Doomed (yet again, really this time...)

[Moscow Mule]

Because this was orchestrated by the B of E and the government, the 80's crash was a result of interest rates going out of control, this time the rates are being controlled to manipulate the market... but don't let this get in the way of having a good old British panic!

Wasn't it George Soros's fault - trying to force us out of the ERM?

[alreadypacked]

I don’t think this will be long term it’s more of a price correction, as soon as it levels out people will start buying again.

It could be a very painfull 34% price correction

[rootsnall]

No, it shouldn't but you can pretty much blame solicitors for the majority of delays involved with most property transactions.

Speediest transaction - 22 days from auction hammer to completion.

Slowest transaction - just over 3 months for a piece of agricultural land.

They are feet dragging numpties; I'm yet to be convinced otherwise.

Agreed, they are generally useless, they don't charge enough to provide a decent service and they don't have a big enough stake in the transaction going through to really give a tulip. I should of been completing on a sale tomorrow, the usual bungling down the chain means its been delayed. Getting edgy with the mounting doomed headlines that even the dumbest buyer will be picking up on.

[RightLaugh]

No, do pay attention - I sold a 1 bed flat, 2 bed flats are 320K - previously they had been going for 360-380k

It should not take two months to go from accepting an offer to completing when neither party is in a chain.

I was paying attention. Where did you say in your post they were going for 360-380k? Where in the post did you say there was no chain either side?

[Moscow Mule]

I was paying attention. Where did you say in your post they were going for 360-380k? Where in the post did you say there was no chain either side?

There are two issues here

1) Can you not infer, (from the original post) that if a 1 Bed flat sold for 313k two months ago, and a 2 bed flat is now going for 320k that prices are falling? Your post seemed to say that selling a 1 bed flat for 313k then selling a 2 bed flat for 320K 2 months later means prices are going up???

2) No I didn't mention there was no chain either side. But 8 weeks from accepting offer to exchange is just crap - no matter how complicated the transaction is. Searches (the longest part of any transaction) should not take any longer than 10 days (depending on your local authority). Everything else can be done in less than 2.

[gingerjedi]

It could be a very painfull 34% price correction

Only for BTL owners and 'downshifters', for the vast majority wanting to get on or move up the property ladder it's a good thing.

[swamp]

Only for BTL owners and 'downshifters', for the vast majority wanting to get on or move up the property ladder it's a good thing.

Very true.

It's a nice feeling to have made money on property, but if the market is uniform then a big fall would be good for those like me who want to buy a bigger pad.

[Bagpuss]

Because this was orchestrated by the B of E and the government, the 80's crash was a result of interest rates going out of control, this time the rates are being controlled to manipulate the market... but don't let this get in the way of having a good old British panic!

Yes interest rates are unlikely to reach those heights, but there are new factors which could make it worse:

1/ Large debt has been taken on at record income multiples, leaving little room for manoeuvre should rates go up. Some of these people are now moving from heavily discounted rates they could only just afford. Most of these numpties don't remember the last crash and haven't factored in any increase in costs.

2/ Many modest income people are subsidising BTLs and they are not far from breaking, this will flood the market with properties.

3/ The banks are removing the easy and cheap money that was fuelling the system

Remember also previous interest rate rises have had no or little effect.

[gingerjedi]

All that may be true but for me a 50% crash would make it even easier to get a nice big house!

[mace]

My thoughts

The reason why property has gone down in the past is due to a downturn in the economy. Presumably people then go abroad for work and the demand goes down.

At the moment, the economys fine and people are still queueing up to come in to the UK. If people stop buying then they have to rent. This will push rent prices up and make buying a house more attractive again.

There are black clouds hanging over the City at the moment but it's early days to say that the general economy will suffer.