House price increases. Is everyone absolutely loaded?

getmore4less

At the bottom there has been pent up demand with people locked out.

Income good, deposit small market opened up with 90%&95% lending back on the table.

Buying cheaper than renting.

Movers having more money can gear up at decent rates(subject to affordability limits)

If they saved £5k that gives £20k purchase power at 75% LTV, same with every extra £5k they get on existing property

lookstraightahead

Honestly a 90/95% mortgage at such low interest rates and able to buy a property because people have been able to save this year.

what happens next year.

Ramouth

Houses are worth what people are willing to pay.  People can afford to pay more (low interest rates, lower spending during lockdown) and are seeing their home environment as a higher priority as they spend more time there.  This leads to buyers willing to pay more to get a house they love.

I’m in no way saying this is a good thing. HPI is bad for most people.  But I don’t feel strongly enough about HPI being wrong to waste money renting for the next 10 years rather than bidding high to secure a property that ticks all the boxes.

lookstraightahead

zpargo said:

The government only cares about the rich getting richer. They don't care about the young people of this country who are trying to get a foothold on the property ladder. These stamp duty changes on top of people's savings from pandemic mean property prices sky rocket. As a FTB have found it very tough as well. At the current rate, I do worry about the future of young people. Education is expensive and now properties are unaffordable. 

I don't agree with this at all.

Education is free up to 18 and then you can decide whether you want the luxury of post-further education. You pay it back when you're working (which is when you are rich?) so I don't see your point there.

From a house buying perspective, I think 'rich' is a bit overstating it. Can you define rich? 

lookstraightahead

Ramouth said:

Houses are worth what people are willing to pay.  People can afford to pay more (low interest rates, lower spending during lockdown) and are seeing their home environment as a higher priority as they spend more time there.  This leads to buyers willing to pay more to get a house they love.

I’m in no way saying this is a good thing. HPI is bad for most people.  But I don’t feel strongly enough about HPI being wrong to waste money renting for the next 10 years rather than bidding high to secure a property that ticks all the boxes.

Yes good point.

I do think there is a risk of losing your house though, which then makes you homeless effectively.

grumiofoundation

zpargo said:

Education is expensive and now properties are unaffordable. 

Having been in education until I was 26 and not paid a penny towards it I would have to say I can’t agree that education is expensive (edit: until recently to preempt the ‘Boomer’ replies!!)

Self evidently all properties aren’t unaffordable to all young people/FTBs. 

MobileSaver

lookstraightahead said:

Honestly a 90/95% mortgage at such low interest rates and able to buy a property because people have been able to save this year. what happens next year.

The people who bought carry on living in their lovely new home, happy in the knowledge they...

• Are now paying off their own mortgage instead of their landlord's mortgage
• Are one year closer to owning their home outright
• No longer have to ask a landlord for permission to hang a picture
• No longer have to worry about receiving two month's notice to find somewhere else to live

Sounds like a no-brainer to me!

MobileSaver

zpargo said:

They don't care about the young people of this country who are trying to get a foothold on the property ladder. ... At the current rate, I do worry about the future of young people. Education is expensive and now properties are unaffordable. 

There's loads of affordable properties available!

The problem is that they're not good enough for the self-entitled "young people" of today who seem to want nice houses in nice areas just like their parents, conveniently forgetting that in most cases their parents had to work hard and make sacrifices for decades to get where they are today...

James-may

I'm looking to buy right now, my ability to buy just happened to fall right now, after years of being unable to.

But properties are selling the same day agents are putting them out there, and I mean selling without even viewing, crazy.

My worry is that the properties won't be valued at the price you agree.

I found a place that was £120k, I thought at first glance it was a bit steep, after viewing, it needed a complete rewire, the roof retailed, and the whole house remodeled due to things being half added or removed, and all walls replastered.
Houses in better condition on the same street last year were going for 110k.
I offered £110k, was told no as seller already had offers above asking price.

If the genuine prices have gone up, fair enough, I'll need to pay that, the question is will the lender refuse to lend if they look at it and say it's not worth that money?

That might be an issue that crops up in a month once valuations start coming in.

Maybe not, I don't know, guess I'm just frustrated.

davilown

grumiofoundation said:

zpargo said:

Education is expensive and now properties are unaffordable. 

Having been in education until I was 26 and not paid a penny towards it I would have to say I can’t agree that education is expensive (edit: until recently to preempt the ‘Boomer’ replies!!)

Self evidently all properties aren’t unaffordable to all young people/FTBs. 

As MSE Martin would say, it doesn’t cost you a penny until you’re earning a decent wage!