UK House Prices Finally Start Falling: What Next?

The government processed 50% less house sale transactions for the latest ONS HPI even though there where 22% less sales. There is only on reason for this. House prices have crashed and they are hiding it by not including 78% of sales. If this was a multinational company many of their staff would end up in prison. This is the biggest government fraud in history and it will out. Do the numbers yourself and do not trust mine. The latest land Registry house sales can be found in under a minute for any postcode. You will find nearly every sale under the real value - only a muggle would not want a 20% reduction. Finally, HRMC get the amount paid, tax owed, full address with Postcode on day of sale. Everything that the ONS needs to immediately put the figures into their data base but they will not do it. This is because it as a Ponzi scheme dreamt up by bankers in a seedy basement smoking cigars and backed by government to allow them to print false money. Why am I bitter... Because I lost over 33% in 1997 when moving and no one ever helped me out. I had to move as I was a servicemen. It was fraud to have two mortgages then as there where no buy to let mortgages.

where is the democracy when having a secure roof over your head - a fundamental of life isn’t a choice or an option for millions of innocent families at best being robbed & over charged or exploited for over crowded timber framed 1980s developments which took 3 weeks to build . I think it’s antisocial & uncivilised from a country which likes to puff its chest out & lecture lots of nations about freedom Rant done

10-15% drop max then up only until the end of time. good luck friends

im telling you, house prices wont drop, they will go up

No crash

They had it too good for far too long.

Salaries rise and problem solved.

It’s the old story…..
It all depends where you live.

Hoping they fall hard at the same time as interest rates decreasing, so I can move up the ladder again.

The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?

The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

Negative equity is no fun

I want to buy another house, but not at current prices. I'm hoping for negative equity as in the 80s.

Such a housing crisis would not happen if not for population growth through Immigration (obviously through no fault of the individual mmigrant, they didnt make the policy).

Yea they declining people still cant afford rent let alone buying a house what the fuck is this dump existance coming to bring me to world where I have no chance of owning my own home what a heap of shit and for what the corrupt goverment are charging I'd sooner live in a ditch than be ripped off like the whole world is

This toilet needs flushing

As a home owner I would really prefer the house prices to go up rather than down 😂

Blame the baby boomers, most problems in society can be traced back to the generation that took everything for themselves.

Why are fixed rate mortgages still even as popular as they are in the UK? Seems like they would avoid them after what happened in the US.

Well we keep flooding our economy with debt at time seems like we can afford the inflation strikes then banks increase interest and here we are

I am a Japanese. I think it would be a good idea for people living in Europe and America to look into the collapse of Japan's economic bubble starting at 1990. Before 1993, stock and real estate prices began to fall, but many people, myself included, saw it as a buying opportunity, as the economy was good and people spent a lot of money. However, after 1993 Japan's economy and people's mind really cooled down. After all, over 10 years, the price of real estate has decreased by 1/5.

Short answer. They go up,then down, overall they keep going up. The end.

Why should we care about home owners? Let them get destroyed... they got a house and then they rent it for an astounding amount of money, making London one of the most expensive cities to be living in in the world. So yes, I hope they get destroyed, not just "hurt".

Unfortunately I remember the 2008 credit crisis. House prices were vastly over stated then, and although there was a slight recession in house prices in the rest of the UK, London house prices didn't go down. House prices are inelastic. They only go down when sellers are forced to sell. Otherwise they wait on losses until the market improves. And they won't be forced because the banks collude with the house owners in order to prevent a house price panic, so that they can maintain their 'risk' exposure since all their security trading is heavily based on securitized debt: houses in other words. Its a case of if no-one recognises the risk, then the game can continue. I'm in my forties now and I moved out of London and bought a home in Scotland. Houses are much more affordable. And although my house price might crash; this is actually good news for me, since the mean value for homes in the UK exceed my four bed house with large garden, that if the house prices do fall, then my next home will be more affordable regardless of its absolute price. And this is the problem with the UK; they (the banks etc) can play games with prices in London, in a way that they cannot do in Germany for example. The UK economy is dominated by London. If you are young, I suggest that you leave London. It's all a mirage. When teachers in London have to live on canal boats, then you must realise that only very young teachers with less experience would put up with it.

they are absolutely gonna push the line of "see things are getting better" as if the 1 year of minimal improvement compensates for a decade of fucking awfulness

Demand for first housing cannot drop because it's an inelastic good. You can't treat housing like some generic product.

Sama old

Wouldn't dare purchase the newspaper, never got the notebooks you promoted previously, not did I receive any replies to my emails.

with a 1000 migrants entering uk every week there is no way the house price will come down, the uk doesn't build a 1000 homes a week so every week there is even more people looking for a place to live

We are about to see a lot of people unable to keep up with payments, and or unable to get a new mortgage because of affordability! it is literally starting now (12% increase in arrears since the last Q for standard mortgages, and 41% for BTL) , and will gain speed in to 2024. Then the shit is going to hit the fan, changing to interest only is barely going to make a difference for a lot of people. It is fucked.

Rapist police. Pedofilic culture cose in arabia that is punished severely. Only the west rapes children. In effect uk foul.

Look at soho prostitution same houses every year. Same place. Yet although ilegal never disturbed. 

Boycott shady england or b part n parcel to this disasterous situation.

Boycott uk now

Most things happen for a reason. Mostly the reason is because people are basically stupid and make bad decisions.

Housing shouldn't be a market but people are sheep!!! And wolves take their lives away!!!

Property shouldn't be seen as an investment. Its shelter. The greedy lazy idiots who've made some wealth from the housing market will be the losers in the long run.

I have just had an offer accepted on a house for 220k, 10% deposit, in south wales. Im worried that ill be immediately going into negative equity after purchase. I can afford it currently at 5.6% interest (5y fixed) but worried about going through with the purchase - especially in light of this video. Any advice? Much appreciated.

Honestly, bring on the house price crash

Give the homeless the right to camp anywhere
and the housing shortage will disappear over night.

Property prices may be a bit lower lately but are they affordable for most younger people? Nope.
If people are downsizing, that pushes up the price of properties which would be attractive to younger people.
Banks view younger first time buyers as a risk so they aren't keen to lend to them.
If younger people can't get on the property ladder, they won't have kids and schools will close (it's already happening in central London).
We're living in Clown World.

high housing costs as a side effect of real estate development

you're kind of shouting at the beginning of every sentence. talking in a more normal relaxed way would be better. i understand you want to sound enthusiastic but talking naturally would honestly be best. compare how you speak in this video with how you sound when chatting to a family member or friend.

We've had to move house this year. But we are having a family and a 1 bedroom flat isn't big enough. We are aware prices could crash but we aren't seeing the house as an investment. Its a home to raise our kids. If in 20 years time the house still hasn't recovered in value then I'd be frustrated.

Stop foreigners buying homes that then stand empty but stop all imagration especially illegal.

"Hike rates, as is expected" - who are you? It was around 50/50 for at least 2 weeks up until the announcement.

this is long overdue. houses have gotten to expensive and we need to get back to 2012-2013 level prices (or equilivent with normal inflation).
we just have to find a way to do it in a way that people dont loose the house they live in (as in there homes not property they rent out). the big problem i see is large property companies buying up property from distressed home owners, and artificially keeping the values high

Housing is too expensive because our government has allowed an insane amount of people to come and live here. If you add 600,000+ to a population every year of course there's going to be a shortage of everything. Try getting a Doctors appointment. You could see a Doctor the same day you called them before the 90's.

At 1% interest rate on mortgage:

A house priced £200,000 (£20,000 deposit) - monthly cost: £827 (20 years mortgage). Interests payed to bank: £150.

At 5.25% interest rate on mortgage this house's price would have to go down to £143,000 (30% down) to maintain monthly cost at the same level (£827). Interests payed to bank: £537/month.

Anything less than 30% price drop makes buying a house more expensive than a year ago.

Also - much more money will end up in a bank's pocket (over 3 times more). Meaning less money in the pocket of a seler. Meaning less money to stimulate the economy.

Are we all happy to own nothing, yet?

If it was under Truss, her plan would've been to literally rent everyone a ladder to climb the social ladder.

If people collectively decided not to pay exorbitant rents and not pay out exorbitant prices for houses it would all fall.

I usually enjoy these videos that help explain economics in simpler terms for the average Joe to understand, but you’ve done us all a massive disservice by not mentioning how house prices got so high to begin with.

The reason why the UK housing market is so inflated, and the reason why prices WILL NOT drop drastically is because of the lack of house building over the past 3 or more decades. Compounding the issue, the government has not replenished stock of the council houses they’ve sold during that same period. Additionally, due to the weak Sterling, property prices are very enticing to overseas “investors”.

Mark my words, house prices cannot and will not drop precipitously.

how can housing 'availability' be considered in isolation from renting? Rent has gone up higher than house prices, it's about three or more times pre-pandemic levels