Cyclone Posted March 14, 2013 Share Posted March 14, 2013 Quite,but if people see a demand for the house they want to sell then they'll ask more for it... The way it should work is that if they ask too much, it fails to sell, if they ask the correct (market) rate, then it will sell, if they ask too little, it will sell very quickly. Just asking more for it doesn't make it happen, nor does it create a bubble. ---------- Post added 14-03-2013 at 08:40 ---------- I'm the same. I own a house and I wouldn't care if the market tanked. If I wanted a new property prices are generally relative at the modest end of the market. The great advantage of the long overdue price correction would be obvious. Anybody who argues there is anything sane about the current housing market is insane. ---------- Post added 13-03-2013 at 23:38 ---------- If people want to build homes for themselves too then great. No the homes could be a reasonable size. Kit homes are cheap and good quality. You would be surprised. I'd be very surprised. And the reason why is that I've been reading about and investigating self building for several years now and you appear to be talking rubbish. As for the land I'd say land that has been unused for a certain time in areas zoned for residential properties should be punatively taxed, maybe even confiscated if that is what it takes to bring it into use. Radical solutions are needed. There is very little unused land that could be immediately built on (ie is already designated for house building). Defining not used is fraught with problems anyway, it would be so easy to avoid it as to be pointless. Link to comment Share on other sites More sharing options...
I1L2T3 Posted March 14, 2013 Share Posted March 14, 2013 The way it should work is that if they ask too much, it fails to sell, if they ask the correct (market) rate, then it will sell, if they ask too little, it will sell very quickly. Just asking more for it doesn't make it happen, nor does it create a bubble. ---------- Post added 14-03-2013 at 08:40 ---------- I'd be very surprised. And the reason why is that I've been reading about and investigating self building for several years now and you appear to be talking rubbish. There is very little unused land that could be immediately built on (ie is already designated for house building). Defining not used is fraught with problems anyway, it would be so easy to avoid it as to be pointless. No need to be so shirty. There is a lot of land owned by big housebuilders with planning already in place for hundreds of thousands of units. They are just sitting on it. If they don't want to build then let others. The space is there to build but is not being utilised efficiently. It's kind of one of the areas I thought you were driving at with comments about changes to land use, planning etc... I mentioned kit homes so look here: http://www.scotframe.co.uk The Acacia 2 bedroom bungalow kit costs £15k with mid-range insulation. Of course you need to do the groundwork and get services in, and pay for the assembly of the house. Then you have to fit the house out with wiring plumbing etc... but £50k for a small 2 bed bungalow built from a kit is a reasonable estimate. Link to comment Share on other sites More sharing options...
truman Posted March 14, 2013 Share Posted March 14, 2013 The way it should work is that if they ask too much, it fails to sell, if they ask the correct (market) rate, then it will sell, if they ask too little, it will sell very quickly. Just asking more for it doesn't make it happen, nor does it create a bubble. This isn't at odds with what I said...if there's demand for a particular property or type of property or area then the price people will ask will rise..again if the demand is there then the propective purchaser will pay this higher price..laws of supply and demand..are you saying that in the past loads of houses have been sold at a price different to the market value? I don't see how they could be sold for anything else.. Link to comment Share on other sites More sharing options...
andysm Posted March 14, 2013 Share Posted March 14, 2013 As lot's and lot's of landlords have said recently, the best tenants are the housing benefit tenants... That is likely to change soon. The government are changing the rules so that housing benefit will soon be paid to the claimant, not the landlord. A trial run of this new scheme in Wales was a disaster with rent arrears rising by 700%. Evictions are also likely to rise. http://www.bbc.co.uk/news/uk-wales-21725686 Link to comment Share on other sites More sharing options...
Cyclone Posted March 15, 2013 Share Posted March 15, 2013 This isn't at odds with what I said...if there's demand for a particular property or type of property or area then the price people will ask will rise..again if the demand is there then the propective purchaser will pay this higher price..laws of supply and demand..are you saying that in the past loads of houses have been sold at a price different to the market value? I don't see how they could be sold for anything else.. You suggested though that a more fluid market would result in the vendors immediately asking for more, that shouldn't happen. Although that said, the low demand now should be reducing prices, they seem to be demand side inelastic to a huge degree though. ---------- Post added 15-03-2013 at 06:49 ---------- No need to be so shirty. There is a lot of land owned by big housebuilders with planning already in place for hundreds of thousands of units. They are just sitting on it. If they don't want to build then let others. The space is there to build but is not being utilised efficiently. It's kind of one of the areas I thought you were driving at with comments about changes to land use, planning etc... I mentioned kit homes so look here: http://www.scotframe.co.uk The Acacia 2 bedroom bungalow kit costs £15k with mid-range insulation. Of course you need to do the groundwork and get services in, and pay for the assembly of the house. Then you have to fit the house out with wiring plumbing etc... but £50k for a small 2 bed bungalow built from a kit is a reasonable estimate. Sorry, I didn't mean to be shirty, I just don't agree that it's at all possible to build very much of anything for the budget you suggest. Did you look up the range of costs/sqr foot that self build normally costs, that'll give us a much better estimate than the cost of a frame and saying that there's a lot more to pay on top. Link to comment Share on other sites More sharing options...
I1L2T3 Posted March 15, 2013 Share Posted March 15, 2013 This isn't at odds with what I said...if there's demand for a particular property or type of property or area then the price people will ask will rise..again if the demand is there then the propective purchaser will pay this higher price..laws of supply and demand..are you saying that in the past loads of houses have been sold at a price different to the market value? I don't see how they could be sold for anything else.. One of the now well documented factors in house prices was massive availability of credit. This allowed mortgage advances to rise rapidly rise beyond the traditional income multiples usually applied when making loans. Also lenders used lending processes that relaxed checking on mortgage applicants. So while you are right there will always be a traditional supply and demand element to the rises that alone can not explain the formation of a house price bubble because the money to fuel the bubble has to have come from somewhere and that was from an explosion of credit. The explosion of credit has allowed houses prices to detach from their true underlying value. Link to comment Share on other sites More sharing options...
MrSmith Posted March 15, 2013 Share Posted March 15, 2013 One of the now well documented factors in house prices was massive availability of credit. This allowed mortgage advances to rise rapidly rise beyond the traditional income multiples usually applied when making loans. Also lenders used lending processes that relaxed checking on mortgage applicants. So while you are right there will always be a traditional supply and demand element to the rises that alone can not explain the formation of a house price bubble because the money to fuel the bubble has to have come from somewhere and that was from an explosion of credit. The explosion of credit has allowed houses to detach from their true underlying value. I agree and it was all orchestrated by banks and governments in order to prevent a crash after the dot com bust, all they did was put off the inevitable and make it worse. Link to comment Share on other sites More sharing options...
PeteMorris Posted March 15, 2013 Author Share Posted March 15, 2013 I'd just like to congratulate everyone who has contributed to this thread. It's been highly civilised and conducted in a constructive manner, although not all of you agree with one another. Nobody's been insulted or been accused of trolling ...etc...It's really good to see...thanks folks! Ok, I picked up on a point that someone made about tenants on benefits being 'the best' tenants, and how a lot of landlords prefer to have them, rather than someone who's not on benefits. You only have to look in this forum, in the properties to let to see this is not the case. Fine if the house is a bit run down and the landlord is just looking to make a fast buck out of a property bought cheaply, cos they'll only get as much rent as the council/government deem necessary for that type of property. I've also noticed that landlords are steadily asking more and more rent for properties to rent, even in the last 12 months. I'm not entirely sure why that is, it's just something I've noticed. Again, have a look in the property to let section of the forum! Link to comment Share on other sites More sharing options...
MrSmith Posted March 15, 2013 Share Posted March 15, 2013 I'd just like to congratulate everyone who has contributed to this thread. It's been highly civilised and conducted in a constructive manner, although not all of you agree with one another. Nobody's been insulted or been accused of trolling ...etc...It's really good to see...thanks folks! Ok, I picked up on a point that someone made about tenants on benefits being 'the best' tenants, and how a lot of landlords prefer to have them, rather than someone who's not on benefits. You only have to look in this forum, in the properties to let to see this is not the case. Fine if the house is a bit run down and the landlord is just looking to make a fast buck out of a property bought cheaply, cos they'll only get as much rent as the council/government deem necessary for that type of property. I've also noticed that landlords are steadily asking more and more rent for properties to rent, even in the last 12 months. I'm not entirely sure why that is, it's just something I've noticed. Again, have a look in the property to let section of the forum! The to let section of right move confirms what you say, look at the nice properties to let and they are usually no DSS, My daughter pay over the odds for a nice flat because the properties she could afford where unfit for human habitation. (That might be just our high standards though) Link to comment Share on other sites More sharing options...
I1L2T3 Posted March 15, 2013 Share Posted March 15, 2013 I agree and it was all orchestrated by banks and governments in order to prevent a crash after the dot com bust, all they did was put off the inevitable and make it worse. Absolutely. With the way the markets work now when one bubble loses velocity they look for the next one. Makes me wonder what they will go for next. Link to comment Share on other sites More sharing options...
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