No political party in power in the last 50 years has managed to curb excessive house price gains!!
I would define excessive house-price gains as prices that exceed inflation by over 2%. Most years have seen house prices outstrip this benchmark.
As everyone knows, increases in house prices running in excess of average affordability are currently in the headlines as these are of concern both for those hoping to buy as well as those hoping to move house these days. The effect is to reduce the volume of house sales, resulting in a stagnation of sales volumes across all areas of the UK.
Here’s how to overcome this problem:
Instead of estate agents working on how many houses they can list and gain instructions to sell or let, they should work on how many buyers and renters they can register.
This would be the change that the housing market has been needing for the past few decades.
Estate agents should then work with their new clients to find the best and most suitable properties currently available for them as their primary clients.
They could also then advise and negotiate appropriate prices or rents for them as clients, and present all such offers to the vendors (or the landlords).
This way, more buyers and tenants could be united with the houses that best suit their purposes. This, in turn, would help the housing market to function faster and better.
Turnover of properties going on the market would increase and prices should be more equitably regulated dependent upon the true demand from buyers and tenants..
In other words; instead of each agent trying to get the most, for as many houses as they can get instructions for, buyers should be gathered as their new clients to more correctly ascertain what are the best offers currently obtainable, for each house or dwelling.
Doing things this way would get the housing market to start operating more like an auction, where buyers truly compete with one another to win the use and occupation of each property being marketed.
In auctions, the buyer effectively pays the consideration as the auctioneer takes his commission from the price paid. (He does also take a listing fee from the seller, which is reasonable).
For more on this new idea and how it could change the housing market in England and Wales very much for the better, please see The House Price Virtuoso Solution (otherwise known as The Hendry Solution):
Improve The Housing Market in England and Wales.
How to Improve the Housing Market in England and Wales.
Your thoughts or comments are welcomed.
Peter Hendry, Consultant in Housing Valuation