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paul ireland

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Estate Agents Online UK Shopping

Posted: January 10, 2006

UK Homeowners need a reality check

UK Homeowners need a reality check on house prices

The UK's leading property purchasing company, National Homebuyers has issued a statement that despite the lenders' confidence in property prices for 2006, homeowners need a reality check.

[ClickPress, Mon Jan 09 2006] Homeowners intending to sell in 2006 can expect to achieve less for their prized bricks and mortar than they may anticipate. This warning comes from Julian King, managing director of National Homebuyers, the country's leading consumer facing property purchasing company.

National Homebuyers' experience is that many people are not able to wait to sell in a falling market - it is taking double the time it took to sell a house two years ago. This lengthening of the sales process is partly a result of over valuing by estate agents and partly because many sellers continue to have unrealistic expectations about how much their property is worth.

Julian King said, 'The housing market is still trapped in the vicious circle of upwardly spiralling asking prices which are not matched by buyers willingness to pay such sums.'

He continued, 'House price rises can only be sustained if demand from buyers consistently exceeds supply. This appears highly unlikely for the foreseeable future as a growing proportion of the younger generation are unable to afford to step onto the property ladder (figures from the Council of Mortgage Lenders show that first time buyers have fallen from a traditional 50 per cent of the market to just 29 per cent). In the meantime, offers will continue to fall far below inflated asking prices.'

It had been hoped that SIPPS would encompass property and that this would give the market a much needed boost but these hopes have been dashed and it seems unlikely that the market confidence will be quick to return.

King concluded, 'Those selling in 2006 need to have realistic expectations about the price they can expect to achieve. We cannot expect that yields on property to reach again the levels seen in the 1990s. I expect to see a continued stagnated market throughout 2006, with some parts of the country such as the South West and East Anglia seeing a further drop in prices.'

Click Press

posted by UK Estate Agents at 6:25 AM


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They are another VI though.

They have received some bad press recently so this may be part of their defence.

November 2005 "Which" magazine had a less than complimentary article.

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Companies like his feed off a dead market, obviously by encouraging them to be realistic he is hoping to imbue some fatalism into the market, which can only help his cause.

Julian King, Director of National Homebuyers said: “We are very open about the service we provide and welcome the opportunity to work with estate agents. We recognise that many have vendors on their books that need to sell quickly and have developed a partnership programme that provides a fast resolution for all parties involved; an offer is made in days and completion being arranged within weeks.’

‘’On completion of the sale, we pay a fee to members of our partnership programme and operate a reward share scheme for estate agents we work with regularly.’’

Companies like those run by King don’t only buy the most attractive houses. Most promise to make an offer on any house whether this is a house with fire or storm damage or one that has been flooded. They will also buy ex-council ex Coal Board or Housing Association properties.

In addition, arrangements can be made for the vendor to remain in the property as a tenant for as long as they like, or until they can find alternative accommodation.

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It makes a change seeing a VI that's trying to talk the market down! Nevertheless, we mustn't forget that their opinion is just as biased as the mortgage lenders.

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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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