Jump to content
House Price Crash Forum

Surveyors predict house price falls on the way


Recommended Posts

  • Replies 76
  • Created
  • Last Reply

Top Posters In This Topic

Yep.  Small developers are in trouble and are laying off staff.  Too much debt and not enough sales.  High amount of investment property coming into market to offload.  
It’s chaos out there and sales still held up.  The beginnings have started, this is going to take ages to play out.

Link to post
Share on other sites
7 hours ago, longgone said:

Even after the stamp duty announcement wow

I'm Astonished

I’ve not read it but did they factor that in?

Either way, along with Nationwides recent ‘house prices fall for the first time since 2012’, Halifax’s ‘house fall for the 4 straight month in a row’ the papers are pumping out some negative headlines ?

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

I’ve not read it but did they factor that in?

Either way, along with Nationwides recent ‘house prices fall for the first time since 2012’, Halifax’s ‘house fall for the 4 straight month in a row’ the papers are pumping out some negative headlines ?

add in some restrictive lending too, not so rosy for those banging the loudest Hpi saucepan. 

Link to post
Share on other sites
7 hours ago, xxxx said:

Yep.  Small developers are in trouble and are laying off staff.  Too much debt and not enough sales.  High amount of investment property coming into market to offload.  
It’s chaos out there and sales still held up.  The beginnings have started, this is going to take ages to play out.

Noticed in Cambridgeshire where I've been looking over the past few months that some new builds are putting downward pressure on the market, as they are getting cheaper and cheaper....I suppose they actually need to sell these new builds.. rather than some people who just seem to put their properties on Rightmove for the hell of it.

Hopefully over the next few months we'll start to see who actually needs to sell....and prices will correct...downwards.

Link to post
Share on other sites
3 hours ago, Yvonne said:

Noticed in Cambridgeshire where I've been looking over the past few months that some new builds are putting downward pressure on the market, as they are getting cheaper and cheaper....I suppose they actually need to sell these new builds.. rather than some people who just seem to put their properties on Rightmove for the hell of it.

Hopefully over the next few months we'll start to see who actually needs to sell....and prices will correct...downwards.

They are getting desperate and will take low offers to sell.  Huge amount of finance on expensive bridging loans and few sales.  There was literally meltdown by many yesterday as all pending exchange and completions paused due to the stamp duty announcement.
 

Absolute carnage on the high street today.  There is only one way house prices are going.

Link to post
Share on other sites
42 minutes ago, xxxx said:

There was literally meltdown by many yesterday as all pending exchange and completions paused due to the stamp duty announcement.

I love the smell of developer panic in the morning.

Link to post
Share on other sites
7 minutes ago, Deckard said:

I love the smell of developer panic in the morning.

And it was full on panic.  Many developers have cut all costs and reduced staff to minimum.  They have been given payment plans from the bank stating how many houses have to be completed by when.  They are on the edge of defaulting trying to pay the interest from their loans.  When it was paused yesterday, the panic was intense, some didn’t complete until today.  Many are one house sale away from going under.

Link to post
Share on other sites
25 minutes ago, xxxx said:

And it was full on panic.  Many developers have cut all costs and reduced staff to minimum.  They have been given payment plans from the bank stating how many houses have to be completed by when.  They are on the edge of defaulting trying to pay the interest from their loans.  When it was paused yesterday, the panic was intense, some didn’t complete until today.  Many are one house sale away from going under.

Hi sorry if this is common knowledge am in and out of forum. Do you have industry knowledge / first hand info or anecdotal?

Genuine interested - what happens to those due to complete if bank pulls plug? House now banks but is deposit protected.

Is it small devs or the big Tory donor builders bricking it too?

Know 3 brickies all currently renovating own houses no work.

 

Link to post
Share on other sites
19 hours ago, rantnrave said:

...“Looking to the next 12 months, respondents now anticipate a flat to marginally negative trend in house price inflation,” said Rics."...

Talk about a roundabout way of saying they expect house prices to go down!

Link to post
Share on other sites
11 minutes ago, Staffsknot said:

Hi sorry if this is common knowledge am in and out of forum. Do you have industry knowledge / first hand info or anecdotal?

Genuine interested - what happens to those due to complete if bank pulls plug? House now banks but is deposit protected.

Is it small devs or the big Tory donor builders bricking it too?

Know 3 brickies all currently renovating own houses no work.

 

I work in the industry.  These are small/medium developers.  The developer puts the money in a SPV and uses it for the build.  If he goes under, your name gets added to the list he owes to.  50/50 chance of getting it back.

Link to post
Share on other sites
16 minutes ago, Roman Roady said:

It smells like....Victory

When the developers are panicking, you know it really is game over. They will act in the same way they always do in this sort of situation ... walk away from their debts scot free and leave good businesses in the supply and building trades to suffer as a result.

Edited by Switch625
Link to post
Share on other sites
1 minute ago, nickb1 said:

gotta love the graundiad's headline. What "bounce" exactly?


think they mean that non existent bounce....

Interesting question at the end of this article...

..Andrew York, at local Rics member firm Moore & York, said the market there had been picking up prior to the renewed lockdown. “When will this nightmare end?” he asked.

 

Link to post
Share on other sites
11 hours ago, xxxx said:

I work in the industry.  These are small/medium developers.  The developer puts the money in a SPV and uses it for the build.  If he goes under, your name gets added to the list he owes to.  50/50 chance of getting it back.

Thanks interesting to know

Link to post
Share on other sites
23 hours ago, Peter Hun said:

Fear of, or actually losing you job makes discounts irrelevant.

True - on a smaller scale got a mate saying we should all go out and eat and booze to help local businesses. Right spirit I guess but there are now two distinct groups actually 3.

1. People worried about their jobs who will slash discretionary spending

2. People like me who realised even though they could afford it that spending hundreds a month in pubs often with a crowd where you only liked half of them was daft and won't be going back to that. I will be more judicious in my choices

3. Vulnerable people with the money 65+ who think that until this is  properly over or a vaccine I am not going to risk it 

Edited by GregBowman
Link to post
Share on other sites
11 hours ago, Switch625 said:

When the developers are panicking, you know it really is game over. They will act in the same way they always do in this sort of situation ... walk away from their debts scot free and leave good businesses in the supply and building trades to suffer as a result.

I worked with a guy who was a developer in the early 90's. He went bust. He couldn't sell his new builds, and prices were dropping so fast he couldn't keep up! The banks pulled the rug.

Link to post
Share on other sites

If you look at all the new builds that have been going up over the last few years, I would say we are about to face a very similar situation. Flats in big towns and cities in particular look exceptionally vulnerable as do HMO's in university cities and towns.

Link to post
Share on other sites
18 hours ago, Yvonne said:

Noticed in Cambridgeshire where I've been looking over the past few months that some new builds are putting downward pressure on the market, as they are getting cheaper and cheaper....I suppose they actually need to sell these new builds.. rather than some people who just seem to put their properties on Rightmove for the hell of it.

Hopefully over the next few months we'll start to see who actually needs to sell....and prices will correct...downwards.

Very important point - VIs often say people just wont sell if they cant get full asking price, BUT in addition to the forced sales (death/debt/divorce) which can drag pricesdown, there are the new builds that also cant just sit empty.

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.

  • 418 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.