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

Welsh Housing Market Activity Falls 'considerably'

Recommended Posts

http://www.bbc.co.uk/news/uk-wales-12673589 - 8 March 2011

Welsh housing market activity falls 'considerably'

Activity in the Welsh housing market has fallen "considerably", with prices and sales dropping, say experts. The Royal Institute of Chartered Surveyors (RICS) found that 27% more of its members reported sales falling in February. It said house prices also saw a notable slump, with 58% of its surveyors reporting a fall. Property demand stabilised in Wales, but RICS said it was low in the UK due to high deposits needed by lenders.

RICS said surveyors continued to report that a lack of buyer confidence was affecting the market, and said newly agreed sales, which are a good indicator of market activity, dropped significantly.

Elsewhere, newly-agreed sales were most positive in London, south west England, Yorkshire and Humberside and Scotland, while other parts of the UK experienced particularly negative readings, RICS said.

House prices in Wales also slumped as 58% more surveyors reported a fall rather than a rise in prices. This is in keeping with the UK trend where 26% saw prices fall rather than rise.

Demand stabilised in Wales, but throughout the UK it is reported to be low and continues to be affected by the high deposits needed by lenders and fears over rising interest rates, said RICS.

Tony Filice of RICS Wales and director of Kelvin Francis Chartered Surveyors said: "Increased levels of properties are coming onto the market in Wales, across all price ranges.

"Vendors and viewers are starting to display a cautious optimism and, while there are a relatively low number of sales going through, we are also expecting higher levels of viewings. There is still a shortage of first-time buyers."

Share this post


Link to post
Share on other sites

"Vendors and viewers are starting to display a cautious optimism and, while there are a relatively low number of sales going through, we are also expecting higher levels of viewings. There is still a shortage of first-time buyers."

That is about right from our experience so far this year. Viewings are starting to increase, but offers are getting lower and most viewings are from investors.

Shortage of FTB's is a major factor and it is to be expected especially as I keep hearing that mortgages are getting pulled more and more at the moment.

Most of our tenants are very keen to buy, but are not in a position to buy.

Share this post


Link to post
Share on other sites

"Vendors and viewers are starting to display a cautious optimism and, while there are a relatively low number of sales going through, we are also expecting higher levels of viewings. There is still a shortage of first-time buyers."

That is about right from our experience so far this year. Viewings are starting to increase, but offers are getting lower and most viewings are from investors.

Shortage of FTB's is a major factor and it is to be expected especially as I keep hearing that mortgages are getting pulled more and more at the moment.

Most of our tenants are very keen to buy, but are not in a position to buy.

I see so much come on the market at a good 50K too much.

One EA has bemoaning to me that anything they value about 260 to 270 in Swansea West, with the advice for the seller to accept anything over 240, that a couple of their competitors are coming in and valuing the same properties in the 300K to 320K plus area.

They said that the sellers go with those agents but then wonder why they get little or not viewings.

I have been told by 2 EAs that people will view houses up to 250K and make offers on them accordingly but that there is little interest above 250K asking price.

Share this post


Link to post
Share on other sites

I see so much come on the market at a good 50K too much.

One EA has bemoaning to me that anything they value about 260 to 270 in Swansea West, with the advice for the seller to accept anything over 240, that a couple of their competitors are coming in and valuing the same properties in the 300K to 320K plus area.

They said that the sellers go with those agents but then wonder why they get little or not viewings.

I have been told by 2 EAs that people will view houses up to 250K and make offers on them accordingly but that there is little interest above 250K asking price.

Now you can take this with a pinch of salt or not. Personally, from the attitude of the EA over the phone I got the feeling that she was being straight? (but who really knows)

So.....property up in mid wales that I saw on for 650K. Little bit of land with it and a few other bits and pieces and it really struck a chord . Phoned the agent who said it had only been on for 3 weeks (confess I've never seen it before) in which time there had been 3 viewings and one of those was going back for a second look. I laughted and told her that in that case , I'd just sit back and monitor the play for a while.

I know we'll all say that it's Ea bull, that viewings are only viewings and that offers are not cash in the bank etc. But the Ruskies and Libyans are only buying in London as I understand it. Where are these bodies coming from who can shell out serious sums (at least to me!) probably for a second home?

I hope there is something to reincarnation 'cos I got something seriously wrong first time around I think.

Share this post


Link to post
Share on other sites

I feel like I have been reincarnated several times and keep making the same mistakes :lol:

We are getting viewings on anything below £100k and anything over £250k

Problem is we don't have much in the middle :lol:

Stock is really low now. We have always maintained a low stock partly through choice and partly through losing instructions to EA's over valuing. We now have a lot of sales going through to investors buying up landlords portfolio's which are not exactly on the market.

Land seems to be of huge interest especially green belt stuff. We are getting people from all over the world wanting a piece of the action. Most of them plan to buy for peanuts and keep it for 10 years. By then they expect planning to be granted.

The problem with viewings is that it is one of the first questions we get asked from potential buyers, so I assume most EA's plan this in advance to use as ammo in their sales pitch. I think EA's are afraid to say that so far there's been no interest and no viewings in case people assume that it is over priced. If that is the worry, then the EA can only blame themselves for pricing wrong.

Share this post


Link to post
Share on other sites

I feel like I have been reincarnated several times and keep making the same mistakes :lol:

We are getting viewings on anything below £100k and anything over £250k

Problem is we don't have much in the middle :lol:

Stock is really low now. We have always maintained a low stock partly through choice and partly through losing instructions to EA's over valuing. We now have a lot of sales going through to investors buying up landlords portfolio's which are not exactly on the market.

Land seems to be of huge interest especially green belt stuff. We are getting people from all over the world wanting a piece of the action. Most of them plan to buy for peanuts and keep it for 10 years. By then they expect planning to be granted.

The problem with viewings is that it is one of the first questions we get asked from potential buyers, so I assume most EA's plan this in advance to use as ammo in their sales pitch. I think EA's are afraid to say that so far there's been no interest and no viewings in case people assume that it is over priced. If that is the worry, then the EA can only blame themselves for pricing wrong.

In the week-end ed of the FT ,in the property section, there's a regular article by the "Secret Agent". He purports to be almost a one-man band but who is well connected and he frequently talks about his European/S American/M East clients who are looking for properties usually in the 20-50 million range. ( Depressing really!!)

It seems more and more that London is viewed as that safe haven (tell Saif that today!)where they can park their dosh without too many questions being asked. (Though much of it is really just laundering I'm sure).

But my point is that if so much cash is being pumped into London property, there must very soon come a time when despite the size , there is little suitable stock to fit the demand.

These bandits combined with the bankers will start looking seriously at land and small estates in Wales and Scotland and it looks like this may already be happening. Worrying.

Share this post


Link to post
Share on other sites

It's as quiet as it's ever been in some areas of North Wales.

LL53 (Pwllheli area)---Only 19 out of 464 Sold STC. (over 250K----2 out of 192)

One Barmouth EA has only ONE sold STC from 73 listings.

The other Barmouth EA is doing much better (11/59),but all sales are at the lower end of the market. 0/20 for residential property above £200K.

There is no residential property sold STC above 190K in the 10 miles between Harlech and Barmouth.

Edited by Padraig

Share this post


Link to post
Share on other sites

There seems a fair bit going SSTC in Swansea. I am also seeing stuff that went SSTC before Christmas now come back available.

I am informed that one Swansea EA firm allegedly has put most of its staff on a 4 day week as of yesterday.

Edited by The Masked Tulip

Share this post


Link to post
Share on other sites

one shop I have been keeping an eye on.

Kite flying price: £360,000

Dropped to : £295,000

My valuation after a formal viewing last year: £250,000

(however I was willing to wait and come in just under the £200,000 in six months time)

Offer been accepted close to the £295,000 crazy :P

Share this post


Link to post
Share on other sites

one shop I have been keeping an eye on.

Kite flying price: £360,000

Dropped to : £295,000

My valuation after a formal viewing last year: £250,000

(however I was willing to wait and come in just under the £200,000 in six months time)

Offer been accepted close to the £295,000 crazy :P

What would the gross profit be on £4K T/O?

Share this post


Link to post
Share on other sites

Penclawdd chippy.

I used to know people who would drive long distances to that chippy because the cod was delicious.

I am told that the guy who did that retired a few years back so I am surprised to read that it is up for sale as I thought it was a bit of a gold mine.

You have a massive car park opposite with fab views. Amazed no one in the chippy has got permission to stick some tables and umbrellas in that car-park and offer a sit-down service.

Hey, that's an idea.

Share this post


Link to post
Share on other sites

Great potential, just needed to be the right price.

I remember as a child being taken by mum along the coast.

£4,000 turmover

A shop should be reaching 60% gp

However we worked on a lower profit margin, introducing icelandic cod, superior oil, potatoes with a lower surger content.

This made our margins around 55%

With todays costs we be closer to 50%

Share this post


Link to post
Share on other sites

In the week-end ed of the FT ,in the property section, there's a regular article by the "Secret Agent". He purports to be almost a one-man band but who is well connected and he frequently talks about his European/S American/M East clients who are looking for properties usually in the 20-50 million range. ( Depressing really!!)

It seems more and more that London is viewed as that safe haven (tell Saif that today!)where they can park their dosh without too many questions being asked. (Though much of it is really just laundering I'm sure).

But my point is that if so much cash is being pumped into London property, there must very soon come a time when despite the size , there is little suitable stock to fit the demand.

These bandits combined with the bankers will start looking seriously at land and small estates in Wales and Scotland and it looks like this may already be happening. Worrying.

I really don't think so. I'll admit I can't back up my oposite views with anything. But i just can't see millionaire buisnessmen ploughing money into Welsh or Scottish land. We live on a cramped island where Land is overpriced and planning is tough. I dont think we need to worry about this.

Share this post


Link to post
Share on other sites

I feel like I have been reincarnated several times and keep making the same mistakes :lol:

We are getting viewings on anything below £100k and anything over £250k

Problem is we don't have much in the middle :lol:

Stock is really low now. We have always maintained a low stock partly through choice and partly through losing instructions to EA's over valuing. We now have a lot of sales going through to investors buying up landlords portfolio's which are not exactly on the market.

Land seems to be of huge interest especially green belt stuff. We are getting people from all over the world wanting a piece of the action. Most of them plan to buy for peanuts and keep it for 10 years. By then they expect planning to be granted.

The problem with viewings is that it is one of the first questions we get asked from potential buyers, so I assume most EA's plan this in advance to use as ammo in their sales pitch. I think EA's are afraid to say that so far there's been no interest and no viewings in case people assume that it is over priced. If that is the worry, then the EA can only blame themselves for pricing wrong.

Sorry SPA missed your last point. It's a real Catch 22 isn't it? If they say there's been no interest the punter may, as you say , assume it's because it's overpriced and so they push joe soap away.

Whereas if they say there are viewings and much interest they risk pushing away another type of punter (like me)who is hoping to engage in some serious negotiation on price. This agent with the mid Wales prop I mentioned above had precisely that effect on me as did another agent a few months ago with a similarly priced house on the Mayals I really liked .The agents for the Mayals sounded very deflated when I immediately announced I would not engage in a battle of price and had no further interest.

Share this post


Link to post
Share on other sites

I really don't think so. I'll admit I can't back up my oposite views with anything. But i just can't see millionaire buisnessmen ploughing money into Welsh or Scottish land. We live on a cramped island where Land is overpriced and planning is tough. I dont think we need to worry about this.

I'm just concerned that with the property time-bomb ticking away merrily , politicians are going to do whatever is necessary to neutralise it and ensure their own survival. And if that means opening up green belt areas , then they'll do it.

But I do hope you're right.

Share this post


Link to post
Share on other sites

I really don't think so. I'll admit I can't back up my oposite views with anything. But i just can't see millionaire buisnessmen ploughing money into Welsh or Scottish land. We live on a cramped island where Land is overpriced and planning is tough. I dont think we need to worry about this.

From the conversations we have had lately with planning officials etc. I can see a lot of the green belt land being opened up.

If you have money you can get planning granted just about anywhere. :ph34r:

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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 311 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.