Renovation costs in a recession

FFHillbilly

I know earlier in this thread I said you can't predict the future, but I believe it has to level off at some point and possibly come down.
I've though this ever since we started to come out of the pandemic in 2021 but apparently not thus far. Part of that can be explained by the "lag effect of economy"
its the same as the housing market really, with the kamikaze budget last Autumn I instantly though that buy to let landlords would be selling up at whatever cost they could get , also families with massive houses they don't really need would be downsizing rapidly, and this in turn would spark a price crash but so far that hasn't happened and it's because of fixed term mortgages, it'll surely happen at some point but it's going to be spread out over the next few years.
there is always an initial stubbornness against rising prices, and people just continue to do as they did before despite the price increase, this doesn't last forever though

mi-key

FFHillbilly said:

I know earlier in this thread I said you can't predict the future, but I believe it has to level off at some point and possibly come down.
I've though this ever since we started to come out of the pandemic in 2021 but apparently not thus far. Part of that can be explained by the "lag effect of economy"
its the same as the housing market really, with the kamikaze budget last Autumn I instantly though that buy to let landlords would be selling up at whatever cost they could get , also families with massive houses they don't really need would be downsizing rapidly, and this in turn would spark a price crash but so far that hasn't happened and it's because of fixed term mortgages, it'll surely happen at some point but it's going to be spread out over the next few years.
there is always an initial stubbornness against rising prices, and people just continue to do as they did before despite the price increase, this doesn't last forever though

Absolutely. The interest rate rises are having no effect, but inflation is dropping on its own. Fuel is down by 25%, gas and electric are dropping as of next month and food wholesale prices are dropping all the time. Its only really because they mainly look at food prices they keep saying how high it is.

This is always a bit strange as food isn't most peoples main outgoing, it comes after the mortgage, bills, childcare, vehicle costs etc..  so isn't a true picture. When these are taken into account, inflation is a lot lower than the BoE are saying.

( No doubt Sunak and the BoE will claim it is all down to them when it does drop though ! ) 

House prices have dropped, but not by much in the past 12 months, and don't show any signs of a crash. There are less houses on the market, so that keeps the prices higher. The mortgage lenders are still reporting a decent amount of lending. 

As you say, a lot of the effects will be spread over a few years, but people seem to be weathering it pretty well

onomatopoeia99

propertyhunter said:

So my budget is £250k, 3 bed detached house in Zone 6 London. Needs new electrics and plumbing throughout, a new bathroom upstairs, toilet downstairs and kitchen alongside a wraparound single-storey extension (about 60 m2). I'm worried this is not doable because I hear stories from friends and neighbours that costs are extortionate. 

I'm going to have to speak to an architect and then get some builders quotes in. 

Where in zone 6 can you buy a 3 bed detached house for £250k?

mi-key

onomatopoeia99 said:

propertyhunter said:

So my budget is £250k, 3 bed detached house in Zone 6 London. Needs new electrics and plumbing throughout, a new bathroom upstairs, toilet downstairs and kitchen alongside a wraparound single-storey extension (about 60 m2). I'm worried this is not doable because I hear stories from friends and neighbours that costs are extortionate. 

I'm going to have to speak to an architect and then get some builders quotes in. 

Where in zone 6 can you buy a 3 bed detached house for £250k?

£250K is for the extension, not buying the house !

propertyhunter

Found this article which helps to provide some insights on costs in a recession, in case anyone is interested:

https://constructionmanagement.co.uk/despite-recession-industry-shouldnt-assume-prices-will-fall/