It is time to re-balance the price-anomalies in housing by letting the buyer become more fully aware.
Housing markets, certainly in all areas across the U.K., have been a living nightmare from any buyers perspective for decades now. As a property valuer, having worked since the seventies in property, I am now free to comment with no axe to grind in particular, concerning the ever increasing gap between buying power and asking prices.
Most of those whom I chat with are of the same opinion which is that the general lack of affordability is unacceptable. The notion of trying to bridge the gap by increasing borrowing ability is a non-solution. Instead house prices, especially for those starting off with their first homes, ought to become lower so that transactions may be concluded by more people requiring housing. The question of course is how may this be achieved in practice?
In brief, it may seem a clever idea to build more houses to try and satisfy more of the present demand but doing so will only have an affect on buy-prices once very many houses and flats have been constructed. Essentially therefore, using this method simply isn’t going to have much impact on house prices for a good while. The house builders themselves would, of course, have been well aware of this when first suggesting it but it does not have to be this way.
The best way to lower house prices sufficiently would be to make the actual process of finding and purchasing a new home to live in, much easier. Doing that is absolutely critical. I say that because that really is the elephant in the room when it comes to finding the way to make housing markets more price-efficient at long last. The present arrangements are old and should now be seen as being Dickensian or unsuitable in terms of their methodologies and it is that issue which needs to be fully addressed.
The modern way to cure the present house price anomalies would be to have a completely new breed of agent fully and exclusively representing the buyer instead of representing sellers. Prices struck in the market under such a new scheme would be entirely dependent on buyers’ purchasing ability rather than buyers + lenders ability as at present.
For more details of this exciting departure from the old regimes and a way of bringing new life to a moribund marketplace, please go to our article entitled:
The House Price Virtuoso Solution How house price stability may be achieved.
It is a full explanation of how to correct the present economic imbalances within the housing market and it provides reasoned explanations.
Posted by: Peter Hendry, Housing Valuation Consultant.
For arguments in support of these proposals please refer to: