house prices + Brexit

Psycho Sonny · 11 Dec 2018 at 17:33

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.

MatteH Oxford · 11 Dec 2018 at 17:55

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.

koolpc · 11 Dec 2018 at 18:04

Let me get my crystal ball and i'll let you know!

DarkHorizon472 · 11 Dec 2018 at 19:36

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.

HangTime · 11 Dec 2018 at 20:53

Psycho Sonny said:
If we leave eu then interest rate will go down

I'm not convinced; interest rates are under 1% already and if sterling devalues as a result of Brexit, then there could be pressure to raise interest rates.

Jokester · 11 Dec 2018 at 20:57

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.

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.

Psycho Sonny · 11 Dec 2018 at 20:58

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.

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.

Maccapacca · 12 Dec 2018 at 07:31

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.

MatteH Oxford · 12 Dec 2018 at 07:31

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.

MatteH Oxford · 12 Dec 2018 at 07:50

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.

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.

Bald-Eagle22 · 15 Dec 2018 at 09:10

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.

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.

Firestar_3x · 15 Dec 2018 at 09:32

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.

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.

Skillmister · 15 Dec 2018 at 17:27

MatteH Oxford said:
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.

Same as @Maccapacca over here developers are still churning them out and people are snapping them up.

HungryHippos · 20 Dec 2018 at 20:19

Yep lots of new builds in my area too.

Uther · 20 Dec 2018 at 20:31

New estates going up everywhere here in the midlands.

HangTime · 21 Dec 2018 at 17:15

Bald-Eagle22 said:
I’ve been in negative equity twice over 20 years , it’s no real biggie.

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.

chaparral · 21 Dec 2018 at 20:57

SammJ said:
I know we cannot know for sure but I am a first time buyer currently looking at properties.
I have been confirmed a mortgage of 210k

WOW you can buy a House for 210k :eek:

Just the garden shed would most likely cost that price that over here.. :mad:

Captain · 22 Dec 2018 at 14:53

chaparral said:
WOW you can buy a House for 210k

Just the garden shed would most likely cost that price that over here..

You can buy a 4 bed house in Birmingham for £150k

chaparral · 22 Dec 2018 at 15:49

Clov!s said:
You can buy a 4 bed house in Birmingham for £150k

I been to Birmingham and i can see why there so cheap no one wants to live there

Looked like there was more people that lived on the streets then there were living in houses

Skillmister · 22 Dec 2018 at 15:59

chaparral said:
WOW you can buy a House for 210k

Just the garden shed would most likely cost that price that over here..

Yawn. We get it, you live somewhere expensive :rolleyes:

Could get two of my house for that.

house prices + Brexit

Tea Drinker