Land Registry Out 1100 26 Aug 11

ukcarper

asturdy2 wrote: »

not really, im from burnley and houses are being reduced and are still not selling so where the 12% increase comes from i dont know.

From the ones that are selling I suppose.

Pimperne1

Its always a bit difficult to work out over such a large area, for example there are over 1000 properties for sale in Burnley. If you take a smaller area of Burnley, say Burnley Wood, when you do a Rightmove search without "Sold Subject to Contract" you get 70 properties, when you include these then the number goes up to 77. I wouldn't be too surprised if about 10% of the properties on the market are actually selling if this was replicated over the other areas of Burnley and then that is probably is enough from which to draw information to make LRs case (they are comparing like with like sales after all not like the other indices).

DervProf

asturdy2 wrote: »

not really, im from burnley and houses are being reduced and are still not selling so where the 12% increase comes from i dont know.

You could have 10000 houses in Burnley on the market @ £20K, then reduce the asking price to £10. If just one house in your town sells for £22K, whereas just one sold for £20K the previous month, then that's a 10% increase.

Pimperne1

DervProf wrote: »

You could have 10000 houses in Burnley on the market @ £20K, then reduce the asking price to £10. If just one house in your town sells for £22K, whereas just one sold for £20K the previous month, then that's a 10% increase.

That's not how LR do there assessment Prof (unless I have misunderstood you). They work on repeat sales basis - ie the same house selling twice since 1995. Here's the methodology (although I kind of think you would know this so I might be barking up the wrong tree).:

http://www.landreg.gov.uk/FAQs/house-price-index/how-many-properties-are-compared

Thrugelmir

Pimperne1 wrote: »

The North East continues to take a hammering - now they really have had an HPC.

A fair number of southern btl'ers are no doubt nursing losses on their portfolios.

DervProf

Pimperne1 wrote: »

That's not how LR do there assessment Prof (unless I have misunderstood you). They work on repeat sales basis - ie the same house selling twice since 1995. Here's the methodology (although I kind of think you would know this so I might be barking up the wrong tree).:

http://www.landreg.gov.uk/FAQs/house-price-index/how-many-properties-are-compared

Major kok up by me, it's a 10% decrease.

Pimperne1

Thrugelmir wrote: »

A fair number of southern btl'ers are no doubt nursing losses on their portfolios.

No doubt there are some recent BTLers with negative equity but as they have no need or reason to sell then its not really a drama.

I have a couple of small flats on my books which I bought in 2007 (one from my daughter to move her up the market a bit) and they are worth less than I bought them for at the moment (although not negeq). I did try and move them on last year but couldn't really stomach taking a loss on something that would recover its value within a few years (and they make a net monthly profit).

Pimperne1

DervProf wrote: »

Major kok up by me, it's a 10% decrease.

Although that's not what I was getting at.

Thrugelmir

Pimperne1 wrote: »

No doubt there are some recent BTLers with negative equity but as they have no need or reason to sell then its not really a drama.

Maybe. However as majority are on interest only mortgages. When remortgaging, products on offer may not be so appealing.

Pimperne1

Thrugelmir wrote: »

Maybe. However as majority are on interest only mortgages. When remortgaging, products on offer may not be so appealing.

If they need to remortgage.