Anyone struggling to buy a property even with funding?

[MrRockliffe]

Isn't that the norm ?

I saw a "short" the other day that explained house prices double roughly every 8 years, and it looked at the average UK house price since the 60s or 70s and the "rule" seemed to work.

Although i don't know how long that is sustainable as more and more people struggle to get on the housing market.

Perhaps, but it seems excessive

I’m in a lucky position, in that my household income is enough that we don’t need to worry about getting a mortgage, but it’s isn’t the case for most people

 

[Irish_Tom]

Yep, been in this position for almost 3 years now.

I'm a cash buyer and I don't need to sell my current property yet I've only managed to view 3 houses. Everything's snapped up instantly, either without a viewing or before the property's even listed on the property websites. Don't mind paying over the asking price to get what I want but I'm not spending the sort of money it takes to buy a house without viewing it first.

Pretty sure people trying to escape cities to move down to Cornwall during COVID was the start of this but it's not really improved or stopped.

It’s really weird here — places are coming on the market for stupid money but then aren’t selling. There’s one estate agent who has a bit of a monopoly in the town and I swear they’re overvaluing everything just to see if they can get the stupid asking price. It’s like they think we’re still in the stamp-duty freeze frenzy but things have definitely slowed down (probably because they’re overvaluing everything).

Case in point, a place came on the market at £995k. It had a nice view but it needs a lot of work to bring it up to scratch (or it needs knocking down and re-building). They kept dropping the price and it’s now on at £750k but it’s still not selling.

Another place just came on at £685k — sure they’ve done a nice job decorating and it’s got a nice kitchen, but it’s a bog-standard 4-bed, it’s really nothing special. Frankly, £585k would be a lot for it.

A bungalow down the road has been listed at £1.2m Honestly, if it sells for that I will eat every hat I own.

It’s so frustrating and it’s not doing anyone any favours. We’ve only be looking for six months, I hope we don’t end up in the same position in three years like you!

 

[LizardKing]

also on the look out to buy of late, but yeah its just not gonna happen round here, time to pack up and move up north me thinks.


A very average 3 bed terraced, its mental. Decent town on the out skirts of Milton Keynes, so full of London expats. tbf i think their dreaming asking this.

In my day terraced house were always known as "cheap" for the working class. not any more it would seem.

 

[Deleted User 298457]

also on the look out to buy of late, but yeah its just not gonna happen round here, time to pack up and move up north me thinks.


A very average 3 bed terraced, its mental. Decent town on the out skirts of Milton Keynes, so full of London expats. tbf i think their dreaming asking this.

In my day terraced house were always known as "cheap" for the working class. not any more it would seem.

Depending on which town, they are more in demand than gross new builds. And the post war houses are incredibly expensive.

 

[Participant]

I think there might be a bubble forming as debt has been so cheap and people can afford better houses than otherwise, especially by selling city gaffs and moving to the sticks with COVID.

If interest rates rise significantly, a lot of people might suddenly find themselves squeezed on mortgage payments.

It is awful though and I'm so glad we managed to get the place we found when we did. It needed some cosmetic work and was marketed awfully, which put some people off. We offered £20k over asking and I still tragically consider it a good deal, given the market.

 

[Uther]

also on the look out to buy of late, but yeah its just not gonna happen round here, time to pack up and move up north me thinks.


A very average 3 bed terraced, its mental. Decent town on the out skirts of Milton Keynes, so full of London expats. tbf i think their dreaming asking this.

In my day terraced house were always known as "cheap" for the working class. not any more it would seem.

Obviously it's my age, I see that as a 100k house!
I blame the BtL vultures.

 

[LizardKing]

Depending on which town, they are more in demand than gross new builds. And the post war houses are incredibly expensive.

Never understood it myself, some terraces can be huge, well made etc for sure, but this is just a glorified 2 up 2 down, with a tacked on kitchen bathroom at the rear. I lived in one for a year or two and hated every bit about it. Horses for courses and all that!

 

[Deleted User 298457]

Never understood it myself, some terraces can be huge, well made etc for sure, but this is just a glorified 2 up 2 down, with a tacked on kitchen bathroom at the rear. I lived in one for a year or two and hated every bit about it. Horses for courses and all that!

Hey man go easy

(I live in a 60sqm house exactly like the one you posted - I've just accepted an offer for 525k)

I've found for house buying you need to remove an ounce of rationality. The market dictates the price, and they do sell.

 

[MatsyLR]

also on the look out to buy of late, but yeah its just not gonna happen round here, time to pack up and move up north me thinks.


A very average 3 bed terraced, its mental. Decent town on the out skirts of Milton Keynes, so full of London expats. tbf i think their dreaming asking this.

In my day terraced house were always known as "cheap" for the working class. not any more it would seem.

What on earth is that £450k for? things similar go for the £100k mark up here....

 

[DXP55]

I look at that as a £4.5K house - Same as first house we went to see -knocked on door and woman said we have been offered £6.5k we laughed at her and walked away - My income then was £19 a week - we stayed in for 12 months and saved £1k then bought a house 18 months later for £7.75K - Mortgage rates rocketed two yrs later (12-15%) and my payments were more than income.
So yes we never had it so easy.

 

[LizardKing]

Obviously it's my age, I see that as a 100k house!
I blame the BtL vultures.

It should be! Well give a few k for inflation and not being in Burnley

 

[LizardKing]

Hey man go easy

(I live in a 60sqm house exactly like the one you posted - I've just accepted an offer for 525k)

I've found for house buying you need to remove an ounce of rationality. The market dictates the price, and they do sell.

Fair play housing is on its head for sure, there's no rhyme or reason to what some houses command! It's almost like people are buying what ever they can get there hands on for whatever price, houses can't loose value after all!

Once a house has sold for a crazy price it kinda sets the tone for it and it's location, doubling down the affect.
The scary thing is unless there's a huge recession with big interest rate rises (I can't see the gov allowing that any time soon) , mass unemployment its not gonna change, people who are buying the houses at these prices can afford the repayments, were not likely to see a repeat of previous recessions (imo)

 

[MatsyLR]

Offered asking price on a house I'm going to see on Tuesday just to get my foot in the door as there are 20 people going to view according to the estate agent. Been to see the same house just a few doors away earlier in the year so not concerned but its mad making an offer before you have even stepped foot in the door.

 

[R.O.S.S.I]

Will be in a position to look for a house probably this time next year with my partner.

I'm hoping with what is happening with inflation and interest rates that something will happen to cause the market to simmer down somewhat by then, as prices do seem to be getting out of hand. I know it would be just my luck to buy somewhere and there either be a crash and we go into negative equity or something stupid.

Will be keeping a closer eye on the housing market towards the end of the year but for now it's BAU giving the landlord our hand-earned

 

[413x]

I think there might be a bubble forming as debt has been so cheap and people can afford better houses than otherwise, especially by selling city gaffs and moving to the sticks with COVID.

If interest rates rise significantly, a lot of people might suddenly find themselves squeezed on mortgage payments.

It is awful though and I'm so glad we managed to get the place we found when we did. It needed some cosmetic work and was marketed awfully, which put some people off. We offered £20k over asking and I still tragically consider it a good deal, given the market.

Seems like the only thing that can cause a correction is the inflation rate catching people out. But with prices up 20 percent in 2 years I doubt many will suffer from negative equity unless you're a FTB recently. (last year)

What might catch people out (me included) would be a substantial interest rate rise. Anything near or north of 5pc would cripple so many.

This is why I've fixed. Taking a penalty. 5pc would be a life changing increase. And that shouldn't be the case. As a household that earns over average you shouldn't undergo life changing effects from 5pc points increase.
That means if we would have to make changes many others would be screwed

I was shocked the bank would lend us 330k that's too much imo. Sure I could. And at current rates it would be fine. But I do not want to be at mercy of interest rates with that much debt to income ratio.

Not sure how bad it will be. It will depend on how much rates go up.. And how long it lasts.

The current predictions seem 'ok' but with cost of living. Any unexpected deviation to a worse situation is going to have an effect. I think.

 

[Semple]

Crazy how I can afford copious amounts of gucci belts, corner sofas and floating televisions above fireplaces but I can't afford a house.

That's because you're not buying the right Gucci belts.

 

[fez]

Until BtL becomes unprofitable and risky, house prices will continue to rise until people are literally just existing on good salaries. We are quite literally building a house of cards where the salary required to have anything other than a basic existence is getting higher and higher and the government will have to support more and more people who can't afford housing, heating, food etc. They will keep pushing the burden onto whoever is just about keeping their head above water until they finally go under, rinse and repeat.

Its bloody depressing being a youngster today. You can look forward to a massively declining standard of living, poor opportunities in the world place and never owning a house unless you get help or have a partner where you both earn really good money. Oh and you will probably retire in your mid to late 70s. Free markets eh. Magic.

 

[the_worrier]

We sold a year ago and moved in to rented. I am now looking to buy with a £225K deposit and there is either nothing suitable or a house has so many viewings booked they will not take any more. Bonkers.

 

[squerble]

Started looking for a house last June. Offered on about 10 properties, offering £20-30k over asking (on roughly 220-250k houses) and missed out to chain-free buyers. Became chain-free buyers and still missed out on a couple! We're now on the third house we had an offer accepted on, but it's been almost 3 months since we had the offer accepted and still have no sign of an exchange or completion date. Bonkers at the moment.

 

[Unseul]

Until BtL becomes unprofitable and risky, house prices will continue to rise until people are literally just existing on good salaries. We are quite literally building a house of cards where the salary required to have anything other than a basic existence is getting higher and higher and the government will have to support more and more people who can't afford housing, heating, food etc. They will keep pushing the burden onto whoever is just about keeping their head above water until they finally go under, rinse and repeat.

Its bloody depressing being a youngster today. You can look forward to a massively declining standard of living, poor opportunities in the world place and never owning a house unless you get help or have a partner where you both earn really good money. Oh and you will probably retire in your mid to late 70s. Free markets eh. Magic.

Agree with pretty much everything you've written, but even as a 38 year old (so not really that young anymore) who's just become a first time buyer, I think you're being extremely optimistic if you think that retirement will be the norm for most people in 30-40 years time, let alone more!