ESTATE AGENTS LONDON SAID IN LAST EDITION: PROPERTY POWDER KEGG WITH LIT FUSE

image

EVEN THE LENDERS WARN MINISTERS ON HELP TO BUY BUBBLE DANGER

The Building Society Association (BSA) said it was ‘critical’ to have a clear exit strategy from the Help to Buy mortgage guarantee scheme due to launch in January, which will give buyers access to 95% mortgages.
Paul Broadhead, his real name and head of mortgage policy at the BSA said: “Care is needed to prevent the actions taken today, inadvertently leading to a distorted housing market in three years’ time – a market where State intervention has artificially hiked prices.”In a quarterly survey, the BSA found that more than a fifth of first-time buyers who were questioned, said the best thing the Government could do is stop taxing their savings towards a deposit.

TRANSACTIONS UP BUT STOCK SHORTAGES WORRY AGENTS

And, there you have it! The key issue for estate agents across all of London remains a lack of stock. The BSA are in agreement with the figures supplied by HMRC (Her Majesty's Revenue and Customs).  Home sales ticked up 6% in May compared with April – and by 9% on May a year ago.
The figure is from HMRC but is not that simple and straightforward, as it is a provisionally “seasonally adjusted estimate” or in other words, not the real number and not the final estimate.

However, according to HMRC, there were 83,740 residential transactions in May. According to the them the seasonally adjusted number of transactions has been rising in recent months, although there was a slight dip in April and the latest figure remains a long way short of the 150,000 or so monthly transactions at the peak of the market during 2006 in terms of volume.
In 2006 the HMRC recorded 1,667,960 actual home sales. Last year, it recorded 932,010.
Those figures refer to housing transactions above £40,000, where Stamp Duty information was recorded.
Paul Smith chief executive of estate agency chain Spicerhaart, part of the estate agents London was optimistic pointing in the opposite direction, welcoming the “un-limited” loans and commented on the Lender sector of the market saying: “The strong increase in transactions (While supply is down and HMRC says so are sales?) is due, at last, to lenders doing what they should be doing – lending. The Government’s Funding for Lending Scheme is undoubtedly encouraging lenders to offer more attractive mortgages, and first-time buyers particularly are taking advantage of this. Then he broadened his opinion: “However, with 13% fewer properties coming on to the market than last year, we need more stock to sustain this significant boost in confidence.” O.K. You decide.
That, Mr and Mrs Smith is the crux of this artificially bloated and over-demand market we have created around ourselves, be warned, the slump is coming, if not, as suggested by estate agents in Bethnal Green, the artificially sustained demand over supply and the ever increasing prices through driven inflation will cause a crash unlike previously experienced.

WHO DO YOU CALL? GHOST BUSTERS - - - ?

So many opinions, so many different presentations, you need a fictional organisation, perhaps our own Ghost Busters to sort out the fiction from the facts and remove the scare from the overall market picture, that is about to turn to tomb stones according to some, it has become a conundrum with the different conflicting interpretations. For clarity, deliberate with your Nelsons estate agents in London.