House Prices

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Italy2 said:
Guys I have found a house that I really like and would be perfect for us. It is exactly what I want and the location is perfect! We would have to save up a little bit more for the deposit though and would like to wait until the market settles to make the offer! Hoping it is still on the market in a few months time.😂
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That’s fab! Hopefully it’ll still be available when the time is right, but if it isn’t park it and move on. Don’t keep comparing everything to the house that got away....you may never find anything if you do and miss out on lots of great properties as a result....everything happens for a reason!
 
I don’t know much about buying houses in the uk in general but I thought the minimum deposit was 10% unless you’re getting a new build on a help to buy scheme? Maybe different in Wales where I am. I wouldn’t be surprised if banks start asking for higher deposits too which is a pain. We were supposed to start looking end of this year, and we were in the process of setting up a meeting with a mortgage advisor so this is all now on hold. I’ve been checking rightmove and nothing seems to be much cheaper, but nothing is selling. I’m scared that no one will sell after lockdown and we’ll be renting for years! Unless we get a new build which I am dubious about if I’m honest.
 
Nationwide report house prices down 1.7% in May.

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House Price Index Headlines | Nationwide

Read the latest headlines on the house price index and download our monthly and quarterly house price index reports.
www.nationwide.co.uk

UK house prices fall at fastest rate since 2009 amid coronavirus crisis
https://www.12ft.io/https://www.the...2/uk-house-prices-fall-coronavirus-nationwide
 
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Pixipoppy said:
I don’t know much about buying houses in the uk in general but I thought the minimum deposit was 10% unless you’re getting a new build on a help to buy scheme? Maybe different in Wales where I am. I wouldn’t be surprised if banks start asking for higher deposits too which is a pain. We were supposed to start looking end of this year, and we were in the process of setting up a meeting with a mortgage advisor so this is all now on hold. I’ve been checking rightmove and nothing seems to be much cheaper, but nothing is selling. I’m scared that no one will sell after lockdown and we’ll be renting for years! Unless we get a new build which I am dubious about if I’m honest.
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Generally the minimum deposit required is 10% but some mortgage lenders offer 95% LTV with 5% deposit with a higher interest sometimes or just a longer mortgage term. I personally think 5% deposit is a better route than shared ownership scheme or help to buy schemes but some people may disagree. Obviously it is better if you can save up for a 10% deposit. We will be looking to buy our first house and have recently finished university so I think if we can get on the property ladder with a 5% deposit and slightly longer mortgage term then it's worth it. We would look to overpay our mortgage payments when possible and make up for the length of term. I rather do this than pay someone else's mortgage while I save 10% deposit.

Yel said:
Nationwide report house prices down 1.7% in May.

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House Price Index Headlines | Nationwide

Read the latest headlines on the house price index and download our monthly and quarterly house price index reports.
www.nationwide.co.uk

UK house prices fall at fastest rate since 2009 amid coronavirus crisis
https://www.12ft.io/https://www.the...2/uk-house-prices-fall-coronavirus-nationwide
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Interesting insight, thank for sharing! 1.7% is quite low but still a decrease which is huge as pre-covid prices were steeply increasing!
 
Italy2 said:
Interesting insight, thank for sharing! 1.7% is quite low but still a decrease which is huge as pre-covid prices were steeply increasing!
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I think -1.7% now in a month while many things are effectively frozen is actually huge. Could be low transition levels but it won't be until September when things become clear.

Nationwide have very vested interests and think they'll fall around 14% this year alone and the very optimistic BOE predicts falls of 16% this year. It
makes me think they'll fall double these values.

People have got it into their heads that houses are effectively money printing machines just because of the last decade or two, they're all out of sync with wages. Never before have we seen times like this in at least the last 300 years the BOE has existed for.

I watch with interest, although feel very sorry for a couple of people I know that bought recently, but interest rates are low and even if prices fall by a grand a month that's what they would have spent on rent so it's not that different.
 
If prices fall massively it’ll cause a massive shortage, people will choose to stay put and extend or just live with what they have rather than lose thousands, so it could effectively stagnate. We’re lucky we’ve recently bought the home we plan to stay in for a very long time, that we can extend and grow into, having sold a property in London and moved North, but I feel for people trying to get on/move up the ladder
 
Boutros-Boutros Ghali said:
If prices fall massively it’ll cause a massive shortage, people will choose to stay put and extend or just live with what they have rather than lose thousands
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Lots of people say that. But I highly doubt it, they'll only lose money if they bought near the peak and for anybody that wants to move to a new house the new one will cost less, so it makes little difference. If anything may benefit those that want to upsize the next house costs less and everyone will save on stamp.

Also lots won't have a choice. Sadly with debt, divorce and death there will be lots of supply.
 
Whats everyones thoughts on obtaining mortgages? Is there wiggle room? Currently we have a mortgage in principle for a certain amount but would like to borrow maybe 20k more as this would open us to an even better area with larger scope for equity in the future.

I think banks will become more tight in regards to how much they can borrow to potential buyers.
My salary is laughable atm but will be going up significantly in September. I don't know whether to wait and apply for another mortgage in principle with my higher salary as that would mean we could borrow more OR take what we have now as banks won't be willing to lend more after this?

We have 20% deposit but really want to live in a certain area and are willing to wait and save more. Based in Midlands.
 
I think -1.7% during a time when many lenders have restricted borrowing and have only been doing 60% LTV lending for a few weeks is actually surprisingly low. The market as all but frozen for a while for first time buyers and buyers purchasing at the bottom of the ladder.
I don’t think this is going to have a huge impact on house prices overall, any dip will be a few months which isn’t really a good enough measure of time for something like this.
 
Not sure if it’s been mentioned but I only know due to my dad working in banking but atm they have stopped all 5-10% mortgages for new buyers
 
Only 60% LTV would suggest they are pricing in worst case scenarios of 40% falls as they need to make sure if they repo they will make back their money.

Any repos won't start until next summer with how long they take and the mortgage holidays plus a stopping of repos for the moment.

There's some auctions coming up, will be interesting seeing what they sell for.

hnoz said:
I don’t think this is going to have a huge impact on house prices overall
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This seems like the biggest recession in living memory, will need a lot of stimulus in the budget next month to stop any impact. We will see though.
 
I personally know that alot of mortgage lenders and landlords are not taking action against defaulted tenants at the moment until autumn at least. We will have to wait and see when the legal action can recommence and whether it would have an effect on the housing market.
 
I had literally no choice but to get a shared ownership property - I got a new build. My situation was that I was living with my Mum in a HA property and when she died they evicted me and I had 4 weeks to get out (I didn't tell them until I had sorted somewhere to live so gave myself 8 weeks). Rent where I am is extortionate and I was being asked for 40/50k for a deposit for a full mortgage which I didn't have and couldn't get in that time. My mum unfortunately had no insurances/savings etc either only her death in service grant which enabled me to buy via shared ownership. My only hope is that house prices slump now to a level I can staircase my other half otherwise I've got a few years of saving ahead of me (and I went through my lease with a relative who is in housing So know the leasehold etc rules and if I buy the final % I then obtain the freehold at no fee which is positive ish). Desperately need prices to drop selfishly!
 
Allthevest20 said:
I had literally no choice but to get a shared ownership property - I got a new build. My situation was that I was living with my Mum in a HA property and when she died they evicted me and I had 4 weeks to get out (I didn't tell them until I had sorted somewhere to live so gave myself 8 weeks). Rent where I am is extortionate and I was being asked for 40/50k for a deposit for a full mortgage which I didn't have and couldn't get in that time. My mum unfortunately had no insurances/savings etc either only her death in service grant which enabled me to buy via shared ownership. My only hope is that house prices slump now to a level I can staircase my other half otherwise I've got a few years of saving ahead of me (and I went through my lease with a relative who is in housing So know the leasehold etc rules and if I buy the final % I then obtain the freehold at no fee which is positive ish). Desperately need prices to drop selfishly!
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Aw I'm glad you got yourself sorted. It is really hard to buy a house and you did what you thought was right so don't beat yourself about it. Please may I ask what percentage did you initially buy your share for and what percentage would you like to buy? You don't have to share! Just interested to see how people work this scheme out.
 
Italy2 said:
Aw I'm glad you got yourself sorted. It is really hard to buy a house and you did what you thought was right so don't beat yourself about it. Please may I ask what percentage did you initially buy your share for and what percentage would you like to buy? You don't have to share! Just interested to see how people work this scheme out.
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Heya I'm on 50/50. I do have to maintain but for the first 2 years the house was under a warrantee so alot got fixed from that and all gas/fire checks are done annually by the HA who own the other half but I would like to own outright one day so I am trying to save what I can to do so. I find mortgages bizarre as if I can afford shared ownership why can't I afford a mortgage (which i could). But yeah was this or homeless. I know what I'd prefer
 
We brought a new build last year and I think it will lose money if we sold now but we don’t intend to. We will stay here forever now.
the rooms aren’t huge but the dc are all almost grown up and will move out at some point and so we won’t need tonnes of space. The only reason I could see us selling would be to move to a much smaller more manageable property.
Our first house was shared ownership and it’s nothing like you’ve said above. It was a new build and most of the shared ownership properties around here seem to be new builds unless a part owner is selling their share.
This was in 1996/7 though. We brought 50%!at a good price and the rent was much less than the mortgage. We were also liable for the buildings insurance and had to prove we had content insurance as well.
the downside for us was when it came to selling. The housing association had to have 6 months to sell it and they did nothing. Not a thing! We sold privately in the end but a long time after initially wanting to sell. We could have staircased but the property was 2 bed and no garden and we were selling as baby number 2 was on the way. Well he’d arrived by the time we moved.
It’s also misleading to say that those buying shared ownership would be entitled to council/housing associations housing. The area I live in has so little housing stock that even if we had been anywhere near being eligible for a house from them it’s on average a 10/12 year wait. And no guarantee even then.
there are not many authorities now especially in the south that can and will house people/families that are working.
We have friends stuck renting as they have had to private rent and have moderate salaries of say £25-30k that can’t save and haven’t had inheritances or parents that can give them money.
 
Bumblebee said:
We brought a new build last year and I think it will lose money if we sold now but we don’t intend to. We will stay here forever now.
the rooms aren’t huge but the dc are all almost grown up and will move out at some point and so we won’t need tonnes of space. The only reason I could see us selling would be to move to a much smaller more manageable property.
Our first house was shared ownership and it’s nothing like you’ve said above. It was a new build and most of the shared ownership properties around here seem to be new builds unless a part owner is selling their share.
This was in 1996/7 though. We brought 50%!at a good price and the rent was much less than the mortgage. We were also liable for the buildings insurance and had to prove we had content insurance as well.
the downside for us was when it came to selling. The housing association had to have 6 months to sell it and they did nothing. Not a thing! We sold privately in the end but a long time after initially wanting to sell. We could have staircased but the property was 2 bed and no garden and we were selling as baby number 2 was on the way. Well he’d arrived by the time we moved.
It’s also misleading to say that those buying shared ownership would be entitled to council/housing associations housing. The area I live in has so little housing stock that even if we had been anywhere near being eligible for a house from them it’s on average a 10/12 year wait. And no guarantee even then.
there are not many authorities now especially in the south that can and will house people/families that are working.
We have friends stuck renting as they have had to private rent and have moderate salaries of say £25-30k that can’t save and haven’t had inheritances or parents that can give them money.
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I couldn't get a HA property as they said I earned too much, clearly didn't if I couldn't get a full mortgage alone with an obscene mortgage (also in the south and work for the council lol) my building insurance is covered by the HA who have 50% and they send me the insurance certificate and then I'm liable for contents and maintenance. I do wish I could own it all but the circumstances didn't allow :( I was only in my 20s when I lost my Mum and had been saving but I was shocked by deposits so was probably naive by it all - however I did think I had more time to worry about it all. Without the minimal inheritance I did get I'd have been stuffed I fear but yeah all SO I've seen here are new builds too
 
So a study said if GDP falls by more than 6% more people will be killed by the cure than covid. It fell 20.4% in April:

The UK's economy shrank by 20.4% in April - the largest monthly contraction on record - as the country spent its first full month in lockdown.

The Office for National Statistics (ONS) said the "historic" fall affected virtually all areas of activity.

The contraction is three times greater than the decline seen during the whole of the 2008 to 2009 economic downturn.

But analysts said April was likely to be the worst month, as the government began easing the lockdown in May.

The ONS also published figures for the three months from February to April, which showed a decline of 10.4% compared with the previous three-month period.

Italy2 said:
How do you think it would affect mortgages and LTV offered?
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Short term high LTV products are in short supply. Long term like everything who knows. House prices are likely to fall at least 10% this year. Next year who knows with all the money printing.
 
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