Jump to content
House Price Crash Forum
Ash4781

House Sales Set To Fall As Public Sector Cuts Loom

Recommended Posts

Cuts in the number of public sector workers may hit the property market, drastically reducing sales and leading to price falls in areas where such staff account for a large part of the workforce.

....Savills, the estate agency, whose research team has been strikingly accurate over the past three years, has revised its forecast for the mainstream housing market for the rest of 2010. Instead of small rises, it now predicts falls ? between 2.8% and 4.1% in southern England and London, about 5% in the Midlands and 7% in parts of northern England. Of the homes it sells ? typically between £250,000 and £4m ? about 15% are bought by public sector staff.Particularly dramatic are its regional figures. These show that in high-priced areas ? London and the south-east ? even well-paid public sector staff are priced out of the top end of the market. Elsewhere, chiefly in the north of England, where public sector staff are relatively well paid compared with other locals, the reverse is the case.So while in London and the home counties only 8% of Savills's sales are to public sector staff, that soars to 24% in northern England and 20% in Scotland.In the far south-west of England, also unusually dense with public sector staff, it is 23%. "The relatively high pay of these buyers, when compared with other jobs in the local area, has meant they've been able to purchase larger homes," says Marcus Dixon, a researcher at Savills. This has allowed them to be in the market to buy properties with considerable equity later in their career, he says.

http://www.guardian.co.uk/money/2010/jun/14/house-sales-fall-public-sector

Stating the obvious but interesting to see. Also I didn't know Savills had revised their forecasts .

The OBR also lowered capital gains tax forecasts due to lower transaction volume. The report says:

?The forecast for CGT is lower than in the March Budget, mainly because of lower forecasts of equity prices and volumes and a lower volume of residential transactions.?

Share this post


Link to post
Share on other sites

Utter poppycock! House prices are rising, the EAs say so and they are professional house price experts. After all, with no government cuts of substance, elimination of HIPs and brighter job prospects with no austerity measures its nothing but blue skies for increasing HPI. The good times are back--go grab yourself a portfolio of BTLs before they double in price next year.*

* :lol::lol::lol::lol::lol::lol:

Share this post


Link to post
Share on other sites

Um, where are Savills figures for Wales... :rolleyes:

Oddly enough, every now and then you will see a Savills 'For Sale' sign in my part of the World and you just know that it is some numpty from London trying to flog their house or some local trying to flog it to some numpty from London.

Anyhow, have to love their argument though - 69% of Welsh jobs are public sector.

Share this post


Link to post
Share on other sites

what the frack are we all going to wear if the Loom is cut??

we must be told.

Share this post


Link to post
Share on other sites

Sorry I don't get to log in as much. Would be interesting to see how many mortgages were granted for public sector workers over last few years (as Brown locked in the recovery). If the LTV's change too approvals will plummet.

Share this post


Link to post
Share on other sites

Looks like we killed this thread.

no thread after loom cut.....makes sense.

Share this post


Link to post
Share on other sites

Um, where are Savills figures for Wales... :rolleyes:

Oddly enough, every now and then you will see a Savills 'For Sale' sign in my part of the World and you just know that it is some numpty from London trying to flog their house or some local trying to flog it to some numpty from London.

Anyhow, have to love their argument though - 69% of Welsh jobs are public sector.

You going to go a bear again soon?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

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.