More bad news for house prices

Flight2quality

First we hear there will be hundreds of thousands of council houses added to supply of housing reducing prices further. Then we hear insiders are pulling out.

Someone who has been renting a council house for years will be able to buy a house valued at 120K for about 80K. Adding to supply and reducing prices


http://www.moneyweek.com/investments/property/uk/bad-news-for-uk-house-prices-insiders-are-selling-14001


So when we see estate agents – the people on the inside track – trying to bail out in droves, the conclusion is clear. They wouldn't be doing it if they were bullish – in fact, they're freaking about the future for the housing market. And that has to be a very bad sign for UK property prices.

Aberdeenangarse

So an article from Moneyweek saying House prices will crash.......now there's a surprise!

Flight2quality

Aberdeenangarse wrote: »

So an article from Moneyweek saying House prices will crash.......now there's a surprise!

As usual very good argument (NOT) from the house price bulls why these points must not have any truth because of who wrote it.

Why not try something a little more well thought out next time?


Some of these council houses are going to be sold for 50% of their value at the moment.

Then 1 new house will be built for every one council house sold. So for every council house sold 2 new houses will be added to supply.

IveSeenTheLight

Flight2quality wrote: »

First we hear there will be hundreds of thousands of council houses added to supply of housing reducing prices further. Then we hear insiders are pulling out.

Someone who has been renting a council house for years will be able to buy a house valued at 120K for about 80K. Adding to supply and reducing prices

Flight2quality wrote: »

Some of these council houses are going to be sold for 50% of their value at the moment.

Then 1 new house will be built for every one council house sold. So for every council house sold 2 new houses will be added to supply.

I'm a little confused.
First you mention council houses that have been rented for years being sold at 66% of their value, then you mention that they will go for 50% of their value.

More importantly, I can't see the correlation where you say that for every council house sold, there will be 2 new houses added to the supply.

We can see from history that the RTB sell off of social housing resulted in creating a gap for the BTL market to move into.
We can also see that BTL did not replace the level of properties sold off via social housing. This just increased the pressure on rents and helped to hold back price increases previously.

Now we are seeing owner occupancy reduce, (assuming that they are selling to BTL), meaning that there are less private residential properties available.
Again the market is there for rentals because potential buyers cannot get the deposit requirements together.

Batchy

The estate agents are flapping as they are surviving off the scraps... they need more commission per transaction to keep their head above water.
The rental market is in growth, due to accidental landlords, but they are raking it in, so its a shame for them ... this accident! lol

At the end of the day, there are 60m people in this country and for every estate thats being built a block of flats gets knocked down, housing has not been increasing but the same rate as the population, therefore its expensive to live a single life, couples feeling a pinch are getting by. less holidays less new cars, but thats life.

Blacklight

Can you please add [moneyweek] to the title so we can ignore these posts in future.

Thanks.

ALIBOBSY

Aberdeenangarse wrote: »

P1ss off spammy danny

Made me laugh aberdeen lol. Love a bit of whitty rhyming.

I reckon estate agencies on the hight street will eventually become obsolete no matter what happens to the market.
Most people already look to the web for house purchases, eventually the market will start to move again and I reckon one of the big boys or even an outsider will set up an online estate agency-completely online and advertise the hell out of it to push in national. Once something like that becomes the normal way of buying/selling the EA on the high street are screwed.

Ali x

geneer

Blacklight wrote: »

Can you please add [moneyweek] to the title so we can ignore these posts in future.

Thanks.

:rotfl:Yeah. You bulls sure are good at ignoring those money week articles.

Page after page of grumbling and ad hominem attacks each and every time.
Thats some fantastic ignoring going on.

googler

danieljbourne wrote: »

their mission is to revolutionise estate agency

They've got a long way to go, then, with a total of only 18 properties for sale in total......

HAMISH_MCTAVISH

Flight2quality wrote: »

1 new house will be built for every one council house sold. So for every council house sold 2 new houses will be added to supply.

:rotfl:

1 existing house + 1 new house does not = 2 new houses added to supply.

grimsalve

Flight2quality wrote: »

Someone who has been renting a council house for years will be able to buy a house valued at 120K for about 80K. Adding to supply and reducing prices

Except they won't be able to get a mortgage... unless Cameron is also planning on doing something about the banks too?