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What is ‘new normal’ for housing market?

Here’s what they had to say on…

Housing Transactions and House Prices
Members of the panel agreed that house prices are likely to remain broadly flat over the next 12 months and that it is unlikely that we will return to the previous "normal" number of transactions experienced over the past decade. The 150 strong audience was divided when asked to vote, with half believing house prices would rise over the next 12 months, while the other half felt prices would remain stable. A second audience vote revealed that the majority felt that there will be another house price boom within the next 10 years.

First-Time Buyers
On the subject of the Government’s NewBuy initiative, the panel was in agreement that 25,000 homes is just a drop in the ocean for first-time buyers and that the scheme is more likely to help the housebuilding industry. The audience was in agreement, with 86% believing NewBuy is not the answer to helping FTBs on to the property ladder.

Buy to Let
The property landscape in the UK is changing with an increasing proportion of the population renting rather than buying as they delay home ownership. The panel was divided, with some arguing renting is the most appropriate form of living arrangement while for others, such as older generations who may be unable to pay rent from a pension, home ownership is important. Two-thirds of the audience voted that boosting the supply of FTB homes is more important than a healthy supply of private rented accommodation.

Housing Supply
The panel was divided on the Government’s national planning policy framework. While Paul Lewis said we need to build more homes, Hugh Pym argued in favour of  respecting the greenbelt and building homes where there are jobs. The audience vote yielded the closest result; 55% do not think that the new planning reform will lead to a significant increase in housing stock.

Right to Buy
The panel was in agreement that the extension of Right to Buy was ill-advised, with Yolande Barnes calling it an "outdated scheme". Both Paragon and HSBC agreed that it is difficult to put a value on council homes. Two-thirds of the assembled audience voted that the Government was wrong to extend the Right to Buy scheme.

Stamp Duty
The panel agreed that the "slab" system currently in place for stamp duty is unfair. Peter Dockar suggested that a more suitable method would be a progressive tax system like income tax, while Yolande Barnes argued that the property tax should only be payable by a vendor on the property sale. Paul Lewis suggested that landlords and investors should pay stamp duty, while it should be exempt at the lower bands of tax for those who are buying the property to live in. Most of the panel agreed with the policy of raising stamp duty to 7% on properties valued over £2million. Almost two-thirds (62%) of the audience said that the Government was right to introduce the 7% duty.

Property is still the place to the invest
To round off the event the audience was asked what they would invest in if they were to win the lottery. The overwhelming response was property (83%), showing that the majority in the industry still think this is the best way to receive returns on investment.

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0 thoughts on “What is ‘new normal’ for housing market?

  1. World trends are showing that main economy capitals rents are reaching their peaks. Many tenants are not earning enough to mirror rises. Germany and France have established rental markets for the majority over decades. The UK government has too been pushing for thi, but in a fast unstable way which has unsettled the resale market. The increased stamp duty amounts in the last 5 years is mad as house sales have been slow, thus the few relative transactions compared to pre 2007 have been stamp tax part blighted. Tye FTB holiday was a good idea, but to work needed mortgage schemes requiring lower deposits. Horse and bolted come. to mind. There are many family suitable houses that simply arent being released as sales are not allowing people to up and down size. In the years of poor market many families and individuals now mke thir accommodation totally unsuitable. Rather than playing silly hands such as stamp duty, if mortgages and taxes were eased to encourage entry the greater value to the economy would be the work around moving taxation. ie new kitchens, bathrooms fitted, conveyance fees, agents fees, removals, painters. Money tied in equity is a major loss that simply needs making fluid to regenerate cash flow. An elderly person in a 5 bed is going to have some pretty hefty heating bills and rates. Also as FTBs get older the mums and dads have to carry larger homes or live squeezed. Tax payers are also fed up and working 50-60-70 hours a week to scrape by, whilst many dossers sit in comfort on facebook all day. Bring back Lord Such, at least he. was honestly confused