House Prices Will Stop Falling and Rental Sector to Experience a Boom
Leading figures in the property industry agreed that house prices will stop falling this year at the Land Data Great Housing debate, hosted by Wriglesworth Consultancy. This will be good news for those who need a fast property sale.
We have heard that the phrase ‘green shoots’ of recovery bounded around but we here at Rapid Home Solutions (RHS) believe that we need to establish ‘firm roots’ before we see those ‘green shoots’. At the moment there are thousand’s of families who need to avoid repossession with their only way out is to sell their house fast. Those in these difficult circumstances need the market to recover. RHS believe that house prices could stop falling but there are a number of key factors that will help achieve this:
- Partially Nationalised banks need to ensure lending returns to healthy levels.
- Stamp Duty needs to be scrapped.
- HIPS need to be improved.
Looking at these points in more detail; Point one (the most important) healthy lending need to return to 2007 levels. There are potential buyers waiting for the market to bottom out and at the same time looking for a suitable mortgage but these two factors are inexplicably linked. When lending becomes more readily available the market will bottom out but we believe banks will still be demanding high deposits before they part with their cash. This will have a have a positive effect on the rental sector as more people need to save for a deposit and need to rent until they achieve this. This return to the culture of saving deposits may have the effect of elongating the recovery but may go some way to stop the Boom and Bust property cycles that we are accustom to.
Simply Stamp Duty is a direct tax on transactions and before the recent Stamp Duty holiday it didn’t keep pace with increasing property prices just stagnated. This hasn’t been an issue in an inflationary market but in today’s market it is just another ‘sleeping policeman’ that is going to delay any recovery.
The debate on HIPS is over and unfortunately we believe they are here to stay. So let’s embrace them, improve them and ensure they are implemented in a timely fashion.
If you are currently struggling to sell your property and need to sell urgently to stop repossession or for any other reason then here at Rapid Home Solutions we can help. If you need to sell your house quickly then we can cash buy your house within 4 weeks. Once we have committed to cash buying your house you can rest assured your financial worries are over.
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The opinions expressed in all news articles are those of Rapid Home Solutions Ltd. The material is for general information only and does not constitute investment, tax, legal or any other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. |