Friday, Nov 23, 2007
The UK’s sub-prime market has shut down
MoneyWeek: Forget Hips – here's the real threat to the housing market
Pundits are warning that the extension of Hips to all homes will see the housing market 'grind to a halt'. But first-time buyers shouldn't worry too much: news from elsewhere suggests prices are about to tumble.
Posted by mary @ 08:47 AM (1075 views) Add Comment
13 Comments
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1. d'oh said...
My immediate reaction to the extension being brought forward is that this, together with the changes to CGT, is another desperate attempt to slow the flood of properties onto the market. The cynicism of this government is just breathtaking sometimes (or perhaps it is just me?!)
2. d'oh said...
I'd also wager good money (if such a thing still exists) that John Stepek is correct in his belief that the government will do a u-turn in late March early April 2008 on CGT for precisely the same reason. If they do, then I will know that my dismal view of the world is fundamentally correct.
3. New User 2007 said...
I was thinking it would increase supply, now that everyone has to do it the distortion is gone?
Also people may panic put them on the market ahead of the date (although my assumption on a quick increase in supply ahead of the date originally assumed a couple of months notice,,,it just seems to be a two weeks notice.
Not sure how the same people who are still saying the market is indestructible are also saying the new HIPS level will cause the worrying market to collapse.
4. cyril said...
The CGT thing was just a gimmick to wrong foot the Tories when GB thought there might be an election. That's until his poll ratings crumbled then he changed his mind. A man of strong principles.
5. X Blogger said...
BROWN WILL MAKE A HASH OF IT AND BE EATEN ALIVE.
over to you confused..........
6. handle_it said...
Yes quite clearly a stalling tactic but in truth how much difference will hips make to someone who needs to bail out before they end up in negative equity ? Or in fact anyone that "really2 wants to sell ?
7. doomwatch said...
Let's get some sort of perspective here. If I we a grubby buy-to-sweat about to go under home stealing scum, I'd not give
a sh1t about an extra £500 when looking over the cliff edge of a deflating "asset"; it would just come off the "profit" at the end
with the rest of the extortionate "fees". The only delays in all this is, as usual, is the solicitors, of which
there are the SAME number.
8. d'oh said...
doomwatch and handle_it: A few hundred quid is, of course, nothing, but there are many people out there who still aren't convinced that houses don't always go up, but might be just beginning to doubt. Having to fork out £500 upfront might be just enough of a psychological barrier to stop them doing it.
9. Planning4acrash said...
If you are close to bankrupt, could the extra grand and time push you over the edge? What if you can't get a credit card to pay for it because your rating is destroyed?
10. Smurf said...
a question to this board regarding HIPs: since the buyer still has to pay for searches and a survey, how are HIPs different from just another a tax on a house sale?
11. X Blogger said...
Smurf... I think it's sole purpose IS TAX. to compensate for the future lack of stamp duty.
We are living in cunning and interesting times.
12. disillusioned said...
Smurf: I could be wrong about this, but I think the idea of HIPS is to give the buyer a much better idea of the house they are looking at before they have to fork out for the survey, thus saving the buyer a bit of money on properties they end up rejecting and preventing the seller from just 'papering over the cracks'.
13. drewster said...
Smurf: The idea behind HIPs is to speed up the buying and selling process. As far as I understand, it's the solicitors who seem to make things drag in any house sale. By getting the legal stuff out of the way early, it shortens the time from agreed purchase to moving in.