According to a report in The Daily Express the average house price has risen by Â£7,000 on the preceding 6 months. This equates to the price of a normal 3 bed semi-detached house rising from just under Â£153,000 to nearly Â£160,000.
This was welcomed by the property professionals as great news and as more evidence of a recovering housing market. They are saying that strong demand and weak supply has buoyed the market, which has lately brought more sellers in as they gain confidence from what they are seeing.But the industry wants the government to do more by extending the stamp duty holiday and getting the banks and building societies to lend. They are also concerned about the rise in VAT at the start of next year.
The Express uses the phrase that “home owners have banked” the rise. Sorry, but to my mind nothing in property is ever ‘banked’ as the last couple of years will have shown.
Also the ‘property professionals’ all seem very keen for the taxpayer and banks to take the costs and risks just to keep the property-go-round circulating. The taxpayers because they will have to fill the gap that would otherwise be filled by stamp duty payments. The lenders because they would be the ones having to resort back to the type of risky lending that caused the inflated bubble in the first place. Maybe if all these professionals cut their fees by 50-90% it would greatly help the property market too.
The recent surge probably has more to do with people getting in before the rise in VAT and the end of the stamp duty holiday. For most people a temporarily stagnant housing market will not be a problem. In fact it will allow the clearing of a lot of dead wood and keep the real dedicated professionals in the game as well as permitting prices to settle.