'HPI should be capped at 5%' - RICS

HAMISH_MCTAVISH

Graham_Devon wrote: »

Notice you have changed your tune on bankers though!

Carney was the best thing since sliced bread when he announced forward guidance. Now he announces he can and will use tools to dampen HPI, he's banker scum!

Not referring to Carney.

Referring to Thrugelmir's assertion that banksters could/should pressure surveyors into issuing lower valuations than market value.

wotsthat

the_flying_pig wrote: »

it does, i'll admit, irritate me when the usual suspects pretend to believe that an even vaguely sensible way to increase the number of houses being built is to push the demand side.

it's plainly a bonkers suggestion. the people who bang that drum on this site are all, to a man, only bothered about price.

You did cut my quote off mid sentence where I mentioned making planning easier as well.

grizzly1911

HAMISH_MCTAVISH wrote: »

Surveyors can only value property at market value.

Market value in the Royal Institute of Chartered Surveyors Red Book is defined as being....

“The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.”

What the crooked, profiteering, bankster scum think the value should be, or an artificial cap of 5%, bears no relevance to the actual value.

It is no surprise that valuers acting for the borrower will invariably value on the low side for rick safety. Those of the seller tend to err on the high side for their client and commission purposes..

I agree that an artificial cap may bear no relation to a perceived value but if it is all the buyer can raise the two will need to meet somewhere.

vivatifosi

N1AK wrote: »

Nothing other than a massive increase in house building in areas with excess demand is going to solve the problem.

Exactly. There is a fundamental problem with the market in that supply and demand are out of balance in parts of the country. The answers to this can be direct: build more houses, or indirect: incentives for organisations to create jobs in the regions for example. What is being proposed is the stupidest option.

CLAPTON

vivatifosi wrote: »

Exactly. There is a fundamental problem with the market in that supply and demand are out of balance in parts of the country. The answers to this can be direct: build more houses, or indirect: incentives for organisations to create jobs in the regions for example. What is being proposed is the stupidest option.

the balance of supply and demand determine the price

but you are right: the way to reduce the price is to increase the supply or reduce the demand

the only shortish term option is increasing supply although longer term moving jobs out of the SE should be an option

Graham_Devon

CLAPTON wrote: »

the balance of supply and demand determine the price

but you are right: the way to reduce the price is to increase the supply or reduce the demand

the only shortish term option is increasing supply although longer term moving jobs out of the SE should be an option

Short term they could reduce demand too.

Easy to do, just stop the schemes increasing the short term demand.

CLAPTON

Graham_Devon wrote: »

Short term they could reduce demand too.

Easy to do, just stop the schemes increasing the short term demand.

the equity HTB is only available for new builds: it seems that it is increasing supply although one can never be really certain.

the guarantee scheme doesn't come in until Jan so presumably hasn't actually increased demand yet.

and of course we could review the planning rules and scrap infrastructure charges and FTB subsidy for social housing.

Graham_Devon

CLAPTON wrote: »

the guarantee scheme doesn't come in until Jan so presumably hasn't actually increased demand yet.

Certainly has increased demand. Most commentators in the business are suggesting this is the case, with people buying now in anticipation of HPI or worries over HPI making their purchase more expensive in a few months time.

CLAPTON

Graham_Devon wrote: »

Certainly has increased demand. Most commentators in the business are suggesting this is the case, with people buying now in anticipation of HPI or worries over HPI making their purchase more expensive in a few months time.

It is often the case that anticipation of an increase in houses prices causes people to run out and buy so fulfilling the expectation.

Given however, the financials aren't yet available it must show that there was deposit money already available and suitable salaries and mortgages.

wotsthat

Graham_Devon wrote: »

Certainly has increased demand. Most commentators in the business are suggesting this is the case, with people buying now in anticipation of HPI or worries over HPI making their purchase more expensive in a few months time.

So all these people wanted to buy a house, had a deposit, access to finance but they waited for prices to increase before buying? They'll be cursing the doom and gloom commentators and wishing they'd ignored them.

I thought people in this position having waited for so long might have considered waiting just a few more months. I don't know if HTB 2 is/ will be the same deal but why give up the chance of a 20% loan at 0% and the chance to offset for five years?

Maybe it's possible that HTB although receiving some media (and forum) attention is a red herring masking what's happening in the wider economy. Things are picking up, so is confidence, people are willing to buy houses.