I’m trying to buy one now
It doesn’t matter much if it goes down in price if you only own one property. It’s landlords who will want to offload extra properties at the moment.
I think it's helpful to think in terms of trends, as it's always possible to find counter-examples, because people are not always as rational as we might think when it comes to stuff like this. But I think there is or will be a downward pressure on prices for reasons like the one you cite. How that translates into actual selling prices remains to be seen.
It’s just journalists turning standard financial institutional scenario testing into some kind of scare piece. You want to see some of the five-year scenarios I run for my insurer — they’d make you become some kind of prepper. Doesn’t mean I give them credibility. The institution needs to understand the impact of large stresses and have an idea of how it will manage them.ooh. the 40% possibility is being mentioned by Lloyds bank now.
Major lender warns of 25% house price drop in ‘downside scenario’
House prices could drop by almost 25% ‘start-to-trough’ or by as much as 40% in severe circumstances, Lloyds Banking Group has claimed.www.estateagenttoday.co.uk
You answered it in the second part of the paragraph. Most people are just desperate to get out of whatever situation they are in and so if they've managed to get a deposit together they will buy asap.
It matters if you have a mortgage because you pay well over the odds on what it comes to be worth - and then negative equity
i dont really know much about how markets work beyond a bit of common sense, so this is pure conjecture, but assuming what you say is true that describes only a proportion of all buyers. the others will drop out of the market and the only way to bring them back in is to drop prices
I always assumed he wrote it.
yes, rental prices are insane right now, its like a horribly high stakes game of musical chairs with nowhere near enough chairs.
A lot of left housing campaigns have spent a long time saying there is no shortage of houses, that it's just their distribution that's a problem, or empty properties and holiday homes. But it's clear to me that in London there is now a shortage of homes. The population of London has increased by 2 million in twenty years, and 500,000 homes built in that time. It's just not enough. Of course we (a people's government) should appropriate the empty properties, and the properties of landlords who don't do repairs, and we should tax holiday lets to death, but I don't believe it would be enough.
Afternoon.
There will will always be people who have to move - new jobs, divorce, growing families, etc, won't wait till house prices are convenient.
just dont buy somewhere too small! London prices tanked and everywhere was difficult to sell '88 -93. I knew many couples who bought tiny places in the ridiculous '80s house price bubble, only to split up and be stuck with each other and a debt much bigger than their bedsit. Grim.
Oh, for sure. And (while it’s easy to say this without evidence) it’s exactly how I always expected the “crash” to actually happen. Because it’s all of a one with people not understanding opportunity cost or alternative investments — this idea that “I’ll just sit it out and wait for prices to recover”
I’m not so sure I agree if your alternative is paying rent. At the very least, it’s a question worth proper analysis and debate
The problem with the UK housing market is that only very rarely does the paying well over the odds result in something worth less than you paid for it. Most people will enter the market in the confident expectation that, short term pain apart, the long term benefits will be worth it.
Happily?
Their words, keeps the price “low”
