House prices reach record highs

https://www.homesandproperty.co.uk/property-news/uk-house-prices-record-high-a139761.html

 

seems the stamp duty holiday has worked better than expected.

So prices artificially inflated even further - just what we need!

Though my friend is an estate agent in Northampton, ant the top end of the market and according to him( has to be taken woth a pinch of salt as estate agents lie so much they dont know what is truth sometimes) he has been manic busy for the last 2 months

fwiw the areas i have saved searches on have had close to zero new listings and a flood of price drops over the last couple of week. if they're an indicator, the initial post lock down/stamp duty bump might be petering out quite quickly. 

What bullace said.  Was the plan was to lure a load of punters into the lobster pot which is years of living with negative equity?  If so, yes, working better than expected.

I'm definitely expecting to take a bath on the house we are buying. We got nearly 50k off the asking price but still, no way the values will hold up.

I don't care, I want to live there at least 10 years and we'll have time to recover hopefully the loss and not be underwater when it comes time to renew.

I read something the other day about the 'polo mint' model, which meant that with home working and tech, there was no real need for expensive central London office space.

Hence the boom in places like Sevenoaks, St. Albans, Guildford etc. Good size houses with all the schools, shops, countryside etc. and not that far from London if you need to pop in for a day.

I always thought the insane prices charged for tiny London flats wouldn't last.

err - those places have been a joke forever. Never understood the Winchester Wankers paying Esher prices to spend 1 hour on a train to somewhere that is in the middle of meh countryside. 

I expect there to be a bubble in 2-3 hours to London places for a while, before employers start embracing the "wholly remote" contract and cut salaries accordingly. Goldman only pay you £250k base so you can afford a home a short taxi from the office. If you want to pull all nighters in St Ives it's £150k all in. 

I have arranged to meet friends in London for dinner / drinks. they live in some godforsaken part of Zone 4 or 5. I live in Guildford, 35 mins on the fast train. I always arrive before them.

'Yeah, but its cool and edgy and its London and the flat only cost us £800k'.

You weep.

800k 

Bargain. Tears of frustration at missing out...

 

I reckon they will implement some regs via FCA And SRA and other equivalents to insist people must work in offices for some BS cyber/data/governance reason. Cant see any other way to keep the insanity if London going through this.

All the top end suburbs, and I live in one, are overpriced. The ponzi scheme only works because clueless Londoners move out with their equity for the schools and allow boomers to cash out. Going forward they will have less equity and will look to go further out for more value as the commute premium is eroded. The 35 minute places like Guildford will get crushed.

The flats round in east London are priced by mad men. A 2 bed sold for around 675. Albeit 1000sq ft though lots of that is stairs. 

The three bed in interested in started life at 760 dropped to 730 and the seller initially wouldn't take less than 710 but has privately  now come down to 700. 

The reduction was 4 weeks ago and my guess is that most of the interest drops off after 2 weeks because keen buyers will restrict their views to properties listed in the last few days. 

 

I'm trying a slightly risky  strategy of waiting to put in my final offer (1 and 2 rejected) when the crazy lady who owns realises she's priced it wrong. It's been about 2 weeks since my last offer so will check in with agent this week e 

Once unemployment starts kicking in come autumn the carnage will start.

Out of interest do you have to declare you are furloughed on a mortgage application? Or is it just you are employed. Bet some stupid idiots are buying houses while furloughed even if they have no guarantee of a job on return.

What Charrington said.

Unemployment will kick-in massively in autumn.  People will be given 3 months grace to try and sort their lives out, but most will not be able to.  Expect repossessions en masse next year.

I know people who are anticipating redundancy and scoping renting their houses out and moving back in with parents.  

I believe you do need to declare furlough on your application.

I gave my salary under flexible working which I signed on for 6 months when this started, even though it is due to end soon. I think furlough would be even more important for the underwriter to know.

 

Not sure prime Bristol is insane atm. Place I quite fancy has dropped by 450k over the past few months. 

What was it priced at originally if it’s dropped £450K do you mean £45k or are you buying an estate?