As I posted on a similar topic, this would be reasonably good news for FTBs *if* they hadn’t spent the last year being absolutely battered by rising rents, food, CT + bills, and weren’t being quoted several full percentage points more on mortgage repayments than a buyer of last year.
Good news for those buying outright or those where Mummy and Daddy can throw down a huge deposit (aka the privileged) though. As always.
If you’re one of the people who are currently renting, a 20/30 something who is desperately trying to squirrel away a few hundred a month for a deposit (basically the subject of the “cut out Netflix” meme), property is just as- if not more- out of your hands than it was on that spike before the 14K drop. I know it sucks to read such a thing if you are in this situation, pouring cold water over a drop in house prices, but from where I’m sitting that seems to be what’s happening here?
fast-edit: Terrible wording.
Soo we were never meant to afford anything?
Either to expensive to pay rent and when it is affordable the house prices are way out of our league.
Its a joke.
UK house prices continue to fall, the latest Royal Institution of Chartered Surveyors (RICS) monthly sentiment survey shows:^1
>Buyer enquiries and sale instructions also declined, indicating a sluggish market.
>“The latest feedback from RICS members continues to highlight a sluggish housing market with little relief in sight. High mortgage rates and economic uncertainty are keeping buyer inquiries subdued,” said Simon Rubinsohn, RICS chief economist.
UK house sellers are cutting their asking prices at the fastest rate in more than a decade, amid rising interest rates:^2
>This led to average price reductions of 6.2%, which was also the highest since January 2011, knocking more than £22,000 off average asking prices.
>These cuts suggest that some sellers were too optimistic with their initial asking prices and have had to make some bigger than usual adjustments, with the lenders Nationwide and Halifax both reporting that selling prices are falling at the fastest rate since 2009.
Some analysts suggest that house prices will continue to fall because higher interest rates were only now beginning to feed through to the housing market:^3
>The impact of this lag effect is a seven-year high in mortgage arrears.
>According to the latest Bank of England data, the value of outstanding mortgage balances with arrears rose to £16.9bn over the three months to June, leaping 28.8 per cent from the same period last year.
“sorry, you’re not eligible for a mortgage, but have you seen our massive estate of rentals?”
As someone who bought their house only 5 years ago, I could not care less. Give everyone a home for all I care. It’s not an investment the way I see it. Any value I add to my house I’ll have to pay for and if I don’t then I’ll just be buying into an inflated market so no gains will be true.
Honestly…when they go up it’s a big shock horror story and when they go down it’s a big horror story…it’s tedious.
Where? I keep seeing this but I’m checking pretty much daily where I live (west midlands) and I haven’t seen any differences
Unless the drops are in the higher priced 4-5 bed houses, rather than the 1-3 that my filters are set at 🤷♂️
Demand has been reduced somewhat, by high interest rates.
9 comments
As I posted on a similar topic, this would be reasonably good news for FTBs *if* they hadn’t spent the last year being absolutely battered by rising rents, food, CT + bills, and weren’t being quoted several full percentage points more on mortgage repayments than a buyer of last year.
Good news for those buying outright or those where Mummy and Daddy can throw down a huge deposit (aka the privileged) though. As always.
If you’re one of the people who are currently renting, a 20/30 something who is desperately trying to squirrel away a few hundred a month for a deposit (basically the subject of the “cut out Netflix” meme), property is just as- if not more- out of your hands than it was on that spike before the 14K drop. I know it sucks to read such a thing if you are in this situation, pouring cold water over a drop in house prices, but from where I’m sitting that seems to be what’s happening here?
fast-edit: Terrible wording.
Soo we were never meant to afford anything?
Either to expensive to pay rent and when it is affordable the house prices are way out of our league.
Its a joke.
UK house prices continue to fall, the latest Royal Institution of Chartered Surveyors (RICS) monthly sentiment survey shows:^1
>Buyer enquiries and sale instructions also declined, indicating a sluggish market.
>“The latest feedback from RICS members continues to highlight a sluggish housing market with little relief in sight. High mortgage rates and economic uncertainty are keeping buyer inquiries subdued,” said Simon Rubinsohn, RICS chief economist.
UK house sellers are cutting their asking prices at the fastest rate in more than a decade, amid rising interest rates:^2
>This led to average price reductions of 6.2%, which was also the highest since January 2011, knocking more than £22,000 off average asking prices.
>These cuts suggest that some sellers were too optimistic with their initial asking prices and have had to make some bigger than usual adjustments, with the lenders Nationwide and Halifax both reporting that selling prices are falling at the fastest rate since 2009.
Some analysts suggest that house prices will continue to fall because higher interest rates were only now beginning to feed through to the housing market:^3
>The impact of this lag effect is a seven-year high in mortgage arrears.
>According to the latest Bank of England data, the value of outstanding mortgage balances with arrears rose to £16.9bn over the three months to June, leaping 28.8 per cent from the same period last year.
^1 Rabina Khan, 14 Sep. 2023, https://uk.finance.yahoo.com/news/uk-house-prices-mortgage-interest-rates-230131187.html
^2 Graeme Wearden, 18 Sep. 2023, https://www.theguardian.com/money/2023/sep/18/uk-house-sellers-cutting-asking-price-rightmove
^3 Mitchell Labiak, 18 Sep. 2023, https://www.investorschronicle.co.uk/news/2023/09/18/why-house-prices-will-keep-falling-even-as-mortgage-costs-drop/
How is this news? like the Pub closure post today, if money is tight, people spend less.
Great news for cash buyers and future mega landlords…
[https://www.theguardian.com/business/2021/jul/04/john-lewis-plans-to-build-10000-rental-homes-on-its-land-waitrose](https://www.theguardian.com/business/2021/jul/04/john-lewis-plans-to-build-10000-rental-homes-on-its-land-waitrose)
[https://www.theguardian.com/business/2021/aug/19/lloyds-plans-big-move-into-uk-rental-market-with-50000-homes](https://www.theguardian.com/business/2021/aug/19/lloyds-plans-big-move-into-uk-rental-market-with-50000-homes)
“sorry, you’re not eligible for a mortgage, but have you seen our massive estate of rentals?”
As someone who bought their house only 5 years ago, I could not care less. Give everyone a home for all I care. It’s not an investment the way I see it. Any value I add to my house I’ll have to pay for and if I don’t then I’ll just be buying into an inflated market so no gains will be true.
Honestly…when they go up it’s a big shock horror story and when they go down it’s a big horror story…it’s tedious.
Where? I keep seeing this but I’m checking pretty much daily where I live (west midlands) and I haven’t seen any differences
Unless the drops are in the higher priced 4-5 bed houses, rather than the 1-3 that my filters are set at 🤷♂️
Demand has been reduced somewhat, by high interest rates.