Property market panic as lenders slash thousands from value of homes, sparking fears buyers will pull out (PANIC i said!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!)

[Brendan110_0]

 

Oh she doesn't even have the brains to think "Hang on, if our place is worth less than maybe the one we want to buy is too..." and even if she did, there is no way she would think "Whoah, dropping prices is good for us, every drop makes the next place more affordable". Even less likely is "Hmmm, perhaps those lenders are helping us after all". Clueless sheep, the lot of them. 

Basic maths seems to beyond them.

[msi]

 

Basic maths seems to beyond them.

Because they are all experts in viral statistics

[satsuma]

 

Basic maths seems to beyond them.

The equity was likely spent on a Range Rover, dropping prices probably locks lots of these numpties into their current property.  When the tide goes out we see who was swimming naked 

[shlomo]

 

We completed on a Bungalow in Coastal West Sussex on Friday.  So relieved, worried that the vendors would find out that our lender had valued it for 10% more than their asking price & 25% more than we actually paid.

Which goes to show that nobody really knows & we are far from price discovery in this distorted market.

My opinion is that its worth about 5-10% more than we paid but who really knows.  It was probate & very neglected.

All I know is that we are in for much less of a hiding is the market crashes than some of the saps paying much more for similar places in need of serious renovation.

Its not as if you hang around with people telling you 100 times a day that the property prices are gonna crash.

[Greater Fool]

The lenders should be "helping" people by lending out more than the properties are worth, oh err where to start here? That's not even going onto a couple (and the software engineer) who are all just around 30 buying a nigh on 400k houses which would have only cost half that less than 10 years ago. Up until about 2006 having a 400k house would be something that a couple of mid age doctors would own in my neck of the woods. Prices only go up init.

Edited November 16, 2020 by Tiger131

[msi]

 

The lenders should be "helping" people by lending out more than the properties are worth, oh err where to start here? That's not even going onto a couple (and the software engineer) who are all just around 30 buying a nigh on 400k houses which would have only cost half that less than 10 years ago. Up until about 2006 having a 400k house would be something that a couple of mid age doctors would own in my neck of the woods. Prices only go up init.

Software engineer?  Doctor?? pah waste of time jobs

If you want to be taken seriously as an entrepreneur then you gotta have a portfolio of 30 BTLs - it's the only game in town, innit?

</sarcasm>

[24gray24]

Lenders down valuing houses and upping deposit requirements is a complete game changer. 

If they keep that up house prices will certainly start dropping. 

Will they be able to deflate the bubble gradually? Or will it avalanche? 

[Staffsknot]

It depends if one bank or building society breaks ranks in either direction.

If one stops downvaluing / turns on lending the others end up following = mini-boom of stupidity.

If one breaks ranks and downvalues more / lends less it is a race to bottom as others end up with a higher relative risk profile as people pour in and they get swamped - backlogs inherently end up in throughput over quality work.

We will see panic if people accept or are forced to accept lower offers. It feeds into indicies and also importantly - future ref for valuations.

[satsuma]

 

Lenders down valuing houses and upping deposit requirements is a complete game changer. 

If they keep that up house prices will certainly start dropping. 

Will they be able to deflate the bubble gradually? Or will it avalanche? 

I’ve said it before, people will come off Furlough and there will be no jobs for them, I would also add that employers will serve notice months before Furlough ends to avoid paying the notice period, expect a flood of job losses in Jan to Mar.  Add to that business funding out of cash and banks tightened up on valuations and its a perfect storm like we’ve not seen for 100 years

[GeneCernan]

 

I've noticed lots of flats in Edinburgh going for 135k ish... Many have changed to 'fixed price', which indicates that there's too many flats and too fewer people buying them... I expect things to get worse into the New Year before they get any better.... 2021 will be the year of house price decline... 

When I can buy a nice two bed flat in Glasgow for £100k I will be sorely tempted to do so.

[hotblack42]

 

Its not as if you hang around with people telling you 100 times a day that the property prices are gonna crash.

Yup.  I used to be certain of this too, but didn't see global ZIRP coming.  I do expect a hard correction IRO 20-30% which the overleveraged and media will call a 'crash'.  I'm unsure what the media would call a literal 'crash' of 80-90%, they'd have run out of hyperbole well before that point.

If house prices tank then we'll cope (eggs in other baskets) and it will good news for my sons who haven't bought yet along with all their priced out contemporaries.

[24gray24]

 

When I can buy a nice two bed flat in Glasgow for £100k I will be sorely tempted to do so.

Sadly, when that day comes, you may be unemployed and the streets full of tear gas. 

But if lenders could reduce prices in a controlled way, it would be great. 

But they're up against history: No bubble has ever burst slowly. 

[satsuma]

 

Sadly, when that day comes, you may be unemployed and the streets full of tear gas. 

But if lenders could reduce prices in a controlled way, it would be great. 

But they're up against history: No bubble has ever burst slowly. 

Right, it does drop very fast, 2008 was an overnight 55% drop round my way

[Pmax2020]

 

I think what people are seeing is the AirBnB demand being killed off by lockdown and some people at the margins wanting to liquidate, also some people maybe wanting to exit city living through fearing another lockdown and being stuck inside with kids/partner for another summer. 

I'm not expecting the SDLT holiday to be over in March but could be proved wrong. I'd also expect mortgage rates to fall once the crazy spike in demand abates. 

I’ve followed the Edinburgh market closely and watched two friends both sell this summer for 30% more than they paid in 2016. Er... it makes me sick!! I can’t believe what I’m seeing really. It’s a mass exodus but thousands of muppets are lapping these tired properties up.

I think the broader trend outside the city is clear. Despite property listings being down, the ones being advertised are skewed toward the mid to top end of the market. There are so few FTB places being listed near me and there is a disproportionately high number of prestigious places going on.

I feel it’s a clear sign of people downsizing in anticipation of a slump. I know someone that’s just spent 500k on a big period home that I felt was nearer 400k. And thats before a slump!

[MARTINX9]

 

Buy a home

Protect house prices

Save banks

As we know most firms have to shut due to lockdown - but building and construction work continues.

Build more rabbit hutch homes

Protect house prices

Sod the NHS - if it gets in the way of improving housebuilders lives?

 

[maffo in oxford]

 

Dont try and reason with anyone when it comes to pwopatee.

All you need to know is the more someone pays someone else for a house the richer they person buying the house must be.....

What about "the longer you pay your Landlord's mortgage, the richer they must be"?

[hotblack42]

 

It’s a mass exodus but thousands of muppets are lapping these tired properties up.

As prices start to drop across all indexes when all the job losses kick in this Winter I think there will be a tipping point where the FTB muppets become wary of buying and owner/borrower muppets from the top to the bottom are all looking to STR or downsize.

If that happens a hard correction is baked in and most of the discussions

arguments on here will be about where the bottom is.

The media will call the correction a 'crash', because most of the great unwashed are horribly overweight in property relative to all their other assets including, sadly, their pensions.  Traffic on this site will increase dramatically.

[Si1]

 

What about "the longer you pay your Landlord's mortgage, the richer they must be"?

You mean all those landlords nursing massive voids during covid?

[maffo in oxford]

 

You mean all those landlords nursing massive voids during covid?

Payment holidays & tenants on Furlough say otherwise.

[satsuma]

 

Payment holidays & tenants on Furlough say otherwise.

I dont see much evidence of traditional landlords in bother, I do think the Airbnb brigade are suffering though.  In both cases they are able to sell for a fat profit if they are struggling.  This will change in the new year and then we will see the rats running for the jetty.   

[Si1]

 

Payment holidays & tenants on Furlough say otherwise.

 

 

Holly Smith, 35, has decided to sell her rental property, a two-bedroom terraced house in Great Yarmouth, Norfolk, that she had rented out for the past three years.

Her tenants moved out just before the country went into lockdown for the first time in March and she then struggled to find new ones so the house has been sitting vacant for eight months.

This has left the mother of three children without any rental income (she charges £600 a month) while she has had to pay £200 a month in council tax.

Holly, who runs a money-saving blog called Coupon Queen, said that her husband had recently lost his job as a sports massage therapist.

“The rental income helped to support my family, but I’m now seeing money come out of the bank instead of going in.”

Holly said that even before the pandemic it would be hard to make much of a return from renting, and sometimes the costs would outweigh the rental income. Lockdown was the last straw. She has now put the house up for sale.

 

https://www.thetimes.co.uk/article/the-landlords-dilemma-sell-up-or-reduce-rents-llnxkl8qm

 

[sammersmith]

 

This has left the mother of three children without any rental income (she charges £600 a month) while she has had to pay £200 a month in council tax.

The mother of three is in this position through her own desire to live off the back of others. She had no issue lording it over fellow mothers, fathers, and children whilst using them to supplement her income to spend on their little darlings. Moreover, she enjoyed having a government-supported S21 option in her back pocket should the tenants ever become too burdensome and need replacing with more compliant ones. 

Now things aren't so rosy and she's in a 'dilemma'. Boo hoo. 

[spyguy]

 

 

 

Holly Smith, 35, has decided to sell her rental property, a two-bedroom terraced house in Great Yarmouth, Norfolk, that she had rented out for the past three years.

Her tenants moved out just before the country went into lockdown for the first time in March and she then struggled to find new ones so the house has been sitting vacant for eight months.

This has left the mother of three children without any rental income (she charges £600 a month) while she has had to pay £200 a month in council tax.

Holly, who runs a money-saving blog called Coupon Queen, said that her husband had recently lost his job as a sports massage therapist.

“The rental income helped to support my family, but I’m now seeing money come out of the bank instead of going in.”

Holly said that even before the pandemic it would be hard to make much of a return from renting, and sometimes the costs would outweigh the rental income. Lockdown was the last straw. She has now put the house up for sale.

 

https://www.thetimes.co.uk/article/the-landlords-dilemma-sell-up-or-reduce-rents-llnxkl8qm

 

OMFG!

People like these are hte core of the UK wealth generating classes ....

Im assuming she'll be paying a lot more than £200 on the IO BTL mortgage.

QUIDS IN

I’m mortgage-free at 35 thanks to my savvy spending – and I once did a £1.2k supermarket shop JUST with coupons

https://www.thesun.co.uk/fabulous/13079329/money-saver-holly-smith-bargains/

A MUM who dropped out of school at the age of 14 and hasn't got a single academic qualification to her name has revealed how her savvy spending habits mean she's mortgage-free at 35.

Holly Smith struggled to keep up with the other kids at school due to her autism and went on to become a money saving expert, using coupons to pay for the supermarket shop and stretching every last penny.

Other than travellers you could not have driopped out of school at 14 in ~ 2000. At least not without your parents going to prison.

"In my mid-teens I camped for three days to get my parents' name down for a house on a new estate which I knew would be a good investment. I was totally fascinated by saving.

Is that why she was not at school?

"I was in and out of hospital having surgery and surviving on benefits. While I was convalescing I did hundreds of competitions every day and I won one in which the first prize was having your own website designed. That's how I began."

Having the unsaid problem sorted out? Or popping out kids for TCs?

Holly now resides in Norfolk with her husband Callum, 31, and daughters Mollie-Rose, nine, and Bella-Marie, eight, and their 11-month-old son, Cloud.

https://www.edp24.co.uk/features/holly-smith-of-hopton-on-blogging-adult-autism-diagnosis-and-bbc-documentary-1-5482928

 

'Coupons Queen' Holly Smith gets £1,000 of goods in Lowestoft

 

https://www.bbc.co.uk/news/uk-england-norfolk-35062657

 

Holly Smith hasn't been in a maths class since she was 14 and does not have a single academic qualification. Bullied because of her autism, she dropped out of school and completed her studies on a computer in an extension off the family garage. 

Yet she is so clever with money that, at the age of 35, she already lives mortgage-free. 

The mother-of-three also has income from a (mortgage-free) investment property, cash in the bank and the cost of Christmas covered. She would never go overdrawn because she knows, to the penny, how much is in each of her accounts every day. 

https://www.thisismoney.co.uk/money/bills/article-8900327/Holly-Smith-woman-wholl-make-richer.html

Assumign all the above is true then Id guess HMRC will be very interested in her finances.

https://suite.endole.co.uk/insight/people/20611465-mrs-holly-jay-smith

2 dormant companies.

The registered address as bught for 367k in Nov 2019

 

 

[longgone]

You can savvy spend all you like, does not change the fact feck is coming in.

No doubt a mumsnet queen being paid for by the state.

Single men not so lucky.

[shlomo]

 

You can savvy spend all you like, does not change the fact feck is coming in.

No doubt a mumsnet queen being paid for by the state.

Single men not so lucky.

You are such a whinger...