So sellers will just 'stay put' in the current market, eh?

m00m00

!!!!!!? wrote: »

Yes I know of a couple of people doing this. They are also not declaring the rent as income to the Inland Revenue. I'd imagine that the situation is quite widespread.

It's fraud with regard to the mortgage and tax evasion with regard to the rental income not declared to the IR.

Not really something I'd recommend. If something goes wrong (and many things can) then you are in a whole world of trouble with the law. Anyone doing so better keep their tenants extremely sweet.

in the case of the property I was involved with, it was the tenants who informed the mortgage company of the situation, after a dispute with the landlord

bluejake

Just to add if the tenant is claiming housing benefit, and the landlord may not know if they are or not, housing benefit will inform the Inland Revenue.

Gorgeous_George

The population need a number of houses. Debt worries increases the divorce rate so we will need more houses. This may be countered by eco-immigrants moving out of the UK.

Dead people do not need houses. New people looking for independance, getting married or choosing to live together counter the dead people.

STRs need to rent. Neutral impact just as BTLers needed to let.

Perhaps a cold winter and rocketing fuel prices will speed up the dead people (or is that slow them down?). Maybe this will lead to a glut of bungalows and dated houses in need of gutting, coming onto the market.

In short, demand for homes will not change much. If it falls slightly, this will be countered by builders choosing not to build new homes.

Prices are no longer dictated by demand nor by affordability (of mortgage repayments). It's all about how much those very nice people at the banks are prepared to lend. That is falling and prices must follow. If they lend half as much, prices will be half as much. Imagine if they lent nothing - ever.

back to the football.



GG

Davesnave

8% may plan to sell, but that will include people like those in 3 houses within just a few roads of mine who, according to Rightmove data, went on the market around January, but had all withdrawn by the end of May. Clearly, they wanted to move, but when people weren't interested in buying at their prices, they were content to 'wait for things to improve.'

I think these folk will be waiting a long time, but if the pattern is repeated, then in my town alone there will be hundreds like them.

On the other hand, as a vendor who has his place priced 'attractively,' I know how few viewings are happening. I've been SSTC three times in the last few months, or have I? In one case the buyer was just 'reserving' the house till they'd seen and offered on a few more. The other two have not bought and now seem to be staying put, or renting.

I'll probably drop my price further, as viewings seem to be drying up again, but I'm not a distressed seller and I don't need to move; it's just the prospect of further falls that keeps me going. Naturally, I'm monitoring properties in in my target location, but apart from one, which was a distressed seller, I'm not seeing anything exciting enough to turn me into a buyer. The prospect is STR, which isn't hugely motivating, but it's still better than my neighbours' policy of 'waiting for things to improve.' They won't!

inmypocketnottheirs

Gorgeous_George wrote: »

The population need a number of houses. Debt worries increases the divorce rate so we will need more houses. This may be countered by eco-immigrants moving out of the UK.

Dead people do not need houses. New people looking for independance, getting married or choosing to live together counter the dead people.

STRs need to rent. Neutral impact just as BTLers needed to let.

Perhaps a cold winter and rocketing fuel prices will speed up the dead people (or is that slow them down?). Maybe this will lead to a glut of bungalows and dated houses in need of gutting, coming onto the market.

In short, demand for homes will not change much. If it falls slightly, this will be countered by builders choosing not to build new homes.

Prices are no longer dictated by demand nor by affordability (of mortgage repayments). It's all about how much those very nice people at the banks are prepared to lend. That is falling and prices must follow. If they lend half as much, prices will be half as much. Imagine if they lent nothing - ever.

back to the football.



GG

Absolutely.

I remember working in Estate Agency in the late 70's early 80's, when the mortgage market really was very different to how it has been the last ten years or so.

Actually I see that we a re probably returning to that kind of market, where property prices are determined more by what people can borrow against them than by supply and demand.

neverdespairgirl

inmypocketnottheirs wrote: »

Actually I see that we a re probably returning to that kind of market, where property prices are determined more by what people can borrow against them than by supply and demand.

That *is* supply and demand!

Jazzypap

It's easy to place comments from surveys, which are all highly suspect at the best of times. But it appears they are posted when it fits with the asperations of some on this site.

To counter, quoted from London & Country:

"As household costs such as food, utilities and fuel have risen, so the option of having your mortgage payments fixed, has looked more appealing. However, this peace of mind looks likely to get more expensive, as recent inflation figures have caused many experts to revise their interest rate predictions for the year.
Only a few months ago Base Rate forecasts of 4%-4.5% for the year end were common, but now some experts are speculating on how many base rate increases we’ll see before inflation is under control. These gloomy predictions have caused a stir in the money markets where swap rates, (which influence the price of fixed rate mortgages) have surged to their highest point this year.
Some lenders, such as Nationwide, Abbey and Woolwich have been quick to react to this, and have increased their fixed rates. Our advice remains as it has been for much of the year but with added urgency; If you are buying a property or your current deal is coming to an end in the next six months, act now as things are likely to get worse before they get any better".

And to counter the original OP, you can consider the following, quoted from the same source:

"The survey also said the lack of new instructions to sell property continued to provide the market with some support in the near term. Large numbers of distress sales (either repossessions or sales from those attempting to avoid the repossession process) had not taken place and this lack of supply will prevent significant declines in house prices".

To summarise, it's easy to find a counter argument if you look for one and it least provides a balanced viewpoint.

inmypocketnottheirs

neverdespairgirl wrote: »

That *is* supply and demand!

Correct. Not a 100% this morning!

pickles110564

m00m00 wrote: »

and the property I bought in March 07 was repossesed from someone who had done this very thing, and then their mortgage company found out, and called in the loan ......

As you bought in March 07 you would be a perfect guide to how far the market in your area has fallen.
Are you nearing NE or are you still in an excellant position?

pickles110564

baby_boomer wrote: »

Who knows? Estate Agents might even start cutting their fees to stay in business.

I bet you are wrong. They are one of the main reasons HPI was ramped up in the first place.