UK house prices continue their long, slow drift lower

RelievedSheff

f.castle wrote: »

Hi all,

Would you be able to say the market for new build houses is different to the general market?
I am considering a help to buy mortgage but as brexit is around the corner was just wondering if that would mean I’m going to pay an inflated price and it suddenly lose value. To be honest it’s a home I plan to live in long term but obviously don’t want to feel like I’m losing (significant) value over the first few years.

Am considering Wakefield, West Yorkshire and based on the mynest article provided earlier in this thread it seems prices has fallen since 2007 adjusting for inflation. But would the same apply for new builds, and would their value likely fall too?
Thanks,
FC

The value of a new build is likely, (but not always the case) to fall as soon as you move in.

People are attracted to new builds because everything is new. It isn't as soon as you move in.

That said we have just bought one. But we plan to be here long term so we have no worries if the value drops immediately. It is first and foremost our home.

lisyloo

RelievedSheff wrote: »

People are attracted to new builds because everything is new. It isn't as soon as you move in.

It’s not brand new from the point of resale but everything is in tip top condition and that includes major elements like - the roof, the electrics, the plumbing, the radiators, the windows, the fences, patio/paths, tarmac.

I’ve had 2 new homes and very little upkeep.
The only upkeep we’ve had it a new boiler (just shy of £2k) after 14 years which is not bad for a boiler.

I don’t think new builds are best value, there’s a premium, but don’t forget that older houses have major elements that may need repair/replacement and could have issues that a new build would be covered for by NHBC.

There’s a lot of talk about finishing being poor on new homes and it’s true, but the NHBC inspectors are present and insistent on the fundamentals being done right e.g. foundations.

I think HTB has pushed up prices for new build because it has increased demand.
You need to think long term.

f.castle

Thinking long term + treating it as a home primarily rather than investment vehicle - yes good reasons to proceed.

Any opinions or thoughts on if housebuilders will lower prices after brexit? Or if they’ll keep them high due to help to buy supporting affordability?

lisyloo

Well I don’t think we’re brexiting (do you have a way to square no deal with good Friday agreement that no one else knows about?).
I think we’re getting GE, Corbyn, ref2, remain.
During the uncertainty transactions will remain subdued.
If we remain then there could be a bounce from pent up demand and return to confidence.

We could have civil unrest whichever way it goes. If we brexit there are a lot of people who are going to be very angry and I don’t mean remainers, I mean those whose livelihoods are ruined because they didn’t foresee the consequences of 40%+ tarriffs.

So who Knows?
I would think of it in terms of the long term If it’s a home and fits in with your long term plans.

I’ve bought homes in 1991 and 2003 and whilst nothing dramatic was happening, no one knew then back them either.
One thing is for sure, anyone who tells you they do know is not to be taken seriously.

RelievedSheff

f.castle wrote: »

Thinking long term + treating it as a home primarily rather than investment vehicle - yes good reasons to proceed.

Any opinions or thoughts on if housebuilders will lower prices after brexit? Or if they’ll keep them high due to help to buy supporting affordability?

No one knows what will happen post Brexit, and for what it is worth I do believe there will be a Brexit this time.

One thing that is for sure though is that people will still need somewhere to live.

westernpromise

AIUI the effect of the GFA was to dissolve the border between northern and southern Ireland.

Presumably Boris could maintain that to preserve the GFA the border will remain dissolved, and that if the EU insists there be one, it's their call?

Not all customs checks today happen at the physical border and very few are made in total.

RealElement47

RelievedSheff wrote: »

No one knows what will happen post Brexit, and for what it is worth I do believe there will be a Brexit this time.

One thing that is for sure though is that people will still need somewhere to live.

I agree that Brecht will happen this time, do or die.

Yes people need somewhere to live, and that's why the long awaited correction in house prices will be a welcome treat amungst all the chaos and job losses.

lisyloo

westernpromise wrote: »

.
Presumably Boris could maintain that to preserve the GFA

I don’t believe that’s WTO rules.

lisyloo

RealElement47 wrote: »

I agree that Brecht will happen this time, do or die.

Yes people need somewhere to live, and that's why the long awaited correction in house prices will be a welcome treat amungst all the chaos and job losses.

Who will welcome it?
Those in chaos or who’ve lost their jobs won’t, neither will most who need a mortgage.
It might help those who are already doing well.

Conina

lisyloo wrote: »

I don’t believe that’s WTO rules.

What you believe don't matter.

WTO says its rules would not force EU or UK to erect hard Irish border

https://www.irishtimes.com/news/ireland/irish-news/wto-says-its-rules-would-not-force-eu-or-uk-to-erect-hard-irish-border-1.3710136