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    Average price tag of homes fell by £10,000 over summer, property giant claims
    United Kingdom

    Average price tag of homes fell by £10,000 over summer, property giant claims

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    15 Comments

    1. qt_31415 on

      There are so many probate properties just sat on the market, over priced considering how much building work costs these days, with inheritors refusing to drop the price. Most are at least 50k overpriced if not more.

    2. SevenNites on

      This is not good, if the house prices collapse it’d be end of the UK economy, we need more demand and less supply.

      65% of UK population are home owners, and their children will inherit their property wealth.

    3. marc512 on

      Well my area saw an average increase of £3k. So that’s good for the sellers… I guess I’ll keep waiting for an actual price drop.

    4. SearchImpossible8995 on

      The stamp duty reduction expired in April so that’s probably caused a bit of a drop as buyers pay a chunk to the government instead of sellers. Further to that, people are skint and pay hasn’t kept up with inflation. The older generation who lived through insane tax-free increases all their life think that trend will continue forever so their expectations of what they can get are way out of whack. I expect we’ll either see many years of the same nominal house prices while inflation makes them more affordable to the average worker, or there’ll be a crash soon, if it hasn’t already begun.

    5. hgjayhvkk on

      I’ve been ringing the alarm bells for a while now.

      Context. I sold my parents home last year and the market was very active in SE. I am a FTB and when I compare the market last year to now. Its literally the opposite. Not as many listing and properties on market for much longer.

      My theory is unemployment has ticked up in a way that has really impacted the market (boe cut rate because of it, even though inflation is rising) and theres Less desire to overpay. Now it looks like govt is about to raise income tax which will further reduce spending power.

      I am even looking for rental but I noticed London prices and outside London prices are virtually the same lol. I literally have to work from another country for a little while just to find nice affordable place to work lol

      UK is cooked because so much wealth is tied to housing. And when you look back, whenever there’s been fears of a housing collapse, the govt stepped in. But now their hands are tied. Lol. I think boe will step in with further rate cuts. Though I haven’t checked their outlook lately.

      Also I don’t give a crap if prices go up or crash.

    6. Apart_Nectarine_904 on

      Nobody can afford the larger houses and it’s these that aren’t selling, the 6 and 7 bedroom detached houses. Nobody has the money to upsize to a house that big, and they are overpriced when they haven’t had any work done to them in 30-40 years.

    7. TheRadishBros on

      This is probably the best case scenario if it maintains over the coming years. Stagnation in prices and a real-term drop, while not putting new buyers in negative equity.

    8. Kim_catiko on

      I always see these headlines and nowhere within a 20 mile radius of me seems to follow this trend. It’s up and up all the way, which is very fucking annoying for us wanting to move out of our shitty maisonette.

    9. constructioncranes on

      My father in law bought some student properties about 10-15 years ago and he’s been trying to sell a couple for almost a year. He’s had to drop the price on each at least £30-50k but they’re finally moving.

      He’s still making a handsome profit. Prices will continue to fall for a long time and that’s a good thing.

    10. Peac0ck69 on

      I wouldn’t know about my area… the land registry seems to be taking a year to update the sold prices.

    11. Diligent_Craft_1165 on

      Wages up 5% and homes down 3% is exactly what most people said they wanted a few years ago. A slow correction to avoid issues with our financial institutions.

      If house prices come down too quickly banks will stop offering 5-10% deposit options, and you’ll need 25%+ to offer them security. Interest rates will be increased to account for the higher risk.

      If you can’t afford a house now you won’t be able to afford one in a collapse. Cash buyers will benefit though.

      The tax payers will be the ones bailing out financial institutions again.

    12. Snaidheadair on

      ‘Average house priced atleast £10k over its value’ is not that much of a shock really.

    13. Desperate_Caramel_10 on

      I’d welcome a much wider crash. The govt could position themselves as the buyer of last resort for distressed sales, a “right to sell” policy, which would let people stay in their home, the government take over the mortgage and effectively the property becomes state owned again with the prior owners now being council tenants paying rent.

    14. Moist-Try-1123 on

      Will play the devil’s advocate here. The income and the house price disparity is way too high. Companies asking people to come to London thrice (at least) are not paying enough to allow people to buy even a decent 2 bed semi-detached or terraced house even in Zones 5 and beyond. All people can afford, if they want to buy a property in around London is a flat which comes with their own sets of challenges of leasehold, service charge, ground rent etc. The mortgage eligibility formular (4.5 * Salary) simply doesn’t work for London bound properties as the salaries are not increasing.

    15. ThatGuyMaulicious on

      Homes still aren’t selling very well still massively overpriced and I am still out of reach at 22 with nearly 35K saved.