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North London Rent Girl

Radio Show Re. Manipulation Of Buy-to-let Prices

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don't know if anyone else managed to listen to this - if not you can go here and click on 'listen again' - it should be up some time soon once the show is over

More flats built than people wanting to buy them, SIPPS cancellation a further blow, Portman Group pulling out of BTL mgs on new flats. Statement by Portman guy Matthew Wilds (paraphrase) - 'a number of schemes or scams or however you care to describe them that are being perpetrated primarily in the BTL market centred around the concept of 'off contract' deal. Cashback of large propoertion - 20, 25, 30% or more.' Visible price recorded by land registry.

Peter Bill, editor Estates Gazette. Winifred Owen 'what is the scale'?

'Confined to 1-2 bed newbuild flats in cities. THese account for nearly half of all new homes being built. Real issue one of transparency. Nobody knows the actual prices they're going for. Some builders sell them to their friends and colleagues to establish the price.

WO - don't mg companies do their own valuations?

PB - well you'd think so, wouldn't you? their valuers not paid much, might end up losing business - no incentive.

WO - if valuer is surveyer then they have to work to code of RICS. We spoke to RICS and they said that their surveyers are governed by strict rules that are rigorously enforced.

PB - Well they are governed by strict rules but I would question how rigourously they're enforced. They ought to be more proactive in warning the public what's going on and warning their own members not to do this sort of thing.

WO - even the land registry here is recording a false price.

PB - I think the LR also could be much more proactive. And solicitors - they're the ones who tell the LR what the prices are, so Law Society, too ... do more to ensure that actual value transparent to everybody.

WO - what does this tell us about the whole state of the new-flatbuilding market

PB - sipps yada yada, property clubs, created bubble. half of all new homes now these new flats, built with investors not home-owners in mind, many of them you can barely swing a cat in. (edit: HIS words, not mine!)

WO - crash?

PB - I think in this particular market, not generally, because values being inflated before you buy. People going in through these property clubs really should compare with 2nd-hand stock in that area. Anything more than about 15% more than 2nd-hand you really ought to be careful.

Then entertaining bit by Steve Punt (who isn't normally funny) about Monolpoly, also worth a listen for HPCers!!

Edited by North London Rent Girl

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  • 301 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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