PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Buy now or wait till BREXIT

Simple question really, I'm holding off house hunting until BREXIT has occurred. I think there will be a massive house price crash?

Or, maybe there won't be. First time buyer either way. Any thoughts? Should I just get a move on with it.
«13456717

Comments

  • I'm waiting and going to rent for a while before I buy again. Personally I think house prices will come down in the short term. If you are going to stay in your house long term though it doesn't matter as house prices run in cycles. Just don't expect it to be a short term investment. Also watch those interest rates.
  • jimbog
    jimbog Posts: 2,109
    First Anniversary Name Dropper First Post
    Forumite
    This is better suited in the discussion section:
    https://forums.moneysavingexpert.com/forumdisplay.php?f=149
    Gather ye rosebuds while ye may
  • Supply is less than demand, so prices will not change much. They might go down a few thousands, but nothing significant.

    Now, if there was not a supply-demand problem, then yes, prices would crash, maybe by 40% as the BoE predicts. But this is also scaremongering.

    Expect 5-10% decline if hard Brexit.
    Maybe 1-2% decline if soft Brexit, then increase again thereafter.
  • Crashy_Time
    Crashy_Time Posts: 13,386
    First Anniversary First Post Name Dropper
    Forumite
    JohnLock wrote: »
    Supply is less than demand, so prices will not change much. They might go down a few thousands, but nothing significant.

    Now, if there was not a supply-demand problem, then yes, prices would crash, maybe by 40% as the BoE predicts. But this is also scaremongering.

    Expect 5-10% decline if hard Brexit.
    Maybe 1-2% decline if soft Brexit, then increase again thereafter.


    Lack of supply isn`t the problem, it is the price! (and also demand starting to fall) Take away FOM and demand will really fall.


    https://www.bloomberg.com/news/articles/2018-11-20/london-s-stockpile-of-unsold-homes-jumps-almost-50-to-a-record


    Of course it depends on where you are in the country but the housing market tends to crash or surge (unless there is unprecedented central bank meddling) not dip or rise in small single digits. I would guess 500-600k "Luxury flat" buyers in London from a couple of years ago are starting to panic now?
  • JohnLock
    JohnLock Posts: 74 Forumite
    edited 31 December 2018 at 2:31PM
    Lack of supply isn`t the problem, it is the price! (and also demand starting to fall) Take away FOM and demand will really fall.

    https://www.bloomberg.com/news/articles/2018-11-20/london-s-stockpile-of-unsold-homes-jumps-almost-50-to-a-record

    Of course it depends on where you are in the country but the housing market tends to crash or surge (unless there is unprecedented central bank meddling) not dip or rise in small single digits. I would guess 500-600k "Luxury flat" buyers in London from a couple of years ago are starting to panic now?

    Demand is falling because people are uncertain about the Brexit uncertainties. So they are holding until after Brexit. It is not a long term natural market decline, but short term reaction to the political landscape.

    London really has its own property market so can't really be applied to the rest of the UK. London market might crash if hard Brexit due to companies pulling out and bankers moving abroad

    I really think prices in the rest of the UK will continue to increase because there is a shortage of houses and not enough being built to correct the supply-demand problem.

    And the British economy is built around house prices. So the Bank of England will do everything they can to artificially inflate house prices, like they have been doing for 20 odd years now.
  • Simple question really, I'm holding off house hunting until BREXIT has occurred. I think there will be a massive house price crash?

    Or, maybe there won't be. First time buyer either way. Any thoughts? Should I just get a move on with it.
    I'm waiting and going to rent for a while before I buy again. Personally I think house prices will come down in the short term. If you are going to stay in your house long term though it doesn't matter as house prices run in cycles. Just don't expect it to be a short term investment. Also watch those interest rates.


    I would sell before Brexit, if you can.
    Keep the money in the bank until after Brexit.

    There are two possibilities...

    1. House prices continue to increase after Brexit. You lose a few thousand if you re-buy for the same price. Worth the gamble.
    2) House prices crash. You can buy a bigger house for the money you have in the bank.

    I think you have more to gain if you sell now.
  • sevenhills
    sevenhills Posts: 5,838
    First Anniversary Name Dropper First Post
    Forumite
    Lack of supply isn`t the problem, it is the price! (and also demand starting to fall) Take away FOM and demand will really fall.


    The poorly performing economy is affecting house prices negatively, I believe Brexit or a Labour government could cause public confidence to decline, leading to a crash, but with demand for houses being strong, its unlikely to be a big crash.
  • PhilE
    PhilE Posts: 566 Forumite
    No one knows what will happen, when it will happen and what effect it will have.

    Im considering a small flat as a buy to let, will wait till later on in the year just in case.
  • Alter_ego
    Alter_ego Posts: 3,842
    Name Dropper First Post First Anniversary
    Forumite
    JohnLock wrote: »
    I would sell before Brexit, if you can.
    Keep the money in the bank until after Brexit.

    There are two possibilities...

    1. House prices continue to increase after Brexit. You lose a few thousand if you re-buy for the same price. Worth the gamble.
    2) House prices crash. You can buy a bigger house for the money you have in the bank.

    I think you have more to gain if you sell now.

    The question was about buying not selling!
    I am not a cat (But my friend is)
  • Thrugelmir
    Thrugelmir Posts: 89,546
    Name Dropper Photogenic First Anniversary First Post
    Forumite
    Buy when something you want to live in and make a home comes onto the market. Every month that passes is one less to pay the mortgage off too.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards