4,000 estate agents could be forced to close

#2
My tears like rain.....at least they get on the job market before all of those Labour MP's

Do you want fries with that sir?
 
#4
Ouch! Did you scroll down to some of the figures on that report:

45,000 Estimated repossessions likely this year – up 50 per cent

20,000 Job losses in the City of London as a result of the credit crunch

£150 Average monthly mortgage rise because of banks increasing interest rates

3 million Estimated number of households that will see their mortgage payments increase this year

1.4 million Borrowers will come to the end of their fixed-rate mortgage this year and face steep payment increases

£7,500 The average deposit now required for first-time buyers to get on to the housing ladder

I feel quite miserable now Blogg, cheers for that! 8O :wink:
 
#5
As the great BSM Williams (aka Windsor Davies) would say 'Oh dear, how sad, never mind'.

Hasn't our great leader explained to you that problems with the housing market are not his fault and, anyway, it was all much worse in 1991 and it's all 'containable' - so stop worrying!
 
#6
[quote="

I feel quite miserable now Blogg, cheers for that! 8O :wink:[/quote]

You forgot about the misery soon to vist those stupid enough to get into buy-to-let at the top of the market

"Buy-to-let landlords will have to raid their savings and inject extra capital into their homes, under an obscure clause in their mortgage contracts, if house prices continue to fall.

"Under the terms of the contract, if a £100,000 home with an £85,000 mortgage falls in value by 10pc the landlord has to find another £8,500 to maintain the lender's maximum 85pc loan-to-value rate - even though there is still £5,000 of equity in the property."


http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/14/cnmortgage114.xml

Obscure my arrse. Greedy fools who failed to understand what they were signing up to but all just piles the downward price pressure on the market when they have to bail out.

Anyway, dwell on this: if we do have a 30% house price crash, it still only takes us back to 2004 prices.
 
#7
They'll not be out of work long. I hear doctors are rediscovering the medicinal use of leeches.
 
#8
Whilst I think that estate agents are a scourge on our race, along with a few others I can think of, these figures are outrageously sensationlised:

20,000 Job losses in the City of London as a result of the credit crunch The finance industry created over 60,000 extra jobs in the past 12 months alone

£150 Average monthly mortgage rise because of banks increasing interest rates But bank rates are falling dramatically and there is an election due soon

3 million Estimated number of households that will see their mortgage payments increase this year With rates falling?

1.4 million Borrowers will come to the end of their fixed-rate mortgage this year and face steep payment increases Unless they renegotiate or remortgage, same as last year

£7,500 The average deposit now required for first-time buyers to get on to the housing ladder Which is less than the average second hand must-have Subrau chav accessory

Talk about newspapers trying to talk us into a recession!
 
#9
Hopefully 4001, as I sacked the lazy, incompetant, lyeing bastards this morning!

If anybody is in the Telford area and wants a heads up on which firm to avoid then give me a PM and I'll dish the dirt.

Fireing squads too good for them.
 
#11
My heart pumps purple p1ss, and I've misplaced my world's smallest violin. These b*stards have kept the market prices artificially high in pursuit of higher commissions for years.

Weasels.
 
#12
House swapping is the answer! No agents, only viewers who really want your house, rather than those sent to meet agents' targets, no turning down offers from people who haven't used the agents' mortgage facility, and, icing on the cake, minimal if any stamp duty.

Time for the arrse house swap forum?
 
#13
pyrogenica said:
Whilst I think that estate agents are a scourge on our race, along with a few others I can think of, these figures are outrageously sensationlised:

20,000 Job losses in the City of London as a result of the credit crunch The finance industry created over 60,000 extra jobs in the past 12 months alone

£150 Average monthly mortgage rise because of banks increasing interest rates But bank rates are falling dramatically and there is an election due soon

3 million Estimated number of households that will see their mortgage payments increase this year With rates falling?

1.4 million Borrowers will come to the end of their fixed-rate mortgage this year and face steep payment increases Unless they renegotiate or remortgage, same as last year

£7,500 The average deposit now required for first-time buyers to get on to the housing ladder Which is less than the average second hand must-have Subrau chav accessory

Talk about newspapers trying to talk us into a recession!
Pyro,

A couple of points:

The link between BoE interest rates and what rate banks charge their customers is now almost irrevocably broken. BoE can continue to cut until the cows come home, but the reality is that banks will charge what they must until their balance sheets are repaired/their risk is reduced to an acceptable level.

What has an election got to do with anything. HMG cannot (notionally) influence interest rates and they certainly can't force financial institutions to reduce their rates.

Those coming to the end of their fixed rate mortgages will not find it easy to negotiate another fixed rate and certainly not on the same terms that they currently enjoy - many will simply have to move on to a variable rate. Add on the arrangement fees, which will not be able to be added to the mortgage, but for which hard cash will have to be found, and it is clear that many families face some tough decisions this year.

Whilst £7.5K may be the average deposit for a chav-mobile it is also way beyond the reach of not only many FTB but also much of the UK population. Savings are at an all-time low and the culture of funding one's lifestyle through credit, rather than earnings, is too deeply embedded to enable restoration of a savings habit to be easily achieved.
 
#14
I look forward to the day I can walk down my local high street and see real shops again, not 14 estate agents all selling the same feckin' properties.

Makes me laugh though - this time last year there was a smug article in one of the papers from one of my local agents saying everything shifted so fast they had actually sold out of property.

Does the army recruit ex estate agents?
 
#15
pyrogenica said:
Whilst I think that estate agents are a scourge on our race, along with a few others I can think of, these figures are outrageously sensationlised:

20,000 Job losses in the City of London as a result of the credit crunch The finance industry created over 60,000 extra jobs in the past 12 months alone

£150 Average monthly mortgage rise because of banks increasing interest rates But bank rates are falling dramatically and there is an election due soon

3 million Estimated number of households that will see their mortgage payments increase this year With rates falling?

1.4 million Borrowers will come to the end of their fixed-rate mortgage this year and face steep payment increases Unless they renegotiate or remortgage, same as last year

£7,500 The average deposit now required for first-time buyers to get on to the housing ladder Which is less than the average second hand must-have Subrau chav accessory

Talk about newspapers trying to talk us into a recession!
Pyro,

A couple of points:

The link between BoE interest rates and what rate banks charge their customers is now almost irrevocably broken. BoE can continue to cut until the cows come home, but the reality is that banks will charge what they must until their balance sheets are repaired/their risk is reduced to an acceptable level.

What has an election got to do with anything. HMG cannot (notionally) influence interest rates, and they certainly can't force financial institutions to reduce their rates.

Those coming to the end of their fixed rate mortgages will not find it easy to negotiate another fixed rate, and certainly not on the same terms that they currently enjoy - many will simply have to move on to a variable rate. Add on the arrangement fees, which will not be able to be added to the mortgage, but for which hard cash will have to be found, and it is clear that many families face some tough decisions this year.

Whilst £7.5K may be the average deposit for a chav-mobile it is also way beyond the reach of not only many FTB but also much of the UK population. Savings are at an all-time low, and the culture of funding one's lifestyle through credit, rather than earnings, is too deeply embedded to enable restoration of a savings habit to be easily achieved.
 
#16
C_B_O

I don't think the fiction that the BoE is even notionally independent of political influence is believed by anyone, let alone those in the treasury who would have us believe otherwise.

Generally speaking, BoE interest rates dictate LIBOR rates, and this subsequently filters through to retail mortgage rates through the convoluted money market. There has been one glitch in the process in 20 years, but it is fair to say that the BoE rate very much determines what we (the public) end up paying, give or take the lender's premium.

The fact that an election will soon be due has a tremendous bearing on what rates are determined as "desirable" by the treasury, and only the terminally deluded would deny that their determination influences the outcome of monetary policy meetings.

As for raising the money to save for a deposit on property, I am completely sympathetic to anyone struggling to get that together. The memory of my own struggles in that respect may be 20 years old, but I still bear the scars today.

With the average age of people remaining with their parents/getting married increasing to an all time record, all the evidence I have seen suggests that people are generally now placing far greater importance on luxuries such as car acquisition and exotic holidays than taking their first step on the property ladder.

Whereas I am cynical of those younger than myself who (sometimes) complain about the need to save for the deposit on their first home yet think nothing of squandering money on expensive cars, exotic holidays and an extravagent lifetstyle, I stand by my comments that sensationalist stories such as this in the media serve no useful purpose. Much as I would dearly love to see estate agents on the streets, I regret it is probably more jornalistic hyperbole than fact.
 
#17
PartTimePongo said:
My heart pumps purple p1ss, and I've misplaced my world's smallest violin. These b*stards have kept the market prices artificially high in pursuit of higher commissions for years.

Weasels.
Exactly, the entire reason for the "house price boom" was estate agents deliberately and artificially bumping up prices so their percentage cut would buy them more toys. Grasping cnuts the lot of them.

Then again, bust follows boom as surely as night follows day...

Tubs

Edited to add: If 4000 are closing, that's a lot of commercial units to be put up for rent. :wink: :wink:
 
#19
I took particular delight in scoffing at some herbert they interviewed on the Today programme a week or so ago; he was whinging about how he'd lost his chance at his dream house as he'd been knocked back for a 100% mortgage on £200k because,"...they wanted a 5% deposit; my fiancee and I haven't got that kind of money....." WTF!?!?!? He can contemplate monthly repayments of £1800pm on a repayment mortgage or £1300 on a Interest only Mortgage, but can't stomach reining in his spending for a year or so. Diddums.

pyro said:
Generally speaking, BoE interest rates dictate LIBOR rates, and this subsequently filters through to retail mortgage rates through the convoluted money market. There has been one glitch in the process in 20 years, but it is fair to say that the BoE rate very much determines what we (the public) end up paying, give or take the lender's premium.
Thats true enough, but the big mortgage lenders in this country were already at full stretch before Northern Wreck; their share of the mortgage market is now trying to get a mortgage at the other lenders. They cannot access any further cheap loans because there is no cheap money left on the market; ergo what lending they are doing is at a premium rate with little or no relation to the BoE base rate. I dare say there's a little profiteering going on as well. All in all, it's a proper clusterfuck, and all on Cyclops' watch too, shame.

Schadenfreude is an unattractive trait but I'm enjoying it right now; I bought my very own little rathole in the granite city a year and 11 days ago, a week before the rate went up! :wink:
 
#20
Excellent post, I agree completely.

These idiots who contemplate huge monthly payments on 100% mortgages yet can't get the brass together for even a small deposit never cease to amaze me. It doesn't occur to them that the money they've just spent on that new beamer would have been better invested in bricks and mortar.

I think your summary is pretty much spot on, I shed as few tears for estate agents as I do for those leeches who have tried to capitalise on the buy to let market by snapping up all the lower value property.

My prediction is that the one eyed one will be pushing for low deposit, lifetime mortgages within months, if not days, just as they already do in many other countries.
 

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