Non-motoring > House Prices Miscellaneous
Thread Author: commerdriver Replies: 19
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New Mon 23 Jul 18 11:57 
 House Prices - commerdriver
OK, prompted from the latest Brexit slanging thread.

What does the forum think about house price stability / rising / falling?

As I said on the Brexit thread, while I would not like to see a large scale slump leading to lots of negative equity etc. I believe that a small reduction/stabilisation over a period of time would, in many ways, be a good thing.

It might get us back to a situation where buying a house is more about making a decision on how settled you are in an area and what sort of a lifestyle you want rather than how much can I make on a house in this area.

It all, at the moment seems to me that you have a situation where it's all funny money until you get out of the market / downsize / die, as you need a place to live until then.
Unless you are one of these thousands who has chosen to make a career / pension out of the money from rising house prices.
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New Mon 23 Jul 18 12:30 
 House Prices - Ambo
Has risen nicely for my house, providing a pension in terms of an asset from which to derive an extra income.

Purchased (1975) £19,000. Equivalent of that amount in 2017, allowing for inflation, £151521 (according to Bank of England calculator). Market value now (compared with recent nearby sales) a conservative £500,000.
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New Mon 23 Jul 18 12:33 
 House Prices - Ambo
>>providing a pension in terms of an asset from which to derive an extra income.

I should have added "if necessary".
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New Mon 23 Jul 18 13:57 
 House Prices - Zero

>> It might get us back to a situation where buying a house is more about
>> making a decision on how settled you are in an area

That has never been the case , since the early 70's. First house purchase has always been affordability, and often meant compromise on area.
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New Mon 23 Jul 18 14:18 
 House Prices - commerdriver
>> That has never been the case , since the early 70's. First house purchase has
>> always been affordability, and often meant compromise on area.
>>
Partly true, although "area" for settling in, IMHO, is usually much wider, e.g. south east England - west of London, while area for purchase and subsequent "upgrades" is usually more specific within that, e,g. Marlow or High Wycombe, to use our personal example.
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New Mon 23 Jul 18 16:21 
 House Prices - R.P.
Not worried about it. No plans to move away from here in the immediate future. Wi
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New Mon 23 Jul 18 16:57 
 House Prices - commerdriver
>> Not worried about it. No plans to move away from here in the immediate future.
>> Wi
>>
Nor us we made our choice 35 years ago.

However 2 of our 3 kids have stayed local, one started in Wycombe and moved to Marlow in January, another is buying first home in High Wycombe.

3rd one is happily settled in Somerset
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New Mon 23 Jul 18 17:12 
 House Prices - No FM2R
>>No plans to move....

Ironically I was living on the South Coast, sort of settling down, and I had no plans to move either. It just didn't work out that way.

I don't make those sort of plans anymore.
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New Mon 23 Jul 18 17:13 
 House Prices - Driver
We are in the process of moving "up" to a bungalow and will have a significant new mortgage.

It came up on a road we always wanted to live in and they are rare with 1 or so properties for sale a year.

We put an offer in and they accepted but gave a 2 week window to sell our house and it wasn't on the market and needs some TLC which I have been too busy to do recently and so we took a £15k hit on ours to sell it quickly.

I though that prices will fall and / or the market will stagnate if Brexit causes problems and we wanted to move so are taking a risk re property prices, rather than put things off for a few more years.


We are fixing the mortgage for 5 years though, because if the pound falls, interest rates are one of the most commonly used tools to shore up its value.
Last edited by: Driver on Mon 23 Jul 18 at 17:17
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New Mon 23 Jul 18 17:20 
 House Prices - Bromptonaut
>> Nor us we made our choice 35 years ago.

Us too. However now the kids have flown the nest, one in Liverpool and one in Torpoint, we've no particular ties to Northamptonshire. Started looking vaguely around North Staffs but then Mrs B got sponsorship for a PhD based in Oxford. I'd actually be happy in one of the villages between Northampton and Banbury but Mrs B has designs on NW, particularly as daughter and her by then husband are looking to move north if he can secure employment round there. He's a Naval Architect so Birkenhead is one possibility.
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New Mon 23 Jul 18 17:28 
 House Prices - No FM2R
>>Northampton and Banbury

Nice area, and some lovely little villages, I used to live around there. You do pay a premium though.

I don't really know the NW very well. Hardly at all in fact.

I don't now if I shall return permanently to the UK until I am ready for a rocking chair, at the moment I still fancy Spain, Cadiz area. For a bunch of reasons.
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New Mon 23 Jul 18 21:42 
 House Prices - MD
Steer clear of High Wycombe though!
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New Mon 23 Jul 18 21:46 
 House Prices - No FM2R
b***** hell, no wonder you ask for directions if you think High Wycombe is in between Northampton and Banbury.
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New Mon 23 Jul 18 21:51 
 House Prices - MD
YOu plonker Rodney. It was just advice per se to a friendly foreigner. :-)
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New Wed 25 Jul 18 12:35 
 House Prices - movilogo
In USA, if you can't pay mortgage but ready to hand over keys to bank, you have no further liability.

In UK, if bank sells your house at a loss, then you are still liable for the shortfall.
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New Wed 25 Jul 18 12:39 
 House Prices - Bromptonaut
>> In USA, if you can't pay mortgage but ready to hand over keys to bank,
>> you have no further liability.
>>
>> In UK, if bank sells your house at a loss, then you are still liable
>> for the shortfall.

UK gets it right I think, unless miss-selling is proven.
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New Wed 25 Jul 18 12:46 
 House Prices - movilogo
From bank's point of view, UK model is better. From consumers' point of view, USA model is better.

In USA banks need to be more cautious as they will bear the heat from a falling market. In UK that shifts to house owner.
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New Wed 25 Jul 18 13:02 
 House Prices - tyrednemotional
>>
>> In USA banks need to be more cautious as they will bear the heat from
>> a falling market. In UK that shifts to house owner.
>>

....AIUI, this has tended to be reflected in the relative mortgage interest rates.

Ain't no such thing as a free lunch.
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New Wed 25 Jul 18 12:54 
 House Prices - Fullchat
Anyone remember Mortgage Indemnity Premiums?

If I recall it was to cover the Bank/Building Society against the loss should they come to repossess your house and then sell. Then they could come after you for the amount.

Do they still exist?

Or is that something else the financial institutions have been lifting our legs for?
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New Wed 25 Jul 18 13:01 
 House Prices - Bromptonaut
>> Anyone remember Mortgage Indemnity Premiums?

Remember them but don't think I ever paid one. Classic pitfall illustrated here:

www.thisismoney.co.uk/money/experts/article-1575138/Mortgage-indemnity-problem.html


Looks as though they're still around:

www.mortgagesorter.co.uk/home_mortgages_indemnity_insurance.html
Last edited by: Bromptonaut on Wed 25 Jul 18 at 13:02
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