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House Price Crash Forum


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About Gooner82

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    HPC Newbie
  1. Part of the reason that prices stayed resilient post the last "property crash" was that Bank's did not enforce loans in default. Instead they utilised forbearance schemes to "extend and pretend". This meant that the market was not flooded with repos. The last time Banks pulled the trigger in big numbers was the early 90s. They won't repeat that. They'd rather roll it all forward. Only if forbearance rules are strengthened significantly will they perhaps need to appoint receivers in large numbers as getting 80p in the £ may be better than the capital they have set aside for defaulted loans.
  2. Still wittering on I see..... Stalking? Yep, ok....... Chill out pal. Shit happens in life. I'm as incensed about the property market as you are. I don't waste my life on here 24/7 though. 12 posts and out.
  3. It's about as obvious as it gets that low volume is pumping up prices It's not nice but it is a fact. There is one poster on this board however that can't accept reality and is ruining the whole vibe of this place with his incessant chuntering from across the Channel. Either put a sock in it or can one of the Admins give him a "holiday" from this place. Thanks.
  4. I disagree. Point in case a property on my street was just sold at full asking in a few days. The EA that sold it has a rep for sensible pricing vs the ramping that their competition do. Anyway the asking price was £325k for a 2 bed maisonette with garden. Looking at local 2 bed flats that are up for pretty much the same price I was surprised they priced it at that. If they had put it up for £350k they would have sold it at near enough asking price no problem. This is evidence enough for me that if you set a sensible asking price and don't hold an "open day" that leads to sealed bids that prices can be kept sensible. Encouraging sealed bids etc does encourage ever spiralling prices. EAs on the whole are ramping prices. Bizarrely in this case the one time pricing has been kept sensible it has been almost to my detriment as whilst I am happy to see sensible pricing, I don't see the same treatment for the houses I'd like to move to.
  5. I honestly don't know what these EAs are doing all day. A quick check locally shows that each EA in my area has c. 20-30 properties on the books. Most of these are long-term under offer (chains which are probably falling apart in front of their eyes). The remainder are over-priced dross which only sells when an idiot walks into their office. What I don't understand is that surely they are shooting themselves in the foot by continually forcing prices up. All it leads to is low volume and we all know that they'd be better off selling 20 sensibly priced properties rather than 10 top-priced ones. It's bonkers stuff. It really is. Just as an example, I was looking to move up the ladder to a house last year. I live on the Herts / North London border. In 12 months the asking price for a 3 bed semi has gone up a full £100k. In some roads it has gone up £150k. This equates to c. 25-30% and we're not even on the Tube network. Obviously when you have one house to sell every 3 months, supply and demand dictates that it only takes one idiot out of 30 buyers to set a new market high but I still can't get my head around how the EAs don't see the bigger picture. The higher the price goes, the less they will sell. They are literally digging their own grave in order to make 1-2% of the extra £100k (£1-2k). If anything you would have thought that EAs would be keeping prices low in order to keep the market "liquid" and to keep the sales rolling in. i.e quick sales before a property goes on Rightmove / Zoopla etc. A tip of the wink and a sale that completes in a month at say £50k less than you could have got. Sod the seller, they need volume. They must run the most inefficient businesses going. MADNESS!
  6. Where forbearance has been given the Bank must impair the loan 100% irrespective of the underlying security value. It costs us a fortune therefore and so we don't like interest only loans anymore. My understanding is that interest only is dead.
  7. One final snippet; over the last year the Prudential Regulation Authority have been all over us (and all of the other big banks) in regards to forbearance granted against problematic loans. In essence the days of interest only are GONE.
  8. Hi, Long time lurker. I probably have a bit of an inside line here working for one of the big high street banks. I am told that we have called the top of the resi market and are not interested in development deals apart from with the big housebuilders who have revolving credit facilities anyway. I should also add that there are also quite clear restrictions on borrowers with multiple BTLs. My understanding is that we won't allow >4 to an individual. This has been the case some time. Regards.
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