I'm not sure there'll be a crash. There's still a housing shortage, there are now low interest rates and significant potential for mortgage holidays from lenders due to the situation.
Almost everyone who has a house will stay put, the small amount that do make it onto the market will then be overbid by FTB gorging on cheap rates. If there's any decline it will be small and short and we'll see another increase just like we did from 2008 to 2018.
House prices have just dropped off a cliff. Personal circumstances and value would still dictate whether now's the time for you.
It's going to take years before the economy is back to normal after this. I expect house sales to drop to an absolute minimum eg just distressed sales such as deaths etc.
have they? where?House prices have just dropped off a cliff.
If I was good to go then yes. No one has a clue what’s going to happen. If house prices crash whose going to sell and if they do competition will be fierce as investors look to cash in.
or about to exchange contracts. It’s stressful at the best of times but right now my bp would be through the roof.
Certainly proving this way for us. We should be in the process of closing, then starting the move back to Scotland from Switzerland, and there are so many variables and unknowns now being thrown into the mix, we are just about shutting down mentally. It's horrific.
We were due to be mortgage free tomorrow 😭 (selling Mrs dB & her ex's house) - first buyer in two link chain pulled out as they are a supply teacher...
So still paying mortgage & bills for two houses, looks like we should be able to get ex off deeds and mortgage but really don't want to be landlords 😕 neither of us have secure jobs in this climate either. So near yet so far..
I exchanged on Friday and the move is happening at the end of this week. Fingers crossed.
I want to move, we need to move. There's a small chain and we're contractually obligated to go through with it but if we go into "lockdown" between now and then who knows what the situation is.
Am I worried there will be a crash? and I've just added £100+k to the mortgage? I'm not thinking about it too hard. We're moving 1/2 a mile in an area with an outstanding local school that sucks people in as an alternative to private education so house prices are err bouyant (if not daft). Could it drop? Yes but we're in this for the long term. I'm more worried about getting the move done on the day for now. I'll worry about he rest later.
At least I started a full time job at the start of the month where I can work remotely and I'm not contracting any more. That would be bad.
Found the link below through Grace Blakely who I follow on Twitter, I realise that the publication is quite to the left of more mainstream publications. If the debt mountain starts to slide then it’s not looking good for our economic future, I guess if it gets that bad then there will need to be a worldwide consensus on how to proceed and I fear it will not be to the benefit of “us”.
https://tribunemag.co.uk/2020/03/the-coming-debt-deluge
Might not relate to the UK market but myself and my wife put an offer in for a flat here in Spain literally 3 weeks before this Corona thing started. Mortgage was agreed in principle and everything.
Due to an issue with the seller wanting to delay her move out until July (she is a government official and is relocating somewhere else in Spain) we've found ourselves in a situation where no contract has been signed and no money has changed hands. This might actually be a blessing in disguise. We're now in two minds whether we should back out or wait and see how things transpire over the next two months.
It may be the right time soon theoretically if prices crash but only if you're not selling also, unless you can manage to sell now or already have, wait a few months then buy.
Practically it's not going to proceed during a lock down and maybe for some time with big backlogs.
There's also already a backlog with Land Registry even before all this and it will be worse after.
We agree to sell 3 weeks ago (Hampshire to Scotland) FTB with only 50% mortgage - survey was last week so still waiting outcome and potential renegotiation on price. We were hoping to self-build but chances are remote as chance of getting planning permission this year will be remote as councils have shut-down non-essential services. Hoping this will blow-through in about 12 weeks to give us a chance to move in the summer. By the look of properties / prices in Scotland, it's a flat market as most 'new' properties are last years so if we get beaten down in price, we'd hope for movement at the other end. If buyers try to drop by more than a reasonable amount we'll stay put.
Oh shit . . . *
* #UKLOCKDOWN
So I guess we will not be exchanging next week then and moving soon after. Going to be very tight in here once our first child is born in a few weeks.
Going to be interesting call with solicitor tomorrow, was expecting to exchange in the next week or so.
We have a short chain, our buyer is in rented, house we’re buying is vacant possession (separated couple - him now in China, her in Nottingham, house in Warwick) so hopefully delays can be managed.
Ah nuts. We were meant to complete and move on Friday after starting the process in October!!! What do you reckon the chances are that moving from one home to another would be considered acceptable? yes I know I know, only meant tongue in cheek.
We are supposed to move from one rented flat to another next week, contract signed and notice handed in, any ideas what the options are? Will it be legitimate travel?
We're still moving Friday - breach of contract if not as we've already exchanged and all advice says go ahead but be careful.
Will be observing the social distancing protocols with anyone involved (agent can throw us the keys and we can keep well away from removals men) and can't have help from anyone (both sets of parents were willing) which will make it a very long day but sure we'll manage it.
Not sure when we'll be able to have a house warming party or even get to know the neighbours but at least we'll be "staying at home" one way or the other.
Good luck to anyone in a similar position, it's been a fairly stressful 12 hours.
G
Good luck with the move.
Gove on TV this morning said if you can delay it then delay it. It seems pretty obvious that an activity with so many people involved and a change of location is a big risk of transfer.
The Law Society has been useless on this. Doing the right thing puts you in breach of contract - madness.
PS we complete in May
Looking at rightmove new sales instructions the asking prices seem to be as if nothing has happened. Even London btl stuff is priced optimistacaly. Amasing really, my agent said last year they sold 3 to investors, so even before this the investment market had disappeared.
Any forced sales through divorce, debt or death will have to be priced attractively. Anyone who can wait surely will.
So we've had it confirmed that we will be moving on Friday. Very glad to get it out the way but it is going to be very stressful over the next few days - two young kids (including 8 week baby) were going get shipped off to leave me an empty house to pack. Now I have to pack around them while also leaving them entertainment options!!!
Moving day is going to be even more challenging I fear.
Best of luck PinchFlat that sounds like a rubbish situation. Ours are 7 & 9 and are going a bit stir crazy already
House prices off a cliff? Must be Norfolk.
Friend of ours was due to conclude sale yesterday. Everything done until Law Society of Scotland said it would not allow funds transfers to go ahead at the moment! So no sale for her! Anyone got a clue why this could be?
We completed about a month ago so stupidly glad we squeezed in. Especially as slightly narrow window we can buy in due to the wifes visa. Admittedly now she has been dropped to part time and im about to get furloughed its a bit scary!!
All this talk of asking prices not showing a drop. As ever, aski h prices are irrelevant, it's the sold prices that count. Give it a month or so (or maybe longer if the stats are delayed) to see what damage this has really done. Forced sales through job loss and bereavement a while off yet.
Evidently not, our sale has fallen through. Still seems to be a stream of houses coming on the market in the area I'm looking, but that could just be a lag with instructions from 1 to 2 weeks ago going up. Can't imagine estate agents would even bother now, not to mention getting pictures taken and stuff like that.
Quite a few of the 'new' properties coming to the market are last years judging by the photos and state of the gardens. Lots of people still want to move - jobs, families whatever. It'll take at least 6 months before estates get settled, forced evictions etc to start impacting on prices. With commercial property, the impact might be more immediate as investors seek to divest portfolios because of the impact on retail - who would want o put their more in shopping centres?
Just spoken to Estate Agent and Solicitor. We are still looking good to exchange early in April with completion before the end of the month. Ea/Solicitor combo have an exchange on another chain tomorrow so will be using that to see how things are truly impacted but so far they don't see any problems. Can all be done online or by phone other than key collection.
The two transactions below us in our chain are downsizing, so keen to keep momentum to release capital. We are upsizing but keen to get somewhere bigger for soon to arrive kid (both of our jobs seem safe). The place we are buying is vacant, so they are also keen to continue to get cash.
We expect this to be a home for decades, so any short term price adjustment shouldn't really be an issue for us. Just want to get in there.
Member
Friend of ours was due to conclude sale yesterday. Everything done until Law Society of Scotland said it would not allow funds transfers to go ahead at the moment! So no sale for her! Anyone got a clue why this could be?
Registers of Scotland has closed due to the lockdown so no new sales in Scotland can be registered. No registration = no concluded sale
All this talk of asking prices not showing a drop. As ever, aski h prices are irrelevant, it’s the sold prices that count. Give it a month or so (or maybe longer if the stats are delayed) to see what damage this has really done. Forced sales through job loss and bereavement a while off yet.
I wouldn't say that's unique to the circumstances right now, the past, or any point in the future. There is always someone, somewhere looking to fire sale their way out of a property. Either you get very lucky & that's the property you are interested in anyway, or you accept a compromise somewhere.
Desirable property in a good area always goes strong.
Indeed, it will take a while before even those in serious financial difficulties will be forced to put their house on the market. With banks offering mortgage holidays and everyone pretty much locked down for the next month or two.
Even then, no one is going to give away their biggest/only asset. Asking prices will stay high, those not in dire straights will keep their powder dry .....so the result will be very few houses up for sale, until the buyers come back.
Clearly there may be opportunities, but think prices will stay strong.
You will need a 40% deposit for a new purchase with a mortgage. Mortgage valuers not able to carry out visits for mortgage valuations so lenders now going to 60% max lending so desk top valuations can be carried out
Just had an email from the removals company saying that the British Association of Removals has told all removals companies to stop work unless they are literally mid-move with things on a van.
That is going to make things a little more difficult.
Our house went SSTC at the end of feb so we’re just working through the paperwork now. I’m in no rush to move at the minute but I’ll not be the one stopping it going through. I’m lucky that work is carrying on as normal but from home, I’m happy with the price we paid and the mortgage is sorted.
The guy buying ours is downsizing following a breakup and the house we’re buying is because the guy is moving in with his fiancé so hopefully it will just be delayed while we wait to be able to have documentation witnnessed and for removal companies to go back to work 🤞🏻
Bollocks.
I have today heard from your buyers solicitor who have advised that as a law firm they have made the difficult decision to not exchange and complete on transactions until the government removes the restrictions on non-essential movement. They will be in a position to proceed as soon as the restrictions have been lifted.
Can they do this?
Although just seen Peekays post about movers so maybe inevitable 😒
A mate who owns a conveyancing solicitors firm told me today that the removals firms are stopping after tomorrow.
He also says that a lot of sales/purchases are being cancelled mid way through.
I suspect it will be rough times for sellers and any of the trades involved in buying and selling houses for a few months at least.
Hadn't thought of this. I have to sell my Dad's house which has been sitting empty since Xmas, once the probate or whatever it's called comes through from the solicitors. Bugger.
The .Gov advice page at the link below has just been released
We recently had an offer accepted on a house, mortgage is also sorted and we were looking to conclude the missives in two weeks.
The land registry has stopped processing all deeds so nothing will complete until they are back at work - they sent all their staff home on Monday for a minimum of 12 weeks.
So, unless you have the keys and are sat in the removals van I doubt much will proceed for at least a three months.
I'm not looking forward to confinement in the pokey 1 bed flat we rented while looking for a new home.
We completed on a sale/purchase today, and I'll be honest probably the most stressful day of my life!
We managed to negoatiate getting the keys early (on Tuesday) because of the likelihood of movers not being able to deliver their service - they were booked to pack on Thursday and move us today.
In the event they phoned on Wednesday and said they'd had a cancellation and could they come then, they moved the limited stuff we'd managed to throw in boxes (them packing was off the table). They came back yesterday morning and moved all the big stuff, but left us to move all the leftovers. It didn't look like much, but my god there was so much stuff!
Our vendor had always said (since accepting the offer) that he needed to complete by March 27th or the whole thing was off, house off the market, so with all our possessions in the house, and zero chance of getting them all back out again any time soon I basically shat myself when I read this thread last night.
However... we're in. I had Domino's for dinner sent by my boss, and I've got a beer in hand. Me and mrs njee20 nearly got a divorce, and I've basically not spoken to mini njee20 to say anything other than "sit there and watch Ben & Holly, and don't move" for about a week. But we're in. I'm keen to never, ever do that again. It was a simple chain (we sold to first time buyers, and our vendors were moving out of a second home, and not buying), which helped. We moved about 200 yards, which helped with ferrying stuff. But jesus... just no, never again.
Well, congratulations. I think.
That must be a real relief.
Still waiting to see what becomes of our move once everyone has had a chance to digest the government guidance early next week.
I spoke to mortgage company today and they have extended the offer for ah additional 3 months which gives a little bit more breathing space.
I think that's congrats Njee? Even if it's only on the Dominos for dinner ;P.
My (very much) younger brother has just bought his first flat with his wife. I hope they don't get burned, but I suspect they will - if they stay there 10 years, they might be ok otherwise they will be bringing up a family in a two bed flat. Better than some obviously, but not ideal.
If it really hits the fan and the old folk all get it, there will be a lot of property on the market - if my uncle and father die, I'll have a third of a couple of properties, I would hope to responsibly rent rather than sell but that will depend on a people in a different scenario to me...
I also saw an article on Wired about the bottom falling out of the "pro" air bnb market in London. Hard to feel sorry for those folk who've been making profits of people's hardships over the last few years...
