But what's the alternative? You can't get a decent family home for less than £300k and that's in Yorkshire. Even if you settled for a 200K house, a 20% deposit is £40k before you've even taken other fees and costs into account. How are people supposed to rent and save at the same time if they want a decent home?
House Prices
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But what's the alternative? You can't get a decent family home for less than £300k and that's in Yorkshire. Even if you settled for a 200K house, a 20% deposit is £40k before you've even taken other fees and costs into account. How are people supposed to rent and save at the same time if they want a decent home?
Mrs McCarthy
Chatty Member
I am in Devon, and you can buy a not very good three bed in not very good area for around £200k. That’s what we had to buy, and what all our friends had to buy, and none of us could have done it without the help from our parents. The ones who don’t have help from their parents are still renting and they think that they will never be able to afford to buy, because with renting they can’t save for a deposit.
JoeBloggs
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Sadly I don't know. I live in Surrey so I am all aware of ridiculous house prices. A 1 bed flat goes for £260-300K where I am from.
For some, like me, the answer was moving 20 mile away and the price dropped by £100-150k and even then we bought a wreck. I know many who refuse to commute that bit more and therefore cannot afford to buy. I also know many who don't save and live lavish lifestyle and then complain they can't afford to buy.
Salaries need to come in line with living costs, but I can't see how employers can afford it and the government is not going to be able to subsidies it. House prices should never have been allowed to escalate, but it was all about supply and demand. The House market and crisis is a very complicated and interwoven issue.
Same here, I don’t know anyone my own age (late 20s to early 30s) who didn’t have either money off their parents or inheritance. The only other option is to live with parents rent free and save for a number of years but that just isn’t practical in a lot of cases. I’ve been saving £200 a month for 4 years and am only just now getting enough for a 10% deposit on a very cheap flat. Fortunately my parents are gifting me the same again as what I’ve saved, but even with that very generous contribution I’m still going to struggle to find something I can afford. £200k used to get you a small 2 or 3 bed terrace where I live, but now even those seem to be few and far between.
Savils have gone from saying 0% rises this year to 4%, but it's not like they have vested interests 
Until furlough ends and stamp duty holidays end it's all up in the air what will happen.
- Average UK property price set to grow by 4% in 2021, an average of £10,000
- Forecasts have been revised since stamp duty holiday was extended in Budget
- Vaccine roll-out and lockdown easing also set to have an impact, says Savills
Until furlough ends and stamp duty holidays end it's all up in the air what will happen.
AllSeeingEye123
VIP Member
I live in Yorkshire in a decent area, three bedroom on a quiet street with two gardens worth half that amount so it's possible.
Hertfordshire_home
Well-known member
Hi all. I was wondering if there was anyone with a good level of knowledge in this area? My fiance and I were trying to move house before the stamp duty deadline. It seems that the level of demand is well ahead of the level of supply of houses for the level we are looking at (up to £410k) given the stamp duty relief in place. We were determined not to pay well over the odds for a house as we were concerned at the resale price in 5 or so years when we would be looking to upsize again, and therefore we have decided to wait until next year to look for a house.
My question would be are house prices still expected to fall, and if so by how much? I seem to recall a recent article where house prices were not actually forecast to fall by much at all after June. For context we are looking in Hertfordshire.
Thanks!
My question would be are house prices still expected to fall, and if so by how much? I seem to recall a recent article where house prices were not actually forecast to fall by much at all after June. For context we are looking in Hertfordshire.
Thanks!
JoeBloggs
VIP Member
No one can ever really tell but to be honest as the economy begins to recover, any fall will most likely level. People expected house prices to fall but they haven’t near me as people are moving out of London due to the new remote and WFH trend we seem to be keeping.
We were always told there would be a crash and to wait to buy, we didn’t and the market never crashed for us.
No one knows what will happen, there's so much money being pumped into the system and market intervention.
The market never crashed before because interest rates have been kept near zero. The price of houses is dictated by how much people can borrow. If people can borrow more because of low rates they won't fall.
Could rise by 10%, could fall by 10%. Will know later in the year if the stamp duty ends and things return to some kind of normal.
Long term they'll need to return to some kind of relation to wages, but who knows what form that will take.
If there isn't some correction it doesn't bode well for social cohesion with the young that keep getting sacrificed.
The market never crashed before because interest rates have been kept near zero. The price of houses is dictated by how much people can borrow. If people can borrow more because of low rates they won't fall.
Could rise by 10%, could fall by 10%. Will know later in the year if the stamp duty ends and things return to some kind of normal.
Long term they'll need to return to some kind of relation to wages, but who knows what form that will take.
If there isn't some correction it doesn't bode well for social cohesion with the young that keep getting sacrificed.
Moe
VIP Member
The market has started to slow down now the last few weeks. Stamp duty holiday finishes end of June.
I’m concerned about inflation with all that money that has been pumped into the economy. How many billions?
I know I’ve always said there are too many vested interests from high up wanting property to stay ridiculously expensive but can you imagine if interest rates go up what then?
Most people won’t remember 15% interest rate but so many people lost their homes handed back keys to banks and building societies and never ever recovered or got back on the ladder.
I don’t expect it to go back to that level but would most people with a mortgage be able to cope with say a rate of 6%.
Any thoughts folks.
I’m concerned about inflation with all that money that has been pumped into the economy. How many billions?
I know I’ve always said there are too many vested interests from high up wanting property to stay ridiculously expensive but can you imagine if interest rates go up what then?
Most people won’t remember 15% interest rate but so many people lost their homes handed back keys to banks and building societies and never ever recovered or got back on the ladder.
I don’t expect it to go back to that level but would most people with a mortgage be able to cope with say a rate of 6%.
Any thoughts folks.
JoeBloggs
VIP Member
This is what the 2014 MMA regulations were for, the general rate of ‘stress testing’ is an increase of 7%. While it’s a massive change in your day to day spending the banks do analysis this within your first 5 years of any product. So while many could afford more (we could have easily afforded to double ours or more) we were not granted more and actually got less than we wanted.
Sickofinstacrap
Chatty Member
HoGi
VIP Member
Same here. So long as things haven't been stupidly overpriced (like my next door neighbours house) things are selling within 48 hours of going on the market
Sickofinstacrap
Chatty Member
Yea it’s 100% all about pricing too but houses are now even more expensive then they were in feb! It’s mental! I’ve a bid on a house now, find out today if it was accepted! We bid on it when it was on the market 4 hours- after viewing of course
that’s how mad it is
HoGi
VIP Member
Yeh my neighbour put hers up for 40k more than the other 4 houses on the road that are up for sale. Hers isn't any bigger or better. Unsurprisingly the other 4 have sold and hers hasn't.Yea it’s 100% all about pricing too but houses are now even more expensive then they were in feb! It’s mental! I’ve a bid on a house now, find out today if it was accepted! We bid on it when it was on the market 4 hours- after viewing of course
Hertfordshire_home
Well-known member
The market is still pretty insane. We have bid on about 4 properties over the asking price and still havent got the house. I think a lot of people are bidding over the odds to ensure they get a house before June - wouldnt be surprised if a lot came back onto the market in July for people who couldnt get it through in time.
People do seem to be paying over the odds. We are bidding knowing that we will only be in the house for max 7-10 years. We dont want to end up losing money on the house just because we overpaid during covid!
People do seem to be paying over the odds. We are bidding knowing that we will only be in the house for max 7-10 years. We dont want to end up losing money on the house just because we overpaid during covid!
Holidaybobs
VIP Member
They are in the north west. We just put a house up for sale and someone offered 50k over the asking price, absolutely ridiculous.Houses up in Scotland are going for 10-40k over the asking price, it's ridiculous
HoGi
VIP Member
Are the mortgages agreeing with the valuation on these properties?
A few years back lots of people i know, myself included, were having properties down valued. So our example house was up for 300 which is average for the area. We offered 295 and it was accepted. Mortgage came back and said the house was only worth 280. So as first time buyers we had to pull out as the sellers wouldn't drop the price.
So I wonder with these houses where people are offering tens of thousands over the asking price are the banks agreeing the value?
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