Jump to content
House Price Crash Forum
cool_hand

Sellers' Gloom Over Property Market Inactivity

Recommended Posts

http://www.bbc.co.uk/news/business-14885963

13 September 2011 Last updated at 00:03

Fourteen homes were sold per UK estate agent in the three months to August - the lowest total for more than two years, a survey has found.

Economic uncertainty and a lack of mortgage lending led to the sluggish housing market, the Royal Institution of Chartered Surveyors (Rics) said.

More surveyors reported price falls than price rises in August, Rics said.

And an increasing proportion expected prices to drop further in the next three months.

"The risk is that the worsening economic picture will gradually begin to have a more material impact on sentiment and discourage potential house purchasers, even where mortgage finance is available," said Alan Collett, housing spokesman for Rics.

'Flexibility'

The prediction will bring more gloom to John Carey, a developer for 10 years, who has been trying to sell a block of four homes in Bedford, each for between £120,000 and £135,000, since before Christmas.

There had been plenty of interest from potential buyers, he told the BBC News website, but a number of sales had fallen through, owing primarily to mortgage difficulties for people in the chain.

"I would have expected them [the properties] to have gone by spring, and certainly by May, but here I am sitting in the estate agents in September," he said.

"There is no lender flexibility. A loosening of lending terms will help."

His views were backed up by the Rics report, which reported that surveyors regarded economic uncertainty as the biggest factor affecting activity in the housing market, followed by a lack of mortgage finance.

A smaller number considered that buyers and sellers were staying away from the market because of fears over further house price falls.

First-time buyers

Central Bedfordshire has seen an above-average 4.2% fall in house prices in the year to July, according to the latest figures from the Land Registry, but many of the issues affecting the market here are typical of much of the UK.

At Harrison Murray estate agent in Bedford, staff have seen a sharp drop in the number of first-time buyers coming through the doors since the boom in the housing market.

"Those who do have saved up for a long time, and we are increasingly seeing family members helping out," said senior sales negotiator Jo Howes.

She said these first-timers were now often aged in their late 20s or 30s, rather than new to work and in their early 20s.

The Council of Mortgage Lenders said on Monday that first-time buyers were typically having to find a deposit of 20% of the purchase price to get a home loan.

School effect

Ms Howes said that those having the toughest time in the current market were sellers who had bought new-build apartments in 2006 and 2007 and were now looking to move on.

Often this was because they had bought at the height of the market, had found it easy to get a 100% mortgage, but now needed a bigger home having had children or found a partner.

At the opposite end of the scale were sellers in villages further out of the town centre, with larger homes in areas with good schools.

"They are doing infinitely better than the town centre," she said.

Nationally, Rics said that prices continued to increase in London, with prices falling the most in East Anglia and the West Midlands. Scotland and Northern Ireland also recorded house price falls, the survey said.

Share this post


Link to post
Share on other sites

What do you mean, "The BBC sneaked this story in just after midnight"? The published the story at 0:03, three minutes after the embargo was lifted. If they'd waited till 9am you would have accused them of failing to cover the story. Honestly, this BBC-bashing gets beyond a joke sometimes.

Edited by Little Professor

Share this post


Link to post
Share on other sites

Economic fears hit house market

Some 40% said buyers were staying away because they were worried about future falls in house prices. This was particularly true in Northern Ireland, where price falls have been particularly severe.

I love this second sentence. Just goes to show that people won't normally try to jump back on when prices have tumbled, the market won't look good while it's falling. Once it really starts it'll keep on going all the way to the trend under-shoot baby :D bring it on

Share this post


Link to post
Share on other sites

http://www.bbc.co.uk/news/business-14885963

13 September 2011 Last updated at 00:03

Fourteen homes were sold per UK estate agent in the three months to August - the lowest total for more than two years, a survey has found.

Economic uncertainty and a lack of mortgage lending led to the sluggish housing market, the Royal Institution of Chartered Surveyors (Rics) said.

More surveyors reported price falls than price rises in August, Rics said.

And an increasing proportion expected prices to drop further in the next three months.

"The risk is that the worsening economic picture will gradually begin to have a more material impact on sentiment and discourage potential house purchasers, even where mortgage finance is available," said Alan Collett, housing spokesman for Rics.

'Flexibility'

The prediction will bring more gloom to John Carey, a developer for 10 years, who has been trying to sell a block of four homes in Bedford, each for between £120,000 and £135,000, since before Christmas.

There had been plenty of interest from potential buyers, he told the BBC News website, but a number of sales had fallen through, owing primarily to mortgage difficulties for people in the chain.

"I would have expected them [the properties] to have gone by spring, and certainly by May, but here I am sitting in the estate agents in September," he said.

"There is no lender flexibility. A loosening of lending terms will help."

His views were backed up by the Rics report, which reported that surveyors regarded economic uncertainty as the biggest factor affecting activity in the housing market, followed by a lack of mortgage finance.

A smaller number considered that buyers and sellers were staying away from the market because of fears over further house price falls.

First-time buyers

Central Bedfordshire has seen an above-average 4.2% fall in house prices in the year to July, according to the latest figures from the Land Registry, but many of the issues affecting the market here are typical of much of the UK.

At Harrison Murray estate agent in Bedford, staff have seen a sharp drop in the number of first-time buyers coming through the doors since the boom in the housing market.

"Those who do have saved up for a long time, and we are increasingly seeing family members helping out," said senior sales negotiator Jo Howes.

She said these first-timers were now often aged in their late 20s or 30s, rather than new to work and in their early 20s.

The Council of Mortgage Lenders said on Monday that first-time buyers were typically having to find a deposit of 20% of the purchase price to get a home loan.

School effect

Ms Howes said that those having the toughest time in the current market were sellers who had bought new-build apartments in 2006 and 2007 and were now looking to move on.

Often this was because they had bought at the height of the market, had found it easy to get a 100% mortgage, but now needed a bigger home having had children or found a partner.

At the opposite end of the scale were sellers in villages further out of the town centre, with larger homes in areas with good schools.

"They are doing infinitely better than the town centre," she said.

Nationally, Rics said that prices continued to increase in London, with prices falling the most in East Anglia and the West Midlands. Scotland and Northern Ireland also recorded house price falls, the survey said.

Yup

Lets see if it on the main news today :D

Share this post


Link to post
Share on other sites

There had been plenty of interest from potential buyers, he told the BBC News website, but a number of sales had fallen through, owing primarily to mortgage difficulties for people in the chain.

"I would have expected them [the properties] to have gone by spring, and certainly by May, but here I am sitting in the estate agents in September," he said.

"There is no lender flexibility. A loosening of lending terms will help."

A reduction in prices will help. £135K for a tiny box in Bedford!

Share this post


Link to post
Share on other sites

13 September 2011 Last updated at 00:03

The prediction will bring more gloom to John Carey, a developer for 10 years, who has been trying to sell a block of four homes in Bedford, each for between £120,000 and £135,000, since before Christmas.

There had been plenty of interest from potential buyers, he told the BBC News website, but a number of sales had fallen through, owing primarily to mortgage difficulties excessive prices for people in the chain that earn average local salaries.

"I would have expected them [the properties] to have gone by spring, and certainly by May, but here I am sitting in the estate agents in September," he said.

"There is no lender seller flexibility. A loosening of lending terms selling price will help."

Corrected for him

Share this post


Link to post
Share on other sites

Economic fears hit house market

I love this second sentence. Just goes to show that people won't normally try to jump back on when prices have tumbled, the market won't look good while it's falling. Once it really starts it'll keep on going all the way to the trend under-shoot baby :D bring it on

Bring it on indeed. Time to dust off our favourite chart:

800px-Stages_of_a_bubble.png

"Fear" at the moment I think!

As I write, the BBC are featuring this story pretty prominently -- it's the top story in the Business news section of their website, and appears on the Home news page.

Yep, lead Business story. Woo hoo!

Market Data

Your Money

Economy

Companies

13 September 2011 Last updated at 06:16

Sellers' housing market 'gloom'House prices

Fourteen homes were sold per UK estate agent in the three months to August - the lowest total for over two years, a survey says.

Interest rates and your finances

House price surveys explained

Italy 'in bond talks with China'

The Italian government is reported to have been in talks with a Chinese sovereign wealth fund about buying Italian bonds.

Asian stocks rise on Italy report

Stocks jump on Italy China talks Watch

Dr Liam FoxFox 'proud' of UK defence firms

Defence Secretary Liam Fox is expected to give strong backing to UK arms manufacturers in a speech at a major defence exhibition in London.

Share this post


Link to post
Share on other sites

If you click on the link from using different browsers and devices you can help boost it in the 10 most popular or shared stories on the bbc news site. This can then influence the BBC into mentioning it on the TV if they had no plans or were undecided. ;)

Most Popular

Read

1: 'Wi-fi refugees' shelter in West Virginia mountains

2: Benefit cheat glamour model fined

3: Top MPs at risk in Commons cull

4: Should Hitler's Wall be preserved?

5: Sellers' housing market 'gloom' :)

Share this post


Link to post
Share on other sites

Not on the main BBC News Home page, only on the UK page. Not prominent at all.

Not on the Most Read at all now either.

Hmm I wonder why they play it down, can't think of why at all...

Most Popular

Shared

1: Why is Christianity booming in China? 2: Spartacus TV actor Whitfield dies 3: Glowing cats shed light on Aids 4: 'Wi-fi refugees' shelter in West Virginia mountains 5: Fifty new exoplanets discovered

Read

1: 'Wi-fi refugees' shelter in West Virginia mountains 2: Should Hitler's Wall be preserved? 3: Libya rebels 'committed abuses' 4: Filming sex 'rife at Navy base' 5: Spartacus TV actor Whitfield dies 6: Obama sends job plan to Congress 7: Italy 'in bond talks with China' 8: Brazil judge stops airport work 9: Fears kidnapped widow in Somalia 10: Fatherhood 'lowers testosterone' Video/Audio1: New 9/11 video released

Edited by inflating

Share this post


Link to post
Share on other sites

still 5 on the most read, of course it'll help if you don't read the other stories while you're there but frankly it's out of our hands

also on the front page in another place so can't complain

Most Popular

Shared

1: Explosion at French nuclear site

2: Glowing cats shed light on Aids

3: Why is Christianity booming in China?

4: Spartacus TV actor Whitfield dies

5: Drunk Swedish elk found in tree

Read

1: 'Wi-fi refugees' shelter in West Virginia mountains

2: Benefit cheat glamour model fined

3: Top MPs at risk in Commons cull

4: Should Hitler's Wall be preserved?

5: Sellers' housing market 'gloom'

6: Body named as missing boyfriend

Edited by athom

Share this post


Link to post
Share on other sites

Not on the main BBC News Home page, only on the UK page. Not prominent at all.

Not on the Most Read at all now either.

Hmm I wonder why they play it down, can't think of why at all...

If you think this article should be the BBC websites lead story you need to wake up.

One slightly bearish survey on the U.K. housing market is important to us, but hardly world news.

Share this post


Link to post
Share on other sites

Maybe I'm wrong and just seeing what I want to see, but it just feels like we've been through the bull trap phase. People are wanting to believe we are 'back to normal'.. but there is this creeping fear approaching.

People cautious in buying or afraid something bad is going to happen soon, sounds like the fear stage.

Share this post


Link to post
Share on other sites

still 5 on the most read, of course it'll help if you don't read the other stories while you're there but frankly it's out of our hands

also on the front page in another place so can't complain

Most Popular

Shared

1: Explosion at French nuclear site

2: Glowing cats shed light on Aids

3: Why is Christianity booming in China?

4: Spartacus TV actor Whitfield dies

5: Drunk Swedish elk found in tree

Read

1: 'Wi-fi refugees' shelter in West Virginia mountains

2: Benefit cheat glamour model fined

3: Top MPs at risk in Commons cull

4: Should Hitler's Wall be preserved?

5: Sellers' housing market 'gloom'

6: Body named as missing boyfriend

You must be looking at a different BBC News website to me then, becausemy bbc.co.uk news pages only show the property story on the UK page and not at all at Most Read or Shared

Share this post


Link to post
Share on other sites

Top business story Online. Top business story on Ceefax. Not even mentioned on Breakfast news. :rolleyes:

Reporting Scotland is exactly the same.

I have noted this a LOT over the past few years. I do wonder if age has something to do with it ? Are the news editors of ceefax & Online likely to be much younger than the TV editors ?

Happens on Reporting Scotland a lot. Few weeks back they reported a 'positive' S1 asking prices story. Something that after watching the morning news on BBC Scotland for years - I have never noticed even once mentioned before.

Yet they seem to mention RICS very often. But when it is 'negative' it seems to magically disappear. Even though the Ceefax and Online people see it as major news on the very same day.

Any BBC insiders to help us...:ph34r:

Share this post


Link to post
Share on other sites

I have noted this a LOT over the past few years. I do wonder if age has something to do with it ? Are the news editors of ceefax & Online likely to be much younger than the TV editors ?

Have always suspected this.

Share this post


Link to post
Share on other sites

Have always suspected this.

That's all I can think. It doesn't seem to happen with any other sort of story, sports or anything.

Have you ever seen a sports or news story that is #1 online and on ceefax - get not even mentioned on TV ?! Just doesn't happen.

Whether these stories are important or not is not really important. The fact they are given hugely different levels of 'importance' based on the news editor present shows their are decisions being made in other ways.

I suppose we should be glad that at least the ceefax and online bods are classing these as newsworthy.

Share this post


Link to post
Share on other sites

Bloomberg has a ticker on this story, and here is their report on it.

http://www.bloomberg.com/news/2011-09-12/u-k-home-price-expectations-drop-on-risk-from-faltering-economic-recovery.html

U.K. Home-Price Expectations Drop on Economy

A U.K. house-price index was little changed in August and an expectations gauge dropped as a cloudy economic outlook weighed on property demand, the Royal Institution of Chartered Surveyors said.

The number of real-estate agents and surveyors saying prices fell last month exceeded those seeing gains by 23 percentage points, compared with 22 percentage points in July, the London-based group said in an e-mailed report today. A price expectations measure fell to minus 23 from minus 13.

The government has refused to compromise on the pace of the biggest fiscal squeeze since World War II and is counting on the Bank of England to support the economy. With consumers being squeezed by inflation that’s more than double the central bank’s 2 percent target, that’s damping confidence, leaving the mortgage market little improved in the past year.

“Demand for homes remain broadly steady, albeit at relatively low levels,” RICS spokesman Alan Collett said in the statement. “However, the risk is that the worsening economic picture will gradually begin to have a more material impact on sentiment and discourage potential house purchasers even where mortgage finance is available.”

The average number of sales per real-estate agent in the quarter through August fell 1.4 percent to 14, the lowest in 26 months, the report said.

Of the 11 regions RICS tracks, London was the only area to record an increase in prices over the past three months, with the gauge for the capital rising to a 15-month high. The biggest declines were in East Anglia and the West Midlands.

Mortgages Flat

U.K. mortgage approvals have held below 50,000 in every month but one since the start of 2010. The National Institute of Economic and Social Research said last week economic growth slowed to 0.2 percent in the three months through August, down from 0.6 percent in the quarter to July.

Policy makers held their benchmark interest rate at a record low of 0.5 percent and kept their bond-purchase plan at 200 billion pounds ($316 billion) last week. Higher energy costs may have pushed inflation to 4.5 percent in August, according to the median estimate of 34 economists in a Bloomberg News survey. The Office for National Statistics will publish the data at 9:30 a.m. in London.

“People are mainly sat on their hands waiting to see what happens to their employment and future financial prospects, Clive Rutland at Rutland Chartered Surveyors in Hampshire, England, said in the statement. ‘‘People are generally being squeezed and there is no appetite to take risks.’’

Share this post


Link to post
Share on other sites

Ah.. Bless!

These poor "homeowners" having to experience "gloom" by being trapped in a "HOME" (otherwise known as a roof over their thick heads!)

These zero interest rates giving them cash each month directly from everyone who saved.

10 to 15 years of housing equity fuelled jet set lifestyles.

TRY 10+ YEARS OF WAITING TO BUY YOUR FIRST HOME YOU MINDLESS F**KS!

ALL WHILE WATCHING THE HOMEOWNERS BANKRUPT THE NATION FOR ALL OF US THANKS TO THEIR DEBT PARTY

They should think themselves lucky they haven't been destroyed by 15% IRs and have their homes repossessed.

Edited by worst time buyer

Share this post


Link to post
Share on other sites

http://www.bbc.co.uk/news/business-14885963

13 September 2011 Last updated at 00:03

Fourteen homes were sold per UK estate agent in the three months to August - the lowest total for more than two years, a survey has found.

Economic uncertainty and a lack of mortgage lending led to the sluggish housing market, the Royal Institution of Chartered Surveyors (Rics) said.

And "House Prices Are to High" maybe?

Share this post


Link to post
Share on other sites

FWIW, I think we are being softened up for Zero interest rates at the next MPC. :unsure:

Cannot see it myself but then again they are desperate enough to try anything to keep this high house price madness going.

It's getting harder and harder to convince the Sheeple that they'll 'miss the boat' when they're all stood on the docks watching it sink :)

Edited by MrFlibble

Share this post


Link to post
Share on other sites

Economic fears hit house market

I love this second sentence. Just goes to show that people won't normally try to jump back on when prices have tumbled, the market won't look good while it's falling. Once it really starts it'll keep on going all the way to the trend under-shoot baby :D bring it on

+1

(although I am trying to restrain myself from too much joy in the inevitable pain for others, but i understand your sentiment)

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.

  • 338 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.