Housing Market

[Alan Clifford]

It just seems to me that there is an unregulated demand for housing compared to restricted supply in places where houses are required, for example, green belt around London. A long time ago, we wanted to extend our house by about a third of its size. I was really shocked at how little it would have cost (sadly, we were refused planning permission) so the price of houses is not really bricks and mortar but location and supply/demand mismatch.

In anything but the very short time, in this weird place called South East England, house prices will remain ridiculously high.

 

[SwingsitlikeHogan]

It just seems to me that there is an unregulated demand for housing compared to restricted supply in places where houses are required, for example, green belt around London. A long time ago, we wanted to extend our house by about a third of its size. I was really shocked at how little it would have cost (sadly, we were refused planning permission) so the price of houses is not really bricks and mortar but location and supply/demand mismatch.

In anything but the very short time, in this weird place called South East England, house prices will remain ridiculously high.

Well…we have just this last winter (nov-April) done a reasonable extension plus downstairs reconfiguration. If we were to have to sell tomorrow I doubt v much that we get the cost of the work fully returned in our selling price. The cost of materials plus the pressure on selling prices…even where we are in the SE where prices are indeed ridiculous.

 

[Doon frae Troon]

I won't be moving again so the value of my house is pretty irrelevant to me. The kids will still get a decent inheritance when me and the wife pop our clogs.

Sometimes it is just not that simple.
So far it has cost our family nearly £400.000 to keep my MIL in a care home.
The sale value of her house has now virtually been swallowed up

 

[Tashyboy]

My lad is looking to buy his first pad. He has been looking around but I never knew Missis T has been looking every day to see what houses have come on the market.
Suffice to say she found one for him and I had a look last night.It is gorgeous. And has just been reduced.
So today I had an amble around town and called into the estate agents.
Now I mentioned to Missis T that the estate agent who is the seller, is and has for decades been notoriously high when valuing houses.
So I walked into the estate agent and enquired re said house. A young kid proudly told me that the house has been reduced by £20K.I asked “ why are they after a quicker sale”. He said no We valued it at this but the banks won’t give a mortgage for that so they have had to reduce it £20K. I was absolutely gobsmacked. It confirmed what I had said to Missis T. But I was astonished he told me that. for me the bargaining price is now from the price it is now. Not from its original price with the proviso it has been reduced £20K so we’re not budging.
Off to view the house on Wednesday. Watch this space. From my lads point of view, first time buyer with a fair chunk to pay off. Interest rates high which may go up again on 21st September. Watch this space.

 

[Tashyboy]

Sometimes it is just not that simple.
So far it has cost our family nearly £400.000 to keep my MIL in a care home.
The sale value of her house has now virtually been swallowed up

Doon, out of interest and I don’t know the answer.
Missis T was just explaining that half of their parents home is owned by the kids.So even if MIL pops her clogs. The house if sold. Only half of the value would pay towards the FIL care.
Would or could that be the case in Scotland.

 

[road2ruin]

The COVID freeze of stamp duty to prop up the housing market has created so many issues. Really not the time to be moving as you couldn't realistically access affordability post COVID

Not sure I entirely agree with this, you look at your financial position at the time of moving and factor in interest rates and decide what level of payments you are comfortable with and usually what a 'worst case' rise would be. I think the vast majority were aware that interest rates were only ever going to increase however the thing that nobody ever factored in was 14 or 15 consecutive rate rises which gave no time for people to adapt.

We were planning on moving from our property in around 18 months however the reduction in the stamp duty meant our plans could move forward as we instantly had that money so we did and we pushed ourselves as the plan was always to buy in a better area (especially schools) and a property that we would probably be in for the long term. We did the sums and knew what we could afford etc however late last year when they were talking about rates hitting 8% that would have probably meant the end of our ownership so we took the decision to pay the ERC on the mortgage and fixed for 7 years at 3% which now gives us security plus we don't have to worry about what the imbeciles at the BoE are going to do month on month. We bought for £755,000 and when we switched products the local estate agent valued at £1.1m whilst our lender said £975,000. That also gives us peace of mine that we can afford a significant drop in house prices although I suspect in our area (Surrey) we're likely to be less affected due to the stock of similar houses plus it's always likely to be a popular area. Anyway, as I said, we bought this place to be our forever(ish) home so I'm not really that fussed about it's value at the moment.

 

[bobmac]

I understand why so many people want to live down south near London because that's where the higher wages are, but why stay there when they retire?

 

[Deleted member 21784]

I understand why so many people want to live down south near London because that's where the higher wages are, but why stay there when they retire?

Ability to do stuff without needing to drive. Good public transport

My parents are retired they can walk to 2 super markets from their house

They sometimes get the bus to ours or just walk

London is only 40 mins away on the slow train for days out and stuff

 

[SwingsitlikeHogan]

Sometimes it is just not that simple.
So far it has cost our family nearly £400.000 to keep my MIL in a care home.
The sale value of her house has now virtually been swallowed up

Aside…BIB…why we are going to get a quote for a ‘care annuity’ for my MiL. See if we can protect my MiLs house from care costs as my BiL has nowt for when she is gone.

 

[Tashyboy]

I understand why so many people want to live down south near London because that's where the higher wages are, but why stay there when they retire?

There are quite a few people moving North Bob. Selling up and moving to larger houses with Sherwood Forest on your doorstep. Having a massive wad of cash left over to drop into your retirement pot. The local building sites have a lot of southerners who have emigrated North. Not many people in Mansfield have the jobs or money to afford a five bedroom house for £500k.

 

[bobmac]

Ability to do stuff without needing to drive. Good public transport

My parents are retired they can walk to 2 super markets from their house

They sometimes get the bus to ours or just walk

London is only 40 mins away on the slow train for days out and stuff

We actually have supermarkets up north too...and they deliver.
We also have golf club membership under £900 and 5 bedroom detached houses for £375,000 or a 3 bedroom bungalow for £240,000

 

[Deleted member 21784]

We actually have supermarkets up north too...and they deliver.
We also have golf club membership under £900 and 5 bedroom detached houses for £375,000 or a 3 bedroom bungalow for £240,000

Not saying you don't though, it's just my parents love their ability to walk 500 yards up the road to the super market and have London just a short train journey away

I don't think money comes into it because they are comfortable with their pensions, they don't need to free up cash by selling up so the 5 bed house they paid £120k for that's now worth a lot more doesn't bother them what it's worth as they can afford to live

I think you also need to factor in family

My mother has 1 sister who is about a 40 min drive away , and then 2 children, we both live within 2 miles of their house and between us have 4 kids so her grandchildren are here

My mum is all about family and wants to see us all the time so the fact we are here she will never move

Some people are different

I mean when I come to retire my kids could be all over the country and I might want to move somewhere near them but as far as I'm concerned I don't want to move I picked my house as a forever house

 

[bobmac]

There are quite a few people moving North Bob. Selling up and moving to larger houses with Sherwood Forest on your doorstep. Having a massive wad of cash left over to drop into your retirement pot. The local building sites have a lot of southerners who have emigrated North. Not many people in Mansfield have the jobs or money to afford a five bedroom house for £500k.

That was my thought too.
I know it's different if you are always up the west end or have familly all round you but I'm sure that doesn't apply to everyone.

 

[SwingsitlikeHogan]

We actually have supermarkets up north too...and they deliver.
We also have golf club membership under £900 and 5 bedroom detached houses for £375,000 or a 3 bedroom bungalow for £240,000

Big problem with the SE is that though some salaries are a bit higher than their more northern equivalent (though in my last company I would have got paid the same regardless of where I lived) any difference in salary is more often than not easily wiped out by the higher cost of living and it goes nowhere to bridging the gap required to buy property. I might be so bold as to suggest that folks up north have a not insignificantly better standard of living deal than those in the SE.

Just one little example from the last few days that had us pondering moving (yet again). A round of four drinks in the pub in my MiLs village just outside Chesterfield…£16. We were rather gobsmacked. Me and my Mrs estimated the equivalent in a local in our Surrey town would cost us about £30.

And we are still (after the pandemic-driven peak) seeing a strong flow of house buyers moving out from (mostly) SW London, I guess they are releasing equity - maybe for a retirement pot or to reduce their mortgage, but these buyers are keeping house prices in our town stable, if not still increasing. And young locals, even professional couples with decent salaries, can‘t compete.

 

[Lord Tyrion]

There are quite a few people moving North Bob. Selling up and moving to larger houses with Sherwood Forest on your doorstep. Having a massive wad of cash left over to drop into your retirement pot. The local building sites have a lot of southerners who have emigrated North. Not many people in Mansfield have the jobs or money to afford a five bedroom house for £500k.

We see the same here Tashy, @bobmac . The lower cost of living, cleaner air , less traffic, pace of life etc. It all makes sense to make retirement more comfortable.

Some of the houses even have running water now

 

[road2ruin]

Some of the houses even have running water now

Until your lot have inside toilets I'm staying down South!

 

[Doon frae Troon]

What £500,00 can buy you in sw Scotland.

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[Lord Tyrion]

Until your lot have inside toilets I'm staying down South!

Softie .

I remember, as a kid, going to my grandparents house in Liverpool, classic Liverpool terrace. The toilet was outside and having to use it with at night, going out with a torch, was so exciting. My dad was mortified but as a kid it was great. I'd have a different view now

 

[Doon frae Troon]

Doon, out of interest and I don’t know the answer.
Missis T was just explaining that half of their parents home is owned by the kids.So even if MIL pops her clogs. The house if sold. Only half of the value would pay towards the FIL care.
Would or could that be the case in Scotland.

Depends on the time scale I believe.
I think there is a 7 year 'gift' rule in Scotland,.
Not 100% sure how CGT works in that scenario.

 

[bobmac]

We see the same here Tashy, @bobmac . The lower cost of living, cleaner air , less traffic, pace of life etc. It all makes sense to make retirement more comfortable.

Some of the houses even have running water now

And wall to wall floors.



Heres an interesting comparison....
5 bed detached in Lincolnshire...



5 bed detached in Hornchurch....