Impossible. I was told the opposite would happen once brexit was done ✔
The longer this has gone on for the more I’m convinced that people just stone cold slept on the value of UK housing as an asset until the early 00s and what we’re seeing now is the correction.
It sucks for us millennials but the crash isn’t coming and if it does it’ll just be a case of flatlining for a bit then continuing to increase.
Why do house prices in this country rise no matter what?
I just went to view a flat today. Letting agent informed me in a cheery voice part way through the viewing that the owner lives abroad. Because of course he fucking does.
Can we just admit that unfettered capitalism shouldn’t apply to shelter?
Edit: people in the replies telling me oh it’s not real capitalism. I don’t care, whatever ”it” is has failed our society.
We viewed three houses all on the same road.
First house went on the market for £650k but sold for £675k. House number 2 a month later then went on the market for £675k but told for £705k. House number three went on the other week for £675k and sold for £725k.
So in the space of three months, houses on one road went from £650k to £725k.
Absolutely ridiculous.
All the media pundits, Blairites and Tories that have told us to “stop eating so many avocados” and pushed these divisive “workers vs shirkers” narratives to dehumanise the unemployed and the poor over the past 40 years are literally a living example of the shirkers they so often claim to despise
The hypocrisy is so palpable, it’s like a thick mucous we have to wade through every time we listen to these bastards on the radio or TV – they sit and let their investment assets grow and grow without doing a single thing, while demonising anyone who suggests policy to fix it as “far left radicals and cultists”.
The housing bubble is a cancer on the British economy – it sucks spending power out of the local community and into the pockets of investors and landlords and into static bricks and mortar. It erodes business confidence and it directs investment towards inflating the bubble further instead of towards innovation and training.
Objectively, it is bad policy. It’s being propped by by greed and nothing more.
Even as a homeowner this is miserable news.
“Highest quarterly gain since 2006” sets off alarm bells, as does the news the BoE are looking to loosen mortgage lending rules;
It feels eerily like we are walking into a repeat of 2008, with its 100%+ mortgages and self certification in the lead up to it. Look at the rumblings around Evergrande and the wider Chinese property market if you’re looking for a “trigger” for global credit crunch 2.
I’m no economist but I *cannot* see how it possibly makes sense to allow people to take on hugely inflated mortgages at a time when interest rates are also expected to rise unless the plan is to just let inflation run because the system is now so fragile it cannot take a rare rise and the best plan we have affordability wise is to just let people borrow more.
On a personal level this is deeply concerning; we are aiming to move in the next 18 months or so as we need a bigger place. It’s looking at this point like we are going to be paying north of £500k with a fairly substantial amount of that being borrowing, just in time for the market to crash again.
I entered the workforce properly a few years before the gfc but it still feels like I’ve spent most of my adult life lurching from recession to recession and I’m incredibly lucky to have got in before the gfc. Really feel for younger millennials for whom instability and precariousness is just a way of life. Sorry guys, we fucked it.
Our house has almost doubled in price since we bought it in 2014.
But then so have all the others – so if we wanted to buy anywhere else nearby it is totally meaningless.
And our kids won’t be able to afford a house at this rate so that’s also great.
And then there’s the inheritance tax if we pop our clogs and leave it to the kids.
Can’t afford £500 on a mortgage but you can afford £800 on rent for the same house.
In a few decades it will be seen as rare to own a home unless you’re rich, we will all be renting from corporations for silly amounts each month.
At this point I’ve just accepted that inheritance aside, I’ll never get on the property ladder on my own. The closer to the goal I get, the further away the goalposts get. And with rent prices creeping up as a result as well, finishing the month with any savings is next to impossible. I work 5 days a week but am honestly considering getting part time weekend work just to be able to make a substantial push at having some savings. And I’m not too bad off either. I just live in an expensive part of the UK.
With so much property in the UK I just really want to know who’s buying it all? Are properties just staying within families? Are the super rich just hoarding properties and leaving them unoccupied?
My wage has decreased over the same period relative to the huge inflation
I moved in February. According to the price hike from Zoopla since I bought it, the property raised 10% in value, which is ironically the value of my mortgage.
House prices are absolutely ridiculous now. I purchased my house just 5 years ago for £195,000. My neighbour sold their house 4 months ago for £265,000. Our houses are identical but mine has a bigger garden and garage. If I hadn’t purchased my house when I did it would be completely unachievable now, my friends who weren’t in the position to buy at the time have now been priced out of the market and have resigned themselves to renting or living with parents for the foreseeable future.
“why are young people depressed, surely must be tik tok and not the fact a basic human need is quickly becoming unattainable”
All I know is, the moment I finally get on the property ladder, there will be a gigantic crash.
Call it for what it is – an abject failure of government.
14% appreciation in a year in the middle of a pandemic and noone think it’s a bubble?? Hmmm…
Everytime I see articles like this there’s people saying the bubble will burst and a crash is coming. This has been going strong for over a decade. I don’t see house prices ever falling.
I’m honestly at a loss of what to do, as a singleton trying to get out of wasting money on rent. After a slow start of a career I’m finally making good money in a job that I enjoy. I’ve been good at saving this entire time but right now I still need to be in super saving mode for another 2-3 years before I have a deposit. Looking at what a mortgage would get me right now is depressing. Flat studio where the kitchen, bedroom lounge or all one room with barely any floor space. I don’t even want to think about what I could afford in two years time. I’ve been doing well on stock markets for a beginner with a 30% increase year on year on average. But that barely covers the cost of house prices increasing at this point. The help to buy schemes that are out there aren’t that helpful and seem to make things more expensive later down the line.
I’m generally getting to the point where the reason I’m looking to date somebody is so I can use their income to buy a home. That or cross my fingers for another 2008 situation.
Until you have a cap on the number of houses someone can own (and end overseas investment), prices will keep going up. Big landlords and property investors are basically doing to housing what ticket touts do to gig tickets.
In the same way it makes little difference if new tour dates are released, it won’t matter if the developers keep building houses.
When you don’t own, you pray for house prices to crash. When you own, you pray for them to rise quickly. Where is the overlapping section of venn diagram where most people are happy?
The sad part is we will get to the point where either everyone is renting and are never going to experience a good life, always having to work to pay bills. Or the people will revolt and there will be serious consequences.
I know the UK isn’t known for the second one but with peaceful protesting now essentially illegal (because they can say it’s ‘annoying’ and lock you away for 51 weeks) it raises the question why protest peacefully at all? There will be riots in the streets.
It’s ridiculous. I still live with my parents. Ours was a 2001 new build for £100k. 2 doors down has just sold for £450k. I have my help to buy ISA currently full and I can’t even get a deposit on house in a run down area near where I live. Put that with many people my age not even started careers because of the ridiculous experience requirements, my generation have been absolutely screwed
Can someone ELI5 why house prices are rising and why they wont peak and then come back down at some point. TIA
I saved up for so long but they prices outpace what I can save up, I was getting close to being able to buy a house for 140k last year, there was a few nice ones in my area but they get bought up so fast, there’s hardly anything in my area now and they’re all upwards of 200k, I’ll never be able to get a mortgage for that much, It’s so depressing that I was almost there and now it seems I’ll be renting forever.
So glad we decided to sacrifice the young for the elderly…..
Keep clinging on, Nan. Your inheritance won’t even cover a deposit.
Serfdom here we come! And if you’ve already got on the housing ladder, don’t worry, Serfdom is waiting for your children!
This is what happens when you allow homes to become speculative assets.
People who need them to live in and raise a family get fucked, whilst those that don’t need them get even richer.
Yup, no houses for us. It’s not going to happen. All hail the land barons for being generous enough to let us use their properties while we become corporate wage slaves.
People are being given *a lot* of money from their parents, and don’t talk about it out of embarrassment.
Many older folk are releasing equity from their houses and giving it to their millennial kids. And some have built up *a lot* of equity. Others are handing out lump sums from their pensions.
If you don’t have parents able to do that, I think you don’t release quite how much some parents are giving their kids.
One of my friends (whose parents aren’t conventionally ‘rich’ but have built up a lot of equity and have generous pensions) casually mentioned that her parents are going to give her 80K for a deposit. I was gobsmacked but have come to realise that a lot of my friends are in similar situations.
Inherited inequality is only going to get worse.
So I’m fucked, having saved for 20 years to even attempt to get on the ladder.
I’ll be in a crock of shit outhouse for the rest of my life. Just like the Tories wanted.
Cunts.
Working as a Residential Surveyor, I decided to create a spreadsheet of houses sold in my area of expertise to help with my comparable evidence for giving properties valuations.
Properties in my area have went up an average of 60% since September. It’s absolutely crazy, and if it doesn’t ease, there is going to be a huge crash in the coming months.
34 comments
Impossible. I was told the opposite would happen once brexit was done ✔
The longer this has gone on for the more I’m convinced that people just stone cold slept on the value of UK housing as an asset until the early 00s and what we’re seeing now is the correction.
It sucks for us millennials but the crash isn’t coming and if it does it’ll just be a case of flatlining for a bit then continuing to increase.
Why do house prices in this country rise no matter what?
I just went to view a flat today. Letting agent informed me in a cheery voice part way through the viewing that the owner lives abroad. Because of course he fucking does.
Can we just admit that unfettered capitalism shouldn’t apply to shelter?
Edit: people in the replies telling me oh it’s not real capitalism. I don’t care, whatever ”it” is has failed our society.
We viewed three houses all on the same road.
First house went on the market for £650k but sold for £675k. House number 2 a month later then went on the market for £675k but told for £705k. House number three went on the other week for £675k and sold for £725k.
So in the space of three months, houses on one road went from £650k to £725k.
Absolutely ridiculous.
All the media pundits, Blairites and Tories that have told us to “stop eating so many avocados” and pushed these divisive “workers vs shirkers” narratives to dehumanise the unemployed and the poor over the past 40 years are literally a living example of the shirkers they so often claim to despise
The hypocrisy is so palpable, it’s like a thick mucous we have to wade through every time we listen to these bastards on the radio or TV – they sit and let their investment assets grow and grow without doing a single thing, while demonising anyone who suggests policy to fix it as “far left radicals and cultists”.
The housing bubble is a cancer on the British economy – it sucks spending power out of the local community and into the pockets of investors and landlords and into static bricks and mortar. It erodes business confidence and it directs investment towards inflating the bubble further instead of towards innovation and training.
Objectively, it is bad policy. It’s being propped by by greed and nothing more.
Even as a homeowner this is miserable news.
“Highest quarterly gain since 2006” sets off alarm bells, as does the news the BoE are looking to loosen mortgage lending rules;
https://www.thisismoney.co.uk/money/mortgageshome/article-10280787/Bank-England-relax-mortgage-affordability-bumping-house-prices.html
It feels eerily like we are walking into a repeat of 2008, with its 100%+ mortgages and self certification in the lead up to it. Look at the rumblings around Evergrande and the wider Chinese property market if you’re looking for a “trigger” for global credit crunch 2.
I’m no economist but I *cannot* see how it possibly makes sense to allow people to take on hugely inflated mortgages at a time when interest rates are also expected to rise unless the plan is to just let inflation run because the system is now so fragile it cannot take a rare rise and the best plan we have affordability wise is to just let people borrow more.
On a personal level this is deeply concerning; we are aiming to move in the next 18 months or so as we need a bigger place. It’s looking at this point like we are going to be paying north of £500k with a fairly substantial amount of that being borrowing, just in time for the market to crash again.
I entered the workforce properly a few years before the gfc but it still feels like I’ve spent most of my adult life lurching from recession to recession and I’m incredibly lucky to have got in before the gfc. Really feel for younger millennials for whom instability and precariousness is just a way of life. Sorry guys, we fucked it.
Our house has almost doubled in price since we bought it in 2014.
But then so have all the others – so if we wanted to buy anywhere else nearby it is totally meaningless.
And our kids won’t be able to afford a house at this rate so that’s also great.
And then there’s the inheritance tax if we pop our clogs and leave it to the kids.
Can’t afford £500 on a mortgage but you can afford £800 on rent for the same house.
In a few decades it will be seen as rare to own a home unless you’re rich, we will all be renting from corporations for silly amounts each month.
At this point I’ve just accepted that inheritance aside, I’ll never get on the property ladder on my own. The closer to the goal I get, the further away the goalposts get. And with rent prices creeping up as a result as well, finishing the month with any savings is next to impossible. I work 5 days a week but am honestly considering getting part time weekend work just to be able to make a substantial push at having some savings. And I’m not too bad off either. I just live in an expensive part of the UK.
With so much property in the UK I just really want to know who’s buying it all? Are properties just staying within families? Are the super rich just hoarding properties and leaving them unoccupied?
My wage has decreased over the same period relative to the huge inflation
I moved in February. According to the price hike from Zoopla since I bought it, the property raised 10% in value, which is ironically the value of my mortgage.
House prices are absolutely ridiculous now. I purchased my house just 5 years ago for £195,000. My neighbour sold their house 4 months ago for £265,000. Our houses are identical but mine has a bigger garden and garage. If I hadn’t purchased my house when I did it would be completely unachievable now, my friends who weren’t in the position to buy at the time have now been priced out of the market and have resigned themselves to renting or living with parents for the foreseeable future.
“why are young people depressed, surely must be tik tok and not the fact a basic human need is quickly becoming unattainable”
All I know is, the moment I finally get on the property ladder, there will be a gigantic crash.
Call it for what it is – an abject failure of government.
14% appreciation in a year in the middle of a pandemic and noone think it’s a bubble?? Hmmm…
Everytime I see articles like this there’s people saying the bubble will burst and a crash is coming. This has been going strong for over a decade. I don’t see house prices ever falling.
I’m honestly at a loss of what to do, as a singleton trying to get out of wasting money on rent. After a slow start of a career I’m finally making good money in a job that I enjoy. I’ve been good at saving this entire time but right now I still need to be in super saving mode for another 2-3 years before I have a deposit. Looking at what a mortgage would get me right now is depressing. Flat studio where the kitchen, bedroom lounge or all one room with barely any floor space. I don’t even want to think about what I could afford in two years time. I’ve been doing well on stock markets for a beginner with a 30% increase year on year on average. But that barely covers the cost of house prices increasing at this point. The help to buy schemes that are out there aren’t that helpful and seem to make things more expensive later down the line.
I’m generally getting to the point where the reason I’m looking to date somebody is so I can use their income to buy a home. That or cross my fingers for another 2008 situation.
Until you have a cap on the number of houses someone can own (and end overseas investment), prices will keep going up. Big landlords and property investors are basically doing to housing what ticket touts do to gig tickets.
In the same way it makes little difference if new tour dates are released, it won’t matter if the developers keep building houses.
When you don’t own, you pray for house prices to crash. When you own, you pray for them to rise quickly. Where is the overlapping section of venn diagram where most people are happy?
The sad part is we will get to the point where either everyone is renting and are never going to experience a good life, always having to work to pay bills. Or the people will revolt and there will be serious consequences.
I know the UK isn’t known for the second one but with peaceful protesting now essentially illegal (because they can say it’s ‘annoying’ and lock you away for 51 weeks) it raises the question why protest peacefully at all? There will be riots in the streets.
It’s ridiculous. I still live with my parents. Ours was a 2001 new build for £100k. 2 doors down has just sold for £450k. I have my help to buy ISA currently full and I can’t even get a deposit on house in a run down area near where I live. Put that with many people my age not even started careers because of the ridiculous experience requirements, my generation have been absolutely screwed
Can someone ELI5 why house prices are rising and why they wont peak and then come back down at some point. TIA
I saved up for so long but they prices outpace what I can save up, I was getting close to being able to buy a house for 140k last year, there was a few nice ones in my area but they get bought up so fast, there’s hardly anything in my area now and they’re all upwards of 200k, I’ll never be able to get a mortgage for that much, It’s so depressing that I was almost there and now it seems I’ll be renting forever.
So glad we decided to sacrifice the young for the elderly…..
Keep clinging on, Nan. Your inheritance won’t even cover a deposit.
Serfdom here we come! And if you’ve already got on the housing ladder, don’t worry, Serfdom is waiting for your children!
This is what happens when you allow homes to become speculative assets.
People who need them to live in and raise a family get fucked, whilst those that don’t need them get even richer.
Yup, no houses for us. It’s not going to happen. All hail the land barons for being generous enough to let us use their properties while we become corporate wage slaves.
People are being given *a lot* of money from their parents, and don’t talk about it out of embarrassment.
Many older folk are releasing equity from their houses and giving it to their millennial kids. And some have built up *a lot* of equity. Others are handing out lump sums from their pensions.
If you don’t have parents able to do that, I think you don’t release quite how much some parents are giving their kids.
One of my friends (whose parents aren’t conventionally ‘rich’ but have built up a lot of equity and have generous pensions) casually mentioned that her parents are going to give her 80K for a deposit. I was gobsmacked but have come to realise that a lot of my friends are in similar situations.
Inherited inequality is only going to get worse.
So I’m fucked, having saved for 20 years to even attempt to get on the ladder.
I’ll be in a crock of shit outhouse for the rest of my life. Just like the Tories wanted.
Cunts.
Working as a Residential Surveyor, I decided to create a spreadsheet of houses sold in my area of expertise to help with my comparable evidence for giving properties valuations.
Properties in my area have went up an average of 60% since September. It’s absolutely crazy, and if it doesn’t ease, there is going to be a huge crash in the coming months.