A CHALLENGE TO ESTATE AGENTS TO IMPROVE THE HOUSING MARKET IN THE UK
We all deserve a better housing market in which to find and purchase houses and flats for ourselves so I now challenge all estate agents and the landed professions to a full debate on the merits of my prescribed solution to the present and unacceptable house-price crisis, as well as to discuss the pressing need to correct the insufficient number of houses currently being purchased for owner occupation.
“There’s currently NO genuine competition between sellers who employ their own agents, as happens at present. I propose that instead, estate agents should be working for buyers in a similar way to travel agents and sales of tickets in the airline industry.” Travel agents help travellers to find the best value holidays for their chosen destinations. This is what should also be happening with housing.
House prices themselves should find a level based on real competition. For this to happen, housing should be priced in a similar way to the methods used in the travel industry.
Fair competition should be introduced into our housing markets so as to achieve best throughput in the market, whilst maintaining price stability by using The House Price Solution.
Here is the essence of what I am saying by using this method.
It involves a complete and permanent change in the way estate agents deal with residential house sales.
As far as residential sales are concerned, to use this solution, only Registered House Agents (RHAs), would be licensed to deal with residential sales & purchases. The key difference is, this would involve a new type of agent which would always be acting for the purchaser rather than the vendor.
Existing Estate agents could continue to offer both sales and management services to all their existing clients except on residential or part residential property sales. In other words, sales of all types of property other than residential property may be dealt with in exactly the same way as before by existing estate agents.
Only Registered House Agents (RHAs), would be licensed to act in dealing with the sale and purchase of residential property. They would also be licensed to manage such property.
Those licensed to act in such matters would be expected to have passed a new qualification prior to obtaining a license to carry out this type of business.
You may ask in this case, would anyone else be allowed to act on behalf of those wishing to buy or sell residential property?
The answer is no. Market forces will be harnessed to act both for sellers as well as buyers by using different and competing Registered House Agents, tasked with the work of obtaining for their clients, the best combined buy and sell prices in the market whenever moving house.
Competition would be achieved because the selling process would normally be done using a separate and competing RHA in every case.
Whereas selling residential property may only be carried out by Registered House Agents (RHAs), existing professional buying agents may continue to operate as normal by negotiating terms of purchase on behalf of buyers as they do at present. The difference for them would be that they would be dealing with Registered House Agents when buying rather than with estate agents as at present.
This unique plan is designed to eliminate the exaggerated house prices which are being quoted and are seriously damaging our housing markets.
By stabilising prices in this way many more people would be able to transit between properties, as and when they may need to.
Your thoughts are welcomed on this new idea for smoothing rising house prices whilst helping to stabilise the capital values of privately owned residential property as part of this process.
How to Improve all local housing markets across England and Wales
Posted by: Peter Hendry, Housing Valuation Consultant
Author of:– The House Price Solution (otherwise known as The Hendry Solution).
What do you think about this idea for drastically improving the operation of all housing markets potentially across the whole of Britain?
Constructive comments are very much welcomed.
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