Thursday, Nov 27, 2008
Also increased numbers of homeowners trying to let a spare room
Telegraph: House sellers drop asking prices by £17,000 across Britain, survey reveals
Prices have been cut by an average of £16,941 by sellers, which is a national decline of 6.5 per cent. The figures vary by region. London has seen the biggest falls, with sellers in Westminster having £108,166 knocked off the price of their home. It is the latest sign that sellers are adjusting to lower house prices, having been in denial for months. "The months ahead are a great opportunity for cash buyers", said some twit.
Tamara Smith, of EasyRoommate.com, said: "In recent weeks, we've seen a threefold increase in the number of live-in landlords on our site. Some people, potentially struggling with mortgage payments or in negative equity, are choosing to rent out a room in their house rather than sell at a significantly discounted price."
9 Comments
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1. planning4acrash said...
6.5% fall in less than a month, after a 3% fall last month, this thing is exponential, and, the falling volumes combine with falling prices as symptoms of the only factor that matters, the housing market money supply.
When lending goes to zero, only deposits remain, but deposits are wiped out if savings evaporate.
Where do we go from here? A house for an ounce of gold anybody?
2. Pilgrim147 said...
P4aC@1. I'll take food over shelter at the moment. I have little faith in my deposits but don't want to part with them, yet.
3. harold said...
Clear signs of panic emerging... as this site has been predicting.
4. drewster said...
Any comments about the spare room letting?
Personally I can think of nothing worse than living with a heavily mortgaged live-in landlord, who will be envious of your (relative) wealth and who will never switch on the heating! I'd rather stick to the regular rental market.
5. japanese uncle said...
drewster
'When the money is goine, it's gone' will be the golden (or iron) rule in this economy, where jobless people without savings will no longer afford such luxury as 'regular renting' only to find themselves bedsitters or lodgers. In fact in Tokyo there are a brigade of temporeary workers who cannot even afford lodging or bedsitting, thus 'living' in 24/7 internet cafes that provide showers and sofa (for sleep). Terrible lifestyle.
6. mytimeisnigh said...
Moving into a strangers house as a lodger is a strange and uncomfortable experience (I did it once, briefly). Maybe it's an easier thing to do if you're still really young.The fact that people will consider this as an option is evidence of how grossly overpriced the rental market still is.
7. it_is_going_with_a_bang said...
"While some people are clearly having to cut their original asking prices to sell their homes, others, potentially struggling with mortgage payments or in negative equity, are choosing to rent out a room in their house rather than sell at a significantly discounted price."
or 'realistic price'
Denial at it's best .. or worst.
8. Hip Hater said...
One of our clients pulled out of a purchase last month but has now come back when their lower offer was accepted. It was originally advertised at £300k but is now at 245k. That's a lot more than 6.5%
9. planning4acrash said...
"Any comments about the spare room letting?" - The first 4k, I think, is tax free, and, you can probably get around the rest via getting them to pay for expenses like bills as part of their rent.
Also, 4k will be close to a half or quarter of many mortgage bills. Its easier to cover mortgage by letting out a room at that cheap rate of £75/week, add on a few bills, and hey presto, you're paying less than for a room in a shared house (at least in London), probably getting more space and freedom and a nice house, and they avoid going bankrupt.
We had a lodger during term time during the 1990's bust. She was quiet, well behaved, only around for half of the year, and paid us hansomly. Homeowners can be patient and wait for the right person.