End to Hips boosts homes for sale

brit1234

End to Hips boosts homes for sale

By Vanessa Houlder
Published: May 30 2010 22:43 | Last updated: May 30 2010 22:43

The number of properties coming on to the market soared by more than a third after the suspension of home information packs this month, according to a property website.

The supply of property was also likely to rise due to the planned increase in capital gains tax, although much depended on its timing, estate agents said.

Rightmove, a website that displays 90 per cent of properties for sale, said new listings on its site went up by 35 per cent in the seven days following the announcement about home information packs on May 20.

The new government said the packs, which had been introduced in 2007 with the aim of speeding up the selling process, were “expensive and unnecessary”.

Miles Shipside, commercial director, said many more speculative sellers were bringing their properties to market, apparently because the “additional cost and red tape” had previously put them off.

Hamptons International, an estate agent operating in prime areas, said its new instructions had increased by a third in April in spite of an expected slowdown in the market ahead of the election.

The rise in stock came ahead of an expected increase due to the planned capital gains tax changes and the suspension of home information packs.

The Con-Lib coalition has said that capital gains tax on non-business assets will rise from 18 per cent to levels “similar or close to those applied to income”, suggesting it could rise to 40 per cent or 50 per cent.

Marc Goldberg, head of sales, said demand remained healthy, suggesting a buoyant summer market. Low interest rates and a weak pound had increased the number of potential buyers from Britain and overseas.

But he anticipated a shift in power from sellers to buyers. “Price rises of around 14 per cent in the last year have been fuelled by an extreme imbalance of supply and demand. But the recent trend of increasing stock is removing inflationary pressure and we expect prices to remain flat for the rest of 2010.”

Hometrack, a consultancy, said house price rises in May were limited to less than a fifth of the market and had been concentrated in London and the south east. Across the rest the market, prices had been flat in a subdued market.

Nationally, average house prices rose by 0.2 per cent in May, following a similar rise in April. The year-on-year rise was 2 per cent.

Changes to capital gains tax were the biggest threat to the market, along with the possibility of higher interest rates, it said.

Many investors would have insufficient time to crystallise their gains if the tax rise took effect from next month’s emergency Budget, as the average time a property stayed on the market was 8.3 weeks, unchanged for the third consecutive month.

A delayed rise in capital gains tax could result in a “surge” of property coming to the market, it said.

However, Hometrack said this was unlikely to put a lot of downwards pressure on prices, given the size and nature of the second home and rental markets. The rush to crystallise gains would be muted in some markets because prices for city centre flats were well down on mid-2007 levels.

First-time buyers and those needing large mortgages faced continued problems buying property, but the housing market could keep “ticking over” for the rest of the year from purchases by buyers with no or small mortgages.

http://www.ft.com/cms/s/0/a3a28aa4-6c1f-11df-86c5-00144feab49a.html

[Deleted User]

so the next problem will be over supply,one thing that has helped stop prices falling further has been lack of supply in some areas,add to that probable rises in CGT and interest rates rising to 3.5% by next year(with mortgage rates at 7-8%) and i`m afraid you have a recipe for disaster.

brit1234

StiflersMom wrote: »

Duplicate thread - please learn to use the search facility

This hypothesis is already discussed (and rubbished) in detail here:
https://forums.moneysavingexpert.com/discussion/2499909

Yeap apart from this story was 44mins old on the FT site when I posted. In addition it was far more indepth with lots more sources about big increases in supply.

Sorry I could make fictious threads next time like you rather than multi source articles. I will try harder to lower my standard of posts to meet your approval.

Lets hope this big increase in supply will bring prices down faster.

new_home_owner_3

Its great news no hips, btl landlords panicking and putting their houses on the market and also better rates for first time buyer mortgages, this could be the time to buy, if you have been waiting for the past 3 years..

good luck to you all.......:T

PhylPho

new_home_owner wrote: »

Its great news no hips, btl landlords panicking and putting their houses on the market and also better rates for first time buyer mortgages, this could be the time to buy, if you have been waiting for the past 3 years.:T

Well, uh, assuming you're in any position to finance the purchase of a property bought today over the next 3 years. As that legendary expert on house prices, Clint Eastwood, once said:

'Well, punk. You have to ask yourself. Are you feeling lucky? Or. . . ?'

new_home_owner_3

PhylPho wrote: »

Well, uh, assuming you're in any position to finance the purchase of a property bought today over the next 3 years. As that legendary expert on house prices, Clint Eastwood, once said:

'Well, punk. You have to ask yourself. Are you feeling lucky? Or. . . ?'

If you have been waiting and saving for the last 3 years you should have a nice big deposit to put on a decent first time buyer mortgage like the coop 3.99 percent five year deal, if i was in that position i would be jumping straight in, and i would be saying "make my day suckers";)

Blacklight

Yup, all those speculative sellers dipping their toes in to test the water will be falling over themselves to sell at vastly reduced prices. Particularly when they don't have to.

Makes perfect sense.

brit1234

new_home_owner wrote: »

If you have been waiting and saving for the last 3 years you should have a nice big deposit to put on a decent first time buyer mortgage like the coop 3.99 percent five year deal, if i was in that position i would be jumping straight in, and i would be saying "make my day suckers";)

Mortgage Co-op bank link
http://www.co-operativebank.co.uk/servlet/Satellite/1193206372574,CFSweb/Page/Bank-Mortgages?WT.svl=copy

Thats pretty good going to save a 25% deposit £1,000 in fees, the other costs, feed yourself and pay rent in just 3 years. new_home_owner this link sums up your world
http://www.youtube.com/watch?v=bs_sB-oq5_I&feature=fvw

Blacklight

brit1234 wrote: »

Thats pretty good going to save a 25% deposit £1,000 in fees, the other costs, feed yourself and pay rent in just 3 years. new_home_owner this link sums up your world
http://www.youtube.com/watch?v=bs_sB-oq5_I&feature=fvw

It's about £350 a month based on two people buying a £100k place.

Hardly fantasy land.

System

Blacklight wrote: »

Yup, all those speculative sellers dipping their toes in to test the water will be falling over themselves to sell at vastly reduced prices. Particularly when they don't have to.

Makes perfect sense.

Indeed, if people are only putting their market on now that it doesn't cost them a few quid then they can hardly be desperate to sell. I wouldn't assume they are going to take anything less than asking price or damn close to it.

Pete111

Re the CGT thing. Am I right in saying that back in early 2007 CGT was 40%?

If so and bearing in mind that buy to let mortgages were as rare as hens teeth from 2008, aren't the number of quick buck seeking BTL landlords who factored 18% CGT into their equations likely to be fairly limited in number?