Mikhail Liebenstein Posted May 19, 2022 Share Posted May 19, 2022 Telegraph headline: Buyers should 'under no circumstances' take out large mortgages, warns property expert House prices face their biggest threat since 1989, with falls of 10pc forecast https://www.telegraph.co.uk/property/uk/house-prices-threat-since-1989-inflation-bites/ 10% of a big number or is 40% of a big number? In cases 20% could turn positive equity into negative equity. Not so sure about a 10% fall doing that as I thought 5% deposit was now rare......but some want it back. Quote Link to comment Share on other sites More sharing options...
TheResponsibleHouseBuyer Posted May 19, 2022 Share Posted May 19, 2022 10% would be halfway to pre covid prices right? Quote Link to comment Share on other sites More sharing options...
Save me from the madness! Posted May 19, 2022 Share Posted May 19, 2022 30 minutes ago, TheResponsibleHouseBuyer said: 10% would be halfway to pre covid prices right? That was my thought. It really does depend over the time period as to if it's a crash. Very few would be impacted by a 10% drop. Quote Link to comment Share on other sites More sharing options...
A.steve Posted May 19, 2022 Share Posted May 19, 2022 2 minutes ago, Save me from the madness! said: That was my thought. It really does depend over the time period as to if it's a crash. Very few would be impacted by a 10% drop. The only problem with an acknowledged 10% drop is that it would undermine confidence in rising prices... which would make further falls inevitable. An acknowledged 10% drop would make me expect a 75% drop in some prices, and a small rise in others. Best of luck making people feel confident to invest in that context. Quote Link to comment Share on other sites More sharing options...
Si1 Posted May 19, 2022 Share Posted May 19, 2022 6 minutes ago, Save me from the madness! said: That was my thought. It really does depend over the time period as to if it's a crash. Very few would be impacted by a 10% drop. Except many wouldn't have sufficient equity to get a decent remortgage rate Quote Link to comment Share on other sites More sharing options...
A.steve Posted May 19, 2022 Share Posted May 19, 2022 3 hours ago, Mikhail Liebenstein said: Buyers should 'under no circumstances' take out large mortgages, warns property expert. I wonder if that 'property expert' has exposure to buy-to-let? Quote Link to comment Share on other sites More sharing options...
msi Posted May 19, 2022 Share Posted May 19, 2022 ToryGraph doing it's broken clock routine to claim it's the first one to 'predict' the crash. Surprised they didn't print a photo of a pretty lady in front of her house looking glum with her arms crossed. Quote Link to comment Share on other sites More sharing options...
Si1 Posted May 19, 2022 Share Posted May 19, 2022 7 minutes ago, msi said: ToryGraph doing it's broken clock routine to claim it's the first one to 'predict' the crash. Surprised they didn't print a photo of a pretty lady in front of her house looking glum with her arms crossed. Torygraph also been promoting BTL recently Quote Link to comment Share on other sites More sharing options...
Bezbeatbytheestateagent Posted May 19, 2022 Share Posted May 19, 2022 There saying all this to get the government to chuck money at more schemes to keep the ponzi going! Quote Link to comment Share on other sites More sharing options...
msi Posted May 19, 2022 Share Posted May 19, 2022 4 minutes ago, Si1 said: Torygraph also been promoting BTL recently Headline chasing a la the Daily Fail then. Nothing to see here Quote Link to comment Share on other sites More sharing options...
anonguest Posted May 20, 2022 Share Posted May 20, 2022 2 hours ago, msi said: Surprised they didn't print a photo of a pretty lady in front of her house looking glum with her arms crossed. ROFL I'm wondering IF, in similar vein, the Daily Mail will now stop slipping in mention of house values in every 'people story' they publish. You know "The couple, who lived in a £350,000 house, were often seen....." type of thing. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted May 20, 2022 Share Posted May 20, 2022 Any other MSM doubling down on property price woes, or just the Telegraph? Quote Link to comment Share on other sites More sharing options...
Patfig Posted May 20, 2022 Share Posted May 20, 2022 I wonder if the term affordable housing might at last become a non oxymoron Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted May 20, 2022 Author Share Posted May 20, 2022 10 hours ago, Bezbeatbytheestateagent said: There saying all this to get the government to chuck money at more schemes to keep the ponzi going! Not my kind of music, but I did find this: Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted May 20, 2022 Author Share Posted May 20, 2022 (edited) or this, seems Ponzi is a popular musician/band name today. Edited May 20, 2022 by Mikhail Liebenstein Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted May 20, 2022 Share Posted May 20, 2022 14 hours ago, Mikhail Liebenstein said: Telegraph headline: Buyers should 'under no circumstances' take out large mortgages, warns property expert House prices face their biggest threat since 1989, with falls of 10pc forecast https://www.telegraph.co.uk/property/uk/house-prices-threat-since-1989-inflation-bites/ 10% of a big number or is 40% of a big number? In cases 20% could turn positive equity into negative equity. Not so sure about a 10% fall doing that as I thought 5% deposit was now rare......but some want it back. The corollary of this is that buyers should be offering 50% under the insane asking prices Quote Link to comment Share on other sites More sharing options...
Social Justice League Posted May 20, 2022 Share Posted May 20, 2022 When did the UK become so pathetic?.....lol None of our housing stock is worth the current prices. Nothing at all. Ponzi's always end with someone holding the bag, as will happen again this time. Quote Link to comment Share on other sites More sharing options...
winkie Posted May 20, 2022 Share Posted May 20, 2022 If large mortgage means large house...... it'll cost you both in capital outlay and cost to keep and maintain. Unless buying to house multi generations all under one roof, splitting the cost. Higher you are, the harder the fall..... Quote Link to comment Share on other sites More sharing options...
msi Posted May 20, 2022 Share Posted May 20, 2022 2 hours ago, Social Justice League said: When did the UK become so pathetic?.....lol None of our housing stock is worth the current prices. Nothing at all. Ponzi's always end with someone holding the bag, as will happen again this time. Circa 1983 IMO, Thatcher finally gave into her monetarist whisperers and moved the UK to be dependent on financial 'services' and the resulting liberalised market with light-touch regulation. It was the death for Industrial Britain, and any evolution to a knowledge based economy. Quote Link to comment Share on other sites More sharing options...
TheResponsibleHouseBuyer Posted May 20, 2022 Share Posted May 20, 2022 2 hours ago, msi said: Circa 1983 IMO, Thatcher finally gave into her monetarist whisperers and moved the UK to be dependent on financial 'services' and the resulting liberalised market with light-touch regulation. It was the death for Industrial Britain, and any evolution to a knowledge based economy. yeah its called neoliberalism.... Thatcher - Regan era. Kept going on till modern times and did not stop in 2008. Quote Link to comment Share on other sites More sharing options...
msi Posted May 20, 2022 Share Posted May 20, 2022 5 minutes ago, TheResponsibleHouseBuyer said: yeah its called neoliberalism.... Thatcher - Regan era. Kept going on till modern times and did not stop in 2008. Strange how certain people think it started in 1997 Quote Link to comment Share on other sites More sharing options...
Tony_Teacake Posted May 20, 2022 Share Posted May 20, 2022 I agree buyers should not be taking out these big mortgages with these uncertain economic times ahead, but it all depends on your personal circumstances, for example how secure are your jobs. If you can afford it I would go for it you are fully committed, but I would recommend taking out insurances to cover your mortgage and some of your expenses if you lose your jobs. I was talking on MSE forums months ago about the damage this rampant inflation will to do the economy. Many people argued this will be a temporary blip and where dismissing what I was saying, but we are now seeing this play out. House price appreciation for April is 0.3%, this is the lowest it as been since last year and I can't see this going any higher, I believe we have hit the peak and these ridiculous prices will decline from here and I see a big crash playing out within the next 2 years. Unfortunately we are seeing to many red flags in the economy at the moment and it looks like we are heading into stagflation, which means a recession with high inflation and high unemployment. I do think we will see a much bigger drop in house prices than 10%, I do believe this figure will be a lot higher as this cost of living crisis deepens. It will just take a while to see it playing out. Quote Link to comment Share on other sites More sharing options...
henry the king Posted May 20, 2022 Share Posted May 20, 2022 (edited) 7 hours ago, Social Justice League said: When did the UK become so pathetic?.....lol None of our housing stock is worth the current prices. Nothing at all. Ponzi's always end with someone holding the bag, as will happen again this time. Yeh, the prices I have seen as ridiculous on some places. Some of the new build companies just seem to be waiting for an idiot to come along and stick themselves in 500k of debt to get a house "worth" 400k at best Edited May 20, 2022 by henry the king Quote Link to comment Share on other sites More sharing options...
TheResponsibleHouseBuyer Posted May 20, 2022 Share Posted May 20, 2022 1 hour ago, henry the king said: Yeh, the prices I have seen as ridiculous on some places. Some of the new build companies just seem to be waiting for an idiot to come along and stick themselves in 500k of debt to get a house "worth" 400k at best They are though...... I've been monitoring new builds as i do with other crap stuff on RM on a daily basis. They release new plots but they soon disappear after a few days...... People are still buying them...... every new release of a plot goes up like 1-5% of the previous price........ Its not ending. I dont know who is buying this stuff and where the money is coming from. I suspect it is people who are struggling to get their home through the chain and want to move ASAP so go and part exchange with a housebuilder. Does anyone work in housebuilding or know about what's going on here? Quote Link to comment Share on other sites More sharing options...
Insane Posted May 20, 2022 Share Posted May 20, 2022 1 hour ago, TheResponsibleHouseBuyer said: I dont know who is buying this stuff and where the money is coming from. I suspect it is people who are struggling to get their home through the chain and want to move ASAP so go and part exchange with a housebuilder. Does anyone work in housebuilding or know about what's going on here? Help to Buy. Developers have had a field day with buyers queuing up to pay the over inflated house prices. It finishes in December with the last reservations having to take place by October. The market for developers will get much harder afterwards. If the new build market drops the second hand market will follow. When HTB was introduced it sent prices into orbit could it send them crashing down when it is withdrawn ? Quote Link to comment Share on other sites More sharing options...
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