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Signs Of Caution In Housing Market, Surveyors Say

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http://www.bbc.co.uk/news/business-27794161

Surveyors have reduced their expectations for house price growth in the UK, despite a continued shortage of homes for sale.

Property prices are expected to grow by 5% a year over the next five years, according to the Royal Institution of Chartered Surveyors (Rics).

This prediction had edged down in recent months, Rics said.

Price rise expectations in London have dropped from an estimate of 9% a year in March to just under 5% now.

"What we are really seeing is some of the very strong upward momentum starting to come off the housing market, as a lack of supply, higher prices, more prudent lending measures and some of the talk from the Bank of England are creating a level of caution among sellers and buyers," said Simon Rubinsohn, chief economist at Rics.

The Rics survey is one of a number of different surveys that are published about the UK housing market.

Earlier this month, the Nationwide Building Society said that there had been signs that activity in the UK housing market was starting to "moderate".

However, prices have risen in most parts of the country in recent months, with London showing double-digit annual growth in property prices.

Looks like the media propganda machine will be out in full swing.

Markets cooling so we must Keep Help to Buy.

Markets cooling so we must keep interest rates low.

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Didn't you see Bill Oliver on BBC Breakfast?

There's a long way to go before the 2007 peak.

A - he's wrong and b - it shouldn't be a target FFS.

Edited by Maynardgravy

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So now lack of supply is the cause of 'cooling' rather than 'heating'?

I think buyers and sellers alike are utterly confused, a situation being fuelled by deliberate obfuscation and double speak in an attempt to stave off any return to rationality.

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So now lack of supply is the cause of 'cooling' rather than 'heating'?

I think buyers and sellers alike are utterly confused, a situation being fuelled by deliberate obfuscation and double speak in an attempt to stave off any return to rationality.

It's that point in the bubble dream where things start to go a little bit crazy. All of a sudden the dog turns into the mother-in-law and there's a herd of pigs morris dancing in the back garden. This is just before the point when people wake up and realise it was all just a complete figment of their imagination. Much like the value they put on their house.

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The government can't/won't do anything about the house price mega bubble as they've given the BoE that power.

The BoE says it doesn't have any power to control mega bubble house prices (at least in London).

The surveyors say if there was a bubble it's cooling now, it's going away. So no need for anyone to use any special powers? Next they'll be claiming they're independent.

It's all very Mutt and Jeff - and now another of their cronies is joining in.

Edited by billybong

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It is difficult to get the detail but new buyer enquiries seem to have fallen in the RICS survey. Whether the slowing market stops FPC response I am not sure.

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http://www.bbc.co.uk/news/business-27794161

Surveyors have reduced their expectations for house price growth in the UK, despite a continued shortage of homes for sale.

Property prices are expected to grow by 5% a year over the next five years, according to the Royal Institution of Chartered Surveyors (Rics).

This prediction had edged down in recent months, Rics said.

Price rise expectations in London have dropped from an estimate of 9% a year in March to just under 5% now.

Where do theses EAs even begin to pluck such projections from? 5% a year over the next five years? I bet it's based on this 'shortage of properties / population growth' nonsense.

For prices to go up, you need sellers and buyers transacting at higher prices at the margin. It's just not going to happen, in my view. More likely some sellers accepting lower prices, at the margin, in order to get out of the market with massive profit, bringing values down on all other properties. We don't need a big jump in supply on the market, just enough to provoke uncertainty in a few more complacent owners, and sell for lower prices, and for that to continue. You don't need loads of sellers from a hpc. Just as prices are said to jump 3.7% in a month on very little volume.

Look what happened in Paris last year, and now. http://www.cnbc.com/id/101366471 and such weaknesses still evident, according to an article redwine posted a few days ago, in the overseas property forum.

The market seems to be blocked over the long-term in the rural regions and in the big cities property is suffering but resists.
Prices are cracking, sales delays are getting longer, this also includes Paris where flats are no longer selling like hot-crossed buns.
A fall in the number of sales, the property market is depressed and has been for the last two years.
Reductions.
Even in the big towns and cities sales are only made after a price reduction.
"The buyers have more choice and choice has given them power" confirms Mr Vimont chairman of Century 21.
The average reduction is 5% in Paris, 4% in Lyon and 7% in Marseille.

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