Rampant house price inflation

[Red C220]

What's going on in your area?

Our little Close in Surrey has gone beserk in the last 12 months. Our neighbours house has just sold for an absurd amount of money which (as long as it completes) will mean we've had a 30% increase in house prices in 12 months in our Road based on actual sales for identical properties.

Is this a southern thing or are other areas of the country experiencing this kind of bubble also?

We were considering moving in the next two years but the properties available around here have risen to classic car like prices. Lots of money being asked and paid for very ordinary properties.

I'm interested to see what effect the post April big predicted "Buy to Let sell off" creates, if it even happens at all this year.

We've pretty much decided we'd like to build our own house and we're in the infancy of searching for potential non existent plots. It's really not promising.

There has been some "affordable" housing spring up in our area this year. However "affordable" is a relative thing as these starter homes are £425K.

Who'd live in Surrey eh?

 

[StuartK]

I run an estate agents and unfortunately due to lack of supply at the moment prices are artificially inflated

 

[Red C220]

I run an estate agents and unfortunately due to lack of supply at the moment prices are artificially inflated

Interesting you think it's artificial, suggesting you see a time when it will correct?

 

[JasonIFA]

Like any asset class correction is par for the course. Inflated market, buy to let stamp duty and tax changes, it may start things off. Timing it is a waste of time in my view and it's all relative, if the market moves so does your house price and generally the one you're buying. Loads are "buy to letting" to beat the stamp duty increase and most are expecting a slow down of some description.

 

[Piff]

Seems supply & demand controls price in this area. Regular 2/3bed semi's are a bit capped, anything in better than average location or better than average design/condition is fetching a premium.

 

[John Jones Jr]

Lots of money being asked and paid for very ordinary properties.

Have a laugh.

3 bedroom terraced house for sale in Percy Road, Isleworth, Middlesex, TW7, TW7

 

[StuartK]

Interesting you think it's artificial, suggesting you see a time when it will correct?

All you need to know is it will always go up long term.

The only winners behind it all are the banks though.

Years ago you were paying interest on £30k for a house. Now your paying interest on £300k. Regardless of a lower interest rate they win, we lose.

House prices are all artificial as generally they have risen out of line with everything else.

 

[Charles Morgan]

Like everything property is always local. My village is green belt, housing is very tight, Crossrail is coming so commuting time into London will be halved, great grammar schools on the doorstep, so when a new development of 20 houses was shoehorned into three large house/garden plots just down the road we watched and waited. Three bedroom houses, master bedroom size 10x8! - £850k, 4 beds with a larger postage stamp garden, similar internal dimensions, £1,150k. Since the first tranche became available six months ago, one, repeat one, has sold. That has the worst view on the entry road and we suspect the developer let it to give the illusion of a sale.

 

[kid-jensen]

£745000 fir a terraced in Percy road Isleworth????

I used to go out with a girl in Percy road......B*gger-me, if I'd known she was sitting on a gold mine......

 

[nick mercedes]

What's going on in your area?

Our little Close in Surrey has gone beserk in the last 12 months. Our neighbours house has just sold for an absurd amount of money which (as long as it completes) will mean we've had a 30% increase in house prices in 12 months in our Road based on actual sales for identical properties.

Is this a southern thing or are other areas of the country experiencing this kind of bubble also?

Buy to let men rushing to meet the April deadline, and a lack of property coming to the market due to nobody being able to afford another house.

Expect a major correction in a couple of months.

 

[JattAmg]

Expect a major correction in a couple of months.

The wise one has spoken.

 

[nick mercedes]

We've pretty much decided we'd like to build our own house and we're in the infancy of searching for potential non existent plots. It's really not promising.

You may need to broaden your search, either out into Kent, or even further afield, the only sensibly priced land this side of Doncaster is in places like Suffolk/Norfolk or Wales/Wales borders.

 

[Red C220]

Watching this with interest to what comes of it:-

https://www.gov.uk/government/consultations/right-to-build-supporting-custom-and-self-build

Right now we have no alternative but to sit tight, save more cash and see what happens.

 

[davidjpowell]

You may need to broaden your search, either out into Kent, or even further afield, the only sensibly priced land this side of Doncaster is in places like Suffolk/Norfolk or Wales/Wales borders.

Even in Doncaster the developers are going mad.

IMO the market is overheating. It will be interesting to see what happens post now really. No sales from here on stand much chance of completing prior to April deadline.

 

[paneraiseeker]

Have been selling my BTL's over the last 12 months. My intention was always get sell whilst I was young and enjoy. When my mates where buying flash cars I was saving for the next property now 15 years later shoe is on the other foot.



Come April don't see much change TBH, major correction in the market, don't think so.

Having said that I hope there is as I will buy a few more if they become cheaper.

 

[Rory]

I'm interested to see what effect the post April big predicted "Buy to Let sell off" creates, if it even happens at all this year.

Would your little close in Surrey be affected by movements in the BTL market? It always seems that more expensive houses rent for prices that are low compared to the property value, so BTL doesn't make much sense.

Around me, outskirts of Chester, I'd say property is only now getting back to 2006/7 values. Daughter just bought a house in neighbouring village for £40K less than it last sold for in 2009 (£245K now, was £285K). It still feels like she over-paid but as others mentioned, there's little for sale.

Lots of little new developments around at bonkers prices but they seem to sell OK. People are taking an absolute hammering when they come up for resale though.

 

[Howard]

Expect a major correction in a couple of months.

Disagree strongly with this , particularly around here

280 new flats going up in Tedders , one bed starting from £700k ... The developers wouldn't be doing this if they were expecting it to go **** up shortly.

 

[Deleted member 11979]

I'm an estate agent in sleepy old Devon.

There is a rush of BTL investors trying to beat the stamp duty deadline, and paying more than they should IMHO.

We have seen this past week houses that should have sold not selling, I wonder if it's cooling here after a very strong 2015 and great start to the year?

On the other hand me and er indoors have just sale agreed a property in farnham for more than I thought it was worth without it going to market.

The south east is not representative of the whole country as wages there are so high that a little more on the mortgage doesn't make as much difference to a persons standard of living.

I wonder if there will be a slow down in the short / medium term, only time will tell

 

[zipdip]

Well it is interesting our estate agent thinks that only the banks prosper by people taking out a mortgage ,in these days of very low interest rates many people are over paying their mortgage and so cutting the amount of interest they pay,I have owned property since 1970 when you could buy say a semi detached bungalow in the south east for £4,500 people like me have lived through rampant inflation, interest rates at 15% and even after all that buying a property with a mortgage is the very best way to spend your money,in order for property prices to come down in this country now we would need to build 500,000 houses in the next two years something that will never be done,and if we do not get out of the EU you will need to build the same number every 5 years after that,only then will prices fall,all that will happen is once prices get to around 6 times earnings prices will pause for a while,no matter where you live in this country a house building project is coming your way the product of sleepwalking into allowing this mass immigration,I can walk around Ipswich and every third conversation I hear is foreign ,it is up to people, even with a out vote it will take at least 10 years to get some control back we have 64 million people in this country with services for 50 million because immigrants over the last 50 years have a distrust of census and so we have not got the services needed because we have countless numbers of hidden people,best of luck to all you younger people who think there is another way.

 

[Red C220]

I have to say I don't see an end it whilst interest rates are still so very low.

I also feel it has less to do with house availability and more to do with affordable borrowing.