About to buy first home - how will EU result affect us?

johnbusby

Shares in the big house builders are down 25% so that gives you some kind of indication of what the market thinks is going to happen to house prices. I think you would be mad to exchange at pre-Brexit prices - it would seem much safer wait a couple of months to see how this all pans out...

martinsurrey

david171 wrote: »

We are in the same boat!

A price reduction is the only obvious way forward, especially if it's not a forever home.

A price reduction will only be obvious if everyone starts losing jobs, or mortgages start drying up.

We still have the same number of houses as yesterday, and we still have the same number of people to house as yesterday.

Until the effect flows through, who knows!

johnbusby

martinsurrey wrote: »

A price reduction will only be obvious if everyone starts losing jobs, or mortgages start drying up.

We still have the same number of houses as yesterday, and we still have the same number of people to house as yesterday.

Until the effect flows through, who knows!

True - but there have always been enough houses in the country, homelessness rates are extremely low. What has driven demand (and prices) has been speculative purchases and BTL; that is almost certainly going to vanish overnight as sentiment about future house price inflation changes for the worse. In the short- and medium-term the only way is down...

martinsurrey

johnbusby wrote: »

True - but there have always been enough houses in the country, homelessness rates are extremely low. What has driven demand (and prices) has been speculative purchases and BTL; that is almost certainly going to vanish overnight as sentiment about future house price inflation changes for the worse. In the short- and medium-term the only way is down...

and when prices fall, banks will restrict lending as their capital bases will be stretched, cutting jobs, growth, and mortgage availability.

We can play chicken and egg, but the end result will be a recession, and the first mortgages to go are the low deposit, high multiples, which are used primarily by FTB's...

evansc1

House prices aren't about to fall off a cliff. We aren't all of a sudden going to deport every European (yes, yes we are European too but you know what i mean) so there will still be the same number of houses for the same number of people in the short term.

There may be a gentle slide in house prices outside of London, but that was already forecasted pre-Brexit.

If you're buying for the short term - so want to sell up in a few years, maybe hold off as there could be volatility in the market.

Long term...everything should even out so don't see any reason not to buy now.

martinsurrey

evansc1 wrote: »

House prices aren't about to fall off a cliff. We aren't all of a sudden going to deport every European (yes, yes we are European too but you know what i mean) so there will still be the same number of houses for the same number of people in the short term.

There may be a gentle slide in house prices outside of London, but that was already forecasted pre-Brexit.

If you're buying for the short term - so want to sell up in a few years, maybe hold off as there could be volatility in the market.

Long term...everything should even out so don't see any reason not to buy now.

I agree long term, but short term could go either way.

My wife works for a mortgage company, they've struggled to get funding for new products over the last few months, with brexit uncertainty the main reason, if they cant get some new funds soon they'll be cutting their product range and upping their requirements (deposit and multiples).

Short term the uncertainty is going to cause liquidity issues, just look at the number of people on this board second guessing what to do.

jingles8384

We are in the same position (had an offer accepted 10 days ago) but we have decided to push ahead (subject to still getting the OK from the mortgage company etc etc). Ours is a reno project so we're not paying massively over the odds to buy, but the mortgage will be 5% deposit so that we have the cash to do it up and then remortgage to get a better rate (fingers crossed we can do the work quickly enough just in case the bottom falls out of the market).

We're not planning on moving again for a long time (10-15+ years) so any short-term dips will hopefully not have a significant impact on us

indianabones

jingles8384 wrote: »

We're not planning on moving again for a long time (10-15+ years) so any short-term dips will hopefully not have a significant impact on us

Up to 20% in the next 18 months potentially, that's more than a dip.

marksoton

martinsurrey wrote: »

I agree long term, but short term could go either way.

My wife works for a mortgage company, they've struggled to get funding for new products over the last few months, with brexit uncertainty the main reason, if they cant get some new funds soon they'll be cutting their product range and upping their requirements (deposit and multiples).

Short term the uncertainty is going to cause liquidity issues, just look at the number of people on this board second guessing what to do.

Then the management of said mortgage company is clearly poor.

martinsurrey

marksoton wrote: »

Then the management of said mortgage company is clearly poor.

please expand?