House Prices

[fireflies]

Nothing not already leaked in the budget.

I wonder if they now do want house prices to have some relationship to earnings as the have-nots is a rapidly growing segment?

Tbh i dont think it make massive difference.
Our house was 240k we paid just over a couple k stamp duty.
It wouldn't have stopped us buying a house.
I understand if you buy house nearer 500k its 15k saving .
But if you can afford a 500k house then you probably not that skint anyway 15k is livable.

The houses prices right now locally are crazy totally out of line with wages.

Banks being more fussy who they loan to and want bigger deposits.
I always thourght banks liked you work same employer for a while or have a stable job.
I would say many UK jobs im tourism leisure or even retail not too stable right now.
Many would have lost their jobs during pandemic so they probably no rush buy a house even if they did have savings and the banks wont be hugely keen lend to people in unstable sectors.

Currently mortgage breaks are up to 6months.
Not sure about rental evictions possibly same.
Many will be made redundant once furlough ends.
I can see a massive correction and decreasing price some areas in 2021.
So any sensible buyer with half decent deposit and offer of mortgage would best wait to 2021 to buy stamp duty not the most important factor.

The vouchers would been more boost to economy than propping up stagnant house market.

 

[Yel]

It's a mini prop for the market. I don't think there's the political will to now keep them so high.

Countrywide are (as you would expect) very bullish in an email they just sent out with their cherry picked stats. Of course they look at Zoopla rather than agreed prices and ignore that interest does always bounce in the spring. But if my buisness was selling houses I'd blaze on ahead with stats that suit the agenda.


Countrywide
Applicant demand was the first metric to pick up and has surpassed pre-Covid levels. It seems that lockdown has made many of us reassess what type of home we want to live in, where we want to be, and, perhaps more importantly, what we can afford.

With the Welsh market recently reopening, it is also worth noting that demand in Wales has already caught up with English levels. Meanwhile demand in Scotland has returned to early March levels, despite only officially re-opening on Monday.

UK house price growth
According to Zoopla, the average house price in the UK rose 2.1% in May compared to the same period as last year, and up from 1.4% at the start of the year due to an influx in market activity following the ‘Boris Bounce’.

Nottingham recorded the strongest rate of growth (4.3%), followed by Manchester (3.9%). Whilst Aberdeen (-2.0%) in Scotland recorded the largest fall across the UK.

However it seems buyers hoping for a big discount are having to take a reality check. Amid the ‘Boris Bounce’ of January and February, the UK asking-to-achieved ratio (that is, the price of a property compared to its sold price) averaged 98.9%, slightly higher than in the same period of 2019.

 

[fireflies]

If people dont have secure jobs or high deposits banks won't lend mortgages despite low interest and no stamp duty.

 

[Sln2404]

We’ve been trying to buy a house since February but it’s so slow as the builders had to stop. We were due to exchange tomorrow! Just called the solicitor and we’ve saved £12,500! It makes such a difference.

 

[purplepixie_3]

Small local agents are much better to deal with. The corporate estate agents where they are entirely driven by targets are awful

The majority of estate agents will lie and stir up trouble constantly between buyers and sellers. They can however be a great tool provided it isn’t your side of the transaction holding things up.

I also disagree with how much an agent charges in comparison to a solicitor. Solicitors fees can be around £700 whereas an agent charges £2,500

 

[Consumerism_fatigue]

Not aimed at you, but this mindeset that for home owners an increase in value is good news is so harmful for the economy and society. A home should be that, not an investment vehicle. Everytime they go up in value it causes misery for others that weren't born at the right time and takes away money from being invested in something productive.


It's a bit something and nothing. It's not really to help the plebs, just like help to buy is mainly a help for the house builders. Would be better to let it be a free market and stop proping it up at the expense of others. But so much of the UK economy is based on house prices they have to rig it. Who know where it will end

No worries, I know where you’re coming from! I just meant that I was happy for the previous poster that the valuation wasn’t under like mine.

I’m also in a different boat because I live in central London, so the place I’m buying is a temporary home for the next 3 years or so, rather than a forever home. That being said, it’s home first and I’ve chosen it because I love it and want to live in it.

 

[heretoreaditall2019]

Not sure if this is the right thread - but just watching Martin Lewis' show from yesterday, really shocked that the green improvement scheme doesn't look as shockingly tit as Sunak's tweets initially suggested? He said that it was for low income households which felt ridiculous, how many home owners are going to be low income in this era of house prices, minus pensioners? Apparently they'll fund 2/3rds of green improvements up to £5k, for low income households 100% up to £10k.

Wondering what work you'll be able to get done with it though...

 

[Italy2]

Sorry to rant but not sure how a stamp duty holiday would help first time buyers? First time buyers need deposit and high LTV mortgages to come back and cheaper house prices. Stamp duty was already exempted for first time buyers anyway. The only group that would be benefitted by this scheme are landlord or help to buy people. Majority of home owners are probably going to stay put anyway until furlough ends and economy stabilises.

Does anyone else have a different opinion or what do you guys think?

 

[Yel]

Apparently they'll fund 2/3rds of green improvements up to £5k, for low income households 100% up to £10k.

Wondering what work you'll be able to get done with it though...

I think it's just going to be an extension of the existing schemes for new boilers and insulation. Devil is always in the detail that we've yet to see. Could be a nice bailout to give companies work and reduce energy. I was expecting more in this mini budget.

Sorry to rant but not sure how a stamp duty holiday would help first time buyers? First time buyers need deposit and high LTV mortgages to come back and cheaper house prices. Stamp duty was already exempted for first time buyers anyway. The only group that would be benefitted by this scheme are landlord or help to buy people. Majority of home owners are probably going to stay put anyway until furlough ends and economy stabilises.

Does anyone else have a different opinion or what do you guys think?

Yeah it's a not really a much of a help. Honestly it looks like they want house prices to fall. They've got little left to stimulate them and there's less people that want them proped up.

 

[heretoreaditall2019]

I think it's just going to be an extension of the existing schemes for new boilers and insulation. Devil is always in the detail that we've yet to see. Could be a nice bailout to give companies work and reduce energy. I was expecting more in this mini budget.


Yeah it's a not really a much of a help. Honestly it looks like they want house prices to fall. They've got little left to stimulate them and there's less people that want them proped up.

ML seemed to think boilers wouldn't be included & told people not to hold off if they were getting a new one - I imagine such a scheme would get absolutely rinsed.

The previous owner of our house was an elderly lady with a chronic pain condition so I think she was eligible for the loft scheme as a result, our loft is incredibly well insulated. I wanted to get the floor boarded for storage, and the walls boarded for insulation so it wouldn't be uncomfortable for my husband to spend time up there (the storage is for his hobby gear) - but that's definitely a very weak link to green improvements so I doubt it'll fall under the criteria. A girl can dream, I'm gonna keep a hopeful eye out...

Sorry to rant but not sure how a stamp duty holiday would help first time buyers? First time buyers need deposit and high LTV mortgages to come back and cheaper house prices. Stamp duty was already exempted for first time buyers anyway. The only group that would be benefitted by this scheme are landlord or help to buy people. Majority of home owners are probably going to stay put anyway until furlough ends and economy stabilises.

Does anyone else have a different opinion or what do you guys think?

FTBs aren't exempt from stamp duty entirely, you've still got to pay it on >£300k so there are still a good few that do benefit from this new holiday. I agree it's not the big win for FTBs, Martin Lewis' show did also mention that the higher value property you buy, the bigger the saving, so it's not exactly for the people. The same with that green grant - it applies to LANDLORDS which is scandalous IMO!

 

[hnoz]

Not sure if this is the right thread - but just watching Martin Lewis' show from yesterday, really shocked that the green improvement scheme doesn't look as shockingly tit as Sunak's tweets initially suggested? He said that it was for low income households which felt ridiculous, how many home owners are going to be low income in this era of house prices, minus pensioners? Apparently they'll fund 2/3rds of green improvements up to £5k, for low income households 100% up to £10k.

Wondering what work you'll be able to get done with it though...

Of course it is going to go to low incomes, they've had schemes like this before for boilers, insulation, windows etc. This is basically a new version and how much grant you are eligible for depends on income and what benefits you are entitled to.
If you aren't low income I don't see why anyone should be eligible for 10k from the public purse to fit new windows. I don't know why some people were thinking this was going to be a free for all.

 

[Italy2]

ML seemed to think boilers wouldn't be included & told people not to hold off if they were getting a new one - I imagine such a scheme would get absolutely rinsed.

The previous owner of our house was an elderly lady with a chronic pain condition so I think she was eligible for the loft scheme as a result, our loft is incredibly well insulated. I wanted to get the floor boarded for storage, and the walls boarded for insulation so it wouldn't be uncomfortable for my husband to spend time up there (the storage is for his hobby gear) - but that's definitely a very weak link to green improvements so I doubt it'll fall under the criteria. A girl can dream, I'm gonna keep a hopeful eye out...



FTBs aren't exempt from stamp duty entirely, you've still got to pay it on >£300k so there are still a good few that do benefit from this new holiday. I agree it's not the big win for FTBs, Martin Lewis' show did also mention that the higher value property you buy, the bigger the saving, so it's not exactly for the people. The same with that green grant - it applies to LANDLORDS which is scandalous IMO!

Yes but most FTB can't afford a £300K property anyway?!

 

[hnoz]

Yes but most FTB can't afford a £300K property anyway?!

300k sounds crazy high but the reality is that it isn't if you are near London or in the South. Raising it to 500k isn't really a FTB policy but before the rise to 300k it absolutely was an additional road block to buying in the south. I think our stamp duty was due to be about 6k for a one bedroom flat, while my friends buying 4 bedroom houses up north didn't have to pay anything.

 

[idk2]

300k sounds crazy high but the reality is that it isn't if you are near London or in the South. Raising it to 500k isn't really a FTB policy but before the rise to 300k it absolutely was an additional road block to buying in the south. I think our stamp duty was due to be about 6k for a one bedroom flat, while my friends buying 4 bedroom houses up north didn't have to pay anything.

Even where I am in the midlands, we are FTB looking in to region of 300k-400k so although stamp duty wasn't a huge expense, its nice that we can add that to our deposit instead now.

 

[heretoreaditall2019]

Of course it is going to go to low incomes, they've had schemes like this before for boilers, insulation, windows etc. This is basically a new version and how much grant you are eligible for depends on income and what benefits you are entitled to.
If you aren't low income I don't see why anyone should be eligible for 10k from the public purse to fit new windows. I don't know why some people were thinking this was going to be a free for all.

It's not limited on income, apparently, but I imagine the criteria for work done will be super limiting to compensate for that though. And then the shady firms who do the work allowed will flood the market & drive prices up so it's no real saving, anyway.

Tbh I've got absolutely no qualms in having recourse to public funds for this work if they're willingly providing it. There's a chunk of the population who (happily!) pay a lot into a system and will likely never see any sort of direct cash benefit in their lifetime (minus the state pension, if it exists then) who may actually get something for once, so yeah I'd absolutely take it & not feel the slightest bit guilty at all. We can all start pointing fingers, and I certainly don't want there to be a race to the bottom, but I don't really care to hear moral judgments about these issues when the real issues re availability of public funds / collection of tax run so much deeper.

Yes but most FTB can't afford a £300K property anyway?!

I don't have the data for this on how many FTB properties are >£300k so I can't say what % of FTBs are likely to benefit, but I know it would have benefitted us personally. I was grateful for some stamp duty relief as that's only a relatively recent policy in itself (2-3 budgets ago now?), but an additional chunk of it wouldn't be sniffed at I do agree it's unfair that the more expensive the property the more you benefit, I think the problem is it's hard to implement any other interventions such as mandating banks to provide 95/90% LTV products or cover your legal fees etc etc, with time that stuff will return though, just need a lil faith x

 

[Yel]

Nice properties around here are now starting to sell since the samp duty cut. Lots of overpriced stuff not shifting though.

I wonder how long this surge will last for? I think all this talk of rising prices is very wishful thinking as the steam won't last for long imo. The job cuts are coming in thick and fast even with months of furlough left. Whatever the opposite of the multiplier affect is, I worry about when that starts to kick in at the end of the year.

Economy wise I've not bought anything apart from supermarket food recently, shops and pubs are not enjoyable to go to at the moment.

 

[Italy2]

A few properties near us have been bought by cash buyers presumably for letting purposes.

I agree with lots of redundancies have begun to happen and it's quite sad actually! However, high LTV mortgages seem to be coming back so it will be interesting to see what happens re house prices. I don't think they will rise but they may stay stagnant if landlords are buying properties with cash?

 

[Yel]

I don't think high LTV mortgages are coming back, there's some more 10% LTV products around but these are said to be harder to get approved and the new baseline seems to be 15% LTV

End of the day house prices are largely based on how easy it is to get credit. BOE predict they will fall 20% if interest rates go up just 1% and in one year they were cut by 5%.

Who knows what will happen. It's just about waiting now.

 

[Pixipoppy]

I don't think high LTV mortgages are coming back, there's some more 10% LTV products around but these are said to be harder to get approved and the new baseline seems to be 15% LTV

End of the day house prices are largely based on how easy it is to get credit. BOE predict they will fall 20% if interest rates go up just 1% and in one year they were cut by 5%.

Who knows what will happen. It's just about waiting now.

They will come back eventually I don’t know anyone who managed to buy their first house with a 15% deposit. The whole housing market will grind to a halt if no one can get on the property ladder. It feels like a football match and no one will pass you the ball

 

[Yel]

They will come back eventually I don’t know anyone who managed to buy their first house with a 15% deposit. The whole housing market will grind to a halt if no one can get on the property ladder. It feels like a football match and no one will pass you the ball

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.