Without house price stability, people cannot move, at times when they ordinarily would. We can see this clearly at present owing to market stagnation.
Worse, all the allied trades, including estate agents, are unable to trade successfully as the housing market goes into the doldrums, at approximately 7 year intervals.
The idea of owning your own home (rather then just renting it) is partly so that YOU can decide when you want to move, and where to. It’s also to enjoy a return on your investment, over time of course.
I am concerned about helping large numbers of people, by creating a perfectly stable housing market that stays ‘stable in throughput’, no matter what the rest of the economy is doing over time. This has never been achieved before but at ImproveTheHousingMarket.co.uk we have discovered the correct formula to achieve this.
In essence, the estate agents past model, which is fatally flawed, has been to try and create a price stable market, with generally increasing asking prices.
The result, which we can all clearly see, is massive house price growth followed by stagnation in demand as prices fall back, sometimes over several years.
By comparison, my idea is instead to have a market that is primarily stable in throughput and that asking prices should reflect that. This would mean that people could move between houses more easily, whatever the prevailing prices, because prices should, of course, always be relative at any one point in time. Instead of using agent’s (or client’s) psyched-up prices, true market-driven prices, can instead generate a continually moving housing market and thus provide the ability for people and families to change between houses quickly, in any state of the market.
In my proposed model, asking prices would be capable of better self-correction than happens at present but because all the asking prices would stay close to each other, relatively speaking and everything would work more satisfactorily.
Additional advantages would become available, especially for first time buyers, as when prices are more stable, they would be able to get onto the housing ladder more easily.
My proposal for the way housing in England and Wales should be marketed, is based on changing from vendor-centric estate agencies to buyer-oriented ones as described in The House Price Virtuoso Solution. This would not cost much to implement and would bring massive benefits to all local marketplaces.
To read more about The House Price Virtuoso Solution (otherwise known as The Hendry Solution) go to the following link:
Improve The Housing Market.
How to Improve the UK Housing Market.
Posted by: Peter Hendry, Housing Valuation Consultant
Author:– The House Price Virtuoso Solution