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What Will Bring Life Back To The Housing Market?

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8481137/What-will-bring-life-back-to-the-housing-market.html

Peter Rollings, the chief executive of estate agents Marsh & Parsons, said: "Mortgage lending is still a long way from where it needs to be. No one wants a return to the irresponsible lending practices seen before the credit crisis, but lenders must do more to help those looking to buy their first home. The average £25,000 deposit required is prohibitive for thousands of would-be buyers."

This article is so stupid it makes me want to cry! An utter disgrace, can journalists no longer think for themselves? No wonder the telegraph's circulation is in double digit decline.

The obvious conclusion that prices are too high and need to / will fall is completely ignored.

Did these people not notice the banking crisis (Northern Rock?) in 2008. The bank insuring itself by asking for a descent deposit is common sense. They need a buffer as house prices can fall as well as rise. Those with little deposit are penalised, the bank is pricing the extra risk it is taking. Very simple?

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8481137/What-will-bring-life-back-to-the-housing-market.html

This article is so stupid it makes me want to cry! An utter disgrace, can journalists no longer think for themselves? No wonder the telegraph's circulation is in double digit decline.

The obvious conclusion that prices are too high and need to / will fall is completely ignored.

Did these people not notice the banking crisis (Northern Rock?) in 2008. The bank insuring itself by asking for a descent deposit is common sense. They need a buffer as house prices can fall as well as rise. Those with little deposit are penalised, the bank is pricing the extra risk it is taking. Very simple?

I guess he wants the banks to take more risk and then if the banks look as though they will fail the muggins taxpayer can bail them out ... again. Nice.

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.... deposits are required because then the risk falls to the borrower not the lender.....they know prices are on a downward trend, the last property bust many of the 100% + leveraged walked away never to repay, you couldn't give them away. ;)

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I emailed my MP about councils providing deposits for FTBs, suggesting this wasn't a good idea and our council should not get involved.

She replied with a letter from our council saying they were not planning to do it.

BUT..... they have their own assisted purchase scheme which provides deposits of 25% anyway.

She also forwarded my letter to Grant Shapps and I received his reply today.

His reply was like a sick joke. It was written as if I was complaining about how hard it was for FTBs to access easy credit.

It included such comments as we will "help keep interest rates low, improve credit availability and free up lending to FTBs and others", the "promotion of shared ownership schemes", more "Innovative ways to help people get a foot on the propery ladder". Everything geared up to make housing less affordable to help builders and bankers make more money.

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I emailed my MP about councils providing deposits for FTBs, suggesting this wasn't a good idea and our council should not get involved.

She replied with a letter from our council saying they were not planning to do it.

BUT..... they have their own assisted purchase scheme which provides deposits of 25% anyway.

She also forwarded my letter to Grant Shapps and I received his reply today.

His reply was like a sick joke. It was written as if I was complaining about how hard it was for FTBs to access easy credit.

It included such comments as we will "help keep interest rates low, improve credit availability and free up lending to FTBs and others", the "promotion of shared ownership schemes", more "Innovative ways to help people get a foot on the propery ladder". Everything geared up to make housing less affordable to help builders and bankers make more money.

I hope you replied.

It's blooming obvious that prices being too high is the problem, yet supposedly intelligent people come up with solutions that continue to defy gravity. Money corrupts, but power corrupts absolutely.

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I read that before and was astounded, Emma Simons is clearly thick as pigs muck and should get sacked from her job for being so beyond ignorant its untrue.

Just goes to show nepotism is rife at the Telegraph as surely she wasnt awarded her position due to her analytic ability.

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The obvious conclusion that prices are too high and need to / will fall is completely ignored.

Yep, you would think an estate agent of all people would realise that if sellers dropped their prices by 50% turn over would eventually go through the roof.

I guess it's just easier to beg for looser credit than it is to do your job and manage people's expectations. Mind you, that's probably hard if you've been over valuing people's homes to win business and now you can't shift them :rolleyes:

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8481137/What-will-bring-life-back-to-the-housing-market.html

This article is so stupid it makes me want to cry! An utter disgrace, can journalists no longer think for themselves? No wonder the telegraph's circulation is in double digit decline.

The obvious conclusion that prices are too high and need to / will fall is completely ignored.

Did these people not notice the banking crisis (Northern Rock?) in 2008. The bank insuring itself by asking for a descent deposit is common sense. They need a buffer as house prices can fall as well as rise. Those with little deposit are penalised, the bank is pricing the extra risk it is taking. Very simple?

Agree! The illusion being peddled by EA's - Shapps and others that more borrowing and more debt is all that is necessary is sickening.

The scum in power now are little different from the last bunch - their mates in big business and banking pull the strings. Taxing land would collapse land values to more affordable levels - but that would hit the aristocracy that are creaming off the wealth - just won't do. The rich and powerful are in control - and a compliant population - kept in a lifelong debt 'headlock' - are 'good' for business - low wages/low expectations and subservience ensures that wealth stays concentrated at the top. This state of affairs is often submitted to by the masses - many of whom were on display fawning at every nuance of the recent wedding - and so continue to perpetuate the servitude that they so willingly accept - obscenely perverse - but there it is.

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allowing boom and bust to take it's natural course.

It's a bit like when I have had too much beer to drink, I wake up early and feel like I'm gonna puke. But even though I know, from experience, that if I go ahead and puke, I will feel much, much better, and will be able to get back to sleep, somehow I just can't face the prospect of puking, so I prefer to lie in bed all day feeling ill.

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Cash buyers will bring life back to the Market according to John Charcol. Time for cash to reclaim it's crown whilst the young pretender of leveraged borrowing is banished?

http://www.bbc.co.uk/news/business-13116262

I disagree with the comment about the Saga generation downsizing, as they must have sold the big family home in order to have their cash. No,in my opinion it is old money returning to the Market looking for bank-beating yields and distressed sellers to take advantage of.

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grim_reaper.jpg

"I will.", said the reaper.

A few million oldies need to meet their maker and redistribute the wealth.

So, from now until 2025 you will see a very gradual, but negative, decline in house prices.

Nuff said.

Oh, and don't forget about this guy here:

North+sea+hubbert.jpg

Edited by cashinmattress

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A simple real-life example from today, house I watch on at 139K, mid terrace, 4 bed, north manchester, of the larger variety as terraces go, but no yard to speak of but nice front garden. Its number 89 and sits in a set of 3 terraces. Listed July last year, reduced by 5K in January 2011 and given a premium listing, last sold price tracked to 79K in 2003.

  • Number 87, end terrace on it's left was sold in 2005 for 125K.
  • Number 91 end terrace on its right, was on rm at offers over 89K last year and has just appeared on houseprices.co.uk as sold for 80K in january 2011. I don't have the original listing for number 91, but I recall watching it last year before it fell of the market, sure it was also a 4 bed. Satellite images suggets it is the same size. i don't tend to watch anything that is listed as needing total refit, or marketed as a cash only type affair.

I'll need to dig a bit more, but I can't really the square the circle on the 50K asking price difference. A terrace house on this street has never sold for 139K. Ever. There are as many semi-detached on this long road as there are terraces. Only two of the semi-detached have sold for that (138K & 139K are the highest, both a few years pre-peak). Its not even an area where you could be competative with a 140K terrace, as you are selling about 1 mile away from a substanitally better-serviced area where eqivalent terraces market for 150K right now.

So, back on point, until the above state affairs is no longer happening, the housing market can not recover. If an EA happily values a property higher than anything has ever sold for through the biggest property bubble and period of loose lending in the history of the uk then normality can not return. At 90K-ish it is an attractive property, and it is at a level that someone with a modest desposit and 3.5 times salary mortgage could afford. For us FTB deposit hoarders it would be a walk in the park. but anyone researching sold prices in the street is going to come with exactly the same results as me (except if they use out of date Rightmove sold prices....but there is a thread on that already).

Edit to say:

Tracked down the original listing of number 91, which sold for 80K - so fairs fair, it does look like it needed a substantial revamp, but that does not change that number 89 is getting listed at higher than peak.

"REDUCED BY ?10,000 **** REALISTIC OFFERS CONSIDERED ****What a shame! This beautiful period Villa is crying out for Tender, Love Care and needs somebody who is not work shy to restore it to its former self in need of full restoration works, but boy believe me what a house you are buying for this..."

Edited by hirop

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It's a bit like when I have had too much beer to drink, I wake up early and feel like I'm gonna puke. But even though I know, from experience, that if I go ahead and puke, I will feel much, much better, and will be able to get back to sleep, somehow I just can't face the prospect of puking, so I prefer to lie in bed all day feeling ill.

Bang on - that's exactly what I've always visualised the difference between accepting a bust or trying to fight it with money printing and just prolonging the agony in order to get away with less acute pain.

No-one likes to face immediate pain when they can kick the can down the line and politicians are no different. Even if someone stood up and tried to do the right thing they'd be out of office come next election.

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Bang on - that's exactly what I've always visualised the difference between accepting a bust or trying to fight it with money printing and just prolonging the agony in order to get away with less acute pain.

No-one likes to face immediate pain when they can kick the can down the line and politicians are no different. Even if someone stood up and tried to do the right thing they'd be out of office come next election.

Actually I liken it to a bad case of constipation.

But anyway ...

Agents must be the ones pissed off at the moment. Originally do anything to try to talk the market up. Now what they've ended up with is the worst - a long period of stagnation. Of course in hindsight (or at least I think) that if you're an agent you are better off having a flash crash, then riding the boom back up as people pile back into the market, rather than a long period of drawn out low volume. Those guys need to be careful what they wish for.

In other news, nice graph/map in 1 paper today, showing price falls back to year as a function of location. In London 7 areas above 07 peak. Central east regions down to 04, most of wales to 05. Most of the SE to 06. SW Devon Somerset to 04 but Cornwall still 07.

EDIT : Biggest drops in Nottingham, Jun 03 and Peterborough Dec 03.

Edited by SteveAustin

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It's a bit like when I have had too much beer to drink, I wake up early and feel like I'm gonna puke. But even though I know, from experience, that if I go ahead and puke, I will feel much, much better, and will be able to get back to sleep, somehow I just can't face the prospect of puking, so I prefer to lie in bed all day feeling ill.

This cracked me up!! bang on!

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It's a bit like when I have had too much beer to drink, I wake up early and feel like I'm gonna puke. But even though I know, from experience, that if I go ahead and puke, I will feel much, much better, and will be able to get back to sleep, somehow I just can't face the prospect of puking, so I prefer to lie in bed all day feeling ill.

Do you rip the plaster off quickly or try to minimise the pain millimetre by millimetre...

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  • 312 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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