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TODAY'S OTHER NEWS

House Prices Tumbling - two indices in two days show big falls

Two respected price indices have shown capital values tumbling in the housing market. 

This morning’s RICS residential survey shows overall activity continuing to weaken across the sales market, with higher interest rates and a difficult macroeconomic outlook both taking their toll on buyer sentiment. 

For the seventh month in a row, buyer demand continued to fall, with the net balance coming in at minus 38 per cent. 

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Whilst this is less negative than the minus 53 per cent reported in the previous month, the market remains in a firmly downward trend with indications that this will continue in the near term.

For agreed sales, a national net balance of minus 35 was reported over this survey period indicating a continued decline in sales activity. Again, this is marginally less negative than the reading of minus 45 per cent posted in October, but this is also the second month in a row that respondents across every UK region reported a decline in agreed sales, demonstrating what RICS says is now a consistently negative picture at the national level.

The survey’s measure of new instructions coming onto the sales market also remains in negative territory, posting a net balance of minus nine per cent at the national level. 

That said, given the drop-off in sales volumes of late, average stock levels on estate agents books ticked up marginally in November (moving from 34 to 35 properties).

Over the coming twelve-months, an aggregate net balance of 61 per cent of contributors foresee a further decline in house prices.

Simon Rubinsohn, RICS chief economist, comments: “The overall tone of the latest RICS survey is understandably more downbeat than previously, reflecting the uncertain macro environment and the higher cost of mortgage finance. However, anecdotal comments from respondents capture the very real significant divergences in market behaviour at a more localised level.

“Although the headline price balance recorded two consecutive modest monthly falls in prices, and the forward-looking series indicate that this trend will extend through the coming months, the likely 'job-rich' recession suggests the downturn in the housing market this time could be shallower compared with past experiences.”

However, the RICS survey comes hot on the heels of another market snapshot showing landlords’ capital values to have fallen as the sales market flounders.

The Halifax says house prices have fallen by almost £7,000 in one month as property values fell for the third month in a row in November, dropping 2.3 per cent according to mortgage lender Halifax.

The monthly drop in house prices was the biggest since October 2008, in the midst of the financial crisis. It was also the third-largest drop since Halifax records started in 1983.

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  • George Dawes

    So it begins ...

    The only asset most working class and middle class people have is their property , with the ridiculous agenda 2030 , net zero , epc crap etc etc in a few years your property will be in negative figures and you'll still have a nice big fat mortgage to pay off - with lots of added interest due to inflation , causing generations of hard working decent people to become serfs with nothing after all their efforts

    By 2030 the big corporations will control all property and they'll have exemptions that don't apply to us plebs

    Sounds like something out of a sci fi novel , sadly it's the future

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    I will be OK, and I hope the sytem will not be be making any more housing which will mean tenants will have to pay more money for a rental due to the shortages of accommodition.

    Keep renting.

     
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    December is not a good month to base predictions on - low volumes & Christmas distort the truth. Let's see where we are in February.

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    December was always a good month to buy though

     
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    Totally agree Tricia, when interest rate flattens out and cost of living reduces people once again will turn to buying their house.
    Bank of England predict that cost of living will be down to 2% in 2024, if not lower. If this becomes reality then stand back for a stampede of buyers and again house builders won't be able to keep up and we will have a further shortage of trades people and so the circle continues!

     
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    George, put EPC on the back burner many landlords will have been driven to extinction long before that even next year.
    The Conservative housing Secretary Michael Gove is backing the current labour Council’s to get rid of Private landlords and given special permission to some Borough’s to have Borough wide licensing schemes costing millions to private LL’s in the middle of winter adding to more homelessness not to mention the Recession and housing Market in free fall.
    This is apart from the forthcoming THE WHITE PAPER and abolishing of Section 21.
    This includes scrapping fixed term Tenancies / end of AST and removal of your Freehold ownership rights in other words confiscation of your let Property.
    The Private Rented Sector is a cash Cow for useless inept Council’s who couldn’t even sweep a leaf, still they at oblivious that they have sucked the life blood out of the Cow.
    Did someone say we have homelessness in this Country and created by Statute surely not.

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    This article rings true as both my kids are looking now, they are not selling at all near me with some sellers still in ‘ Pre-Liz’ mode in terms of prices.

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    Auctions are struggling to get to the inflated reserves in my area

     
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    Yes this is definitely the case for now, I believe this will be short term. Only time will tell if I am right.
    Tried to sell at auction a large house, no joy so it is being re-let this Friday.
    Property going through currently in Nottingham, might even complete before Xmas, sold at asking price.
    Had estate agents round this week, advised that house should go on market at offers over £280,000, if this went to market in the Summer would have been offers over £300,00.
    Tried to sell in 2018 for £225,000. I am happy to take around £280,000 for it though.
    If I don't get an offer in January I will simply re-let. This is in Bedford and a 1950's 3 bed end of terrace with ground floor full width extension.

     
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    Simon. Hold on not the time for panic buying been there seen that done it all.
    Tell them to wait a year it’s not a long time when they are making such a big commitment, keep saving.
    The worst time to buy is at start
    of a Recession, nothing more distressing than watch your purchase drop in value after you bought it.

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    You maybe right Michael but i would give good odds that prices will stabilise come the Spring.
    My advice would be look at as many houses as you can and put in cheeky offers, someone always needs to sell.

     
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    I agree Andy, never be afraid to put cheeky cash offers in then walk away and let them come back to you a couple of months down the road , that very often works well

     
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    Just gone through the Auction House East Anglia results, makes very interesting reading, in the past this has been a very good auction to sell through.
    A lot of unsold lots with high bid shown looking like they were run up to £2k below reserve, some unsold lots with no highest bid shown which I'm guessing means no bids received and a very large number '' postponed prior'' likely due to little or no interest shown in the run up to the auction, draw your own conclusions there .

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