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FT: Proposal to freeze the housing market because of coronavirus

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24 minutes ago, Bruce Banner said:

No point, it's a free market so will find it's own level come what may..... Oh dear... It's not?

 

Exactly.

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3 minutes ago, Smiley George said:

Behind paywall, so couldn't read.

I'm confused, the market will simply suspend itself?

What are the banks suggesting the government should waste its time doing now?

Props.

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Coronavirus will make people look at things differently.......like looking at different kinds of houses for different reasons.;)

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Sounds like desperation. Reminds me a little of the extreme measures used to keep the £ in the ERM in 1990 or whenever.

Edited by Si1

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What does "freeze" mean?

 

I don't like the sound of it, I want to see the effects of Corona virus on the housing market bubble.

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Nothing to see here - its just a short article about the fact that the UK govt has EFFECTIVELY put the housing market on ice because of social distancing, advising buyers and sellers to delay, etc

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3 minutes ago, reddog said:

What does "freeze" mean?

 

I don't like the sound of it, I want to see the effects of Corona virus on the housing market bubble.

HPI stays at 0% until problems in the mortgage market are 'resolved' banks are blaming being unable to value properties in removing LTV products over 60%.  Specialist BTL lenders can't access the funds supplied to high-street banks.

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"Laura Conduit, a property lawyer at Farrers, said....'We haven’t got a clue what the value of anything is'"...😂

Google the article title and viola, click the top link 🙂

Edited by Huggy

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The international buyers must be dead as a dodo.....has to have had an negative impact on the dying property market.😉

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27 minutes ago, reddog said:

What does "freeze" mean?

 

 

we don`t want loses to materialize on the LR data 

More big riggs than smokey and the bandit. 

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https://www.propertysolvers.co.uk/blog/coronavirus-selling-your-house/

 

 

HAHA what a big pile of doo doo contradicting statements   How-Will-Coronavirus-Impact-House-Prices

Should You Accept a Lower Offer for Your Property?

You may find buyers trying to negotiate down the price, attributing a ‘coronavirus-led recession’.

They’ll probably try to capitalise on the scary headlines (from clueless journalists).

Unless you really have to, our general advice is to reject any low-ball offers outright.

We would encourage you to read the above and understand that this is merely a short-term market shakeup.

 

Quick Cash House Sale (During the Coronavirus Crisis)

If you’re looking for a swift and hassle-free sale, this option may work well for you.

As it’s a private sale, you won’t have to worry about estate agency costs and we’ll also cover your legal fees.

During the Coronavirus crisis, we would need to undertake one socially-distanced viewing and an independent survey.  You do not need to be present.

Everything can then be undertaken remotely and we’ll complete the sale within a month.

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Reading in-between the bluff, I think they're saying that if the actual mark to market losses crystallise, the whole banking system collapses really really badly. Like credit crunch but probably worse. I think this is probably very serious indeed.

 

The govt will want to suspend this until the worst of CV19 is out of the way, understandably. But they're going to have to impose communism for a while in the interim.

Edited by Si1

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From the POV of the gov/banks/asset holders:

For: it buys them time to put special measures in place.

Against: it would spook the bejasus out of everyone else making things, ultimately, even worse.

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This can only be because they are worried about being insolvent if prices drop.

Banks are meant to have no interest in the 'market' and are lending against the asset. This is just them saying "oh crap the assets might go down in value, we need the government to intervene"

 

Remember - house prices only ever [are allowed to] go up!

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  • 343 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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