Daily Mail - asking prices slashed

Windofchange

Nice little article on the mail online today. Of course, everyone saw it coming, no surprises, London couldn't go up forever etc etc.

http://www.dailymail.co.uk/property/article-4934348/Million-pound-homes-having-asking-prices-slashed.html

Yeah, it's the mail, blah blah blah, but sentiment (amongst other things) blew this bubble up, and I bet more than a few people have read this and shuffled a bit uncomfortably in their chairs.

I can hear the money press firing up already - negative interest rates? Help to buy 3 or 4 or whatever we're on?

Windofchange

I'm prophetic it would appear.

http://www.bbc.co.uk/news/uk-politics-41456555

Another £10 billion to help people onto the housing ladder, because heaven forbid the powers that be do something that will actually help young people and let prices fall.

padington

Windofchange wrote: »

I'm prophetic it would appear.

http://www.bbc.co.uk/news/uk-politics-41456555

Another £10 billion to help people onto the housing ladder, because heaven forbid the powers that be do something that will actually help young people and let prices fall.

I wonder if it's an extension or they are increasing funds currently available.

If this is all the tories have got they are doomed. Have they no clue ? They seem to intent on gifting Corbyn the key to number 10.

Windofchange

Like 3 - 400 grand high?

I pay a mortgage cheers, but no chance of hitting the next rung despite a joint income well into six figures. Not round London anyway. Everyone other than those getting out at the top needs a price drop. I'd happily lose 200k off our place to get 400k off our next one!

Graham_Devon

Windofchange wrote: »

I'm prophetic it would appear.

http://www.bbc.co.uk/news/uk-politics-41456555

Another £10 billion to help people onto the housing ladder, because heaven forbid the powers that be do something that will actually help young people and let prices fall.

House builders have been lobbying for an extension to help to buy. So it's no real surprise to see it announced in the tory conference that more money will be available for it.

All the evidence shows this has massively boosted the profits of housebuilders more than anything else it's done.

Look further and you'll see the buyers are now getting compensation for being miss sold HTB homes. The whole thing is simply a racket now.

What's really going on is this (all very recent stories)

House builders charge premium for HTB properties
https://www.ft.com/content/d763c9fa-7c31-11e7-9108-edda0bcbc928

HTB underpins housebuilders success
https://www.ft.com/content/d02187fe-880c-11e7-8bb1-5ba57d47eff7

Housebuilders become dependent on HTB cash
http://www.cityam.com/269811/housebuilders-have-become-hooked-governments-help-buy

UK house builders hope for more HTB cash
https://www.ft.com/content/38549050-a52c-11e7-9e4f-7f5e6a7c98a2


Let's face it, the tories aren't helping "young" people.

HTB purchases "trapped" and unable to remortgage
http://www.mortgagesolutions.co.uk/news/2017/02/14/help-buy-equity-loan-borrowers-trapped-underserved-shambolic-remortgage-market/

Etc etc etc

Windofchange

Graham_Devon wrote: »

House builders have been lobbying for an extension to help to buy. So it's no real surprise to see it announced in the tory conference that more money will be available for it.

All the evidence shows this has massively boosted the profits of housebuilders more than anything else it's done.

Look further and you'll see the buyers are now getting compensation for being miss sold HTB homes. The whole thing is simply a racket now.

What's really going on is this (all very recent stories)

House builders charge premium for HTB properties
https://www.ft.com/content/d763c9fa-7c31-11e7-9108-edda0bcbc928

HTB underpins housebuilders success
https://www.ft.com/content/d02187fe-880c-11e7-8bb1-5ba57d47eff7

Housebuilders become dependent on HTB cash
http://www.cityam.com/269811/housebuilders-have-become-hooked-governments-help-buy

UK house builders hope for more HTB cash
https://www.ft.com/content/38549050-a52c-11e7-9e4f-7f5e6a7c98a2


Let's face it, the tories aren't helping "young" people.

HTB purchases "trapped" and unable to remortgage
http://www.mortgagesolutions.co.uk/news/2017/02/14/help-buy-equity-loan-borrowers-trapped-underserved-shambolic-remortgage-market/

Etc etc etc

Couldn't agree with you more. I think that HTB is the next PCP scandal in waiting. Few years down the line when people are trapped in their rapidly depreciating 25% share of a London studio it will of course all be the fault of the banks. There'll be a picture on the front of the daily mail of a 30 something year old couple stood sulking with arms crossed infront of a designer oven. The salesman said you can't lose in property. Buy now, quickly, last studio remaining. Now, I don't think that the banks are angels, far from it, but ultimately they have been given free reign to helicopter cash to everyone through quantitive easing and emergency interest rates for the best part of a decade. What are they going to do?

And then there is the murky world of politics. Snouts in the trough the lot of them. I wonder deep down what May, Hammond, Carney etc really think is going to happen? Extend help to buy forever? Pile public cash into subsidising the property market? No money tree we are reminded. Except of course if you need £1.5 billion to keep your job, or you need a few hundred billion to bail out your mates in the banking sector, or £10 billion to prop up London studios. Oh, but they have agreed to freeze tuition fees at university hey - that's £250 a year saved. Don't spend it all at once.

Graham_Devon

Windofchange wrote: »

Couldn't agree with you more. I think that HTB is the next PCP scandal in waiting. Few years down the line when people are trapped in their rapidly depreciating 25% share of a London studio it will of course all be the fault of the banks. There'll be a picture on the front of the daily mail of a 30 something year old couple stood sulking with arms crossed infront of a designer oven. The salesman said you can't lose in property. Buy now, quickly, last studio remaining. Now, I don't think that the banks are angels, far from it, but ultimately they have been given free reign to helicopter cash to everyone through quantitive easing and emergency interest rates for the best part of a decade. What are they going to do?

And then there is the murky world of politics. Snouts in the trough the lot of them. I wonder deep down what May, Hammond, Carney etc really think is going to happen? Extend help to buy forever? Pile public cash into subsidising the property market? No money tree we are reminded. Except of course if you need £1.5 billion to keep your job, or you need a few hundred billion to bail out your mates in the banking sector, or £10 billion to prop up London studios. Oh, but they have agreed to freeze tuition fees at university hey - that's £250 a year saved. Don't spend it all at once.

The one amusing thing about this is that the extension to HTB was announced just after a speech on the merits of the free market.

Windofchange

Graham_Devon wrote: »

The one amusing thing about this is that the extension to HTB was announced just after a market on the merits of the free market.

Ridiculous isn't it.

mailmannz

Cant help but think that the developers have been instrumental in the ridiculous price increases of houses. Things like HTP and second charges have done nothing BUT increase prices!

Id prefer builders dropped their prices by 25% instead of offering no cash 25% deposits on houses not worth the price being asked for!

Conrad

So I've split my office and rent one halve to an Agent. I have a good laugh listening to them bemoaning greedy vendors that insist their special home is worth more than it is. It's a daily battle - those that say Agents push-up prices are largely speaking rot - Agents WANT keenly priced property - they don't get paid for non-selling over priced stock. Daily I hear them battle with ambitious vendors insistent their property is still going up and worth £100k more than the others in the road


It amuses me that people of forums tend to claim they are not bothered what their house is worth - this is just another virtue signalling myth like those proclaiming they are good drivers and would love to pay more tax

Conrad

mailmannz wrote: »

Cant help but think that the developers have been instrumental in the ridiculous price increases of houses. Things like HTP and second charges have done nothing BUT increase prices!

Id prefer builders dropped their prices by 25% instead of offering no cash 25% deposits on houses not worth the price being asked for!

Mortgage lenders factor-in new home incentives and in majority of cases they agree with the price property is sold for.


Trust me, surveyors love a down valuation if they can possibly find justification.