This is the first time in 2 years that the summer has slowed interest in housing. Covid really is ‘over’.
It doesn’t matter. Prices could fall by thirty to forty percent in my area – in which event we’d probably all be on the street anyway – and I still wouldn’t be able to afford a flat fit for human habitation, much less a house.
The boomers got away with it. There is no crash coming, and even if there were you’d have to be a top earner for it to make a difference. This is the housing market now and there’s no going back.
Introduce triple council tax on second homes and bring in rent caps then we will see how much houses are really worth
>Rightmove said the dip was broadly in line with summer price trends over the past decade and would probably recover once house hunters returned from holiday breaks, which for many were the first since Covid restrictions were lifted.
>
>“A drop in asking prices is to be expected this month as the market returns towards normal seasonal patterns after a frenzied two years, and many would-be home movers become distracted by the summer holidays,” Tim Bannister, a Rightmove director, said.
Before people get excited by the prospect of a crash and the age-old mistruth/misunderstanding that ‘a housing crash would help FTB get on the ladder, this is very much a normal seasonal dip
Still got Rightmove notifications from the last time we moved. Every day is 3 or 4 emails with ‘reduced property price’ alerts where they used to be once a month I reckon.
Great. We’re still renting in our 40s an ex council in a nice little village. Developers just demolished a bungalow in the village that had a reasonable bit of land. They’ve built 4 new 4/5 bed houses starting at £850k.
I swear the housing market and economy in general is all just made up by corporations based on what suits them best at the current time.
I suspect there is so much pent up demand any significant drop would just bounce right back
The article suggests this is a bit of a nothingburger. Key part below:
*While there are concerns that rising interest rates – increased in response to soaring inflation – could weigh on the housing market, Rightmove said the dip was broadly in line with summer price trends over the past decade and would probably recover once house hunters returned from holiday breaks, which for many were the first since Covid restrictions were lifted.*
So if it’s still declining in the following months it may be more noteworthy but for the time being not so much.
My weekly housing price story fuelled rage bait
*A drop in asking prices is to be expected this month as the market returns towards normal seasonal patterns after a frenzied two years, and many would-be home movers become distracted by the summer holidays*
Move along. This is just the average asking price on Rightmove. When I was hunting in March, half of the houses were going to ‘Best and final offer’ with 10k stacked on top of that asking price. Not to mention that it could just mean the number or *type* of property being sold is different this summer.
Yay, after going up £50k over the last 3 years, prices might drop by £10k before going up again in September when people are done with holiday season.
Interest rate rises alone would balance it. Then you’ve got cost of living which mean landlords put up rent, new rental prices then tempt more people to purchase for BTL. And it IS a fair assumption that there will remain loop-holes by which this is profitable, because so many MP’s are landlords and because they’ve already planned out the next iteration of right to buy, so they can all cosplay as Thatcher for a while.
House prices will teeter around here for a while I’m afraid, and the mortgage deals will only get more predatory. Some might even be good deals to genuinely try and attract people, which they will, but it will be out of reach for even a couple of average earnings without kids.
Tories gonna be pissed now their houses went down 0.00000001% in value.
Until landlords scalp up these “cheaper” houses and drive up the prices even more
A fair few of us having being saying house prices would drop over the last 12 months and they are all proven right.
In 6 months it will be about the worst time to sell a house.
Incidentally, if you can afford a mortgage then houses will be at their cheapest in 1 year when the recession is in full swing.
Just wait til interest rate rises kick in
It’s the offers over every single time like fucking hell your house needs totally gutted but nope offers over or it’s 25k over asking.
with a 10% deposit, you need to be earning about £82k a year to borrow the rest from the bank (x4 multiplier) for a £365k property.
I thought I earn a good amount at £65k but it’s not enough for the average house wtf.
Some banks offer 5x multiplier, but it’s less common these days
I’m a dreamer but I think the average family home, should be accessible by an average family earning an average wage. But that’s probably some dystopian nightmare to a certain segment of our society, namely the ones profiting off the market.
I also think we depersonalise houses by not calling them homes.
I just can’t see a crash and if there is a ‘crash’ we’re talking 3-4%. Given house prices have increased by about 10% in the last year alone it’s nothing. They’ve been saying this for the last 3 years and even Covid didn’t stop the increased prices.
What might happen is that less people may buy in the next year and it may make it easier to buy a property without going over the asking price by silly amounts (if you fulfil the requirements). But unless people are desperate, the majority are still going to hold out for what they think their property is worth now.
Very pessimistic millennial trying to get on the housing ladder here and has been up against a multitude of cash rich landlords…
The long term trend is always significantly upward and well above average income.
1. Tax the shit out of multiple home ownership
2. Ban ownership of residential property by companies (especially foreign-owned, tax haven based ones)
3. Allow local authorities to buy and build their own social housing (ideally upwards on brownfield sites to prevent urban sprawl).
Won’t happen of course. Britain is a rentier state, with the ruling regime acting only in the interest of their property-owning client voters.
My dad had to buy me a flat, we bought it incredibly cheap and he’s helping me do it up. Then I’m paying him off until I can get a mortgage or I would be renting forever. I’m so lucky to be able to do that, no idea how anyone else like me is ever going to be able to afford a house.
Good. More please.
I’m a homeowner and as long as all houses drop at the same rate then this won’t affect me at all. My next house will cost less in line with mine selling for less. Who cares?
First time buyers edge closer to being given a chance.
Super rich people scalping the human right to shelter will lose numbers on their portfolio and that’s an absolute win. Fuck ‘em.
​
The BOE has just started with quantitative tightening:
>Roberts notes that equities fell in the immediate aftermath of the QT announcement. This is because government bonds are viewed as the lowest risk asset class, so as the income available from there rises, it makes the income from many equities relatively less attractive, potentially impacting equity investors.
>
>In terms of its impact on the housing market, and on mortgages, higher bond yields mean banks can earn profits by simply buying bonds, and so may have less incentive to lend to homeowners or businesses, which are a higher risk way of earning an income, relative to government bonds, where the repayment is essentially guaranteed.
Ah yes, I believe I can take responsibility for this, having just bought a house.
Not too long after I’d finally had an offer on my first house accepted. Seems about right. Fuck me, right?
2nd houses shouldn’t be allowed. Foreign investors shouldn’t be allowed who don’t live in the homes for a significant period. Landlords should have a cap on how many properties they can buy.
I appreciate there would be ways around this stuff, but the thought is there.
i still can’t afford anything so i’m going to buy some avocado toast and netflix
31 comments
Still unattainable though
This is the first time in 2 years that the summer has slowed interest in housing. Covid really is ‘over’.
It doesn’t matter. Prices could fall by thirty to forty percent in my area – in which event we’d probably all be on the street anyway – and I still wouldn’t be able to afford a flat fit for human habitation, much less a house.
The boomers got away with it. There is no crash coming, and even if there were you’d have to be a top earner for it to make a difference. This is the housing market now and there’s no going back.
Introduce triple council tax on second homes and bring in rent caps then we will see how much houses are really worth
>Rightmove said the dip was broadly in line with summer price trends over the past decade and would probably recover once house hunters returned from holiday breaks, which for many were the first since Covid restrictions were lifted.
>
>“A drop in asking prices is to be expected this month as the market returns towards normal seasonal patterns after a frenzied two years, and many would-be home movers become distracted by the summer holidays,” Tim Bannister, a Rightmove director, said.
Before people get excited by the prospect of a crash and the age-old mistruth/misunderstanding that ‘a housing crash would help FTB get on the ladder, this is very much a normal seasonal dip
Still got Rightmove notifications from the last time we moved. Every day is 3 or 4 emails with ‘reduced property price’ alerts where they used to be once a month I reckon.
Great. We’re still renting in our 40s an ex council in a nice little village. Developers just demolished a bungalow in the village that had a reasonable bit of land. They’ve built 4 new 4/5 bed houses starting at £850k.
I swear the housing market and economy in general is all just made up by corporations based on what suits them best at the current time.
I suspect there is so much pent up demand any significant drop would just bounce right back
The article suggests this is a bit of a nothingburger. Key part below:
*While there are concerns that rising interest rates – increased in response to soaring inflation – could weigh on the housing market, Rightmove said the dip was broadly in line with summer price trends over the past decade and would probably recover once house hunters returned from holiday breaks, which for many were the first since Covid restrictions were lifted.*
So if it’s still declining in the following months it may be more noteworthy but for the time being not so much.
My weekly housing price story fuelled rage bait
*A drop in asking prices is to be expected this month as the market returns towards normal seasonal patterns after a frenzied two years, and many would-be home movers become distracted by the summer holidays*
Move along. This is just the average asking price on Rightmove. When I was hunting in March, half of the houses were going to ‘Best and final offer’ with 10k stacked on top of that asking price. Not to mention that it could just mean the number or *type* of property being sold is different this summer.
Yay, after going up £50k over the last 3 years, prices might drop by £10k before going up again in September when people are done with holiday season.
Interest rate rises alone would balance it. Then you’ve got cost of living which mean landlords put up rent, new rental prices then tempt more people to purchase for BTL. And it IS a fair assumption that there will remain loop-holes by which this is profitable, because so many MP’s are landlords and because they’ve already planned out the next iteration of right to buy, so they can all cosplay as Thatcher for a while.
House prices will teeter around here for a while I’m afraid, and the mortgage deals will only get more predatory. Some might even be good deals to genuinely try and attract people, which they will, but it will be out of reach for even a couple of average earnings without kids.
Tories gonna be pissed now their houses went down 0.00000001% in value.
Until landlords scalp up these “cheaper” houses and drive up the prices even more
A fair few of us having being saying house prices would drop over the last 12 months and they are all proven right.
In 6 months it will be about the worst time to sell a house.
Incidentally, if you can afford a mortgage then houses will be at their cheapest in 1 year when the recession is in full swing.
Just wait til interest rate rises kick in
It’s the offers over every single time like fucking hell your house needs totally gutted but nope offers over or it’s 25k over asking.
with a 10% deposit, you need to be earning about £82k a year to borrow the rest from the bank (x4 multiplier) for a £365k property.
I thought I earn a good amount at £65k but it’s not enough for the average house wtf.
Some banks offer 5x multiplier, but it’s less common these days
I’m a dreamer but I think the average family home, should be accessible by an average family earning an average wage. But that’s probably some dystopian nightmare to a certain segment of our society, namely the ones profiting off the market.
I also think we depersonalise houses by not calling them homes.
I just can’t see a crash and if there is a ‘crash’ we’re talking 3-4%. Given house prices have increased by about 10% in the last year alone it’s nothing. They’ve been saying this for the last 3 years and even Covid didn’t stop the increased prices.
What might happen is that less people may buy in the next year and it may make it easier to buy a property without going over the asking price by silly amounts (if you fulfil the requirements). But unless people are desperate, the majority are still going to hold out for what they think their property is worth now.
Very pessimistic millennial trying to get on the housing ladder here and has been up against a multitude of cash rich landlords…
The long term trend is always significantly upward and well above average income.
1. Tax the shit out of multiple home ownership
2. Ban ownership of residential property by companies (especially foreign-owned, tax haven based ones)
3. Allow local authorities to buy and build their own social housing (ideally upwards on brownfield sites to prevent urban sprawl).
Won’t happen of course. Britain is a rentier state, with the ruling regime acting only in the interest of their property-owning client voters.
My dad had to buy me a flat, we bought it incredibly cheap and he’s helping me do it up. Then I’m paying him off until I can get a mortgage or I would be renting forever. I’m so lucky to be able to do that, no idea how anyone else like me is ever going to be able to afford a house.
Good. More please.
I’m a homeowner and as long as all houses drop at the same rate then this won’t affect me at all. My next house will cost less in line with mine selling for less. Who cares?
First time buyers edge closer to being given a chance.
Super rich people scalping the human right to shelter will lose numbers on their portfolio and that’s an absolute win. Fuck ‘em.
​
The BOE has just started with quantitative tightening:
>Roberts notes that equities fell in the immediate aftermath of the QT announcement. This is because government bonds are viewed as the lowest risk asset class, so as the income available from there rises, it makes the income from many equities relatively less attractive, potentially impacting equity investors.
>
>In terms of its impact on the housing market, and on mortgages, higher bond yields mean banks can earn profits by simply buying bonds, and so may have less incentive to lend to homeowners or businesses, which are a higher risk way of earning an income, relative to government bonds, where the repayment is essentially guaranteed.
[https://www.ftadviser.com/investments/2022/02/04/what-will-be-the-consequence-of-quantitative-tightening/?page=1](https://www.ftadviser.com/investments/2022/02/04/what-will-be-the-consequence-of-quantitative-tightening/?page=1)
Ah yes, I believe I can take responsibility for this, having just bought a house.
Not too long after I’d finally had an offer on my first house accepted. Seems about right. Fuck me, right?
2nd houses shouldn’t be allowed. Foreign investors shouldn’t be allowed who don’t live in the homes for a significant period. Landlords should have a cap on how many properties they can buy.
I appreciate there would be ways around this stuff, but the thought is there.
i still can’t afford anything so i’m going to buy some avocado toast and netflix