Are House Prices going to drop significantly in the near future?

Legacy_user

I have a deposit ready to purchase a house but with the mess the UK is in I do not know if it is a good idea to buy right now.

I am hoping House Prices drop significantly. Will this happen soon? I want to get a bargain.

Todays news says there has been a sudden slump in mortgage lending.......if this continues will there be a 10, 20 30 40% drop in house prices?

I live in the South of England and Houses are a rip off, they need to drop in price.

£84,000 can get you a brand new 2 bedroom house in Bolton but in Surrey you will be lucky to get a 1 bedroom mobile home.

beecher2

who knows. Best bet is to treat your home as somewhere to live rather than an investment, and only spend the amount you're happy to spend.

System

I will treat it as a place to live. I do not see it as an investment but if I can get a house in future for £10,000-£20,000 cheaper than they are now then that makes sense...No?

Last thing i want to do is buy a house then it drops in price after a few months. As I will possibly want to move on after a few years.

FTBFun

Its hard to say whether they will or not. I would reckon though this is less likely in the South than the North purely because there are substantially more jobs down this way.

ess0two

Move to Bolton?

SilverSix

If house prices drop then they'll be dropping everywhere no?

If you buy a house for £200k and in 5 years time it's worth £180k. And you want to upsize to a '£300k house' then that £300k house should in theory be available for £270k. Whilst you take a hit so should everybody else.

I can understand not wanting to effectively throw money away however you'll have to bite at some point and nobody can predict the future.

molit

Just been looking (foudn somewhere) I know the feeling I got twas that the market was massively undersupplied, i found ti very hard to find something. If I were you, I'd have a look - if tere was something I wanted to live in, I'd by it, otherwise I wouldnt...I nkow it sounds simplistic, but when all is said and done, it is your home

SG27

I think prices will fall now I've been looking for a about year now on and off (due to other half getting redundancy notice ) and now there is so much more available that I like and nothing is selling!! The only thing is we can't actually buy now until the wife gets a new job. I saw this today too.

http://blogs.telegraph.co.uk/finance/ianmcowie/100009765/why-mortgage-lending-slumped-by-a-quarter-and-house-prices-may-fall-by-a-fifth/
It says house prices will drop by 20%!! Great news for us

originalmiscellany

I think house prices will fall in both senses, a) the context of value of a house, down by say 10% for a few years and b) Inflation creeping up, meaning we have less money to spend on our house/mortgage etc. I think inflation will effectively result in the equivalent of say 20% to drop off house prices in quite a short time frame 3 years say.

I don't think it will be a perfect storm, but quite possibly a large readjustment yes esp. as with such things ahead of us, unemployment in the UK from the Public Sector, Interest Rates to increase, QE etc...

Gorgeous_George

I bought a house last month beause Ithought the price was right (rental yield 10%). I wouldn't borrow more than 4 x my salary for property.

I like the idea that properties in the south are immune from price drops. The arrogance/ignorance of southerners knows no bounds.

GG

SouthCoast

but in Surrey you will be lucky to get a 1 bedroom mobile home

And in West Sussex you pay £165k for a railway carriage.



http://www.rightmove.co.uk/property-for-sale/property-32944367.html