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Realistbear

Confidence Takes An Austerity Knock

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http://www.telegraph.co.uk/finance/economics/7958907/Confidence-takes-an-austerity-knock.html

Confidence takes an austerity knock
By Philip "Balders" Aldrick
Published: 10:18PM BST 22 Aug 2010
Confidence has been dented by the Government's spending cuts and tax rises to deal with the Budget deficit
Record numbers of households fear their standards of living will suffer
as inflation outstrips pay rises, according to research from Markit and YouGov, while ICAEW and Grant Thornton found that nearly a fifth of businesses are less confident about the coming year than they were in March.
Some 600,000 public sector workers are expected to lose their jobs in the next five years, 150,000 more than under Labour's plans, while the higher rate of VAT will hit households in the wallet.

I am finding this to be true locally as I begin the process of lining up a house purchase for later this year if they have dropped by at least another 10% from the already at least 10% down since Spring. People have lost confidence and the EAs know it and are persuading chains to all drop their prices to get things moving. The rental I moved out of a couple weeks ago because the LL "sold" is still empty and unsold! Now the LL is faced with dropping the price while no rent is coming in.

Edited by Realistbear

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It's going to be very interesting watching the Sheeple try live within their means without having their @rse wiped every five minutes by the government.

Not looking good for the housing market that is for sure. We need the indexes to start showing whole number falls and the jig should finally be up...

I expect it's going to be a bitter winter this year :lol:

Edited by MrFlibble

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\You know that 'Two Ronnies' sketch from the 1970s about 'The Worm That Turned' - an England dominated by Women and the Men escape to a place where Men will always be Men... Wales...

Well, it is appearing to be the same with house prices...

:lol:

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I was talking to a neighbour at the weekend, he is a plumber but was saying that although the domestic repairs side of the business is OK the commercial work has stopped altogether.

New offices aren't being built and the public sector building projects have all been cancelled. Also said his mate who runs a plumbing supply centre said that business had collapsed.

He said for the first time in a decade he is having to advertise and asked us if we knew anyone who needed anything doing.

Confidence is rock bottom.

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I was talking to a neighbour at the weekend, he is a plumber but was saying that although the domestic repairs side of the business is OK the commercial work has stopped altogether.

New offices aren't being built and the public sector building projects have all been cancelled. Also said his mate who runs a plumbing supply centre said that business had collapsed.

He said for the first time in a decade he is having to advertise and asked us if we knew anyone who needed anything doing.

Confidence is rock bottom.

Good news.

For the past decade you could not get a plumber round my way as they all had these commercial contracts and were not interested unless you were some rich idiot from London paying London rates in West Wales.

Now, plumbers are ten a penny and the two local Techs are churning them out.

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There are a lot of us who saw this coming but don't have hundreds of thousands in the bank to buy outright. How are we going to buy when houses hit rock bottom but we no longer have an income?

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Not sure the ConLib government mis-timed the austerity measures. Maybe instead of austerity a better policy would have been a better plan to redistribute government budget. They can run the government like FTSE 100 corporation.

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There are a lot of us who saw this coming but don't have hundreds of thousands in the bank to buy outright. How are we going to buy when houses hit rock bottom but we no longer have an income?

By the time this gets near the bottom you are unlikely to want want to buy a house even if you could, which even if you had an income the banks that are left would still be unlikely to lend without a huge (say 40% deposit)

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I was talking to a neighbour at the weekend, he is a plumber but was saying that although the domestic repairs side of the business is OK the commercial work has stopped altogether.

New offices aren't being built and the public sector building projects have all been cancelled. Also said his mate who runs a plumbing supply centre said that business had collapsed.

He said for the first time in a decade he is having to advertise and asked us if we knew anyone who needed anything doing.

Confidence is rock bottom.

I know a bloke who runs an office re-fit business. The sort of thing where they spend a fortune on new partitions, networks, flooring, furniture etc to have a really swish office.

For 3 years I've been expecting him to say 'wow, enquiries are down, looks like it's slowing up etc.'

Instead he's just moved up from a 600k house to a £1 million house and, as usual, the big motors have just been replaced. The bloke is not an idiot, he spends money he's made, not money he hopes to make in the future.

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I expect it's going to be a bitter winter this year :lol:

They'll be hopping mad in Aylesbury then!

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I was talking to a neighbour at the weekend, he is a plumber but was saying that although the domestic repairs side of the business is OK the commercial work has stopped altogether.

New offices aren't being built and the public sector building projects have all been cancelled. Also said his mate who runs a plumbing supply centre said that business had collapsed.

He said for the first time in a decade he is having to advertise and asked us if we knew anyone who needed anything doing.

Confidence is rock bottom.

That is a pretty accurate summary.I have just been compiling figures for my VAT return (June-August) compared to the previous quarter my turnover is down 42% and gross profit down 37%.More worrying,if I split the turnover into the three separate months the proportions are more or less 4/3/2. We seem to have gone off a cliff.In my case I am a three man band business.The bigger ones are ripping their hair out in frustration.It will be redundancies soon for a lot of them.

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That is a pretty accurate summary.I have just been compiling figures for my VAT return (June-August) compared to the previous quarter my turnover is down 42% and gross profit down 37%.More worrying,if I split the turnover into the three separate months the proportions are more or less 4/3/2. We seem to have gone off a cliff.In my case I am a three man band business.The bigger ones are ripping their hair out in frustration.It will be redundancies soon for a lot of them.

Anything happening locally that could have caused this?

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I know a bloke who runs an office re-fit business. The sort of thing where they spend a fortune on new partitions, networks, flooring, furniture etc to have a really swish office.

For 3 years I've been expecting him to say 'wow, enquiries are down, looks like it's slowing up etc.'

Instead he's just moved up from a 600k house to a £1 million house and, as usual, the big motors have just been replaced. The bloke is not an idiot, he spends money he's made, not money he hopes to make in the future.

I can understand this. When people lose their jobs some go down the self-employed route and often they think that having a swish office and swish office furniture is the way forward.

It has long been a joke amongst friends of mine that all you need to do to get work from the public sector is to have a swish office... as the swish office would win over skill and expertise when the public sector middle management type came to deciding who got the work... Whether true or not I am not sure but I can imagine that some who used to be impressed by swish offices who, having lost their own jobs and now becoming self-employed, would see a swish office as being all important... if that makes any sense.

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Business is the same for me - well the Google income that is my business. I think YOY it is much the same - I would have expected a bit of growth, but have my fingers permanently crossed that the status quo holds.

Basically, no one is really feeling the pain yet and the British public will keep spending until the bailiff is knocking on the door.

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\You know that 'Two Ronnies' sketch from the 1970s about 'The Worm That Turned' - an England dominated by Women and the Men escape to a place where Men will always be Men... Wales...

Well, it is appearing to be the same with house prices...

:lol:

Is that where "men are men, and the sheep are errr.. nervous?" :lol:

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I know a bloke who runs an office re-fit business. The sort of thing where they spend a fortune on new partitions, networks, flooring, furniture etc to have a really swish office.

For 3 years I've been expecting him to say 'wow, enquiries are down, looks like it's slowing up etc.'

Instead he's just moved up from a 600k house to a £1 million house and, as usual, the big motors have just been replaced. The bloke is not an idiot, he spends money he's made, not money he hopes to make in the future.

Take it he doesn't save/invest any for a rainy day. ;)

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  • 244 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%



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