I’m not sure it will, housing costs are largely being driven by demand, and govt. immigration policy means it is very difficult to keep up with demand.
We will end up in a situation where monied individuals who can afford to buy without borrowing snap up the housing stock to rent to those who cannot get loans.
Ergo the rich will continue to get richer.
If it does, make sure you get in quick as a buyer. If the crash is as bad as these articles make out, then the properties will be snapped up by corporate entities in bulk, possibly even direct from the mortgage providers who are content to take a small loss on the value of the property instead of issuing another risky mortgage on it.
Make way for the mega-landlords.
> economists say that this should all have been foreseeable – and even avoidable.
​
hahaha. really.
Feel pretty bad for all the first time buyers that desperately bought during the boom and end up with negative equity in a couple of years due to all this instability
And this is why we need legislature that stops corporations from owning residential property.
Naa, nothing is gonna happen, they will not allow a crash
It smells like fear.
This will be a result of our own making.
Without tighter controls on the rich snapping up properties and renting for insane rates I’m worried that this will do little to solve the current housing crisis.
It is definitely unfortunate, but that’s the way it goes. I bought in 2013 when house prices were nearly at the lowest. Since then the value of my house has doubled. Then about 3 to 4 years ago the interest rates dropped, more people bought, and the prices soared, causing a shortage. Now that bubble has burst, the prices will start to drop again because the rates have risen. That’s just sort of the way that a capitalist market goes.
Crash! With a picture of a broken home!
No wonder the UK housing market is fucked if anything other than continual spiralling home prices are reported as a national catastrophe.
Oh, but I thought increasing the interest rates was supposed to help prevent exactly this. Is it not working? Is the government maybe making up shit as they go along to help their banker friends make money?
As a prospective first time buyer, I really, really hope that house prices don’t crash. That would be awwwwful /s
Wow. After a decade of failed austerity causes low wage growth for a decade while the government spends its whole time in office coming up with policy after policy to keep house prices rising no matter what we get a newspaper article explaining ‘how the bank of england got it wrong’. Like they could somehow have magiced away the mistakes of 12 years of Tory failure.
But then it is the Torygraph and the readers probably love this stuff.
The entire government and financial structure since the 80s at least has been to view housing as an investment first, rather than an actual home.
Every time anything has come along that might trigger a crash in house prices, as far as I can remember, the government tends to act to try and stabilise the system, generally by giving the banking sector more cash.
Going by memory here, which isn’t the best, so feel free to correct me if I’m talking out of my arse.
We are so fucked as a country. So many fucking imbeciles who have enabled this.
Maybe prices need to drop a bit ? Wages haven’t gone up that much while houses have flown, completely fking the next generation
Hey…. so if you were just able to get on the property ladder and it crashes in such a historically bad fashion.. what are the options? That’s my question… I’ll be tempted to try legally sign it off to the bank and leave the country.
Jokes aside it keeps me up at night.
What are we considering a crash and for whom?
Houses in my area are typically going now for 170k up 35k from when I bought in 2018.
Don’t get me wrong my LTV at the time was good because sadly (or thankfully) I had inheritance…
But compared to other areas this is a modest amount of money to have invested in a property. I am expecting a loss and frankly I am beyond pissed off. My generation has had nothing but crap to deal with.
First 08 going into the workforce/uni and facing a nasty recession, brexit and covid… like come on, give us a break please.
Sorry for the moan but fuck me. On the plus side my potato plants are looking exceptionally great this year so I got that going for me
seriously? there’s a mortgage crisis? didn’t people learn the last time not to spend beyond their means?
Again, government should take advantage of something like this and fund councils to purchase homes in the event of a crash and let them out on secure,long term social tenancies to the local community.
‘but where’s the money coming from’ mass homelessness and housing precarity will be far more costly to the country than spending a few billion on houses.
Of course they won’t because politics in this country isn’t about solving problems
If property value falls slightly, they will be snapped up by international investors.
Chinese, Russian, Indian investors will have a field day and property prices will be largely maintained.
This will continue to prevent working people from buying a home to live in.
I knew after grafting twenty years and finally getting a house it’d go tits up within a year of me buying one lol
A lot of talk about the rich and the poor here, but what about the middle who’s house is their retirement? We’re need to move to become a nation of investors with sufficient private pensions but the move from British love affair with property will be a generational shift. I don’t think the government would ever allow house piece Armageddon as the strain on public purse wouldn’t allow. What’s the solution? No idea.
5% crash if your house has increased in value by 30% is peanuts.
This crash will affect mostly those with high ltvs.
Help to buy people will be happy though as it’ll reduce the loan they have to pay back.
30% of homes are owned outright by their occupier; 40% are owner-occupied with a mortgage, 18% are social housing and 12% are privately rented.
70% of the market can, for the most part, basically stay put and weather any fall in prices. Then house prices don’t really matter to the 18% of social homes. So, we have the 12% of the market that’s privately rented – 3m homes; most of which are already occupied and the occupants don’t really have anywhere else to go – we then have a huge under-supply of new homes and ever increasing demand. I just can’t envisage there being the kind of monumental fall some are predicting, whilst these conditions prevail.
As long as people need somewhere to live and we have more people that want homes, than homes we have, property will remain valuable.
I’m in my mid 30s stuck in a tiny 2 bed Victorian terrace with my partner. We’re at a point where we have no choice but to move since we need to upsize – we can’t put our lives on hold any longer at this crucial point in our lives.
Looking at 3-4 bed houses in my area at around 350k, then seeing the 1600p/m mortgage costs fills me with a cold sense of dread. Combine that with the idea that the £350k property could drop by 20-30% of that value.
We’re absolutely fucked.
Just after millennials are starting to buy houses (in the last few years)… This.
Another one for the ‘Millenials are fucked’ pile.
The Tories are doing nothing about it! They’re only focused on trans rights and the borders they can’t control!
I have to admit full responsibility for this. I’m a millennial who scrimped and saved for years, managing to just afford a house by the skin of my teeth. And I did this with the full knowledge that, as an inevitable consequence of sod’s first law, the moment I bought a house would be the moment the whole market came crashing down. I am truly sorry.
While some of us look at this with glee, as it means a chance to finally own a home. I’m reminded of what Brad Pitt said in the big short.
“Do you know what you just did? You just bet against the American economy. Which means, if we’re right; people loose homes, people loose jobs, people loose retirement savings, people loose pensions. You know what I fucking hate about Banking? It reduces people to numbers. Here’s a number, every 1% unemployment goes up 40,000 people die. Did you know that?”
Nobody should be allowed to own more than two properties and no corporation should be allowed to buy housing stock.
If you can afford your mortgage, even if it is huge, and are in negative equity, what happens? Essentially stuck in the house or any possibility of a repossession?
I can tell you with near certainty prices will plummet soon.
How do I know? Because after years of waiting for prices to correct only to continue to inflate I juts got mortgaged up to my eyeballs and I’m an unlucky SOB so of course they are going to drop now and fuck me sideways 🙃
House prices have been crashing for the last six months. Houses are down a solid 10% already, and the drop is accelerating.
Oooo boy, I can’t wait to be on an interest only mortgage for a house which is now underwater.
Jeez, there’s people out there still claiming house prices are not falling
Meanwhile..House prices dropped 89 pounds this month. Demand is greater than supply. People will continue to get what they want.
Question is would a crash really mean “a crash”, Or would it really just be bringing a crazy over inflated market back to what it was pre covid ?!
My home is worth about twice as much as it was 16 years ago when we bought it
I would ratherr it had not appreciated a penny if my son could leave home and rent for a reasonable fraction of a typical young person’s income. On the other hand, many people have bought at or near the height and will be fucked by a crash, how do we reconcile these factors?
My money is ready and waiting for the right price anyone who bought in the COVID house price mania period and overpaid I am happy to pay 40 percent the price you purchased it at just give me a DM
The guilts are going to fall out of their ar*e any time now again.
Lettuce hope this crisis can be averted.
Though our Gov’t be so idle & perverted.
Talk about a redistribution of wealth. Average Jo can’t buy a house, but mega landlord Ltd can buy on bulk.
But wait house prices are low! Why can’t av Jo buy? Well bc the crippling interest rates ofc!
But those cash buyers can outright buy and have no need for a mortgage.
Oh and those that get caught in the price increase will sell for below value or have it repossessed. Guess who’ll buy that off you for less than market value!
42 comments
I’m not sure it will, housing costs are largely being driven by demand, and govt. immigration policy means it is very difficult to keep up with demand.
We will end up in a situation where monied individuals who can afford to buy without borrowing snap up the housing stock to rent to those who cannot get loans.
Ergo the rich will continue to get richer.
If it does, make sure you get in quick as a buyer. If the crash is as bad as these articles make out, then the properties will be snapped up by corporate entities in bulk, possibly even direct from the mortgage providers who are content to take a small loss on the value of the property instead of issuing another risky mortgage on it.
Make way for the mega-landlords.
> economists say that this should all have been foreseeable – and even avoidable.
​
hahaha. really.
Feel pretty bad for all the first time buyers that desperately bought during the boom and end up with negative equity in a couple of years due to all this instability
And this is why we need legislature that stops corporations from owning residential property.
Naa, nothing is gonna happen, they will not allow a crash
It smells like fear.
This will be a result of our own making.
Without tighter controls on the rich snapping up properties and renting for insane rates I’m worried that this will do little to solve the current housing crisis.
It is definitely unfortunate, but that’s the way it goes. I bought in 2013 when house prices were nearly at the lowest. Since then the value of my house has doubled. Then about 3 to 4 years ago the interest rates dropped, more people bought, and the prices soared, causing a shortage. Now that bubble has burst, the prices will start to drop again because the rates have risen. That’s just sort of the way that a capitalist market goes.
Crash! With a picture of a broken home!
No wonder the UK housing market is fucked if anything other than continual spiralling home prices are reported as a national catastrophe.
Oh, but I thought increasing the interest rates was supposed to help prevent exactly this. Is it not working? Is the government maybe making up shit as they go along to help their banker friends make money?
As a prospective first time buyer, I really, really hope that house prices don’t crash. That would be awwwwful /s
Wow. After a decade of failed austerity causes low wage growth for a decade while the government spends its whole time in office coming up with policy after policy to keep house prices rising no matter what we get a newspaper article explaining ‘how the bank of england got it wrong’. Like they could somehow have magiced away the mistakes of 12 years of Tory failure.
But then it is the Torygraph and the readers probably love this stuff.
The entire government and financial structure since the 80s at least has been to view housing as an investment first, rather than an actual home.
Every time anything has come along that might trigger a crash in house prices, as far as I can remember, the government tends to act to try and stabilise the system, generally by giving the banking sector more cash.
Going by memory here, which isn’t the best, so feel free to correct me if I’m talking out of my arse.
We are so fucked as a country. So many fucking imbeciles who have enabled this.
Maybe prices need to drop a bit ? Wages haven’t gone up that much while houses have flown, completely fking the next generation
Hey…. so if you were just able to get on the property ladder and it crashes in such a historically bad fashion.. what are the options? That’s my question… I’ll be tempted to try legally sign it off to the bank and leave the country.
Jokes aside it keeps me up at night.
What are we considering a crash and for whom?
Houses in my area are typically going now for 170k up 35k from when I bought in 2018.
Don’t get me wrong my LTV at the time was good because sadly (or thankfully) I had inheritance…
But compared to other areas this is a modest amount of money to have invested in a property. I am expecting a loss and frankly I am beyond pissed off. My generation has had nothing but crap to deal with.
First 08 going into the workforce/uni and facing a nasty recession, brexit and covid… like come on, give us a break please.
Sorry for the moan but fuck me. On the plus side my potato plants are looking exceptionally great this year so I got that going for me
seriously? there’s a mortgage crisis? didn’t people learn the last time not to spend beyond their means?
Again, government should take advantage of something like this and fund councils to purchase homes in the event of a crash and let them out on secure,long term social tenancies to the local community.
‘but where’s the money coming from’ mass homelessness and housing precarity will be far more costly to the country than spending a few billion on houses.
Of course they won’t because politics in this country isn’t about solving problems
If property value falls slightly, they will be snapped up by international investors.
Chinese, Russian, Indian investors will have a field day and property prices will be largely maintained.
This will continue to prevent working people from buying a home to live in.
I knew after grafting twenty years and finally getting a house it’d go tits up within a year of me buying one lol
A lot of talk about the rich and the poor here, but what about the middle who’s house is their retirement? We’re need to move to become a nation of investors with sufficient private pensions but the move from British love affair with property will be a generational shift. I don’t think the government would ever allow house piece Armageddon as the strain on public purse wouldn’t allow. What’s the solution? No idea.
5% crash if your house has increased in value by 30% is peanuts.
This crash will affect mostly those with high ltvs.
Help to buy people will be happy though as it’ll reduce the loan they have to pay back.
30% of homes are owned outright by their occupier; 40% are owner-occupied with a mortgage, 18% are social housing and 12% are privately rented.
70% of the market can, for the most part, basically stay put and weather any fall in prices. Then house prices don’t really matter to the 18% of social homes. So, we have the 12% of the market that’s privately rented – 3m homes; most of which are already occupied and the occupants don’t really have anywhere else to go – we then have a huge under-supply of new homes and ever increasing demand. I just can’t envisage there being the kind of monumental fall some are predicting, whilst these conditions prevail.
As long as people need somewhere to live and we have more people that want homes, than homes we have, property will remain valuable.
I’m in my mid 30s stuck in a tiny 2 bed Victorian terrace with my partner. We’re at a point where we have no choice but to move since we need to upsize – we can’t put our lives on hold any longer at this crucial point in our lives.
Looking at 3-4 bed houses in my area at around 350k, then seeing the 1600p/m mortgage costs fills me with a cold sense of dread. Combine that with the idea that the £350k property could drop by 20-30% of that value.
We’re absolutely fucked.
Just after millennials are starting to buy houses (in the last few years)… This.
Another one for the ‘Millenials are fucked’ pile.
The Tories are doing nothing about it! They’re only focused on trans rights and the borders they can’t control!
I have to admit full responsibility for this. I’m a millennial who scrimped and saved for years, managing to just afford a house by the skin of my teeth. And I did this with the full knowledge that, as an inevitable consequence of sod’s first law, the moment I bought a house would be the moment the whole market came crashing down. I am truly sorry.
While some of us look at this with glee, as it means a chance to finally own a home. I’m reminded of what Brad Pitt said in the big short.
“Do you know what you just did? You just bet against the American economy. Which means, if we’re right; people loose homes, people loose jobs, people loose retirement savings, people loose pensions. You know what I fucking hate about Banking? It reduces people to numbers. Here’s a number, every 1% unemployment goes up 40,000 people die. Did you know that?”
Nobody should be allowed to own more than two properties and no corporation should be allowed to buy housing stock.
If you can afford your mortgage, even if it is huge, and are in negative equity, what happens? Essentially stuck in the house or any possibility of a repossession?
I can tell you with near certainty prices will plummet soon.
How do I know? Because after years of waiting for prices to correct only to continue to inflate I juts got mortgaged up to my eyeballs and I’m an unlucky SOB so of course they are going to drop now and fuck me sideways 🙃
House prices have been crashing for the last six months. Houses are down a solid 10% already, and the drop is accelerating.
Oooo boy, I can’t wait to be on an interest only mortgage for a house which is now underwater.
Jeez, there’s people out there still claiming house prices are not falling
Meanwhile..House prices dropped 89 pounds this month. Demand is greater than supply. People will continue to get what they want.
Question is would a crash really mean “a crash”, Or would it really just be bringing a crazy over inflated market back to what it was pre covid ?!
My home is worth about twice as much as it was 16 years ago when we bought it
I would ratherr it had not appreciated a penny if my son could leave home and rent for a reasonable fraction of a typical young person’s income. On the other hand, many people have bought at or near the height and will be fucked by a crash, how do we reconcile these factors?
My money is ready and waiting for the right price anyone who bought in the COVID house price mania period and overpaid I am happy to pay 40 percent the price you purchased it at just give me a DM
The guilts are going to fall out of their ar*e any time now again.
Lettuce hope this crisis can be averted.
Though our Gov’t be so idle & perverted.
Talk about a redistribution of wealth. Average Jo can’t buy a house, but mega landlord Ltd can buy on bulk.
But wait house prices are low! Why can’t av Jo buy? Well bc the crippling interest rates ofc!
But those cash buyers can outright buy and have no need for a mortgage.
Oh and those that get caught in the price increase will sell for below value or have it repossessed. Guess who’ll buy that off you for less than market value!
The rich will only get richer