down the new build route. Depends where you live as well, a few people I know in the north put down larger deposits but their entire house cost like £120k lol. Need to start searching for wealthy family members

 

[Lanavalentine]

Currently in the process of selling up and buying a new place... posted on this thread just before we went on the market. We got offers very quickly and easily on our place, bang on asking price.

Now we’re trying to buy, and there is a fair bit of competition. The interesting thing is that everyone is walking away if a seller tries to force a bidding war, so we’re not getting into crazy territory like what was happening a couple of years ago. Still, considering we’re looking at houses in the £850-900k range, the level of competition and how quickly some are going is a bit surprising given where we think the country will be within six months.

Then again, we’re happily buying as we’re in a strong financial position, so maybe I’m underestimating how many others are in a strong position too?

 

[Yel]

If you have a large amount of cash / equity it makes sense to carry on now as inflation quite likely counteract any falls and it's better to just get it sorted.

If you're borrowing hundreds of thousands to pay back over several decades it probably is wise to wait 6 months.

I do think lots of people think they're unaffected because they've carried on working from home without much change. But even those in industries that you'd think are safe will quite likely find out they're affected by all the knock on affects that will rapidly start over the next few months. We've not really seen anything yet.

 

[Lanavalentine]

If you have a large amount of cash / equity it makes sense to carry on now as inflation quite likely counteract any falls and it's better to just get it sorted.

If you're borrowing hundreds of thousands to pay back over several decades it probably is wise to wait 6 months.

I do think lots of people think they're unaffected because they've carried on working from home without much change. But even those in industries that you'd think are safe will quite likely find out they're affected by all the knock on affects that will rapidly start over the next few months. We've not really seen anything yet.

Yes, we own our current house outright, so obviously a lot of equity. If our current house was mortgaged I think we’d definitely be staying put, no matter how strong our finances and partner’s employment are.

Looking around at my friends and family, I can see that some really have their heads in the sand.

 

[Yel]

Looking around at my friends and family, I can see that some really have their heads in the sand.

Same here, some really have their heads in the sand - those working in industries that show no sign of recovery and they expect furlough to end and things to go back to normal.

And those who work in jobs that have been carrying on fine and think that'll continue unaffected, when every industry will be squeezed if we enter a deep recession.

It's the uncertainty that's making me apprehensive, wish the can kicking would end to as it's just going to make it worse in the long run.

 

[Tiantian1005]

Currently in the process of selling up and buying a new place... posted on this thread just before we went on the market. We got offers very quickly and easily on our place, bang on asking price.

Now we’re trying to buy, and there is a fair bit of competition. The interesting thing is that everyone is walking away if a seller tries to force a bidding war, so we’re not getting into crazy territory like what was happening a couple of years ago. Still, considering we’re looking at houses in the £850-900k range, the level of competition and how quickly some are going is a bit surprising given where we think the country will be within six months.

Then again, we’re happily buying as we’re in a strong financial position, so maybe I’m underestimating how many others are in a strong position too?

You would be surprised how many people have cash to throw around and are financially secured during the pandemic. A colleague of mine who makes around 600k mark a year himself went to burford to house hunt a few weeks ago said all the 1.5mio mark houses went as soon as listed. Same in west London where I live as well. People who really benefit from this stamp duty freeze are professional landlords. I know a few are buying whatever they can see in the same development.

 

[heretoreaditall2019]

Same here, some really have their heads in the sand - those working in industries that show no sign of recovery and they expect furlough to end and things to go back to normal.

And those who work in jobs that have been carrying on fine and think that'll continue unaffected, when every industry will be squeezed if we enter a deep recession.

It's the uncertainty that's making me apprehensive, wish the can kicking would end to as it's just going to make it worse in the long run.

Agreed on both parts re: jobs. I've worked throughout the whole of covid (from home) but the majority of my company were furloughed immediately, my company have used the furlough scheme to better their cash position at the expense of the taxpayer. They can afford to pay staff, and retain staff, but why would they now? They've just survived one of their busiest periods ever with 30-40 of us, out of *thousands*. It's going to be a blood bath, but it'll be palatable because they can dress it up as uncertainty due to covid rather than outright greed, which it is.

I know there's a lot of bad blood now as none of us who worked throughout the period received any sort of additional pay or recognition. They did a PR piece that went to press about bonuses, which they even had the cheek to circulate internally?! But I know of 5 people who enquired about theirs and they've been informed they're not eligible, I'm not going to embarrass myself by asking tbh. But what can people do, the market is fucked and with IR35 looming most candidates are competing with people with significantly more experience than them willing to take their roles now out of sheer desperation...

I do think this crisis has shown just how awful some employers are tbh, I've never been stupid enough to think any job actually cares about me beyond my productivity but there's that and then outright endangering people's health, lying, and taking the piss all round?

 

[Yel]

I know there's a lot of bad blood now as none of us who worked throughout the period received any sort of additional pay or recognition.

I presumed that the "perk" for those working throughout would be to keep their jobs (not my POV but how I can see companies dressing it up as!).

Although I do worry all these people saying how great it is working from home don't see the bigger long term picture and how they're proving the case for outsourcing more work to cheaper countries.

The express are naturally talking about house prices going to the moon and back. No doubt the stamp duty holiday will force a lot of people to move now, but long term who knows. I guess they'll extend it so that transactions won't fall off a cliff in March 2021 but all the steam could have gone by then.

 

[heretoreaditall2019]

I presumed that the "perk" for those working throughout would be to keep their jobs (not my POV but how I can see companies dressing it up as!).

Although I do worry all these people saying how great it is working from home don't see the bigger long term picture and how they're proving the case for outsourcing more work to cheaper countries.

The express are naturally talking about house prices going to the moon and back. No doubt the stamp duty holiday will force a lot of people to move now, but long term who knows. I guess they'll extend it so that transactions won't fall off a cliff in March 2021 but all the steam could have gone by then.

See on outsourcing, I'm in data/dev which would be an ideal area to outsource but the skillsets still simply aren't there, tbh the skillsets are scarcely there in UK grads really I've found hiring into my department shockingly difficult. For repetitive really instructional work I've seen it be outsourced effectively but for bigger strategic projects, definitely not. Tbh my primary goal / every business' goal should be automation, our biggest problem has always been the dinosaurs that insist on hiring legions of 21 year olds to fill in antiquated tit inaccurate spreadsheets, though. Outsourcing that kind of work is great as you can hire someone in India or Eastern Europe for 3-4 hours a week vs a junior or midweight full time in London, but the sort of work you outsource has to be very instructional/repetitive, the skillsets aren't there to QA work, offer insights, improve off own backs...then again it's not in this country either tbh. The work I see SEO/marketing teams doing needs automating (this is my biggest project at work at the mo) but in absence of that they could 100% be replaced by offshore staff, but I can't imagine the control freak micromanagers allowing that to happen as they need juniors spoon feeding them info they're too lazy to read themselves. The more I write the more I realise how wholly disillusioned I am with work, sorry!

And on the perk being able to keep your job - it depends on why your company used the furlough scheme I guess. My sister's company have seen a similar growth in revenues as mine across the period & have given 3 profit sharing bonuses out to staff as a thank you for working so hard & spreading the joy a bit. Mine haven't bothered (despite huge press releases on it) and now I'm proof reading colleagues' CVs for them loool.

 

[Pixipoppy]

Seen a couple houses by me go for £20-30k over the asking price lately. So disheartening. Will first time buyers ever get a bloody look in?!

 

[idk2]

Are estate agents not allowed to tell us counter offers made by interested parties?! How the bloody hell do I know if I can counter them or not?

 

[Moe]

Are estate agents not allowed to tell us counter offers made by interested parties?! How the bloody hell do I know if I can counter them or not?

No they are not allowed but they do their best to hint at what’s been offered.
The market here in the South East has been very busy I think a lot to do with the Stamp Duty however come next year I think that will change drastically.

 

[idk2]

No they are not allowed but they do their best to hint at what’s been offered.
The market here in the South East has been very busy I think a lot to do with the Stamp Duty however come next year I think that will change drastically.

Yeah, apparently 30 mins after we put an offer in for a very run down property with some serious potential, someone else counter offered but the agent was very open with saying its literally JUST over ours. My other half seems to think he's just lying to get us to commit or go a bit higher to asking price - House hunting is a perpetual headache!!

 

[Moe]

Yeah, apparently 30 mins after we put an offer in for a very run down property with some serious potential, someone else counter offered but the agent was very open with saying its literally JUST over ours. My other half seems to think he's just lying to get us to commit or go a bit higher to asking price - House hunting is a perpetual headache!!

Experience has taught me if there’s an offer in place they aren’t lying. I fix a price when I offer and stick to it. I’ve lost out on two bids this week but I’m not emotionally involved so I walk away.
All I can say is if you really want it and it’s a future home and you can afford it do what you can.
I’ve had one home that I loved with all my heart but had to sell. Everything else to me now is bricks and mortar.

 

[Yel]

See on outsourcing, I'm in data/dev which would be an ideal area to outsource but the skillsets still simply aren't there, tbh the skillsets are scarcely there in UK grads really I've found hiring into my department shockingly difficult. For repetitive really instructional work I've seen it be outsourced effectively but for bigger strategic projects, definitely not. Tbh my primary goal / every business' goal should be automation, our biggest problem has always been the dinosaurs that insist on hiring legions of 21 year olds to fill in antiquated tit inaccurate spreadsheets, though. Outsourcing that kind of work is great as you can hire someone in India or Eastern Europe for 3-4 hours a week vs a junior or midweight full time in London, but the sort of work you outsource has to be very instructional/repetitive, the skillsets aren't there to QA work, offer insights, improve off own backs...then again it's not in this country either tbh. The work I see SEO/marketing teams doing needs automating (this is my biggest project at work at the mo) but in absence of that they could 100% be replaced by offshore staff, but I can't imagine the control freak micromanagers allowing that to happen as they need juniors spoon feeding them info they're too lazy to read themselves. The more I write the more I realise how wholly disillusioned I am with work, sorry!

Totally agree, such a good post. I've really struggled to recruit people in the UK and the agencies often forward people that are just not up to it.

I think automation is the biggest threat at the moment, anyone that interacts with a computer could potentially be replaced by an algorithm. It's already happening quite a bit where a team that used to be 8 people is now slimmed down to 2 and the current situation could make the change even more rapid.

As for house prices I wouldn't worry too much if things are difficult to get now as it's the worst time to buy during a frenzy. If you're taking on a large amount of debt best to wait it out for a few months. 9m+ have been furloughed who are going to face issues getting a mortgage and things are only going to get worse with large tax rises the horizon. All it would take is tax on homes or interest rates rising half a percent (which the BoE maybe forced to do if inflation starts to take off) and the whole bubble could be popped.

 

[Yel]

Nationwide index up 1.7% for July, so reversing the previous months falls.

It's still a waiting game to see what will happen, inflation or deflation?

Unpopular with many but I'm happy to see the winding down of furlough, not to wish anyone hardship but it's delaying the inevitable and could make the hardship worse. Although it's only going to cost an employer an average of £70 a month for August (apparently). I expect consultations on redundancies will really be ramping up in the coming weeks.

 

[Pixipoppy]

NatWest (I think) are now making all new home buyers prove that at least 75% of their deposit is from their own savings and not a gift/loan etc from parents. I’m so worried all banks will start doing this - I don’t know ANYONE that bought their first home without some help. We have maybe £12k between us (which has taken us 5 years to save! Due to high rent prices) but are relying on another £10k from my parents who have had it in a savings account ready for me to buy my first home for 10 years now! I can’t believe that at this point when I’m finally ready they go and do something like this! First they pulled all 95% and 90% LTV mortgages and now this! I see other people with houses they’ve bought and just feel like it’s never going to happen for us now

 

[Yel]

I think it's nationwide and they're doing it to protect first time buyers.

All these schemes to "help" or parents remortgaging like a pyramid scheme just work to inflate the bubble.

High tight, no rush to buy now during a frenzy and an economic impact that's equal to a world war. I think it would be madness to sign up for lots of debt with how uncertain everything is.

 

[Pixipoppy]

I think it's nationwide and they're doing it to protect first time buyers.

All these schemes to "help" or parents remortgaging like a pyramid scheme just work to inflate the bubble.

High tight, no rush to buy now during a frenzy and an economic impact that's equal to a world war. I think it would be madness to sign up for lots of debt with how uncertain everything is.

How will it protect them? By basically meaning they can’t buy and in turn possibly save them from a bad investment?
I’m just getting impatient now - we’re in our 30s, good jobs, all our friends have bought years ago. I know it’s a first world problem but I just want a place I can call my own, I want to be able to decorate how I want and buy nice things and feel like I have a stable place to live (having been evicted with very little notice through no fault of my own in the past).
I’m also keen to take advantage of the stamp duty freeze and the very low interest rates. Surely now is a good time to buy in that regard?

 

[Gembo]

NatWest (I think) are now making all new home buyers prove that at least 75% of their deposit is from their own savings and not a gift/loan etc from parents. I’m so worried all banks will start doing this - I don’t know ANYONE that bought their first home without some help. We have maybe £12k between us (which has taken us 5 years to save! Due to high rent prices) but are relying on another £10k from my parents who have had it in a savings account ready for me to buy my first home for 10 years now! I can’t believe that at this point when I’m finally ready they go and do something like this! First they pulled all 95% and 90% LTV mortgages and now this! I see other people with houses they’ve bought and just feel like it’s never going to happen for us now

I might be wrong but I’m not sure if it’s to do with whether the money is a gift or a loan. If it’s a loan then they take into account your affordability on you also having to pay that back. Worth checking to see if the lender you go with makes a distinction.