house prices + Brexit

if there is a crash - people will stop selling and banks will stop lending.

so he won't be a winner. nobody wants to sell their home for a loss unless someone is selling a much bigger and better home for a loss also.

the market therefore depletes and a lot of Estate agent offices pack up shop. when the market is booming new offices are opening up every day. before the last recession i remember on a high street 2-3 new estate agents had opened up on the same street within 1-2 months.

if there is a downturn which it is currently it's harder to buy even though they are cheaper. you have to get lucky.
 
There are always forced sellers in those circumstances , prices are set at that level achieved during such a period. Prices fell sharply post 2008 despite a lack of lending and a supposed housing shortage.
 
Last edited:
DarkHorizon472 said:
If it is a very disruptive Brexit it could cause a significant recession, on the other hand if Brexit is cancelled then it would unlock a lot of the delayed investment for the UK.
Click to expand...
A rebound in the value of the pound would likely tip the UK into recession in my opinion due to the cost of exports increasing. The world economy is teetering on the edge as it is regardless of what happens.
 
MatteH Oxford said:
There are always forced sellers in those circumstances , prices are set at that level achieved during such a period. Prices fell sharply post 2008 despite a lack of lending and a supposed housing shortage.
Click to expand...

Which is why I said you need to get lucky.

Someone who has been made redundant in the area you are looking at or moving abroad, etc.

It's not like normal where plenty of options wherever you want.
 
Sat in a meeting this week with a large housing developer and they are ploughing on building houses and apartments, buying land and planning enormous schemes and projects.

They said sales have slowed but not enough to stop them building and they introduced a break clause in their contracts to enable them to stop building at little to no cost very quickly.
 
Well, there's more to it than that. Death and divorce add up to quite a few sales, along with unpayable mortgage debts which are only going to escalate with section 24.
Landlords are far less likely to hang on to a property making a loss than an owner/occupier sat in negative equity.
 
Maccapacca said:
Sat in a meeting this week with a large housing developer and they are ploughing on building houses and apartments, buying land and planning enormous schemes and projects.

They said sales have slowed but not enough to stop them building and they introduced a break clause in their contracts to enable them to stop building at little to no cost very quickly.
Click to expand...
I would say recent house builder share prices generally tell a difference story.
I'm an operations manager for an Oxfordshire based firm and the vast majority of our upcoming projects are heritage/refurb based, new build has slowed to a crawl.
 
MatteH Oxford said:
I've seen quite significant reductions since the section 24 tax (aimed at landlords) came in. There's another two years of increases to taper in yet which will add another 20% to their tax liabilities.
Click to expand...

Or 40% , you watch rents go through the roof over the next few years . I can tell you know landords won’t be paying it . Rentals are in to much demand , one of the worst decisions the government ever did .

Back to,the OP . In all honesty house purchase should be a long term purchase , as long as you don’t have to sell and not purchase anything else when the market dips you will be fine . I’ve been in negative equity twice over 20 years , it’s no real biggie.
 
Psycho Sonny said:
if there is a crash - people will stop selling and banks will stop lending.

so he won't be a winner. nobody wants to sell their home for a loss unless someone is selling a much bigger and better home for a loss also.

the market therefore depletes and a lot of Estate agent offices pack up shop. when the market is booming new offices are opening up every day. before the last recession i remember on a high street 2-3 new estate agents had opened up on the same street within 1-2 months.

if there is a downturn which it is currently it's harder to buy even though they are cheaper. you have to get lucky.
Click to expand...

Banks may have to lend to try and stimulate the economy, home owner may be forced to sell due to either impending repossession or forced by the banks.
 
Bald-Eagle22 said:
I’ve been in negative equity twice over 20 years , it’s no real biggie.
Click to expand...

Negative equity in itself is not as big a problem as some make out if people have sufficient freedom to work around it, and numerous goods bought on finance end up in a similar position (resale value less than amount owed). For people wanting to move up the ladder it may actually be a good thing if the factors have also meant that better houses have fallen in value by more than their current home. I think it is more the related issues that may arise e.g. if people are on a short term mortgage product and rates rise, then negative equity can restrict their ability to remortgage onto a more affordable rate.
 
You must log in or register to reply here.
Back
Top Bottom