Cold Feet / What will be the impact of Personal Insolvency Bill?

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Tuttlinghorn

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Having recently reached a verbal agreement with a vendor and just getting into the process with solrs etc. Impossible to know if we got a 'good deal' or not but we can afford and they accepted.

I heard on the news this morning that up to 20k people may avail of the new personal insolvency laws ... presumably this will mean people handing back keys and some (significant?) increase in distressed sales.
And a subsequent plunge in prices ... ? Any views on this ?
 
You are not allowed to speculate on house prices on AAM.

It is reasonable to expect however, that there will be an increase in repossessions / voluntary surrender from mid 2013 onward (bear in mind the increase in repos is effectively from a rate of nil). That should lead to some increase in supply. The effect of that, if any, is another thing entirely.
 
The banks have an ultimate veto in the new bill, so don't hold your breath on mass write downs.
Actually based on the delays in getting as far as we have, I wouldn't hold you breath on it even going live anytime soon. They could put it live at the end of the month if they want to, but they are doing their best to delay it at every step.
 
To add further, a "good deal" is something that you'll be happy with and able to live with at the end of the day. Value is also something very unique to each individual. What you value in a house, other may not, and vice versa.
 
Thanks both - and apologies I hadn't realised I was straying on 'forbidden ground' though I can understand the whole price speculation / projection thing has been over done on the way up and now on the way down ..!

fully agree @ryaner, a 'good deal' is in the eye of the beholder, as always, and market moves become less relevant when its all down to one house and in this case a detached one with no easy comparison sites nearby.

Regarding repos, I hope that banks will focus on some kind of lease-back rather than full repossession for primary residences. Looking at the news and hearing first hand stories from Spain, we really do not want to get anywhere near the horrific 'adjustment' that is unfolding there.

Chances are the bank will bounce us anyway so we'll still be renting by summer :/
 
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