Sellers drop prices as extra homes flood property market

diable

Last house that went on sale in my street a few months ago was sold in 3 weeks and only £20k under the asking price, not all areas are suffering.

gubdlog

PasturesNew wrote: »

Some new flats near me have just gone on the market at £800k ... I'd love to know who they think will be buying them and what for. Are they expecting celebs to snap them up, to rent to other celebs? Or who? You could buy flats on Sandbanks cheaper I bet.

There are loads of new flats being built near me. I wonder if the project will be finished?

Blacklight

Haven't people always reduced the prices of things that didn't sell immediately? I don't think this is a new phenomenon.

bear1969

Blacklight wrote: »

Haven't people always reduced the prices of things that didn't sell immediately? I don't think this is a new phenomenon.

it is in the property market now you cant get the price you want for your house hahahahahahaha

bear1969

bears favorite song ,you cant always get what you want ,rolling stones

Graham_Devon

How do people know so much about their streets!?

I must twitch the curtains some more

silvercar

MissMoneypenny wrote: »

They had 2 years of benefits to sort themselves out - 3 years if they took an insurance policy out.

Plus:-
To ensure that Support for Mortgage Interest (SMI) is better targeted we will reduce the rate from 1 October 2010 from 6.08% to the Bank of England average (currently 3.67%).
http://www.dwp.gov.uk/newsroom/top-stories/

I know some who massively profitted from this. The best deal was someone paying 0.01% = BOE - 0.49% fixed for 2 years. Lost their job and SMI paid out 6.08%, leaving them in profit to the tune of 6.07% on a 200k mortgage = over £1000 a month. Hardly worth finding a job again.

Seems unfair when renters would only get £15 a week more than their rent.

Strings

A few points,
- why are people selling?
- Do they have to sell or just taking a punt?
- Where will they move to next, will they buy again?
- If prices drop, perhaps some of those who sold will buy again?
- If they dont, they will rent, perhaps pushing demand up for rental properties?

Summary - who knows, but I think the over supply will push prices down for a while and then you'll see it bounce back again as those who sold re buy at lower prices. However in the mean time, those who dont need to sell wont, because prices are falling.

carolt

Will have to see what happens.

MissMoneypenny

silvercar wrote: »

I know some who massively profitted from this. The best deal was someone paying 0.01% = BOE - 0.49% fixed for 2 years. Lost their job and SMI paid out 6.08%, leaving them in profit to the tune of 6.07% on a 200k mortgage = over £1000 a month. Hardly worth finding a job again.

Seems unfair when renters would only get £15 a week more than their rent.

He wasn't allowed to have that money himself as it was paid to his lender, so I assume he was claiming job seekers of just £64 pw for all his bills and food? Job seekers is not very generous. At least that extra mortgage benefit would have paid a little off his mortgage and will cushion him a bit (not much) from any negative equity.

Wasn't SMI payments only meant to be 1.5% over base rate, but good old Labour decided to make it 6.08% instead? Anything for votes...let the public pay later.

Those who took mortgages out in the days when banks lent to anyone and had bad credit so have a higher interest rate, are already saying the new SMI payments will not cover their interest on the mortgage.