decaston

In the first 3 months britons paid 8.1 billion of their mortgages because of poor interest rates, also it is stated cclearly homeowners are not going to use their equity for house purchase anytime soon! this is more cash not going to prop up the housing market. Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said that homeowners were unlikely to withdraw equity for the foreseeable future: "There have been some tentative signs of a stabilisation in the property market but it is improbable that housing capital, in the near term, will be viewed as a source of wealth that can be drawn down by home owners to supplement their income." "Sharply falling house prices have made housing equity withdrawal increasingly unattractive, while very tight credit conditions have made it more difficult to carry out the process as well as to take out new mortgages," said Howard Archer, chief UK economist at IHS Global Insight. http://www.telegraph.co.uk/finance/finance...tgage-debt.html Catherine Matthews , a partner at the insolvency practice Tomlinsons said the average UK business was being "strangled by fragile consumer confidence and limited spending on the high street. "The result is a Catch 22 situation where people won't start spending until the economy and housing market recover, and they feel more confident, but the economy and housing market won't recover until people start to spend," she said.

at least house builders are doing in the main what private sellers are not doing which is significantly reducing prices from 2007 level. My wife sells new houses, was made redundant and now has sporadic work. but the peiple buying new houses are the same ones bbuying older properties,. equity rich - but sooner or later people will have to sell properties and as soon as the amount of property increases either because osf seller increase and/or less buyers the property prices will go down. supply and demand

We have taken a £20,000 loss , have a mortgage holiday must buy again within 6 months from end of august. so have persauded wife to go into rented. we are looking to buy between £220,00 to 249,000 and a bit of realism and a few more properties on the market will make a lot of difference. p/s want somewhere to live ant too bothered about investment anymore, but cannot afford to throw money away. it will cost us an additional £3500 to rent for 6 months but worth a gamble. that takes us to next January. but we can move anytime over next 6 months.

if sellers just reflected the land registry that would be a start, people are abarely reducing from 2007 peaks

The number of properties for sale at estate agents are at record lows-how long can potential sellers hold out- I would suggest many will have to move because time waits for no man or women. here are some reasons why: How long before the people chosing not to sell, just cannot wait any longer- the rising unemployment The OECD (june 24th) said the rate of unemployment is expected to grow to 9.7 per cent in 2010 (currently 7.6%), double that seen just five years before, although this is still lower than other countries. The Office for National Statistics has today revealed that UK unemployment rose by 281,000 in the three months to May - the biggest quarterly rise on record. The average first-time buyer deposit is now 25% according to the CML and the typical first-time buyer income multiple has held at 2.97 times income since April 2009. The Average first time buyers salary is £33,500 and 80% of FTB under 30 receive help from family or friend with the deposit. The average deposit for those with family help is £35,000 and those that get no help £7,500. If you’re looking for a buy to let mortgage in 2009 you’d better have a deposit of around 25% to be in with any chance of getting your loan approved, plus the fees levied on arranging the deal, can be extortionate. In addition to a larger deposit because banks view buy-to-let borrowers as riskier than normal customers, banks have increased the minimum level of rents they require landlords to charge from 112% of their mortgage payment to 123% of it. The problems faced by novice landlords have been made worse by a flood of rental properties coming on to the market, after people who were unable to sell their home decided to rent it out. The big increase in supply has outstripped rises in demand, leading to average rents falling from £873 a year ago to £819 now Existing Buy to Let investors are losing their hard-earned properties at three times the rate of other home owners. Figures for repossessions released in June 2009 by the Council of Mortgage Lenders highlighted the fact that 1700 buy-to-let landlords had to deal with the stress of having their properties repossessed in just the first three months of 2009. A further 4,100 properties were lost when landlords failed to pay the mortgage on properties that they owned, and a receiver of rent had to be appointed. Unemployment in the UK is at its highest level since 1995 with 2.38 million people out of work - 7.6% of the adult population - the biggest quarterly change since 1971. The Office for National Statistics has today revealed that UK unemployment rose by 281,000 in the three months to May - the biggest quarterly rise on record. The 4 x D's 1. Divorce: 57% of British households consisted of a married or cohabiting heterosexual couple in 2006. If current divorce rates continue around 45 per cent of marriages will end in divorce, ... There were 144,000 divorces in 2007 and marriage rates in England and Wales have fallen to the lowest level since records began. 2. Debt: April 2008 Almost a third of pensioners have moved when they had not intended to - searching out a smaller property to beat higher living costs. According to insurer Saga, some 37% of people have not been able to afford their retirement plans and 38% have found that their financial situation in retirement is worse than they had anticipated and have moved purely to reduce their cost of living. Over 70% of the over 60s now own their property 13,262,256 people were over 60in 2007 or 19% of population. Add to this houses repossessed, people forced to sell through debt etc. 3. Death- 234,000 in England and Wales 2008 - 65% over 45yrs many will have houses to be sold. 4. Desperation- add to this relocation due to job loss, to be nearer family, a lot of people bought for investment but want to move elsewhere. If property sellers increase- prices go down automatically logic says, what do you think?

ESTATE AGENTS HAVE BEEN RECORDING THE AVERAGE NUMBER OF PROPERTIES FOR SALE PER ESTATE AGENT SINCE 1978 THE LOWEST NUMBER ON RECORD WAS IN AUGUST 1979 WHICH WAS 51.5 PROPERTIES PER ESTATE AGENT. IN THE MID 90'S RECESSION OF LAST DECADE IT WAS 140 TO 200 PROPERTIES PER ESTATE AGENT THE CURRENT LEVEL IN MAY 2009 WAS 58.4 PROPERTIES PER AGENT AND IF WE HAVE HAD A FLURRY OF ACTIVITY SURELY THIS MUST HAVE GONE DOWN? PEOPLE STILL KEEP DIVORCING, DIEING AND GETTING INTO DEBT. THE ELDERLY GET NO INCOME FROM SAVINGS SO MUST DOWNSIZE. PEOPLE NEED TO MOVE TO BE WITH FAMILY, FIND NEW JOBS, LEAVE COUNTRY ETC. THE PRESSURE ON PEOPLE TO SELL THEIR PROPERTIES IS ALWAYS THERE, SURELY REALISM THAT PROPRTIES PRICES MUST SURELY FALL, WITH EMPLOYMENT AT A 14 YEAR HIGH AND GROWING MUST PENETRATE THE THICKEST SKULLS tHE ESTATE AGENTS WILL HAVE TO WORK ON THEIR UNREALISTIC SELLERS TO DROP PRICES OR STARVE!