r/Glasgow Tools

Title
Author	Galstar82
Comment	Not denying the madness is over but any price dip here will be at a minimum. Inflation was one of the factors in affordability criteria, yes it will affect some people but not enough to change the overall picture. Mortgage payments should be at most roughly around a third of income, extremely unlikely if any were approved at more than 40% of income. People will therefore be squeezed but the house in most cases will be the last thing to go, nights out, sports, holidays and cars will get dropped first. As for prices, remember the valuations aren’t a what people will pay for the property it’s what the bank think they’ll be able to claw back most of in the event of a repossession/downturn. This means that valuations are unlikely to change. Will people maybe offer less above HR? Probably in some areas but not others, your govanhill example may have some truth in it but as always the areas where there is massive demand won’t change that much. Plus if we’re honest all of Glasgow has massive demand due to the amount of accidental renters who really want their own place. Not every area crashed in 2008, areas where there were very few repossessions like Giffnock, Mearns, Bearsden & Milngavie barely even saw a dip. A lot of people will be priced out with the rate rises, that’s a fact. Unfortunately for them though a lot of people won’t be, and have the funds for deposits etc.. The Glasgow market is turning into the Edinburgh one slowly. Regarding the salary point, yes Glasgow’s overall wages are lower but the professional job salaries are consistent nationwide and there’s enough professionals to buy the meagre supply of housing. If you don’t have that kind of salary then like most other cities in the world it’ll be a case of either rent, share or move somewhere cheaper (and there’s plenty of them) in the suburbs.
Reddit Link	https://www.reddit.com/r/glasgow/comments/xq7e2g/glasgow_house_hunters/iq8pjlm/
Created	Wed 28th Sep 2022 3:49pm
Status	normal ()

Not denying the madness is over but any price dip here will be at a minimum.

Inflation was one of the factors in affordability criteria, yes it will affect some people but not enough to change the overall picture.

Mortgage payments should be at most roughly around a third of income, extremely unlikely if any were approved at more than 40% of income.

People will therefore be squeezed but the house in most cases will be the last thing to go, nights out, sports, holidays and cars will get dropped first.

As for prices, remember the valuations aren’t a what people will pay for the property it’s what the bank think they’ll be able to claw back most of in the event of a repossession/downturn.

This means that valuations are unlikely to change.

Will people maybe offer less above HR?

Probably in some areas but not others, your govanhill example may have some truth in it but as always the areas where there is massive demand won’t change that much.

Plus if we’re honest all of Glasgow has massive demand due to the amount of accidental renters who really want their own place.

Not every area crashed in 2008, areas where there were very few repossessions like Giffnock, Mearns, Bearsden & Milngavie barely even saw a dip.

A lot of people will be priced out with the rate rises, that’s a fact.

Unfortunately for them though a lot of people won’t be, and have the funds for deposits etc..

The Glasgow market is turning into the Edinburgh one slowly.

Regarding the salary point, yes Glasgow’s overall wages are lower but the professional job salaries are consistent nationwide and there’s enough professionals to buy the meagre supply of housing.

If you don’t have that kind of salary then like most other cities in the world it’ll be a case of either rent, share or move somewhere cheaper (and there’s plenty of them) in the suburbs.