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MrFlibble

'pessimism' Stalks Housing Market

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Brilliant headline from the Beeb

UK house prices: 'Pessimism' stalks market

Surveyors are "pessimistic" about UK house prices in the next three months following a slight fall in property values in July, a survey says.

Some 13% more surveyors expect prices to fall rather than rise in the next quarter, the Royal Institution of Chartered Surveyors (Rics) said.

The predictions come amid a period of sluggish activity in the market.

London is still bucking the national trend, with prices having increased in July and predicted to continue rising.

'Inaccessible' finance

The findings suggested that, in most of the UK, would-be buyers were being put off by large deposits being demanded by lenders.

Potential sellers were unwilling to accept lower selling prices and so were reluctant to enter the market.

"While the holiday season appears to have had some impact on the market, the continual problem of inaccessible mortgage finance is still preventing first-time buyers from accessing the market," said Ian Perry, of Rics.

"Unsurprisingly, with prices continuing to fall, many would-be sellers seem unwilling to lower their expectations and are reluctant to place their property on the market."

The data will come as bad news for those who have borrowed more in a mortgage than the value of their home.

On Monday, the Council of Mortgage Lenders (CML) calculated that 827,000 mortgage-holders were in negative equity, although this was lower than the estimated 1.6 million households in the same situation in the early 1990s.

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I suspect that this won't be helped by the stock market crash - am sure that many potential buyers have house deposits tied up in shares who will undoubtably be thinking twice about cashing in to buy a house!!

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Still no recognition of the true problem though i.e. prices detached from reality.

Just due to 'inaccessible finance'.

'Inaccessible finance' being the end of the days when,if you had a pulse, the magic money fairy would imbue you with any amount of funds necessary for purchase of real estate, no deposit required.

Still doesn't seem to be sinking in, even after four years.

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The beed show via away from using subjective words like that.

Most of the country will be optimistic abut the housing market dropping price, in the same way they would be if it were bread.

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I suspect that this won't be helped by the stock market crash - am sure that many potential buyers have house deposits tied up in shares who will undoubtably be thinking twice about cashing in to buy a house!!

Someone I know wanted to buy a lot of shares for their pension pot about 2 weeks ago. I told them not to, they were very thankful yesterday when they saw the index headlines, but today they've asked me if it's time to buy. I used the falling knife metaphor. As in the past, there's a point when there are bargains to be had but no idea at the moment on when, although I see some of the oil explorers are soaring already (after dramatic volatility and falls in the past)

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Still no recognition of the true problem though i.e. prices detached from reality.

Just due to 'inaccessible finance'.

'Inaccessible finance' being the end of the days when,if you had a pulse, the magic money fairy would imbue you with any amount of funds necessary for purchase of real estate, no deposit required.

Still doesn't seem to be sinking in, even after four years.

Yip. See the RICS report out today. Full of comments from surveyors screaming for people to be allowed to borrow epic amounts of money. Very little consideration as to whether those people would want to borrow the money if they could or that lower prices would also bring about the transactions they crave.

Although prices are largely static now, there is no expectation that they will rise. The sense of urgency to buy now before house prices have gone up further has disappeared. Those who never considered that we were (are) in a bubble have yet to realise this.

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just had a big row with my boss over house prices. he recons the whole country would implode if house prices fell, as too much of our economy is dependant on people buying/doing up/selling etc. houses. so places like FE colleges would go under as we wouldnt need plumbers and builders etc. also im guessing a few DIY chains would collapse, all of which would result in me probably loosing my job.

my view is prices could safely drop another 30% with very little impact on the economy. if anything it might spark a revival in DIY as FTB's come back to the market. but hey what do i know im only a low down the food chain IT tech.

my overview is that like my Boss said house prices in this country aint going anywhere fast due to the following factors:

net immigration on a massive scale.

no housing being built.

BTL.

feckless generation of "i want it now", who cant be bothered to save a deposit, thus feeding the BTL market.

social housing sell off's.

government tinkering: mortgage support, housing benifit, 0% interest rates, and a multitude of other incentives.

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Still no recognition of the true problem though i.e. prices detached from reality.

Just due to 'inaccessible finance'.

'Inaccessible finance' being the end of the days when,if you had a pulse, the magic money fairy would imbue you with any amount of funds necessary for purchase of real estate, no deposit required.

Still doesn't seem to be sinking in, even after four years.

What makes you believe that house prices aren't realistic given the apparent shortage of supply and large UK population? Don't people have the opportunity to work harder and longer than ever now?

Our leaders are convinced that there are more business opportunities than ever and on a global scale. If you don't want to buy then there are thousands of rental properties which gives people the flexibility to move to areas where there is work.

Either the average person is completely out of touch with reality or our politicians have no idea about the markets.

Which one is it?

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What makes you believe that house prices aren't realistic given the apparent shortage of supply and large UK population? Don't people have the opportunity to work harder and longer than ever now?

Our leaders are convinced that there are more business opportunities than ever and on a global scale. If you don't want to buy then there are thousands of rental properties which gives people the flexibility to move to areas where there is work.

Either the average person is completely out of touch with reality or our politicians have no idea about the markets.

Which one is it?

well said. Hong Kong for instance has a rough average earnings to average house price of 11x, and there banks are still lending at these multiples, with large deposits mind.

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I suspect that this won't be helped by the stock market crash - am sure that many potential buyers have house deposits tied up in shares who will undoubtably be thinking twice about cashing in to buy a house!!

Heh - had a call from an estate agent today about a new house on the market... told him no point in going to see it at that price, what with the stock market doing it's thing. I think he's heard it already this morning...

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What makes you believe that house prices aren't realistic given the apparent shortage of supply and large UK population? Don't people have the opportunity to work harder and longer than ever now?

Our leaders are convinced that there are more business opportunities than ever and on a global scale. If you don't want to buy then there are thousands of rental properties which gives people the flexibility to move to areas where there is work.

Either the average person is completely out of touch with reality or our politicians have no idea about the markets.

Which one is it?

What has having a large population got to do with it? The US has, what, 5x larger population and prices have fallen hard.

What evidence do you have of a shortage of supply?

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Hong Kong for instance has a rough average earnings to average house price of 11x

there banks are still lending at these multiples

Join the dots..

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Not worth a thread on it's own, but:

http://uk.finance.yahoo.com/news/The-phoney-recession-Now-real-yahoofinanceuk-3484954424.html

'House prices will fall' , 'Phoney recovery', 'the state won't provide', 'Debt will be deadly' etc, very bearish article, albeit not from the most financially literate sources (only a few paragraphs so not from a proper journo).

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Not worth a thread on it's own, but:

http://uk.finance.yahoo.com/news/The-phoney-recession-Now-real-yahoofinanceuk-3484954424.html

'House prices will fall' , 'Phoney recovery', 'the state won't provide', 'Debt will be deadly' etc, very bearish article, albeit not from the most financially literate sources (only a few paragraphs so not from a proper journo).

Brilliantly sums up everything.. great find

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  • 343 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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