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Realistbear

N A E A Claim Sales Are Soaring Before Budget

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http://www.naea.co.uk/the_naea/general_pub...id=225&PageNo=1

SALES SOARING IN RUN UP TO THE BUDGET 21 / Mar / 2006

The National Association of Estate Agents (NAEA) has released figures from its latest housing market survey revealing an
energetic market in the run up to the Budget
. The number of sales agreed climbed
dramatically
in February, as interest rates and employment levels remained stable and buyers’ confidence increased further.
First time buyers took a smaller share of the market compared with the previous month. The NAEA strongly advises the Chancellor to address more than just his extended plans for shared ownership schemes as it is quite apparent first time buyers need far more help to get onto the property ladder.
Sales climb for third month running
Sales soared in February with a 30% increase
, from 10 per agent to 13. This is an encouraging 10% rise on the same time last year, when estate agents reported an average of 12 sales per agent. With interest rates remaining stable and some experts now forecasting
significant price rises for 2006, consumers were clearly feeling optimistic in February.

Tell it to the CML! :lol::lol::lol:

The NAEA have about as much credibility left as Rightmove---none.

Edit, PS:

"In good news for both buyers and sellers the average time taken to sell a property reduced again in February from 18 to 17 weeks."

Edited by Realistbear

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I find this quite troubling, especially since the SIPPS loophole was removed.

I thought that would probably have heavily curtailed any fresh new move into BTL, but it appears not to have done.

Investors are the only reason I can think of to explain a bounce, because the cash can't be coming from FTBs.

Slowly but surely, the nation's housing stock continues to turn over to private landlords.

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I find this quite troubling, especially since the SIPPS loophole was removed.

I thought that would probably have heavily curtailed any fresh new move into BTL, but it appears not to have done.

Investors are the only reason I can think of to explain a bounce, because the cash can't be coming from FTBs.

Slowly but surely, the nation's housing stock continues to turn over to private landlords.

New BTLers are heavily cashflow negative. Ask my Dad. He's admitted it. The rent expectation (coz the flat aint ready yet) is now 75% of what he was told when he signed up.

They are subsidisers, praying for not just ever-low 4.5% interest rates, but even lower rates still, in order to fuel their now long-term investments.

If a man had come to you in 1997 and had said "In ten years you will be a landlord where you subsidise the tenant" how many people do you think would seriously have considered it?

How many people do you think would have told him to turn right around and piss right off?

This, Warks, is a measure of how silly we've got.

Edited by megaflop

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I wouldn't take this too seriously, it smacks of damage control (WRT the BBC programme on tonight). Besides does anyone know exactly how they measure the transactions per day? (actual sales, or STC?). All this coupled with mortgage lending dropping in Feb, I'm definately inclinded to take this with a bucket of salt.

Also, remember, when transactions are low, a 30% rise may not be that big.

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I find this quite troubling, especially since the SIPPS loophole was removed.

I thought that would probably have heavily curtailed any fresh new move into BTL, but it appears not to have done.

Investors are the only reason I can think of to explain a bounce, because the cash can't be coming from FTBs.

Slowly but surely, the nation's housing stock continues to turn over to private landlords.

Completely agree with this post. And with FTB being further priced out of the market there will be plenty of willing tenants.

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From the Motley board,

:lol::lol::lol:

Erm ... aren't these showing a rather interesting decline:

Average number Housebuyers on books

Feb-05 397

Feb-06 322

So - number of buyers down by 18%

Average number of properties available for sale

Feb-05 75

Feb-06 64

Number of properties available down by 14%

And yet we're in the middle of a mini-boom?

And further to this:

Total Number of sales agreed this month

Feb-05 12

Feb-06 13

So where's this much fabled rally in activity from this time last year?

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Edit

I wouldn't take this too seriously, it smacks of damage control (WRT the BBC programme on tonight). Besides does anyone know exactly how they measure the transactions per day? (actual sales, or STC?). All this coupled with mortgage lending dropping in Feb, I'm definately inclinded to take this with a bucket of salt.

Also, remember, when transactions are low, a 30% rise may not be that big.

I have no reason do doubt it, as this reports exactly what I am experiencing in my area. As I posted on here previously my house sale is going thru and I am selling to friends. I have not yet revealed this to the valuing EA’s, telling them I am still thinking about it until my friends cash is in the bank.

However I have had 2 of the 3 valuing EA on the phone to me today telling me that they have 3 buyers ready to make offers on my place now, as soon as I give the word it’s for sale and a queue waiting to view.

OK, allow for EA’s bullsh*t probably means that there is only a queue of people waiting to view rather than actual offers, but it for sure confirms the strength of the market.

Edited by Dubai Exile

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"as soon as I give the word it’s for sale and a queue waiting to view"

You are right to be hesitant. Its the old car salesman's trick--better get in as I have other customers who want it...... :lol:

Signs of a desparate market. Used to have to make an appt. for an EA to list your house and there was no need to lie about queues. In the words of Dylan: The Times, they are a changin......!

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And with FTB being further priced out of the market there will be plenty of willing tenants.

Why? If they didn't live 80 miles away, I'd move back in with my parents and save more money towards emigrating.

I'm sure a lot of other people will do the same if landlords try to raise rents.

As I posted on here previously my house sale is going thru and I am selling to friends.

'Friends' you don't like very much, presumably.

Edited by MarkG

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Guest Charlie The Tramp

I have no reason to doubt it, as this reports exactly what I am experiencing in my area.

So everyone in your area are experiecing the same as you.

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Edit

I have no reason do doubt it, as this reports exactly what I am experiencing in my area. As I posted on here previously my house sale is going thru and I am selling to friends. I have not yet revealed this to the valuing EA’s, telling them I am still thinking about it until my friends cash is in the bank.

However I have had 2 of the 3 valuing EA on the phone to me today telling me that they have 3 buyers ready to make offers on my place now, as soon as I give the word it’s for sale and a queue waiting to view.

OK, allow for EA’s bullsh*t probably means that there is only a queue of people waiting to view rather than actual offers, but it for sure confirms the strength of the market.

I sold my studio flat a few years ago (I moved in with Mr Goat) and was told by one very pushy (teenage) EA, who came to value the place, that he had buyers waiting to view that evening, luckily, I didn't fall for it. It's an old trick they use to get you on board, they might have these people come around and view, but I'd be willing to bet they don't buy, leaving you tied into a contract for 4 weeks.

As someone who occasionally views places, I am at the other end of this scam, I get a call from an EA telling me that they have a new place on their books and wanted me to view it before anyone else. As it's so new there are no pictures/details so they can talk the place up as much as they like, so basically you end up viewing a place you would never consider if you had seen photos/details (I've learned to ask questions as the can't lie about a place, if they don't know the answer I ask them to find out for me before I view). The EA's couldn't care less if I buy it or not, they just want to get the vendors confidence.

Personnally, I prefered the agents who were honest with me (contry to belief there are some), giving reasons for the valuations, showing me how many simular properties they have sold (you can just tell, believe me). The EA who eventually sold my place didn't give the highest valuation, and didn't have the lowest fees (before negociation), but was professional, told me the pros and cons of selling my flat, and worked with me to decide on what price I should market the property at (it was STR in 6 days!).

Another thing I did, was write to all the agents I 'rejected' to let them know that I had gone elsewhere and thanking them for their time, this stops them phoning you every 5 mins.

Edited by laughing_goat

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I find this quite troubling, especially since the SIPPS loophole was removed.

I thought that would probably have heavily curtailed any fresh new move into BTL, but it appears not to have done.

Investors are the only reason I can think of to explain a bounce, because the cash can't be coming from FTBs.

Slowly but surely, the nation's housing stock continues to turn over to private landlords.

Lets face it - BTL'ers in the current climate are your average joe (last dormant f**kers pilling in when the boats already sailed) - most of whom probably have no idea what SIPPS are.

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Actually, a lot of new 'BTLs' are probably people who couldn't sell their old house when they moved, so kept it planning to rent it out.

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Lets face it - BTL'ers in the current climate are your average joe (last dormant f**kers pilling in when the boats already sailed) - most of whom probably have no idea what SIPPS are.

Dead right!

My work mate bought a BTL because (this is good),

"My 2 younger brother's have done it, so it's about time I got my act together"

That was the total of her research into the BTL market.

Supprisingly she has to add £100 per month to the rent so the mortgage can be paid. Still strangely thinks its a good investment.

I tried out your theory on her, and now she's looking up "SIPPS" are on the net.

Actually, a lot of new 'BTLs' are probably people who couldn't sell their old house when they moved, so kept it planning to rent it out.

This is becoming a trend in the South East, alot of baby boomers are moving to places like Norfolk to retire and can't sell their homes so after about a year on the selling market the then get advertised for rent. Very common trend indeed.

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Actually, a lot of new 'BTLs' are probably people who couldn't sell their old house when they moved, so kept it planning to rent it out.

Spot on.....

Just about everybody who learned of my house being sold said to me 'Why dont you rent this out and buy another, you could MEW and put a deposit on your new one'

yeah right....

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Sales soared in February with a 30% increase, from 10 per agent to 13. This is an encouraging 10% rise on the same time last year, when estate agents reported an average of 12 sales per agent.

Wouldn't look quite so impressive if the headline said:

"On average, estate agents sold 12 houses during February 2005. During February 2006 it was 13" doh.gif

What an amazing rise in housing market activity.........

Hmmmm.

This is becoming a trend in the South East, alot of baby boomers are moving to places like Norfolk to retire and can't sell their homes so after about a year on the selling market the then get advertised for rent. Very common trend indeed.

And I remember exactly the same thing happened during the last crash in the early nineties.......

But it's different this time.

Xil.

Edited by Xil

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It's maybe time to raise the interest rates in order to stop this wild market getting out of control.

NOT SO FAST!

We need to buy ourselves just enough time to make sure we have a synchronised recession alongside the Yanks.

Then we can blame them when it all goes tits up.

The Yanks won't even know we've blamed them coz they never pay us any attention. ;)

(joke joke joke!!!!) :o

Edited by megaflop

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Dead right!

My work mate bought a BTL because (this is good),

"My 2 younger brother's have done it, so it's about time I got my act together"

That was the total of her research into the BTL market.

Supprisingly she has to add £100 per month to the rent so the mortgage can be paid. Still strangely thinks its a good investment.

I tried out your theory on her, and now she's looking up "SIPPS" are on the net.

This is becoming a trend in the South East, alot of baby boomers are moving to places like Norfolk to retire and can't sell their homes so after about a year on the selling market the then get advertised for rent. Very common trend indeed.

That isn't a bad investment though. £100x12x25 = 30,000 over 25 years. If she comes out with a £200,000+ house she has done alright.

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That isn't a bad investment though. £100x12x25 = 30,000 over 25 years. If she comes out with a £200,000+ house she has done alright.

So its always going to be cheaper to rent then buy then? Interest rates will always stay low? Tenants always stay with you and the property is NEVER empty? General maintenance on the properties gets repaired by the 'pixies'? Council tax is in the decline?

Well if that's the case - yeah I agree! ;)

TB

Edited by teddyboy

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That isn't a bad investment though. £100x12x25 = 30,000 over 25 years. If she comes out with a £200,000+ house she has done alright.

You also seem to forget, she isn't taking into account periods with no tennants, maintainance costs. The property is also in a very rough area that is (even over 20 odd years) unlikely to see that kind of price rise. Also have you thought about how much that £100 PCM plus her £10,000 deposit would make on the stock market over the same period?

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You also seem to forget, she isn't taking into account periods with no tennants, maintainance costs. The property is also in a very rough area that is (even over 20 odd years) unlikely to see that kind of price rise. Also have you thought about how much that £100 PCM plus her £10,000 deposit would make on the stock market over the same period?

But you can only invest £100pm during the time when the rent is lower than the mortgage.

Once the rent goes up above the mortgage the tenant will be donating extra money to invest.

Also, look at the sm crash in 1987 and the dive in 1999. Stocks go up as well as down. Rents usually go up.

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  • 336 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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