Jump to content
House Price Crash Forum
Sign in to follow this  
Ash4781

Low Sales Volumes - Who Are They Bad For ?

Recommended Posts

Low sales volumes - who are they bad for ?

-Estate Agents

-Building societies (lend predominately to the housing market)

-Builders and developers

-Mortgage brokers

-Removal firms

Any I've missed?

I'm not sure we're going to see volumes rise by banks / expanding credit or loosening terms so I guess sellers will have to move on price.

Or maybe we'll see low volumes become the 'normal'. Afterall there aren't millions homeless in the UK!

Share this post


Link to post
Share on other sites
Low sales volumes - who are they bad for ?

-Estate Agents

-Building societies (lend predominately to the housing market)

-Builders and developers

-Mortgage brokers

-Removal firms

Any I've missed?

I'm not sure we're going to see volumes rise by banks / expanding credit or loosening terms so I guess sellers will have to move on price.

Or maybe we'll see low volumes become the 'normal'. Afterall there aren't millions homeless in the UK!

I think the banks and building socs know that low levels are a necessaary evil. Part of the reason volumes are low is because they need buyers to have big deposits. And the volume of such buyers willing to take the plunge dictates the volume of sales - low!

If a seller with little or no equity (selling now whilst price will still payoff mortgage) is replaced by a buyer with 25% equity, then this gives the lenders more security. So conversely, the low volumes are partially a symptom of something that is a massive benefit to the lenders.

Thats where the market is now I'm afraid. Its all about improving the levels of equity in the loan book whilst the govt does everything it can to temporarily delay the falls. They really dont want the public sat on cash if they can possibly tempt that cash rich person to buy a house and take the hit.

2.6% rise from Govt bank index. This was both a political (feelgood) move before elections, and a continuation of the policy of recapitalise the banks (mark up 2.5% - 4% on these mortgages) and improve the loanbook equity.

Dont expect this to change until the market has slowly (stealthily - oh how did that happen? The beeb keeps saying things are improving) fallen to an average price somewhere around £110-120k or maybe less!

The timescale on this should be judged in years, not months.

Edited by Nick Dastardly

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   292 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.