UK house prices continue their long, slow drift lower

edgex

f.castle wrote: »

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?

If demand/prices look like their dropping, they'll simply build less.

Remember that the 'house builders' are not builders themselves, they employ very few people directly, so relatively easy for them to slow down or stop, or change who they market to.
We already see on mixed developments that any flats built get marketed at 'investors' early on (i'm sure they have ways of manipulating the price sold data)

There are also big firms involved with 'build to rent', so it's possible the housebuilders start to do the same.

snowqueen555

edgex wrote: »

If demand/prices look like their dropping, they'll simply build less.

Remember that the 'house builders' are not builders themselves, they employ very few people directly, so relatively easy for them to slow down or stop, or change who they market to.
We already see on mixed developments that any flats built get marketed at 'investors' early on (i'm sure they have ways of manipulating the price sold data)

There are also big firms involved with 'build to rent', so it's possible the housebuilders start to do the same.

I wouldn't worry, house builders are making an absolute killing. I can't think of too many industries that are propped up by Government schemes like help to buy.

https://www.theguardian.com/business/2018/jan/09/persimmon-profits-chief-bonus-scheme

triathlon

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.

And it will also be feeding ground for all the stronger currencies around the world that see our property as dirt cheap and a safe haven where nobody asks many questions.

lisyloo

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.

People will always need somewhere to live, but if they don’t have a job and don’t have savings (most don't) then they won’t be able to buy or rent.

Now the property market it global and we are seen as a safe haven (relatively stable politically) then money will pour in when the £ sinks.
The volatility in the property market will not be as big as before.

Those pinning their hopes on gaining from the distress of others rather than grafting will be disappointed.

The vast majority I’ve met on here and in real life who’ve done well have grafted.

Herzlos

edgex wrote: »

We already see on mixed developments that any flats built get marketed at 'investors' early on (i'm sure they have ways of manipulating the price sold data)

I've been builders offering good p/x deals, help with deposits and mortgage payments. All will inflate the sold price Vs what the buyer actually pays. No different to car sales where discounts are usually wrapped up as deposit contributions.

AG47

Herzlos wrote: »

I've been builders offering good p/x deals, help with deposits and mortgage payments. All will inflate the sold price Vs what the buyer actually pays. No different to car sales where discounts are usually wrapped up as deposit contributions.

This accounts for why official prices haven’t fallen that much of late, but in the real world actuality property prices are falling boots on the ground.

RelievedSheff

AG47 wrote: »

This accounts for why official prices haven’t fallen that much of late, but in the real world actuality property prices are falling boots on the ground.

If it were just the prices of new builds that were edging up then your theory would be sound but it isn't. The price of existing older properties is also (in many places not all granted) still edging up.

lisyloo

RelievedSheff wrote: »

If it were just the prices of new builds that were edging up then your theory would be sound but it isn't. The price of existing older properties is also (in many places not all granted) still edging up.

Amaznig isnt it that prices are up 3 months before a no deal.
We know it's nominal growth but most people are geared.