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lewissheridan

What Is Happening To House Prices ?

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What is happening to house prices ? I have been renting for about 18 months now, saved a deposit, and squandered a deposit, I don't see any significant movement in prices at all in my area, and generally across the Surrey area of which i'm looking.

The average prices i'm experiencing for 1-bed flats is circa £115 - £130, studios are 90k +, I mean what on earth is happening ? 1-bed starter homes begin at £140ish and then it all just sky-rockets upwards.

I'm 25, and friends 5 years older than me can't see why i don't buy now. But i argue, when they bought, they've had plenty of equity to jump up to the next rung, the ladder has been pulled up and we can't get on. Yet contrary to this,people are still borrowing and still buying, with only negliable decline. With lowering of interest rates to stimulate the economy and the near stop in high-street spending when will these artificially inflated house prices come back down to a level of normality so that us first-time buyers can purchase a house?

I am really becoming bitter about this whole situation and really do despise people who own multiple homes, and btl'rs all profiting from our misery !! When did houses start becoming an investment vehicle/assets and stop becoming homes ??

I'm 25, earn an average wage, 25k a year, yet i'm paying in excess of £750 a month just to live in this country, that's including rent, council tax, bills etc etc. That represents 50% of my income after tax pretty much, i really don't have room to save at all !?! A 3.5 income multiple provides me with borrowing potential crica 90k, and to be honest, i don't want to live in a studio flat in a dingey part of town.

If you are a first time buyer what reasons are making you buy at these astromical prices ? Because you are the people to blame for prolonging the agony to be honest.

So, what is happening to house prices ? :huh:

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I'm 30 and on a bit more salary than you, and I can't afford either.

I am pi**ed off about it, but I ain't buckling to the pressure of buying

until its reasonable to do so.

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Its difficult waiting isn't it!!

I currently own a flat but I'd really like to get somewhere a little bigger with my girlfriend. I keep telling her that if we wait a while longer then it will be worth it as well get something better for our money but it could be a long wait yet. I'm very tempted to sell up and rent for a while to really make the best of the market but I'm not sure I have the bottle. As I'll be trading upwards, either way a drop in prices is good.

One more consolation is that the very unpleasant guy who bought a flat in the block last summer to rent out has seen prices stall and it looks like he might have bought at the peak. I will smile as he loses money as we had some problems with his tennants and his reply was 'Its not my problem, I don't live there'.

Nice.

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Its difficult waiting isn't it!!

I currently own a flat but I'd really like to get somewhere a little bigger with my girlfriend. I keep telling her that if we wait a while longer then it will be worth it as well get something better for our money but it could be a long wait yet. I'm very tempted to sell up and rent for a while to really make the best of the market but I'm not sure I have the bottle. As I'll be trading upwards, either way a drop in prices is good.

One more consolation is that the very unpleasant guy who bought a flat in the block last summer to rent out has seen prices stall and it looks like he might have bought at the peak. I will smile as he loses money as we had some problems with his tennants and his reply was 'Its not my problem, I don't live there'.

Nice.

I'd probably say sell now whilst at the top of the market, but there is no guarantee house prices will collapse as fantastically as we would hope. And let's face it they need to crash fantastically before any of us stand a decent chance at buying. What i want to happen is unfortunately not what's going to happen, i think there will be subtle decline, followed by mini recoveries as people jump on board, to put an analogy it'll be like like the final person pulling up the ladder, but letting it slip slightly, a few more people grab their opportunity, then it's pulled up again, and perpetually going like this for 10-15 years. How depressing is that, but i can't see any bloody light at the end of this tunnel. Sad isn't it.. ?

Where does it all go from here?

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I'm 25, earn an average wage, 25k a year, yet i'm paying in excess of £750 a month just to live in this country, that's including rent, council tax, bills etc etc. That represents 50% of my income after tax pretty much, i really don't have room to save at all !?!

you could help yourself by reducing your rental costs, they don't need to be that high if you share. Then save the money. Unfortunately you are going to have to face a long wait unless you want to buy a depreciating asset, to be honest at 25 you've not got that much to complain about - the average age of a FTB is probably now in excess of 34. No good complaining if you could do something about it now, wasting all that money in rent and you won't be in a better position in 5 years time when you could have been looking to buy with a nice deposit. I briefly chose to live on my own but all my money went out on rent and costs, now I share and save about £500 a month - it's a lifestyle choice that ultimately you have to make but don't go bleating about house prices if you aren't doing anything about it.

Edited by munimula

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you could help yourself by reducing your rental costs, they don't need to be that high if you share. Then save the money. Unfortunately you are going to have to face a long wait unless you want to buy a depreciating asset, to be honest at 25 you've not got that much to complain about - the average age of a FTB is probably now in excess of 34. No good complaining if you could do something about it now, wasting all that money in rent and you won't be in a better position in 5 years time when you could have been looking to buy with a nice deposit. I briefly chose to live on my own but all my money went out on rent and costs, now I share and save about £500 a month - it's a lifestyle choice that ultimately you have to make but don't go bleating about house prices if you aren't doing anything about it.

Well, firstly i am in a position to bleat about house prices. My lifestyle is very prudent, and being in a position to do something equates to borrowing far in excess of what is sensible to borrow, and as you say, on a depreciating asset, i'll leave that for fools.

My rent is £525, which is the cheapest i could find for a 1-bed flat without stepping into studio territory, but don't get me wrong, i have lived in bedsits, shared accommodation, so a 1-bed flat is just my next progression. Now my next step should be to buy, but i am hindered by these prices. As for renting, i can't rent cheaper, simple as that, i live in surrey, but then the argument is move out of surrey, but where does it end ? then my expenses go up for travel. It all amounts to a catch 22, but don't think for one moment i'm living it up with plasma screens, eating out etc etc. I am a prudent person by nature, and was saving 1k a month which is testament to sacrafice to secure a deposit. The simple fact is, cost of living in this country is extremely high, and a lot of young individuals would subsidise it through credit and cheap borrowing. I don't borrow, i live very prudently, and my option to do something about it ? is borrow in excess of what i can afford, OR, purchase a studio flat.

I want to begin my life, not go back to shared accommodation ? A lifestyle choice, i think not, a life, i think so. A one-bed flat is a modest home, it's as small as you can get, sharing to save a deposit , been there, done that. I'd rather save at half the rate now, at the luxury (if you can call it that) of having a 1-bed flat.

Thanks for the advice, i understand what you're saying, but my savings whether i rent @ £525pm, or rent at £350pm does not make my savings grow inline with house-price inflation.

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I want to begin my life, not go back to shared accommodation ? A lifestyle choice, i think not, a life, i think so. A one-bed flat is a modest home, it's as small as you can get, sharing to save a deposit , been there, done that. I'd rather save at half the rate now, at the luxury (if you can call it that) of having a 1-bed flat.

Thanks for the advice, i understand what you're saying, but my savings whether i rent @ £525pm, or rent at £350pm does not make my savings grow inline with house-price inflation.

Choosing not to share is a lifestyle choice. I'm sharing a 1-bed flat with a friend, it's large mind, the lounge is bigger than most stuido flats on it's own. We basically do without a lounge as the lounge is my bedroom. This saves me £400 per month as I used to rent the flat on my own, also in Surrey, Hampton Wick (Richmond council tax rates too!) it cost over £900 rent and bills.

Now I made this choice because I want to save as much as I can because I'm certain prices are going to come down significantly even though I'm going to have to wait a few years. I want to be in the best position that I can be when prices have gone down. It is sad that this has to be done but to be honest it's not that bad, I'm hardly ever in anyway so £100 a week for the lack of a lounge is a fair swap to me.

To be honest when I do eventually buy it probably won't make that much difference to me...it's what you do with your life that makes a difference.

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While you have you have done the shared house thing.. for economic reasons I would be very tempted to get back into a shared house.

- Rising council tax bills

- Rising Energy Bills

- Shared payment of bills (TV, Internet, water, phone etc)

It times of cheap living, - having house mates and the associated circle of their friends available means cheap nites out.

Tho I agree it's hard to keep saving month in month out - hence I've just blown about a Grand for the 1st time in 9 months :blink:

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Historically life has been rather expensive in the UK and throughout the world. Wealth has generally been held by the few since the first civilisations. How many people built the pyramids - and what did they live in? Why was there a revolution in France in 1789? Why did communism take a grip of large swathes of the world? Wealth may be just moving back to its historical norm. Either there will be a house price crash and you should hold out for it or you should accept that you are not able to buy and rent within your means. At least renting keeps you free from debt, and is that really such a bad thing?

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What is happening to house prices ? I have been renting for about 18 months now, saved a deposit, and squandered a deposit, I don't see any significant movement in prices at all in my area, and generally across the Surrey area of which i'm looking.

The average prices i'm experiencing for 1-bed flats is circa £115 - £130, studios are 90k +, I mean what on earth is happening ? 1-bed starter homes begin at £140ish and then it all just sky-rockets upwards.

I'm 25, and friends 5 years older than me can't see why i don't buy now. But i argue, when they bought, they've had plenty of equity to jump up to the next rung, the ladder has been pulled up and we can't get on. Yet contrary to this,people are still borrowing and still buying, with only negliable decline. With lowering of interest rates to stimulate the economy and the near stop in high-street spending when will these artificially inflated house prices come back down to a level of normality so that us first-time buyers can purchase a house?

I am really becoming bitter about this whole situation and really do despise people who own multiple homes, and btl'rs all profiting from our misery !! When did houses start becoming an investment vehicle/assets and stop becoming homes ??

I'm 25, earn an average wage, 25k a year, yet i'm paying in excess of £750 a month just to live in this country, that's including rent, council tax, bills etc etc. That represents 50% of my income after tax pretty much, i really don't have room to save at all !?! A 3.5 income multiple provides me with borrowing potential crica 90k, and to be honest, i don't want to live in a studio flat in a dingey part of town.

If you are a first time buyer what reasons are making you buy at these astromical prices ? Because you are the people to blame for prolonging the agony to be honest.

So, what is happening to house prices ?  :huh:

You are living in Surrey, the most expensive county on earth. Rents are holding up better than most other areas here, but slowly they ARE falling.

Have you considered moving out of Surrey. Please see my recent thread: "Writing on the wall for rents".

VP

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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