Nationwide Building Society August 2020 House Price Index

[TheGreenBastard]

I think such a reply you'd have had, had you told folks in the early 90's a home would spring from 2.5 times your annual income to 12.

Seemingly fantasies can become true. Welcome to fairyland.

Nice fallacy.

[Old Greg]

Find me one 25-year repayment mortgage deal in the UK that does not require renewal during that time.

Us Europeans are baffled by Brits having to renew every few years.

You can get a 15 year fixed rate, which will deal with most of the risk.

[ladymuck]

You can get a 15 year fixed rate, which will deal with most of the risk.

Yup

Virgin boasts the longest fixed-rate mortgage

[d000hg]

Let me get this straight... Save on stamp duty now or buy same property with stamp duty after 40% correction. Decisions decisions....

The former is tangible, the latter is just your nonsense.
People have been saying for about 15 years a major crash is imminent - ever since the last slump - and clearly they have been wrong, just as they were wrong to insist QE would lead to runaway inflation after the banking crisis.

We potentially have another factor with people rushing to vacate cities in favour of more rural homes.

[oracleslave]

their property is worth 40% less

Only if they realise those losses eh pooper

[Whorty]

Let me get this straight... Save on stamp duty now or buy same property with stamp duty after 40% correction. Decisions decisions....

The folks I feel sorry for are the ones rushing to get a 2-3-5 year deal on a fixed rate believing they are smart only to realise on renewal their property is worth 40% less than when they made the deal. Like a re-run of 2007 all over again, you could set your watch by it.

Middle classes will get absolutely gutted. But then they voted in a raging loon of a populist, so my pity can only reach so far.

It's only you and a few doom mongers who think the housing market is going to crash 40%.

[Whorty]

Yes and no. There is the opportunity cost of being able to buy it cheaper in a year's time, if you can time the market right...

This works if you're trading up, doesn't work so well trading down ... but, no one knows what markets will be like and if we all listen to Poops and his dooming, we'd be paralysed by fear and do nothing

People need/want to get on with their lives and what we're seeing is the reaction to that.

[Whorty]

I get that but is it worth missing out on the right property just in case there's a cheaper deal next year? Most people just want somewhere to live.

This

[Whorty]

The former is tangible, the latter is just your nonsense.
People have been saying for about 15 years a major crash is imminent - ever since the last slump - and clearly they have been wrong, just as they were wrong to insist QE would lead to runaway inflation after the banking crisis.

We potentially have another factor with people rushing to vacate cities in favour of more rural homes.

This .... I can see City pads dropping a bit (or at least not rising stupidly) but any small towns or villages with transport links will do well as there is definitely an interest to more out of Cities. Our village has sold all it's £600k+ properties recently and even cheaper properties are flying off the shelves. Mostly people moving from the SE.

[hugebrain]

Now your average permie needs two houses. One somewhere nice for working from home and one in town.

Before only contractors needed two houses (keeping a cheap empty one so they can claim back the rent on their taxes when working in London).

Also a lot of people are losing their jobs so they need to buy a house quick so they qualify for benefits when the axe falls.

Finally the mad money printing means you probably won’t have to pay anything back for your mortgage (a loaf of bread will soon cost more than your mortgage). So why not borrow a lot and get a nice house?

It’s all a bit mad.