[Closed] Would you buy a house at the moment?

I wouldn't, unless I really needed to move house. Too much up in the air at the moment.

Maybe, if you aren't already on the housing ladder, at some point during this pandemic would be a very good time to buy.

Nope!

But if you are nearly there, happy with your "situation", and the house is the right one, then I'd probably carry on.

Starting afresh now, nope.

We have been helping our son and his family save for a house with the aim of getting a deposit down in September, we may well save for a little longer to see what plans out.

I think there may be some favourable interest rates around at the end of all this.

My in-laws were about to put their house on the market and even the estate agent told them not to...

think i'd be getting nervous and stressed right now if I were in the process/made an offer or about to exchange contracts. It's stressful at the best of times but right now my bp would be through the roof.

I heard something about interest rates being extremely low right now so for a first time buyer or re mortgaging, it could be the ideal time.

I'd imagine that there might be significant drop in house prices over the next few months as a sudden oversupply of properties hits the market.

I'd say its a good time financially with prices and interest rates. Logistics of moving is another matter. There is also a pretty high chance of any chains collapsing with at least one buyer/seller getting cold feet. If I was close to completion or a cash buyer/BTL/Second home then carry on. For a normal move up the chain then probably not

No!!

Started to look at houses pre-epedemic and the sale is slowly processing through

Surely be better to buy now whilst mortgage company have confidence in you - if you lose jobs after moving, there will be govt assistance whereas you couldn't even apply for a mortgage with a job!

Agree things are very up in the air but I cannot see mass deaths/mass house price crash. Hope not anyway (not just for financial reasons lol).

Removal guys (I know a couple!) are pretty desperate right now (this time of year always quieter anyway at best of times), there will be loads of mans with vans looking for stuff to do too, so this isn't something I'd worry about at all.

I think there may be some favourable interest rates around at the end of all this.

think i’d be getting nervous and stressed right now if I were in the process/made an offer or about to exchange contracts. It’s stressful at the best of times but right now my bp would be through the roof.

I’d imagine that there might be significant drop in house prices over the next few months as a sudden oversupply of properties hits the market.

I expect there will be some bargains to be had but I doubt it'll hit average prices hard. There must be an impact on new builds as well.

There is also a pretty high chance of any chains collapsing with at least one buyer/seller getting cold feet

..followed a few days thereafter by extremely warm feet.

They don't mess about at the crematorium, you know.

I wouldn't expect many house sales to be actually going through during the CV pandemic.

My advice would be to keep an eye on the local market, see if houses are actually shifting or simply sitting on the market for several months now.
The question really is will this all slow down/reduce housing values in a few months time?

Being super morbid/mercenary about it, there's a chance that a wave of deaths amongst older generations might create a bit more housing availability on the supply side and help you as a post pandemic buyer...

But seriously, do you think anyone will be allowing viewings at the moment? You won't be buying a house any time soon...

I was about to ask the same question as my bro is looking at buying his first house in our town (kirkcudbright) for £130,000, with the aid of a £25,000 scottish loan/grant/partial ownership thing. He's 38yrs old and is in the first year of a plastering apprenticeship (last year he got sick of working minimum wage in a local fish factory so sourced an apprenticeship with his mates firm) with a very well thought after local firm, He's also a retained firefighter (of 10+ yrs) yet the maximum mortgage he can get is £110,000 on his income. At the moment he's paying rent of £450 month for a pokey 1 bed flat and the mortgage would actually work out cheaper.

He's got a house savings isa of £9k or £10k and can get a fixed low rate for 5years so it seems like a good deal but Im not a home owner myself (never will be either) so i dunno what to advise him, I've told him to hold off as I'm sure they'll be a massive correction in the markets next year and gawd knows what is going to happen to the economy in this country and the subsequent fallout on his work.

I don’t think they can possibly go any lower than they are now

People have been saying that for over ten years, rates keep on dropping.

I would.

Price drop would be my last consideration. As long as the mortgage is affordable, house value is pretty irrelevant once bought.

(can the bank set a negative interest rate? 😂)

Yep. You won't be laughing if they do though.

I doubt there'd be a significant increase in houses available as we are massively undersupplied and (slightly contentious maybe) it's not overly clear how many extra deaths will be caused by coronavirus as proposed to std flu.

Depends massively on your circumstances!

Millionaire looking to bag some cheap property over the next few months - then Yes.

Normal person who's income can't be guaranteed - then a massive No.

I expect they will be a big influx of homes put on the market, if the UK economic shutdown is still in effect towards the end of the official kids school summer holidays, by which time the current 3 month mortgage grace period will be over and some families will be having to dig into "emergency savings" to cover essential costs including mortgage payments.

For me the one factor is the mortgage will be the same as the rent.

Yep. You won’t be laughing if they do though.

For me the one factor is the mortgage will be the same as the rent.

I expect they will be a big influx of homes put on the market

Small or no chain, only buying (so moving out of rented or out of family home), in a very stable job and looking to take advantage of low interest rates. Yes, I would as I think you'll pick up a bargain.
Any of the above not in place would give me concerns.

I'm surprised I haven't - Mrs Tyred and I specialise in buying houses at the worst possible times. Couple of months before the 2008 crash? Why yes, with baby #2 imminent too. The morning after the EU referendum? Why ever not! Feels like we're missing the boat here.

Unless you have cast-iron job security I'd be wary about it. If you are happy you can both continue to earn money while this all blows over then go for it!

I'm meant to be exchanging next week.

It has taken the chain over six months to get where we are, and the whole chain is super motivated to move ASAP before the situation develops further. The general feeling from the chain is that it would be better to be locked in the next house than the current one.

Removals companies still seemed keen to come round for quotations, but have implemented some strict but sensible controls on distancing, contact and cleaning.

Estate Agents, Solicitors, removal and mortgage companies are all making contingencies to allow sales to continue during this.

The only real things that will put a brake on the process is job loss or financial uncertainty somewhere in the chain.

Obviously everyone is monitoring the situation and understands that things may change.

The negative equitiy risk must be a consideration if one purchases a house now. I'm not saying don't buy - but be aware:

1. House prices will drop after this - if they don't I will be utterly amazed. Then again, the propensity of housing bubbles in this country is SOMEWHAT STRONG.
2. Re-mortgaging in two years, if you but now -I suspect the loan to value amount will be negatively impacted -e.g. either you still struggle to get a mortgage, or it will be at worse rates.
3. Interest rates likely to be low for the foreseeable - which would make buying cheaper, of course.
4. End of transition period with the EU (or whatever the period is called) will likely wreak further havoc to the economy unless Boris of course sees sense and goes with close alingment. Don't want to de-rail this thread but it's worth considering.

If I was a single earner, in a job that isn't looking good long term - you could also argue it's more difficult getting thrown out from your mortgaged house vs a rental.

No idea 🙂

Re. drop in house prices. There is always the possibility the government fires up the printing presses and any losses are eaten up by rampant inflation.

But if you are nearly there, happy with your “situation”, and the house is the right one, then I’d probably carry on.

This is us. We're moving from suburbia to a bigger, more remote property, which isn't actually costing us much more. To buy a similar property in our local area would be into 7 figures. i'd be very concerned right now about dropping big numbers into a mortgage however.

Jobs are probably about as stable as one can hope for in today's day & age, we have sizable savings pots for if things really go south. I'm sure we might see some sort of blip, but then we will recover.

I heard something about interest rates being extremely low right now so for a first time buyer or re mortgaging, it could be the ideal time.

Or, alternatively, they could buy a house that is worth significantly less in 12 months time and have no job with which to pay the mortgage.

Depends on your situation? You say the "sale" is moving through, do you mean your sale or the purchase of a new place? If you are in the process of selling then I'd definitely continue (and cross fingers the buyer doesn't pull out), surely the best possible outcome would be to sell quick and bank the cash, then buy once the market crashes!

There's a savills property auction on 26th, remote bidding only, look at the achieved prices on the day to see what the market is really like.

Loads of headwinds...stamp duty, landlord legislation, economy collapse. Saying that I d buy at the right price. A good house is a good house regardless of price.

We were about to. We're not now. Who the hell knows what is going to happen - this + brexit seems to be an inflexion point in our history.

(slightly contentious maybe) it’s not overly clear how many extra deaths will be caused by coronavirus as proposed to std flu.

A lot. Have you been living in a dark room? In a best case scenario maybe 250k, worst case 500k or more. Although evidence seems to be coming through that the fatality rate may be higher than early evidence suggested as it wasn't that young people had a better survival rate, just that they take longer to die so hand't hit the stats

All the measures to contain COVID-19 will reduce transmission of normal seasonal flu but more people who get it will die because there won't be any emergency beds.

But the death rate isn't what's going to hit house prices, more that the economy has just basically shut down (or been entirely nationalised depending on your outlook). But either way productivity just went through the floor. There is going to be a massive financial hit one way or another, a lot of job losses, a lot of repossessions.

However, if you're not a first time buyer and have a decent amount of equity you're not actually increasing your personal risk that much and, yes, you could be stuck in the new house. Against that I can't see that you'll manage to move any time soon.

NO

Wait till the epidemic sorts itself out.  I have a horrible feeling that there will be a glut of suddenly vacant possession places up for sale as well as a lot of holiday homes as people are suddenly unemployed.

I was due to, realistically about a week before exchange my buyer pulled out. It's only an entry level flat and 2 of us in the chain. So we're both back on the market, but not really expecting anything to happen. Deposit money is in my bank account now though, so it's basically a question of time before the coke and hookers hoover that up.

Gutted too, as the house I was buying was awesome.

Hmmm.

Possibly. I was actually at a large solicitors office this morning putting the last pieces in place so they can abandon ship and all WFH. Smaller practices may differ but the ones we manage were first to put processes in place for WFH and all had a robust contingency plan in place.

As for buying - renting v mortgage. They have announced NO EVICTIONS during this period, but the law also says you can't fire people without reason or notice and that's still happening, the UK always has and always will protect mortgage payers at any cost, you could in theory move in, request a 3 month holiday and be given it.

Values? Who knows, most people remember the crash post-credit crunch, but not the stupid boom before it. Post crash prices only fell to the level of 2005/6 ish - when the market was still jumping 2/3% a month and starting rising straight away again. The economy at that point was fundamentally broken. The economic problems we have now (pre Corona) were hangovers of the Great Recession and most considered them 'the new normal' this is different, the global nature of Corona means it's more like a pause than a crash. There is expected to be a massive feel-good push post 'lock down' and with the 80% salary grants their will likely be a much smaller rise in unemployment as expected which will fall again as soon as the places that let people go realise that they do indeed need their staff, frankly I hope most of them will go under and the jobs and trade picked up by better employers, we'll see.

Not to mention, there's not a feeling people are spending any less, Online Retailers, Supermarkets etc are seeing huge rises in sales.

Yes, sadly there will be a lot of homes up for probate sale, but probate takes such a long time and there WILL be a hell of a back-log so it's not like 20k houses will hit the market all at the same time.

Last week was 'bad', this week will be too, but soon people are going to realise that this is going to be a relatively long road and we'll have to accept this 'new normal' for a few months, and we all have to find ways to work and live behind closed doors.

Anyway, in short - renting v Mortgage, I'd do it, if you can. You might need to rent a van and yeah you might find some of your deposit ate away when you remortgage in 2 years, but with base rates at 0.1% you'll probably pay off more than you lose in any downturn compared to renting.

If a first time buyer I'd hold out and await the oncoming crash...you will save a fortune

I’m buying just for clarification or maybe not!

Yes.
We accepted an offer a week ago, the buyer now wants to renegotiate, we're prepared for a hit if we can get the property we're interested in buying for a similar discount.
We are now in a world where making plans means nothing.

May be exchanging contracts today or in the next few days.

I'm stressed and nervous - laying awake since 2.30 this morning nervous.

But as we are downsizing and effectively clearing the mortgage, very keen to get it done. We've said well exchange and move same day if necessary. Could be a busy week!

I am. Or at least planning to.

Agreed before all this, sold as a buy to let to a doctor, im buying from a couple buying a new build. Im in retail, probably going to be closing the doors for a while tomorrow. So pretty much all the worst things that it could be at the moment, luckily only a small chain.

My Searches were ordered a week ago, council now shut so no idea if ill have those and exchange is just after easter controlled by the new build property sale. Unlikely ill get searches by then.

If somehow all the stars align and this comes off then ill still be going ahead, its a larger house and im on my own. Mortgage increase by nearly £200 a month plus other costs which is concerning, but the way i see it if i cant afford that i will be screwed either way cos i wont be able to afford my house now - and as far as a crash goes, a small correction and slowdown is probably likely but not a crash as govt wont allow it. Too many very big mortgages. Even if, id rather get stuck in a nicer house for a few years.

Most people think I'm nuts for doing it i think, but hey.

We’ll all be counting the cost of this for a long time, but i think the economic factors at play will at least keep the housing market stable. Its all guesswork though.

I’m half hoping the survey reveals some issues then I can renegotiate the offer. Feels a little bad form but the same property increased in value 25% in 3 years.

Just had a mail from Fidelity. I'm sure it's all going to be fine.

We’re writing to let you know that a number of UK property fund providers have temporarily suspended dealing of shares in their funds. You can find a list of the suspended funds below.
It is no longer possible to buy or sell shares in these funds. It is not yet clear if - or when - dealing in these funds will resume.
These decisions have been taken due to the current turbulent market conditions, which has meant the fund’s independent valuers have advised that they're unable to accurately value the properties within the funds. Under these circumstances, the funds' authorised corporate director or depositary believe it's in the best interests of investors to suspend dealing within the funds.

I'm not sure there'll be a crash. There's still a housing shortage, there are now low interest rates and significant potential for mortgage holidays from lenders due to the situation.

Almost everyone who has a house will stay put, the small amount that do make it onto the market will then be overbid by FTB gorging on cheap rates. If there's any decline it will be small and short and we'll see another increase just like we did from 2008 to 2018.

House prices have just dropped off a cliff. Personal circumstances and value would still dictate whether now's the time for you.

It's going to take years before the economy is back to normal after this. I expect house sales to drop to an absolute minimum eg just distressed sales such as deaths etc.

House prices have just dropped off a cliff.

If I was good to go then yes. No one has a clue what’s going to happen. If house prices crash whose going to sell and if they do competition will be fierce as investors look to cash in.

or about to exchange contracts. It’s stressful at the best of times but right now my bp would be through the roof.

Certainly proving this way for us. We should be in the process of closing, then starting the move back to Scotland from Switzerland, and there are so many variables and unknowns now being thrown into the mix, we are just about shutting down mentally. It's horrific.

We were due to be mortgage free tomorrow 😭 (selling Mrs dB & her ex's house) - first buyer in two link chain pulled out as they are a supply teacher...

So still paying mortgage & bills for two houses, looks like we should be able to get ex off deeds and mortgage but really don't want to be landlords 😕 neither of us have secure jobs in this climate either. So near yet so far..

I exchanged on Friday and the move is happening at the end of this week. Fingers crossed.

I want to move, we need to move. There's a small chain and we're contractually obligated to go through with it but if we go into "lockdown" between now and then who knows what the situation is.

Am I worried there will be a crash? and I've just added £100+k to the mortgage? I'm not thinking about it too hard. We're moving 1/2 a mile in an area with an outstanding local school that sucks people in as an alternative to private education so house prices are err bouyant (if not daft). Could it drop? Yes but we're in this for the long term. I'm more worried about getting the move done on the day for now. I'll worry about he rest later.

At least I started a full time job at the start of the month where I can work remotely and I'm not contracting any more. That would be bad.

Found the link below through Grace Blakely who I follow on Twitter, I realise that the publication is quite to the left of more mainstream publications. If the debt mountain starts to slide then it’s not looking good for our economic future, I guess if it gets that bad then there will need to be a worldwide consensus on how to proceed and I fear it will not be to the benefit of “us”.

https://tribunemag.co.uk/2020/03/the-coming-debt-deluge

Might not relate to the UK market but myself and my wife put an offer in for a flat here in Spain literally 3 weeks before this Corona thing started. Mortgage was agreed in principle and everything.

Due to an issue with the seller wanting to delay her move out until July (she is a government official and is relocating somewhere else in Spain) we've found ourselves in a situation where no contract has been signed and no money has changed hands. This might actually be a blessing in disguise. We're now in two minds whether we should back out or wait and see how things transpire over the next two months.

It may be the right time soon theoretically if prices crash but only if you're not selling also, unless you can manage to sell now or already have, wait a few months then buy.

Practically it's not going to proceed during a lock down and maybe for some time with big backlogs.

There's also already a backlog with Land Registry even before all this and it will be worse after.

We agree to sell 3 weeks ago (Hampshire to Scotland) FTB with only 50% mortgage - survey was last week so still waiting outcome and potential renegotiation on price. We were hoping to self-build but chances are remote as chance of getting planning permission this year will be remote as councils have shut-down non-essential services. Hoping this will blow-through in about 12 weeks to give us a chance to move in the summer. By the look of properties / prices in Scotland, it's a flat market as most 'new' properties are last years so if we get beaten down in price, we'd hope for movement at the other end. If buyers try to drop by more than a reasonable amount we'll stay put.

Oh shit . . . *

* #UKLOCKDOWN

So I guess we will not be exchanging next week then and moving soon after. Going to be very tight in here once our first child is born in a few weeks.

Going to be interesting call with solicitor tomorrow, was expecting to exchange in the next week or so.

We have a short chain, our buyer is in rented, house we’re buying is vacant possession (separated couple - him now in China, her in Nottingham, house in Warwick) so hopefully delays can be managed.

Ah nuts. We were meant to complete and move on Friday after starting the process in October!!! What do you reckon the chances are that moving from one home to another would be considered acceptable? yes I know I know, only meant tongue in cheek.

We are supposed to move from one rented flat to another next week, contract signed and notice handed in, any ideas what the options are? Will it be legitimate travel?

We're still moving Friday - breach of contract if not as we've already exchanged and all advice says go ahead but be careful.

Will be observing the social distancing protocols with anyone involved (agent can throw us the keys and we can keep well away from removals men) and can't have help from anyone (both sets of parents were willing) which will make it a very long day but sure we'll manage it.

Not sure when we'll be able to have a house warming party or even get to know the neighbours but at least we'll be "staying at home" one way or the other.

Good luck to anyone in a similar position, it's been a fairly stressful 12 hours.

G

Good luck with the move.

Gove on TV this morning said if you can delay it then delay it. It seems pretty obvious that an activity with so many people involved and a change of location is a big risk of transfer.

The Law Society has been useless on this. Doing the right thing puts you in breach of contract - madness.

PS we complete in May

Looking at rightmove new sales instructions the asking prices seem to be as if nothing has happened. Even London btl stuff is priced optimistacaly. Amasing really, my agent said last year they sold 3 to investors, so even before this the investment market had disappeared.

Any forced sales through divorce, debt or death will have to be priced attractively. Anyone who can wait surely will.

So we've had it confirmed that we will be moving on Friday. Very glad to get it out the way but it is going to be very stressful over the next few days - two young kids (including 8 week baby) were going get shipped off to leave me an empty house to pack. Now I have to pack around them while also leaving them entertainment options!!!
Moving day is going to be even more challenging I fear.

Best of luck PinchFlat that sounds like a rubbish situation. Ours are 7 & 9 and are going a bit stir crazy already

House prices off a cliff? Must be Norfolk.

Friend of ours was due to conclude sale yesterday. Everything done until Law Society of Scotland said it would not allow funds transfers to go ahead at the moment! So no sale for her! Anyone got a clue why this could be?

We completed about a month ago so stupidly glad we squeezed in. Especially as slightly narrow window we can buy in due to the wifes visa. Admittedly now she has been dropped to part time and im about to get furloughed its a bit scary!!

All this talk of asking prices not showing a drop. As ever, aski h prices are irrelevant, it's the sold prices that count. Give it a month or so (or maybe longer if the stats are delayed) to see what damage this has really done. Forced sales through job loss and bereavement a while off yet.

Evidently not, our sale has fallen through. Still seems to be a stream of houses coming on the market in the area I'm looking, but that could just be a lag with instructions from 1 to 2 weeks ago going up. Can't imagine estate agents would even bother now, not to mention getting pictures taken and stuff like that.

Quite a few of the 'new' properties coming to the market are last years judging by the photos and state of the gardens. Lots of people still want to move - jobs, families whatever. It'll take at least 6 months before estates get settled, forced evictions etc to start impacting on prices. With commercial property, the impact might be more immediate as investors seek to divest portfolios because of the impact on retail - who would want o put their more in shopping centres?

Just spoken to Estate Agent and Solicitor. We are still looking good to exchange early in April with completion before the end of the month. Ea/Solicitor combo have an exchange on another chain tomorrow so will be using that to see how things are truly impacted but so far they don't see any problems. Can all be done online or by phone other than key collection.

The two transactions below us in our chain are downsizing, so keen to keep momentum to release capital. We are upsizing but keen to get somewhere bigger for soon to arrive kid (both of our jobs seem safe). The place we are buying is vacant, so they are also keen to continue to get cash.

We expect this to be a home for decades, so any short term price adjustment shouldn't really be an issue for us. Just want to get in there.

Member
Friend of ours was due to conclude sale yesterday. Everything done until Law Society of Scotland said it would not allow funds transfers to go ahead at the moment! So no sale for her! Anyone got a clue why this could be?

Registers of Scotland has closed due to the lockdown so no new sales in Scotland can be registered. No registration = no concluded sale

All this talk of asking prices not showing a drop. As ever, aski h prices are irrelevant, it’s the sold prices that count. Give it a month or so (or maybe longer if the stats are delayed) to see what damage this has really done. Forced sales through job loss and bereavement a while off yet.

I wouldn't say that's unique to the circumstances right now, the past, or any point in the future. There is always someone, somewhere looking to fire sale their way out of a property. Either you get very lucky & that's the property you are interested in anyway, or you accept a compromise somewhere.

Desirable property in a good area always goes strong.

Indeed, it will take a while before even those in serious financial difficulties will be forced to put their house on the market. With banks offering mortgage holidays and everyone pretty much locked down for the next month or two.

Even then, no one is going to give away their biggest/only asset. Asking prices will stay high, those not in dire straights will keep their powder dry .....so the result will be very few houses up for sale, until the buyers come back.

Clearly there may be opportunities, but think prices will stay strong.

You will need a 40% deposit for a new purchase with a mortgage. Mortgage valuers not able to carry out visits for mortgage valuations so lenders now going to 60% max lending so desk top valuations can be carried out

Just had an email from the removals company saying that the British Association of Removals has told all removals companies to stop work unless they are literally mid-move with things on a van.

That is going to make things a little more difficult.

Our house went SSTC at the end of feb so we’re just working through the paperwork now. I’m in no rush to move at the minute but I’ll not be the one stopping it going through. I’m lucky that work is carrying on as normal but from home, I’m happy with the price we paid and the mortgage is sorted.

The guy buying ours is downsizing following a breakup and the house we’re buying is because the guy is moving in with his fiancé so hopefully it will just be delayed while we wait to be able to have documentation witnnessed and for removal companies to go back to work 🤞🏻