Anecdotal in Gloucestershire

izzybusy23

Just thought I would post some anecdotal information

I rent a 2 bed house in a cul-de-sac in a sought after area in Gloucestershire (and one that doesn't flood before you all start :rolleyes: ). Anyway, recently there have been 3 houses up for sale in this small cul-de-sac for sale, two 2 bedders and one 3 bedder. The two bedders have price tags of £155 - £160k and the 3 bedder of £175k. Ridiculously overpriced. Personally after renting one for a year we now find is way too small for us (can't move til November :mad: ) I wouldn't give you £80k for one. Anyway, I digress.

Just recently I think they have woke up and smelt the coffee and one of the 2 bedders and also the 3 bedder have finally taken their boards down after months of no offers.

The other 2 bedder is still up for sale at £160k... wonder how long before they give up and take their board down?

Rather than lower their price they have taken them off the market in the hopes that it will pick up again one presumes.

So thats just what I have observed in our little cul-de-sac, so how many other sellers out there are 'giving up'.

BenL

I think this will be the case all over the country.

The local estate agent will tell the sellers how much their house is "worth".

No buyers want to buy at that price in the current market.

Seller will not want to drop the price (losing all that hard earned money from the HPI) so will stay put.

BoE will keep reducing interest rates but the interbank lending rates will probably keep rising pushing up mortgage costs when people move onto SVR.

Some people will not be able to re-mortgage due to not having enough equity and will be forced to pay high rates on the SVR.

A lot of problems stored up.

Home owners will be getting the squeeze with the cost of everything rising.

From my point of view it just looks like the majority of people (not people who use MSE) just don't realise at the moment.

I am protected due to having a fixed rent deal with all expenses pretty much included but have reduced my spending anyway and am looking do to so even more in the coming months.

One of the things that took me by surprise last week or the week before that I read on here was that the calculation that the last 5 months of house price decreases had taken away the previous 18 months worth of increases (Nationwide figures)

RHemmings

izzybusy23 wrote: »

Just thought I would post some anecdotal information

I rent a 2 bed house in a cul-de-sac in a sought after area in Gloucestershire (and one that doesn't flood before you all start :rolleyes: ). Anyway, recently there have been 3 houses up for sale in this small cul-de-sac for sale, two 2 bedders and one 3 bedder. The two bedders have price tags of £155 - £160k and the 3 bedder of £175k. Ridiculously overpriced. Personally after renting one for a year we now find is way too small for us (can't move til November :mad: ) I wouldn't give you £80k for one. Anyway, I digress.

How much do you pay in rent? What would be the expected rent the three bedders would get?

minimike2

"Sought-After Area in glos" - Thinking you would get a house for £80k in a sought after area is the opposite end of the scale of property price opinion surely!!

izzybusy23

minimike2 wrote: »

"Sought-After Area in glos" - Thinking you would get a house for £80k in a sought after area is the opposite end of the scale of property price opinion surely!!

I didn't say I expect to buy one for £80k.. I was saying I wouldn't pay £80k for one. My expectations of what I am willing to pay/afford are alot different from what is currently being asked of sellers. The area is nice, but the houses are way too small, especially for an asking price of £155k+. Sorry but I am not a mug. I am quite prepared to sit and wait it all out, even if it takes 5+ years.

I currently pay £575 for rent on a 2 bed. I expect a 3 bed to be about £625 - 650. But saying that a 3 bed semi with seperate garage around the corner is on for £675 (gutted as cannot go for that due to being tied in to contract until November) and the 3 bed house I am referring to is terraced with allocated parking.

RHemmings

Estimating the values of the properties from the achievable rents, for a 7.5% gross return the three bedders should be worth £100-£104K. That's only one estimate of fair value, but not, in my opinion, a bad one.

merlinthehappypig

BenL wrote: »

I think this will be the case all over the country.

The local estate agent will tell the sellers how much their house is "worth".

No buyers want to buy at that price in the current market.

Seller will not want to drop the price (losing all that hard earned money from the HPI) so will stay put.

BoE will keep reducing interest rates but the interbank lending rates will probably keep rising pushing up mortgage costs when people move onto SVR.

Some people will not be able to re-mortgage due to not having enough equity and will be forced to pay high rates on the SVR.

A lot of problems stored up.

Home owners will be getting the squeeze with the cost of everything rising.

From my point of view it just looks like the majority of people (not people who use MSE) just don't realise at the moment.

I am protected due to having a fixed rent deal with all expenses pretty much included but have reduced my spending anyway and am looking do to so even more in the coming months.

One of the things that took me by surprise last week or the week before that I read on here was that the calculation that the last 5 months of house price decreases had taken away the previous 18 months worth of increases (Nationwide figures)

That's exactly what we have been seeing as potential buyers.

Long term sellers who don't have to sell have their houses for sale for stupid prices and won't reduce. Many would like to take them off sale, but don't want to pay the agent anything so waste their time and that of buyers by leaving them on the market.

Those who have to sell are having to take big cuts, well below any statistical decrease, because there are so few buyers.

dubsey

There are a lot around here that took theirs off the market last summer and have just put them back on. That's fair enough, but not one is lower than last year, most are the exact same price but several are 10-15k higher!

It's funny when you read the description and it says (as if to justify the price increase) recently refurbished and all they've done is de-clutter and slap around some magnolia.

Catblue

We sold our house last year, moved area, and are currently in rented. Still looking to buy in this area (High Peak, Derbyshire).

There are two, identical, 4 bed detached houses for sale around the corner on a little cul-de-sac, priced at £275K each. They seem quite overpriced to me, but I'm not an expert by any means. Both been on the market at least 8 months, I believe.

An almost identical, but 3 bed detached (smaller house, smaller garden, built by the same developer) on this same cul-de-sac went on the market at £290K around 5 months ago. Strangely didn't sell. They then put it up for rent at £1100pcm and strangely didn't get any interest in that, either.

It has now gone off the market. I am expecting them to leave it a couple of months and then put it back on the market at £305K. :rolleyes:

RHemmings

Catblue wrote: »

An almost identical, but 3 bed detached (smaller house, smaller garden, built by the same developer) on this same cul-de-sac went on the market at £290K around 5 months ago. Strangely didn't sell. They then put it up for rent at £1100pcm and strangely didn't get any interest in that, either.

If that was an achievable rent, then that would value the house at £176K by my measure. But they didn't achieve that rent.

Edale

Catblue wrote: »

We sold our house last year, moved area, and are currently in rented. Still looking to buy in this area (High Peak, Derbyshire).

There are two, identical, 4 bed detached houses for sale around the corner on a little cul-de-sac, priced at £275K each. They seem quite overpriced to me, but I'm not an expert by any means. Both been on the market at least 8 months, I believe.

An almost identical, but 3 bed detached (smaller house, smaller garden, built by the same developer) on this same cul-de-sac went on the market at £290K around 5 months ago. Strangely didn't sell. They then put it up for rent at £1100pcm and strangely didn't get any interest in that, either.

It has now gone off the market. I am expecting them to leave it a couple of months and then put it back on the market at £305K. :rolleyes:

Where in the High Peak are you? You can probably guess from my username where I am from, I agree prices round here are absolutely mad and have no bearing to rental values. I think a lot of it is down to second home ownership and holiday lets, there are many people prepared to pay a fortune per week to stay in a two bedroom cottage but not that many to rent it longer term. Property prices seem to be influenced by the former and if you can find a suitable property to rent it is a no brainer in financial terms and certainly when you are unlikely to see capital appreciation in the short term.