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UK house prices dip in January: RICs

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UK house prices dip in January: RICs

https://www.rics.org/Global/1._WEB_ January_2018_RICS_UK_Residential_Market_Survey_tp.pdf

 

For a tenth month in succession, new buyer enquiries
declined at the headline level, with a net balance of -11% of
respondents reporting a fall. Similarly, newly agreed sales
also slipped, extending a run of negative readings for this
indicator stretching back to last February.


The lack of new instructions coming to market continues
to impede activity and this has shown no sign of turning
in recent months. Indeed, at -17% , the January net
balance was the weakest since May 2017, pointing to a
further deterioration in the flow of fresh listings for a fifth
successive report. Unsurprisingly, the average number of
properties on estate agents’ books continued to slip back
towards the record low levels seen around the middle of
last year. The pipeline for instructions going forward does
not appear to be much stronger either, with 10% more
respondents noting the number of valuations undertaken
over the month was below the equivalent period of last
year.

 
 

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A good hard winter, lots of oldies moving out of their family home due to ill health (possibly in caskets)... Fewer BTL merchants buying them up... prices tumbling... FTBs too scared to partake in a falling market... BOMAD getting cold feet... 

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Home owners have been extending rather than moving, as it's too expensive to buy a larger house. The extension costs get added to the mortgage (I believe a typical extension is at least 40k these days!)  what happens when prices finally drop? low or negative equity, a load of owners that cannot move even if they need to.

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5 minutes ago, Andy T said:

Home owners have been extending rather than moving, as it's too expensive to buy a larger house. The extension costs get added to the mortgage (I believe a typical extension is at least 40k these days!)  what happens when prices finally drop? low or negative equity, a load of owners that cannot move even if they need to.

There's definitely something to this. The small road we are on (about 15 houses/bungalows) has seen 5 (five!) extensions built in the last 3 years, and a couple of the other homes are already extended. OK, so the houses are particularly suitable for extension, being 1950's bungalows built on larger plots, but with the cost of moving  and the gap in price between a bigger house being so much now, extending is often a much cheaper (and better?) option. I do also wonder how this mass of extensions is reflected in the price indices as a lot of price "rises" might be no such thing, like for like.

Edited by mattyboy1973

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3 minutes ago, mattyboy1973 said:

There's definitely something to this. The small road we are on (about 15 houses/bungalows) has seen 5 (five!) extensions built in the last 3 years, and a couple of the other homes are already extended. OK, so the houses are particularly suitable for extension, being 1950's bungalows built on larger plots, but with the cost of moving  and the gap in price between a bigger house being so much now, extending is often a much cheaper (and better?) option. I do also wonder how this mass of extensions is reflected in the price indices as a lot of price "rises" might be no such thing, like for like.

If you have a small house on a large plot, it's very often a no-brainer to extend, particularly if you are in a desirable area.

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I had posted about this one over a year ago in the Prime London Crashing thread. The discussion of extensions reminded me about it and I went to have a look to see how it was getting on.

It went on in November 2016 at £999,995, five months later dropped to £899,995. Now they have knocked another 50k off. Last sold in 2011 for £440k IIRC. Added an extention in 2015 and put on the market in 2016. 

I predicted that these muppets would be, chasing down the market. Reluctantly dropping the price but too little and too late until it hits the bottom. 14 months on the market so far. The last property that sold on this row in 2015 went within a week at £628k I think. An old lady selling up and moving into a home that got bought by a BTL mug.

http://www.rightmove.co.uk/property-for-sale/property-49925640.html

 

Edited by Sawitcoming

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they need to throw more DEBT at these new buyers, whip em up into a buying frenzy or something?

 

or it can only be that the number of PEOPLE has decreased, because supply and demand

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From the comments

Hannah Ward, Hove, King and Chasemore, 01273 719625, hannah.ward@countrywide. co.uk - New taxes for landlords have dramatically affected the market. We are finding many landlords are having to sell or move back into their rental properties.

:)

Edited by rantnrave

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North

Mr T H Brannen, FRICS, Coastal and Newcastle, Brannen & Partners, 0191 2517878, www. brannen-partners.co.uk, shaun. brannen@brannen-partners. co.uk - Would be helpful to see some more investment clients in the marketplace.

 

Neil Foster, MRICS BSc Hons, Newcastle upon Tyne, Foster Maddison Property Consultants, neil.foster@fostermaddison. co.uk - Tenant demand is flying but landlords, fresh from their first tax demand, are retracting from the sector and the perfect storm still lies in wait.

Funny that. 

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1 hour ago, Andy T said:

Home owners have been extending rather than moving, as it's too expensive to buy a larger house. The extension costs get added to the mortgage (I believe a typical extension is at least 40k these days!)  what happens when prices finally drop? low or negative equity, a load of owners that cannot move even if they need to.

Indeed. A couple of my friends have had extensions and roof conversions done. One of them had it done a couple of years ago when London prices were rising 10% pa, thinking that piling money into the property is better than keeping it in the bank. Twenty grand on a loft conversion will added 50k to the house etc. He did pay for it with savings though, not debt.

The problem with this though is that so many people are getting it done. In some areas/streets the 3m extension into the garden and a room in the attic will start to become the norm rather than a luxury and so the value of these improvements will decline.

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3 hours ago, Sawitcoming said:

I had posted about this one over a year ago in the Prime London Crashing thread. The discussion of extensions reminded me about it and I went to have a look to see how it was getting on.

It went on in November 2016 at £999,995, five months later dropped to £899,995. Now they have knocked another 50k off. Last sold in 2011 for £440k IIRC. Added an extention in 2015 and put on the market in 2016. 

I predicted that these muppets would be, chasing down the market. Reluctantly dropping the price but too little and too late until it hits the bottom. 14 months on the market so far. The last property that sold on this row in 2015 went within a week at £628k I think. An old lady selling up and moving into a home that got bought by a BTL mug.

http://www.rightmove.co.uk/property-for-sale/property-49925640.html

 

I thought that was going to be a detached on a chunk of land...........oh dear!!

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3 hours ago, Andy T said:

Home owners have been extending rather than moving, as it's too expensive to buy a larger house. The extension costs get added to the mortgage (I believe a typical extension is at least 40k these days!)  what happens when prices finally drop? low or negative equity, a load of owners that cannot move even if they need to.

I agree with this...lots of extensions near me.  This is one of the ways the increase in population is being accommodated despite low new build numbers.  The outcome is as you describe...more folks with low or NE.

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27 minutes ago, Sancho Panza said:

I thought that was going to be a detached on a chunk of land...........oh dear!!

Not at all. Very small houses. Photos are taken using a fisheye lens that make the rooms seem twice as big as they actually are.

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I'm seeing a lot of garage conversions in my target areas (Buckinghamshire and Bedfordshire) and not many extensions apart from conservatories.

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13 hours ago, Sawitcoming said:

I had posted about this one over a year ago in the Prime London Crashing thread. The discussion of extensions reminded me about it and I went to have a look to see how it was getting on.

It went on in November 2016 at £999,995, five months later dropped to £899,995. Now they have knocked another 50k off. Last sold in 2011 for £440k IIRC. Added an extention in 2015 and put on the market in 2016. 

I predicted that these muppets would be, chasing down the market. Reluctantly dropping the price but too little and too late until it hits the bottom. 14 months on the market so far. The last property that sold on this row in 2015 went within a week at £628k I think. An old lady selling up and moving into a home that got bought by a BTL mug.

http://www.rightmove.co.uk/property-for-sale/property-49925640.html

 

First impression is, oh, that's modern and looks nice. Then you realise it is mutton dressed as lamb. I'd like to try opening that big wall sized door in the winter when there are leaves form the trees catching underneath it. It is just so sad that someone has spent all that money on fluff top try and make it int something it will never be. It is obviously much smaller than the wide angle lens makes it look. 

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21 hours ago, TonyJ said:

"but landlords, fresh from their first tax demand, are retracting from the sector and the perfect storm still lies in wait."

This is complete BS. They will not have had a first tax demand yet, since they will not have completed their 2017/18 tax return (the year we are still currently in). Would someone email him to ask why HMRC is issuing tax demands for a year that has not yet ended? BS BS BS

I've just done my tax return for 2016-17, and I'm sure I read somewhere in there that HMRC may ask for top up tax payments throughout the year, so it's possible that this is what the article is talking about.

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8 minutes ago, Henrik said:

I've just done my tax return for 2016-17, and I'm sure I read somewhere in there that HMRC may ask for top up tax payments throughout the year, so it's possible that this is what the article is talking about.

May.....Will.

 

I pay PAYE and 2 tax bills during the year, one on account as they work out what you owe from what you got the year before.

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11 hours ago, Longtermrenter said:

First impression is, oh, that's modern and looks nice. Then you realise it is mutton dressed as lamb. I'd like to try opening that big wall sized door in the winter when there are leaves form the trees catching underneath it. It is just so sad that someone has spent all that money on fluff top try and make it int something it will never be. It is obviously much smaller than the wide angle lens makes it look. 

Bang on.

These are really small houses. I think they were ok for a retired person or couple but really much smaller than the picures imply. They are jerry built with thin walls. They were originally two bed and the larger bedroom in the back is partitioned to create a box room. Really not even room to put a wardrobe in when there is a bed in there. Notice that?

The extension makes it liveable for a very small family but less than ideal.

I am not sure this is a million quid house by anyone's measure. Also every single one of the other houses on that row are BTLs. You gonna pay nearly a million quid to be living next to shoddy BTLs? And they are shoddy.

I have just noticed something else dodgy here too. They have removed the beds from one of the bedrooms for the photos. There is just storage and empty floor space making it appear more spacious. 

Edited by Sawitcoming

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  • 407 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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