House Prices

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Italy2 said:
What happens when people buy HTB houses and then sell the house within the first 5 years? Does the scheme pass on to the new first time buyers or end there? Sorry stupid question!
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HTB needs to be repaid and is essentially a second mortgage (the home owner just pays a minimal fee on a monthly basis)

I think the scheme you are referring to is a s106 scheme. Where the local authority retain an interest in 33% (or thereabouts) of the property. When you go to sell the property, the local authority set the sale price and select a purchaser from a list in which potential purchasers have signed up to. Referred to as “affordable housing”
 
Austin and Wyatt saying how busy the last two months are, hardly a surprise as everything was frozen for months. If anything a 20% rise in volume last month over same month in 2019 is a bit low.

But they're unsurprisingly confident it will continue, well turkey's aren't going to vote for Christmas 😆. Someone should tell them we haven't actually gone through Brexit yet.

Newsletter:


So, will it continue?
With a perfect storm of pent up demand from lock-down, and the support of tax relief, the property market has been abuzz over the last few months with August being the busiest month in 10 years.

The question remains whether we can expect the surge in activity to continue.

As always, speculation is fraught with uncertainty, but this is a market that has seen itself move confidently through Brexit, political uncertainty, and multiple general elections; so there is likelihood that the ‘mini-boom’ will continue its momentum into the intermediate future.
 
The Centre for Economics and Business Research is predicting falls of 14% next year, specifically when the stamp duty holiday ends and the effects of the recession filter through. Although I'm sure some other scheme like the stamp duty holiday will come in, so who knows.

“Our analysis suggests that prices will start to fall significantly towards the end of the year and the first half of 2021, though there might be a short spike as the stamp duty reduction comes to an end, with average house prices forecast to be 13.8 per cent lower in 2021 than 2020,” the CEBR said.

www.thetimes.co.uk

House prices forecast to drop by 14% next year

House prices will fall by almost 14 per cent next year once the government’s temporary cut in stamp duty ends and the economic impact of coronavirus filters through to the property market, according to an analysis by an economic consultancy.Figures from the Nationwide Building Society this month sho
www.thetimes.co.uk www.thetimes.co.uk
 
Help to Buy Wales scheme has been extended to March 2022 with the possibility of a further extension to March 2023

So the scheme is still propping up the housing market - in Wales at least
 
purplepixie_3 said:
Help to Buy Wales scheme has been extended to March 2022 with the possibility of a further extension to March 2023

So the scheme is still propping up the housing market - in Wales at least
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I just don't think that the new builds are worth the 5% deposit as they are so overpriced and small in size. Although alot of houses where I live are being reduced on Rightmove at the moment, guess will have to wait and see
 
Italy2 said:
I just don't think that the new builds are worth the 5% deposit as they are so overpriced and small in size. Although alot of houses where I live are being reduced on Rightmove at the moment, guess will have to wait and see
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They definitely aren’t worth it. The large estates are refusing to meet local authority requirements for road standards as it is too expensive. Instead they create “estate roads” which are maintained by a management company. The freehold properties pay service charge annually for the upkeep of the roadway (I’ve seen some from £100-£400 per year) also, when you sell or remortgage you are required to purchase their management packs which cost anywhere from £100-£500. Your purchaser will also need to pay admin fees of £60-£500 depending on the management company.

Government are on about bringing in set standards for fees but we will see.

Leasehold flats are teeny tiny and the service charge for those is eye watering. £1,000 - £3,000 per annum

It’s just money for nothing IMO
 
This is interesting. People like to blame it all on BTL, but if people had an option of investing their money elsewhere, we wouldn’t have the same problem with BTL. Also can’t believe that there are only half a million second homes in the U.K. That doesn’t seem to count in the “holiday let” loophole, where as along as you let the house for 183 days a year, you are a small business rather than a second home owner.
MEDIA=youtube]vhAXp0xzMFg[/MEDIA]
 
Italy2 said:
I just don't think that the new builds are worth the 5% deposit as they are so overpriced and small in size. Although alot of houses where I live are being reduced on Rightmove at the moment, guess will have to wait and see
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Unfortunately a lot of people now won’t have a choice. If banks don’t reinstate 10% mortgages and are asking for 15/20% loads of FTBs just don’t have that amount of savings. We decided against a new build due to maintenance fees among other concerns but its looking less likely we will ever get on the housing ladder. Rent and bills eat up most of our income - we’re happy where we are but it would be nice to actually own a place eventually!
 
Even estate agents are predicting falls next year. Of course they say 5% so you can pretty much multiply that by 5 for what they really think 😆

How much will prices fall?
It is widely expected that property prices will fall, but experts disagree by how much.

The Centre for Economics and Business Research warns of a drop in prices of up to 13 per cent, due to people worried about their post-Covid futures holding off making such big expenditures.

Meanwhile, estate agent Savills is expecting a far smaller decrease, of just five per cent.

The Office for Budget R esponsibility has produced three scenarios for the housing market in the wake of the pandemic.

Their most optimistic outlook would see a two per cent fall in 2020, followed by a rapid recovery to the pre-pandemic trend, followed by growth.


The middle scenario would see prices fall by 11 per cent by the end of 2021, before flatlining.

And their most negative outlook predicts a 22 per cent dip by the third quarter of 2021.


inews.co.uk

What experts have said about when property prices might fall after market hits record high

Prices rose by two per cent in August according to Nationwide, taking the average up to £224,123.
inews.co.uk inews.co.uk

Mrs McCarthy said:
People like to blame it all on BTL,
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I don't think anyone is blaming it all on one thing as it's a complicated picture that no economists will agree on. House prices are pretty much an indication of the money supply. If they print lots money supply increases and house prices go up. It's not benefited society at all by this Ponzi scheme of remortgaging your home to buy something to let out. Now anyone that can raise a deposit thinks they're the next Jeff bezos and the government should bail them out if they don't make a profit every month.
 
https://www.12ft.io/https://www.the...test-rate-since-2016-says-nationwide-covid-19

This is hard news for first time buyers.
 
SoulRebel said:
https://www.12ft.io/https://www.the...test-rate-since-2016-says-nationwide-covid-19

This is hard news for first time buyers.
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It's hardly surprising after months of things shut shop and it's only since 2016. I think the steam has pretty much all been spent, let's see what happens in the next few months.
 
Yel said:
It's hardly surprising after months of things shut shop and it's only since 2016. I think the steam has pretty much all been spent, let's see what happens in the next few months.
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I still think that it will affect the market. Mortgage lenders are going to get more wary of first time buyers and increase deposits, they are going to prefer people with a house to sell and equity.
 
SoulRebel said:
I still think that it will affect the market. Mortgage lenders are going to get more wary of first time buyers and increase deposits, they are going to prefer people with a house to sell and equity.
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Definitely, but I think it'll be short term as lenders are asking for more seeing as prices could fall and everything is unstable at the moment. It wasn't a great world for first time buyers before, so I'm hopeful when things settle it will be better.
 
Italy2 said:
metro.co.uk

First-time buyers to get 95% mortgages in new 'Generation Buy' scheme

The PM told the virtual Tory party conference today that he hoped the mortgage plan would create two million new home owners.
metro.co.uk metro.co.uk

Has anyone seen the announcement from Boris today? What do you guys think and when do you think he is aiming to bring these plans in place?
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"We will help turn generation rent into generation buy."

"fix our broken housing market"

"[labour] They may have million-pound homes in north London, but they deeply dislike home ownership for anyone else."

lol why does Boris love to pretend the conservatives haven't already been in government for a decade?
 
It's just soundbites, there's no detail to any of this 95% mortgage thing. The banks don't seem that interested in it.

I'm still baffled at all these people selling their London flats that are pushing up the prices elsewhere. Doesn't compute. Who are they selling to? Things seem to have really slowed down now.
 
Headlines are saying house prices are still surging, when actually it's the asking prices. So pretty meaningless.

Headlines today encouraging people to fill their boots as it's 5 months untill stamp duty comes to an end 😆
Screenshot_2020-10-21-12-06-57-081_com.brave.browser.jpg
 
idk2 said:
We're still holding out for next year. As horrible as it sounds, I dont think we've hit boiling point yet with unemployment etc.
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Same here. We've just signed up for a 6 months rental as I doubt we'll be going anywhere soon. I also don't want to and can't pay more than a 10% deposit so happy to wait and see what happens. It's tit but what can you do?
 
What do you guys think will happen to mortgages on the market and house prices in light of the upcoming lockdown?
 
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