Russia/Ukraine

[Deleted User]

With sanctions coming in there might be some property released onto the market soon.

nicknameless

There was me expecting a question about how much to offer over on a property on the russia / ukranian border.

jimbog

[Deleted User] said:

With sanctions coming in there might be some property released onto the market soon.

Not many oligarch mansions down my way 

Getting_greyer

Last Spending review shows defence spending cut in real terms by 24/25. 

Nominal GDP up, gov revenue up.  national debt as %GDP down. Not all debt is inflation linked.

Current mortgage rate %< CPI %.

Economic sanctions can hit all consumers, though this is where the market does its thing.

I wouldn't let UKR/RUS put me off, bit that's just me.

[Deleted User]

First it was brexit. Then it was covid. Now it is war. House price crash go!

KievLover

Lyd00 said:

I know there are bigger things going on in the world, much of it I can't understand. Selfishly I'm worrying about being mid house purchase....is now the time to be skinting myself? (FTB, offer accepted, survey done and lots of maintenance needed within a very tight budget). 

Oil and gas prices going up, increasing our defence spending etc? Our we going to be badly affected?  

Don't have a crystal ball, but because everything has gone to !!!!!! in the last two years and isn't looking rosy, we are planning on buying at 280k ish shortly then saving for our 350-400k 'dream' home at the end of a two year fixed term, partly because I am worried about bills and the cost of living massively increasing.

That said, we are going in at 200k under what banks will offer us now and we can easily afford to move twice in three years time. Appreciate it's not financially sensible for most.

If we had less flexibility, I would be looking to buy the cheapest place I could tolerate with a view to doing it up myself.

However, how long are you likely to be able to rent your mates house for? It sounds like a really comfortable arrangement and you won't get another opportunity to stay somewhere you like and can afford again. You could stay for another year and build yourself up a massive safety/home improvement net and move in a year/18 months.

Signs seem to be the market is going to stagnate, depending on what you read.

hazyjo

There will always be something!

Just take a look back through some of the worries and panics on this board. As above, Brexit had loads putting it on hold. Then the pandemic... honestly, there really will always be something! It's not just a line!

[Deleted User]

jimbog said:

[Deleted User] said:

With sanctions coming in there might be some property released onto the market soon.

Not many oligarch mansions down my way 

They buy a lot of property just to invest. Flats, houses. Don't live in them themselves.

NameUnavailable

The property market has been bizarre over the last couple of years. It was quite depressed during the brexit uncertainty but then started going into overdrive once the decision had been made. Many of us thought that covid would result in a drop, if not a crash but the opposite happened. The safety net the Govt. offered with furlough and other measures to support business meant that many people were better off (no commuting costs etc) and the drive for more space, more suburban/country propoerty just pushed prices up further.

Now that Boris has got rid of Covid and people are being called back to the office I think we'll see more people looking to buy in city centres. Flats will be more popular again (as long as they aren't affected by cladding) and a more 'normal' market.

High energy costs, and therefore higher costs for pretty much everything, will surely impact people's spending power.

Russia could impact that further, given how much of Europe relies on their energy. Sanctions will hit the Russians but it will also hit us in lost revenue through trade.

Add to all of this a predicted rise in insolvencies in the UK (up by over 100% in January compared to last year) there are going to be fewer people with less money to spend.

Whether that results in just a less inflationary property market, a bit of stagnation or a crash is anyone's guess.

Homes with bomb shelters are likely to be more sought after!

HotPantsCruiser

hazyjo said:

There will always be something!

Just take a look back through some of the worries and panics on this board. As above, Brexit had loads putting it on hold. Then the pandemic... honestly, there really will always be something! It's not just a line!

The only thing that matters now is interest rates, they have been rock bottom throughout all these events.