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Countrywide - Cull Of Advisers After Disappointing Mortgage Volumes

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Last February zugzwang reported Countrywide were preparing an IPO. Went ahead priced at 350p a share. This seems to be current price; 590p. (dyor).

All those UK homes owned outright. Need to get a lot more of the owners to market, at prices more people can afford as FTBs, or afford to upsize to, and get some mortgage debt on them.

Countrywide are said to be boosting surveyor numbers. http://www.mortgages...-target-brokers

Countrywide culled advisers after lenders overpromised mortgage volumes

Mortgage Solutions | 01 Aug 2013 |

Countrywide said disappointing mortgage figures resulted from 'right-sizing' adviser numbers after promises of increased lending which never materialised led to a 3% income drop for its financial services division.

With its interim H2 financial report out today, speaking to Mortgage Solutions, Countrywide CEO Grenville Turner (pictured) said: "We recruited a lot of mortgage advisers in 2012 on the back of promises of increased lending that never materialised, so we were forced to right-size our adviser numbers over H2 2012 and Q1 2013."

New homes, remortgages and buy-to-let drove the growth in the firm's financial services division, but second hand house transaction levels remain disappointing, said Countrywide.

Turner said the Stamp Duty changes in March 2012 continued to pull down the figures, but momentum is starting to build again in second-homes.

"Shortage of housing stock is becoming the biggest issue this industry faces. People are still thinking about moving, but just haven't galvanised to do so yet. It also takes time to move from a buyer's to a seller's market. It's a gear change and the market will lose a little power for a while," said Turner.

More... http://www.mortgages...ortgage-volumes

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.....what happens is because of the high costs involved in moving, lack of new suitable property in the right places within price range, reluctance to take on more debt in uncertain times with uncertain job prospects especially when two incomes required for it to be viable, people unless they have to would rather stick with what they have and work around it.....the more affluent will if it is in the right place will keep it, borrow against it, rent it out and buy another thus reducing the stock further...meaning more people have access to fewer affordable properties because the properties they once bought are now part of someone's multi property pension portfolio.

So the whole housing turnover freezes up.......older retired people tend to move less, because partly they don't have to move for work and they tend to stick with what they know are comfortable with and the community they know around them.

So does death, divorce or debt now necessitate the sale of any property nowadays? ;)

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,snip>So does death, divorce or debt now necessitate the sale of any property nowadays? ;)<snip>

That, and the (vanishingly small) proportion of the population moving because they've had a job offer with a large enough increase in salary to make it worthwhile.

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That, and the (vanishingly small) proportion of the population moving because they've had a job offer with a large enough increase in salary to make it worthwhile.

Yes, it can easily cost £20k odd in buying and selling costs, taxes, fees and charges to move sideways....that is before costs like home improvements and new furniture.

You could do an extension to a suitable existing home for that. ;)

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So does death, divorce or debt now necessitate the sale of any property nowadays? ;)

Don't forget dementia - the 4th D - a couple of such sales in this family alone.

And I suppose there's a fifth D - general Decrepitude.

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Don't forget dementia - the 4th D - a couple of such sales in this family alone.

And I suppose there's a fifth D - general Decrepitude.

Very true, far more of that about now than there ever used to be......fascinating subject, there are homes to cater for this opening up all the time, a growth business.....I didn't realise until recently there are over 100 different types of dementia. ;)

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Nice one Venger, listed companies are usually a better bet for straight info, seems to tally with much of what we've seen in various stats.

I guess the rise of thr accidental landlord is also killing sales volumes for now.

Of course, the report says that banks promised to lend more.

As has been repeated oft on this site and others, it takes two to make mortgage, the lender, and whoops....a borrower.

they forgot about the borrower needed to take on all this extra debt.

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Of course, the report says that banks promised to lend more.

As has been repeated oft on this site and others, it takes two to make mortgage, the lender, and whoops....a borrower.

they forgot about the borrower needed to take on all this extra debt.

.....but, but I thought people would take on any amount of debt they can lay their hands on if they thought they could double their money in five years.....debt = wealth..... the clever ones are the highly indebted ones, nobody spends their own money to become rich they borrow other peoples money...theirs is stashed away for another day to play.....they win you lose. ;)

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Could a simpler explanation be that borrowers are just going straight to lenders and cutting out the middleman i.e. countrywide?

(i.e. lending up but less going through them).

Possible reasons:

Rules changes on broker commissions (financial services in general)

less need for brokers if you aren't going for liar loans etc (i.e. banks have to verify income and do more checks now etc.)

Easier to do initial comparisons on the internet than 5 years ago

Fewer broker only products

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Could a simpler explanation be that borrowers are just going straight to lenders and cutting out the middleman i.e. countrywide?

(i.e. lending up but less going through them).

Possible reasons:

Rules changes on broker commissions (financial services in general)

less need for brokers if you aren't going for liar loans etc (i.e. banks have to verify income and do more checks now etc.)

Easier to do initial comparisons on the internet than 5 years ago

Fewer broker only products

I had overlooked all that. Those alternative reasons do look stack up on your logic, for a cull in their adviser numbers.

The shortage of homes on the market to sell remains an important point; 'biggest issue the industry faces'. Presumably for their EA operations too. They should also be getting some advantage with other EAs closing down. More business to them, yet still an issue.

Little pressing down on owners to come to market with a real need to sell, and not much to accept lower prices. When it does happen, so often BTLers thinking the lower prices is value and snapping it up. Lost count of how many good FTB style houses I've seen reduced a little, to see them bought, and come back to market as a rental past few years. Larger homes less likely to fall to BTLers.

http://moneyweek.com...ou-think-12901/

Countrywide's letting and management side has seen 'big growth' and profits ect. Even in challenging circumstances such as having to move for a new job, many owners who ordinarily would have had to sell, have gotten away with renting it out, when they've moved areas. A while ago Cheeznbreed told how many of the houses he viewed to rent, in advance of his relocation, were obviously houses where owner had passed away not long before. The inheritors preferring to rent it out, rather than seek to sell.

Some of these new landlords having put very little effort into making the properties attractive for renting. Stale and old and untouched. "It's a house. Where's my £800-£1200 pm?" All waiting for market to recover / go up even more, or sales proceeds don't earn anything in the bank, ect.

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