DOOM: Property

[AtW]

"Properties suffer ‘down valuations’ as banks fear house price falls

Lenders refuse to offer mortgages large enough to cover the agreed sales price

Banks and surveyors are “down valuing” as many as half of homes in some parts of the country amid fears sharp house price falls are on the horizon.

Home buyers have been left scrambling for cash as lenders have refused to grant mortgages big enough to cover the agreed sales price. Experts said banks were concerned the cost of living crisis would cause the end of the post-pandemic property boom.

Anthony Harris, of Continuum, a financial advice firm which manages over £1.53bn in mortgages and other assets, said: “I am seeing more than 50pc of purchase applications being down valued at present.”

This level is likely to rise further, he added. "Sellers are asking high prices and there always seems to be more than two buyers who are prepared to enter a bit of a bidding war, pushing up prices further. But the lenders’ surveyors are not supporting the prices agreed.""

https://www.telegraph.co.uk/property...e-price-falls/

Property always go up, no?

[Dark Black]

We're seeing a lot of property reductions around here and quite a few coming back to market, presumably after sales have fallen through.

If mortgage providers are down-valuing then this could be part of the reason, coupled of course with rising interest rates and general inflation.

At the same time, I've noted an increase in property coming to market, which I suspect will cause further reductions as buyers have more choice than they have for a long time.

I think this actually good news, I doubt the market will crash anytime soon but suspect it may produce some vaguely more sensible house prices than we've seen for a while.

Hope so anyway, we're trying to move. The more prices fall, the less stamp duty we have to pay .

[dsc]

Considering interest rates are at 1.75%, it's only the beginning. Thrown in the winter energy price surge, planned £100b handouts to cover the cost of energy and I wouldn't be surprised if inflation goes past 15% next year, then lets see what BoE does with interest rates.

[tazdevil]

I remember seeing rows of for sale boards in London and elsewhere in the late 70's early 80's before Maggie sorted out the economy and the unions. If interest rates get back to anywhere near the 14 to 16% of that era we may see that again

[DoctorStrangelove]

"Sorted out" as in "sold the family silver to her wide boy mates in the City"?

[Fraidycat]

I expect 33% price falls.

Thats what we saw in the early 90s.

Would have seen that kind of correction in 2009 as well but they cut rates to almost 0%, saving the housing market

[tazdevil]

"Sorted out" as in "sold the family silver to her wide boy mates in the City"?

That silver was well tarnished and was never going to be polished and invested in by the self interested and opinionated union bloodsuckers preying on the dying hulk of our economy. The loads-a-money generation had faults but at least they generated the moolah we're still spending today From feeling down and going around asking gisajob in 1979 I still remember the euphoria of simply getting on and being successful brought from the mid 80's until Blair started pissing it against the wall again.

[hugebrain]

Lowest real interest rate in history and dropping further every meeting. It’s a bonanza for home buyers and the BTL crowd.

Fill your boots.

[mattster]

That silver was well tarnished and was never going to be polished and invested in by the self interested and opinionated union bloodsuckers preying on the dying hulk of our economy. The loads-a-money generation had faults but at least they generated the moolah we're still spending today From feeling down and going around asking gisajob in 1979 I still remember the euphoria of simply getting on and being successful brought from the mid 80's until Blair started pissing it against the wall again.

Bit of selective amnesia here, no? You've missed a generational housing crash and recession, the inevitable consequence of the 80's under Thatcher.
Arguably many of our current woes can be put down to Thatcher, from tulip in our rivers, most expensive (and worst?) trains in Europe, crazy housing costs (RTB and devastation of the social housing sector) etc etc. Yes, we made a few bob in the 80's and some - like you - felt good at the time, but now we have to pay for it.