Wednesday, Nov 01, 2006

estate agents warn against interest rate rise

in2perspective: estate agents warn against interest rate rise

estate agents running the country again!

Posted by sundance @ 08:07 PM (392 views)
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1. Surfgatinho said...

Absolutely unbelievable! What a complete tool. 10 years of out of control growth and they are complaining!
Actually it would be good news if this article went mainstream as it might convince a few sheeple that a raise in IRs would be very bad and actually have an impact on sentiment. After all EAs are experts on the property market!

Wednesday, November 1, 2006 10:21PM Report Comment

2. paul said...

You've gotta laugh.

"Housing market fundamentals are strong ... but the underlying trend is weak ... the housing market will maintain its value well .... but might not .... the figures we put out reflect a growing market as a whole ... but actually when it's not doing well it's isolated .. no ... errr ... I mean .... house prices never goes down in value .... ummm ... Gaaaaaaaaahh!"


Wednesday, November 1, 2006 10:46PM Report Comment

3. indiablue19 said...

Be charitable. Let's all remember there are absolutely no credentials nor qualifications necessary to being an EA. For obvious reasons.

Wednesday, November 1, 2006 11:22PM Report Comment

4. paolo88888 said...

These comments reveal either an awesome complacency, or misunderstanding of the basic mechanism of public debate. A rational president of the NAEA would look for reasons to keep rates low from the readers perspective, but phrases such as "A further rate rise could have a detrimental effect on the areas .." are obviously written from the perspective of an Estate Agent whose job it is to get higher prices. Hopefully the MPC will read this report and will appreciate that an interest rate rise may help people in these areas to buy a home.

Wednesday, November 1, 2006 11:22PM Report Comment

5. Nohpc said...

Obviously estate agents are going to say this. I don't know why anybody thinks what they say should be newsworthy. As mentioned above they don't need any credentials and most of can run rings around them intellectually. I make my own mind up based on a lot of different information but i certainly don't listen to estate agents. They are basically the exact opposite of you lot on here.. everything must be taken with a pinch of salt. My friend just sold a flat in london for 30 thousand more than he bought it a year ago. Minus expenses he has made 18 thousand profit in a year and he was a forced seller due to not being able to keep up with his repayments. He sold before the banks forced him to.

Thursday, November 2, 2006 01:19AM Report Comment

6. geed said...

Peter Bolton King appears to be a very, very worried man. I hope his worry is justified over the coming couple of years.

Thursday, November 2, 2006 01:32AM Report Comment

7. kpjcomp said...

There worried about a small 0.25% increase, does'nt that just prove how bad the housing market is.
I think it's great them moaning about it, if house's were such a done deal why would they be worried.?

Thursday, November 2, 2006 01:55AM Report Comment

8. denzil said...

kpjcomp said:
>>There worried about a small 0.25% increase

You are surely not suggesting that their comment is somehow timed for the MPC!?!

It's staggering that every time a rate rise looks likely groups start bleating. Do I personally think it will influence the MPC? Nah not a hope. My guess is the bleaters think the same but that still does not stop them bleating.

Thursday, November 2, 2006 08:54AM Report Comment

9. the bald man said...

Its a sad state of affairs that a buoyant hosuing market is only only thing taht supports Gordans mircale economy.

Thursday, November 2, 2006 09:09AM Report Comment

10. Gordanbrownkilledtheeconomy said...

very true bald man, gordan has alot to answer for. As a non - home owning 24 year old a rate rise will benifit me as it will increase my returns on my investments and hopfully cool the market so i can get to a point where i can afford to buy a house with a sensible level of risk.

Thursday, November 2, 2006 09:19AM Report Comment

11. inbreda said...

NoHPC - I really don't understand where you get your views from.

You don't think there will be a HPC, and yet you have a friend who is a forced seller because he couldn't keep up repayments?!?!?!

Just because he made a profit, doesn't mean that every forced seller will be able to. The demand and supply equation of the market is currently highly susceptible to tipping. If your friend couldn't keep up repayments with IRs as they are now, then imagine if he had got a %x mortgage from the Abbey !! And imagine if interest rates went up - he definitely wouldn't be able to keep up repayments. Think of the number of people who would become forced sellers in this circumstance - all of a sudden more supply less demand, and you have a market on the turn.

The fact that you know someone who is a forced seller with interest rates at such a low and yet you don't think there will be a HPC absolutely amazes me.

Thursday, November 2, 2006 09:35AM Report Comment

12. Nohpc said...

He was a forced seller for unusual circumstances. I won't go into it but what happened to him is not going to happen to the british public as a whole forcing them to sell. He could easily make the payments on the salary he was getting even with several more rate rises.

Thursday, November 2, 2006 10:29AM Report Comment

13. Chillilizard said...

Two years ago I predicted a house crash... It didn't happen. After that I seriously wondered why the hell the crash didn't happen.

What I've decided is that if there is a crash, I can't really take credit for predicting it, as it hasn't happened yet.

I'm not sure there will be a crash, even considering the poor state of the economy. We aren't the same as the US. We have oversupply but not in London. We have a fresh wave of immigrants just waiting for their chance to live here. That will drive prices up even further.

What I figure now, is we'll inflate our way out of this. The increase in money supply has hit an all time high. The MPC seem happy with inflation above the supposed target set by GB.

Hell - just take a look at bus fare - 3 years ago it was 70p. Now its what?? 1.20?

Thursday, November 2, 2006 10:50AM Report Comment

14. indiablue19 said...

The thing about "forced sales" is that some will always be forced regardless of the interest rates or economic conditions. People do have to move on at times for a world of reasons -- growing families, divorce, unemployment, change of employment, etc...... THEN add to these the assinine mortgages being proferred that some already can't keep up, and the probability of worse economic climate, including rising interest and further unemployment -- why WOULDN'T we have an HPC is more the question.

Thursday, November 2, 2006 11:26AM Report Comment

15. ontheotherhand said...

The National Association of Estate Agents can't have it both ways. Either house price inflation should have always been a constituent of the CPI inflation that the MPC considers, in which case they would have raised interest rates much more agressively, or house prices are nothing to do with inflation and therefore nothing to do with the MPC or the National Association of Estate Agents.

Thursday, November 2, 2006 11:28AM Report Comment

16. sold 2 rent 1 said...


I said last week that I thought Nohpc was a HPC believer.
He is always banging on about "good long term investment."
"Good long term investment" is another phrase for "poor short term investment"

Thursday, November 2, 2006 11:29AM Report Comment

17. indiablue19 said...

sold 2 rent 1.....

Yes, I have obvserved something similar. Overall, our Nohpc friend appears to want to sell commercial property investment as a great vehicle for those who are really only deciding how to have a viable home at a decent price, and soon, not become the sole owner/operator of the LetaLife portfolio as a hedge against the crash.

Thursday, November 2, 2006 11:55AM Report Comment

18. inbreda said...

Maybe he's had his house on the market for two years and nobody has bought it. Wrong site to be drumming up business though!

Thursday, November 2, 2006 01:12PM Report Comment

19. george monsoon said...

Its an odd situation we are in. The people that I know who were Lucky enough to buy before the surge ("Lucky" being the correct term) seem to have no concept of the notion that prices can fall. Some of my closest friends are sitting on a house that is "valued" at three times its sale value, when they originally bought. Because of this they are preaching to anyone wishing to climb the ladder that "you can't go wrong with bricks and mortar". People by nature will not question something that works for them as long as it is working for them. We on the other hand who are in no position to buy due to the hike in property prices have a vested interest in finding out why its not working for us and what we can do about it, so to that end, we are better informed of the facts.

You cannot blame NoHPC for his opinion, because he is lucky enough not to be in our situation. He is happy with his lot. Coming on here telling us that he is right and we are wrong does come across as a little bit purile, but even if he is not aware of it, he will be learning a little bit about the true situation that the country is in, where the majority of "im alright Jack's" out there are oblivious.

Someone coined a great name for the unlearned masses - Sheeple LOL....

anyone have any other views on this?

Thursday, November 2, 2006 03:12PM Report Comment

20. jimmytennor said...

I agree with you to some extent, George - but I'm sure I wouldn't be as confident in my investment unless I planned to stay in the same property for many years to come...

Thursday, November 2, 2006 03:18PM Report Comment

21. george monsoon said...

Jimmytennor - Thats old school thinking, saving for a rainy day isn't even considered by the under 25's . They live in a world of spend now pay later.. (Tongue in cheek ;O)

My eldest lad has just turned 18. At present, his world is rosey, he is studying at college, and has no worries, but I have already made him aware of the volatile housing market and the dangers of easy credit. Its our responsability as parents to teach our children how to manage their money. The Schools are useless, because they are told to teach what the government wants to teach them

Thursday, November 2, 2006 03:59PM Report Comment

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