Has the Housing Market got Silly?

JPin

Hi All,
My partner and I were in the market for a new home, however, everything seems to be priced exponentially out of our range (£200k+). We've even looked at some average houses at best and they're astronomically priced. Is this just down to the stamp duty freeze or are people like my partner and I priced out for a generation?

lisyloo

JPin said:

Hi All,
My partner and I were in the market for a new home, however, everything seems to be priced exponentially out of our range (£200k+). We've even looked at some average houses at best and they're astronomically priced. Is this just down to the stamp duty freeze or are people like my partner and I priced out for a generation?

Some people would say it's been silly for a while but things have changed with COVID in both directions.
The usual advice applies - you need to save more money somehow, lower your expectations or look at different areas.
Sorry.

MovingForwards

Can't say specifically about NI but if wages and savings don't meet the prices in your preferred area, the options are (1) save more (2) keep renting and focus on buying before retirement by pumping everything possible into a pension and savings (3) extend search areas where properties are affordable (4) lower expectations.

homeboy

A quick search on propertypal brings up plenty of houses within that budget. Are there bidding wars going on for most properties before going sale agreed?

qwert_yuiop

Stamp duty holiday ends at the end of June, tapering off to the end of September, meaning buyers will have to find a few more thousand up front again.
 So predictable how these interventions and supposed acts of generosity just distort the market.

Cptralls

I've spoken to a number of people who've bought and now regret. It's extremely sad as some of the houses are certain to drop quite dramatically. Sense has went out. 

ballyblack

even when stamp duty holiday ends the price of building materials have soared over the last 6 months. This will affect the prices of new houses and renovations only one way. That is UP !

https://www.theguardian.com/business/2021/may/08/cost-of-building-work-on-uk-homes-to-rise-as-price-of-materials-soars

WaywardDriver

A recent survey gave the average NI house price as £k145 so you're looking towards the upper end.

Cptralls

WaywardDriver said:

A recent survey gave the average NI house price as £k145 so you're looking towards the upper end.

I don't see many priced anywhere near this threshold. 

WaywardDriver

See Property For Sale in Newtownabbey Area, 10 Mile Radius, £120,000 to £160,000 - PropertyPal for over 200 properties but obviously depends on location and property type.

qwert_yuiop

ballyblack said:

even when stamp duty holiday ends the price of building materials have soared over the last 6 months. This will affect the prices of new houses and renovations only one way. That is UP !

https://www.theguardian.com/business/2021/may/08/cost-of-building-work-on-uk-homes-to-rise-as-price-of-materials-soars

Not necessarily. Most brand new houses tend to be worth a bit less than the initial price.