Jump to content
House Price Crash Forum

UK housing boom leads to £2,500 jump in asking prices


Recommended Posts

‘Boris bounce’ invigorates buyers and sellers, leading to 12% surge in sales

https://www.theguardian.com/money/2020/feb/17/uk-housing-boom-leads-to-2500-jump-in-asking-prices

Britain’s property market is in the grip of fresh boom, according to Rightmove, with asking prices jumping by more than £2,500 over the past month alone.

The average asking price for a home rose to £309,399 in February, £40 shy of its all-time record, said Rightmove. Buyers and sellers have been invigorated by renewed economic confidence, described as the “Boris bounce”, it added.

Rightmove, which is Britain’s biggest property portal, said it received a record 152m visits in January. Agreed sales surged by 12% compared with the same month last year.

In its most exuberant market report since the last boom in 2014-15, Rightmove predicted price records would be broken in the spring and hesitant buyers should “now jump in”.

 

 

A vote for Boris was a vote for house price rises! Well done everyone. :D

 

Link to post
Share on other sites
  • Replies 77
  • Created
  • Last Reply

Top Posters In This Topic

From the same article:

Lucian Cook, the head of Savills residential research, said: Our own agents are reporting that the vast majority of buyers remain unwilling to increase their budgets. Accordingly, our advice remains that sellers need to remain pragmatic on price, particularly given some of the uncertainty around an impending budget, the first of the new government.”

Just to provide some balance.

And as a potential buyer I can confirm I'm not joining in this Boris Bounce nonsense. Let see where we are in a couple of months.

Link to post
Share on other sites

I doubt don't the figures but where I'm looking (outer West London), about 1/4 to 1/3 of the houses have been reduced in price..iver the last few months, some in Jan 2020, so no bounce in that neck of the woods.

Interesting to see an Estate Agent throw a bit of cold water on it in the article. Presumably they don't want sellers' unrealistic expectations leading to no sales.

Link to post
Share on other sites
3 hours ago, Voice of Doom said:

I doubt don't the figures but where I'm looking (outer West London), about 1/4 to 1/3 of the houses have been reduced in price..iver the last few months, some in Jan 2020, so no bounce in that neck of the woods.

We're looking - c. £250-300k for a semi or bungalow in a decent street in pockets between far west of Bognor & Rustington, maybe 4 square. miles total.  I'd guestimate a 1000 properties match our criteria.  We are seeing 3 listings and/or reductions 6 days a week.  90% fail to complete in a YEAR.  At this rate 1/4 of the stock will be on the market unsold by the end of 2020.  Beginning to feel a bit nervous that even if we bag a bargain, we'll struggle to sell if circumstances change unexpectedly.

Link to post
Share on other sites

That's interesting. It's clearly a mixed picture out there. And, like you, I am still bearish and will remain so if I buy. However, personal cicrumstances do not allow infinite patience. 

To cheer the bears up, I type this while looking at a development near me in W London (completed about 8 months ago) where there are only 2 lights on out of about 60 flats! It's the talk of the town that they can't shift them even with HTB. And yet there's more in the pipeline...

Link to post
Share on other sites
11 hours ago, Voice of Doom said:

That's interesting. It's clearly a mixed picture out there. And, like you, I am still bearish and will remain so if I buy. However, personal cicrumstances do not allow infinite patience. 

 

I have now run out of patience and time (nearly 46). Crunching the numbers we can afford for the house to have lost 30% of its value by the time the mortgage is paid off and still be better off than renting for the same period (inc interest on both sides).

For me its now trying to make sure that we are comfortable in retirement. I don't really care if it loses some value so long as I can either sell it and move elsewhere or live in it and not be paying rent in retirement. It might even make the difference between retiring at 62 or 68-70.

Link to post
Share on other sites
26 minutes ago, Chunketh said:

I have now run out of patience and time (nearly 46). Crunching the numbers we can afford for the house to have lost 30% of its value by the time the mortgage is paid off and still be better off than renting for the same period (inc interest on both sides).

For me its now trying to make sure that we are comfortable in retirement. I don't really care if it loses some value so long as I can either sell it and move elsewhere or live in it and not be paying rent in retirement. It might even make the difference between retiring at 62 or 68-70.

Not sure if its good deal if your house loses 30% value. If it grows in value, you cal sell it off for retirement. Losing 30% value and interest payments is more than the rent you could pay.

Link to post
Share on other sites

We have reached a permanently high plateau. 

People who can borrow at the current interest rates, have.

Potential sellers cannot get a return on their money if they do sell, so why bother?

People with mortgages are on such low interest and such long terms that they are not motivated to discharge the debt.

BTL landlords are getting by on penny thin margins, while renters face a massive gap between their rent and the return on getting a mortgage.

 

Until the interest regime changes (and it will) this situation will not move in either direction.

Link to post
Share on other sites
16 hours ago, hotblack42 said:

We're looking - c. £250-300k for a semi or bungalow in a decent street in pockets between far west of Bognor & Rustington, maybe 4 square. miles total.  I'd guestimate a 1000 properties match our criteria.  We are seeing 3 listings and/or reductions 6 days a week.  90% fail to complete in a YEAR.  At this rate 1/4 of the stock will be on the market unsold by the end of 2020.  Beginning to feel a bit nervous that even if we bag a bargain, we'll struggle to sell if circumstances change unexpectedly.

This echoes what I am seeing in my area.  As other people have said on here, very few people are actually doing any buying or selling, it's just listing after listing going round the merry-go-round of on the market, SSTC, back on the market.  No one selling it going to "give it away" and no one buying seems to be paying top-dollar any more.  We have an absolute shed-load of new build round my way too which does all get bought, which I think is creating the stalemate on both sides.  The sellers think their houses are worth more because the newbuild HTB sells for crazy prices and the buyers buy the newbuild because the HTB and the stupid long mortgage terms mean they can "afford" to overpay.

I'm so bored of this non-market and I just can't see it changing.

Link to post
Share on other sites
6 hours ago, Simhadri said:

Not sure if its good deal if your house loses 30% value. If it grows in value, you cal sell it off for retirement. Losing 30% value and interest payments is more than the rent you could pay.

If its lost more than 30% we will probably just stay put or trade down. At the end of the day there will be no rent to pay during retirement. That is the key thing. Plus it gives us the option of renting it out while we do a bit of travelling in early retirement :)

 

I dont like the fact I have to pay through the nose for a roof over my head, but it is what it is and im out of time.

Link to post
Share on other sites

I admire your dispassionate approach. I am a similar age and likewise close to the end of my tether.  However I bitterly resent paying £450k for a modest house that just a few years ago was £275k.  Years of prudent living and saving, working hard - all for nothing.   The privileged homeowner receives the benefit , tax free for doing nothing other than belonging to a group chosen by the state be winners. The transfer of wealth through HPI is staggering and crushing for those on the wrong side of the line.

With Brexit negs likely to be tough and the reality of the economic impacts yet to be felt I am minded to stick it out a little longer..I am too far gone now.

Whatever happens they have created a lifelong campaigner against the forces that have designed this injustice.

Link to post
Share on other sites
On 17/02/2020 at 12:38, PeanutButter said:

 

A vote for Boris was a vote for house price rises! Well done everyone. :D

 

Robert Peston, who used to be quite a good business journalist and now works for ITV, says Boris Johnson's government has a culture like a hedge fund.

Quote

Johnson and Cummings are hellbent on turning their decisive election victory into economic and political boom, before the bust that they know can never be escaped.

 

Link to post
Share on other sites
22 hours ago, Chunketh said:

I have now run out of patience and time (nearly 46). Crunching the numbers we can afford for the house to have lost 30% of its value by the time the mortgage is paid off and still be better off than renting for the same period (inc interest on both sides).

For me its now trying to make sure that we are comfortable in retirement. I don't really care if it loses some value so long as I can either sell it and move elsewhere or live in it and not be paying rent in retirement. It might even make the difference between retiring at 62 or 68-70.

I'm 4 years behind you age wise.... I have a spreadsheet which tracks age of my young kids, retirement, mortgage pay off date etc. We too are almost at the now or never stage. I'm hoping that the full impact of s24 has lead to a shift from BTL to FTBs by spring '21.

Link to post
Share on other sites
13 hours ago, Wayward said:

I admire your dispassionate approach. I am a similar age and likewise close to the end of my tether.  However I bitterly resent paying £450k for a modest house that just a few years ago was £275k.  Years of prudent living and saving, working hard - all for nothing.   The privileged homeowner receives the benefit , tax free for doing nothing other than belonging to a group chosen by the state be winners. The transfer of wealth through HPI is staggering and crushing for those on the wrong side of the line.

With Brexit negs likely to be tough and the reality of the economic impacts yet to be felt I am minded to stick it out a little longer..I am too far gone now.

Whatever happens they have created a lifelong campaigner against the forces that have designed this injustice.

I think its all we can do. I cant really complain too much because I used to be terrible with money and I could have bought years ago if I had changed how I handled it a decade earlier. That is on me and noone else.

Link to post
Share on other sites

One key factor seems to be the ever cheaper interest rates (cost of borrowing). For context:

In 2015 when my brother bought, best rate with LTV was 2.99% with a hefty fee.

In 2017 85% LTV, would get you 2.29% with fees

IN 2020 85% LTV best rate is 1.75% with fees.

 

So as long as the rates become less and less, the bubble is inflated/sustained. 

Link to post
Share on other sites
47 minutes ago, Chunketh said:

I think its all we can do. I cant really complain too much because I used to be terrible with money and I could have bought years ago if I had changed how I handled it a decade earlier. That is on me and noone else.

I understand that view and im in that boat aswell, but really anyone should be entitled to the purchase of a reasonable property if they have a reasonable financial situation at whatever age - whichever decade one stops partying / splashing out / whatever.

Link to post
Share on other sites
1 hour ago, Chunketh said:

I think its all we can do. I cant really complain too much because I used to be terrible with money and I could have bought years ago if I had changed how I handled it a decade earlier. That is on me and noone else.

I think you can complain and should.  The price of housing has been deliberately inflated to shift wealth to favoured groups....this is not something we can accept.  Your past financial decisions are besides the point.

Link to post
Share on other sites

Some financial advisor on LBC yesterday was phoned up by a guy with £10,000. Wants to get on the housing ladder in London. Any ideas?

 

Financial advisor: Difficult. Try mum and dad?

Caller: They're in the same boat - in their 50s, trying to buy their first home. BOMAD aint happening.

Financial advisor: Very difficult. Try pestering the government?

 

So basically, main stram financial advisers' advice  - if you can borrow to go all in, do that. If you really cant afford anything - it's a findamental social issue that needs to be addressed. And tough, by the way.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 415 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.