ExBritFL

Hello all!

We are heading over to the UK next month to visit some schools for my daughter for next year. Cannot wait!

In the meantime, I am addicted to RightMove for looking at properties. We were fortunate to be able to sell our house over here a few months ago and plan to buy a house in the UK with cash to avoid the cost and hassle of renting as expats etc.

Any thoughts on whether it's a good time to buy over there yet (given the weak pound) or do we think prices will drop next year with the way the economy and mortgage rates are heading over there? I understand that nobody has a crystal ball but just wanted to ask to get some thoughts and ideas as it's such a big decision!

Thanks in advance as always for any feedback!

spouse of scouse

Predictions re the UK property market for 2023 vary wildly, as you've no doubt found out! In recent weeks, various 'experts' have predicted everything from an average 5% reduction in marketing prices, to 20%, to yet others who predict that the market will stagnate for a year or three, in other words, the market will remain static rather than seeing the price increases evident during Covid.

My honest thoughts? If you're a cash buyer and find a property within your budget that you love, in an area you want to live in, then buy it. This is especially so if you have no intention of selling the property and buying elsewhere in the next 5 years or so.

As a cash buyer, you won't have to worry about mortgage interest rate increases (although I do realise that rate increases can put downward pressure on property prices). Also, cash buyers are much more likely to successfully negotiate a reduction on the asking price, 5 - 10% is not uncommon.

You could drive yourself crazy with trying to predict what the housing market's going to do, especially with the present government all over the place. Keep enjoying your research on Rightmove, also look at 'house sold' prices in the areas you're looking at, and stick to your budget. Happy hunting

ExBritFL

Thank you!! This is helpful. And if we do wait in the hope the prices will reduce, we will spend the difference in renting for 6 months!

Much appreciate your insights

kateg60

I'm looking to buy in the next 6-9 months so I have been watching Rightmove for several months. I have noticed houses are not selling as quickly and some homes are being reduced in price; I confirmed same with the real estate agent I spoke with a few weeks ago. I think it also depends on where you are buying and local inventory. I am looking at small villages where inventory is low. I think in the larger cities prices may come down as interest rates go up. In any case I will buy as soon as I find the right property for me. What I will try to do while I'm looking is move money/convert funds into pounds if exchange rates drop lower. Good luck!

Adam03

Many are predicting a drop in house prices,however, a house is a long term investment, so if you find the house you like in the area of your preference then go for it, on the long run house prices will increase, same as we saw after the 2008 crash.

ExBritFL

Good idea! I have an eye on the exchange rate for this reason too!

durham_lad

Our daughter in LA just had an offer accepted for a house in the small town in England where we live. My wife and her have been monitoring the houses as they come up and they have been few and far between in her price range of $400k and above. In recent weeks we have viewed 3 on her behalf and the 3rd one looked great so we organized another viewing, this time with her on FaceTime so she could see for herself and ask questions directly of the owner.

She has a buyer for her house in LA and they are quibbling a bit over inspections and price but feel sure it will be resolved soon, or she will move onto the next best offer.

She is now struggling with the Law Society rules on proving ID, ability to pay, money laundering rules etc. For example they insist on a bank statement printed on official bank stationery which isn’t going to happen until she moves here in 4 weeks and opens an account with a bricks and mortar bank. She is currently living in temporary accommodation as she has moved out of her house and her furniture is currently being shipped here.

I think exchange rates may well move +/- 10% or more over the coming year regardless of which direction house prices go so she is keen to get this sorted as she plans to live there at least 10 years if not longer.

Pongo

If you’re a first time buyer in UK then stamp duty starts at £425k for property prices up to £625k, if not then it starts at £250k.

durham_lad

The OP is not a first time buyer since they have bought and sold a house overseas.

The government calculator asks if you have ever owned a property and doesn’t specify “only in Britain”. I’m pretty sure it means anywhere.

https://www.tax.service.gov.uk/calcu...nd-tax/#/intro

This confirms it

https://www.finder.com/uk/the-defini...duty%20relief.

• If you owned a residential property overseas.Overseas properties still count when it comes to first-time buyer status.

brits1

Exciting times for you, do you know the area you are looking to move to? if so that’s good as you’ll know which part of that area suits you, we have a home on the market at the moment and the area it is in they usually “fly off the market” and house prices there fo up by the day let alone month but since the government announced interest rates will rise (and they have done) for the first time since we arrived back in the UK (2010) mortgage rates have risen and people are in shock as they rates have been so low for years some people have never had this happen to them so while in the area we are selling house prices have yet to fall but the market is slower, if there is no rush for you I would wait as long as I could and you should start seeing much lower house prices as some people just will not be able to afford a hike in their mortgages. If you are not sure on where you will buy or do not know they area then I would advise A “drive around” and see how you feel Inhabe been amazed at some houses on RightMove but when I have visited the area more often than not it’s not been “for us”. Good luck with everything. ps keep any eye on the sterling as well if it falls against your currency then transfer money across (if you can)

tdrinker

Most "experts" predict house price falls in the next 1-2 years, but not all. So it's likely house prices will fall, but not certain as these "experts" are fallible - how many of them (or us) predicted the post covid lockdown house price increase? If you delay purchasing, factor in the cost of renting in the meantime, and the inconvenience, including possibly furnishing a rented house and then finding the furniture doesn't quite suit the house you later buy. Like others, I would recommend purchasing if you find your dream (or good) house / location combination, so you can get on with living your life. The best reason for renting is to give you time to research locations and decide where you want to live, or if you've decided on a location but can't find a decent house.

jarv5116

it depends.
For example if you buy a house cash for 200k next month no stamp duty.
If you wait 18 months and pay 800 quid a month rent and stamp duty starts again. you would be 800x 18 months rent payment 15k in rent and 2 k stamp duty. is min 17k in expenses.
property would need drop at least 10% for it to be any benift waiting 18 months.

I just bought a house get my keys at end of month.
Got locked in on 5 year mortgage at 3% for 5 years before the rates went crazy last month.

ExBritFL

Thanks for this info! We are going to be looking around Loughborough and Nottinghamshire areas (ideally a village location if we can make it happen). Agree about Rightmove and areas ~ after looking at the "street view" on what seem beautiful houses, I've been disappointed! We plan to move next Spring and would love to be able to purchase something before that to avoid spending on rent . Noticing many new builds everywhere also . Will drive around next month when we come over for a vacation!

ExBritFL

Good points. I think we'll be hard pressed to find something for 200k from what I'm seeing though. Although the price tags of 400 seem to be over inflated in some cases. Rents are high at around 1100 at least for the areas we are looking at. Maybe we will be in a better position to negotiate than when the market was on heat. Congrats on your home purchase!

Moses2013

I also think £1100 is high, but this is the norm it seems. In another thread somebody was surprised that on Facebook Marketplace a 3 bed apartment in Manchester was going for £900 and thought it was too good to be true. At least you are lucky to be a cash buyer and that will certainly help. Like jarv5116 we also fixed at 1.9% just before rates went up and are in Ireland. Exact same story across Europe and just depends what type of property and location. I also don't believe that more supply will reduce prices for houses with gardens, especially if they build more flats. All it really does is make the house with garden more desirable.