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Written by rosalind renshaw

Half of people planning to buy a home in the next year think house prices are too high, but only around one-third of people planning on selling agrees with that view.

In London, an astonishing 65% think that houses are priced beyond what they are worth, and in the South-East the proportion is 56%.

Estate agents are getting much of the blame, with a growing number of people saying that homes going on the market are being overpriced.

A Rightmove survey of nearly 40,000 home movers has shown up the mismatch between buyers and sellers, with 56% of sellers saying that their biggest concern is receiving a ‘sensible offer’.

The survey specifically found that 49% of potential buyers think their local house prices are above what they consider to be ‘fair and reasonable’. By contrast, 36% of potential sellers thought the same.

Miles Shipside, director of Rightmove, said: “Unless both parties are able to bridge the price gap, than a stand-off situation ensues, leading to lower numbers of successful sales.

“Naturally sellers have an interest in standing their ground in order to achieve the best price, but in the current housing market, where sellers outnumber successful buyers by around two to one, sellers need to lower the price or increase the perception of value.”

Despite the valuation mismatch, only a quarter of all home movers expect property prices to be lower a year from now, compared with 30% who expect them to be higher.

The regular quarterly survey always asks people who think house prices will rise why they think so.

The latest survey shows a surge in respondents putting price growth down to estate agents and sellers overpricing. Today, 22% blamed overpricing, compared with 16% a year ago.

Shipside said: “Sellers and their estate agents should take note of the emergence of a substantial group of price-sceptics.”

He said sellers should set their price expectations and work with their agent to price at a level to sell.

Meanwhile, separate research shows that people in their twenties believe they will have to be earning well above the national average before they can start putting aside money for a mortgage.

The ‘Young Money’ poll, conducted by ICM for MRM, found that they did not feel they could save for a deposit until they were earning £33,729 – compared with the national average salary of £26,100.

MRM director Michael Taggart said: “We are seeing a seismic cultural shift, with swathes of young adults giving up on owning a home any time in the near future.

“A combination of historically high house prices and lack of availability of mortgages has simply moved home ownership off the agenda.”

Meanwhile, today's Halifax house price survey shows that house prices have fallen by 0.6% over the year. They dipped by the same amount on a monthly basis, to stand at £161,094 in July.

Comments

  • icon

    Happy, you're the one mixing up the references to qualifiications.......

    You were the first to say that Giselle is 'qualified' to sell her own house.

    I asked what 'qualifies' her (in response to YOUR use of the word), and

    You responded by saying "You do not require any qualifications to be an estate agent." as If I had said that formal qualifications were required.

    And the subsequent posts veered onto qualifications in the sense of formal ones.......

    Are we clear now that I asked what qualified Giselle to be able to sell her own house, in response to YOU saying 'she's qualified to do it' ???

    And are we clear that I'm not talking about formal qualifications?

    • 08 August 2012 22:54 PM
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    @What again you are mixing up qualifications with ability, motivation and experience. you dont need a cycling profeciency to be an competitive cyclist

    The first decision every vendor should make is do I need an EA. Then you go from there as Gisele has done.

    • 08 August 2012 11:24 AM
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    Qualifications are required to ride a bike at the Olympics?
    It seems to me that qualifications aren't always the best measure of ability or success. I have a cycling proficiency
    but that doesn't make me a competitive cyclist.
    Take you average Chartered Surveyor and put him/her up against a typical mini driving, plastic shoes Next suit youngster, which one do you reckon is going to sell your home?

    That is the decision every vendor makes, who is the right firm or Agent to sell their home.

    • 08 August 2012 09:43 AM
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    You do not require any qualifications to be an estate agent. If you had said that EA's are more experienced of course you would have been correct

    I carried out my own survey hence the quotation and i didn't quote any figures ;0)

    Do you ask people why they looked for an estate agent rather than why they instructred you? It is a very different question.

    • 07 August 2012 19:24 PM
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    Happy Chappy on 2012-08-07 16:55:15

    " Gisele seems to want to give it a go (self-selling on RM) ...and she is as qualified as anyone else to sell her house, ...... most people instruct EA's because "thats what you do when you sell a house" "

    How qualified is she? How many houses has she actively 'sold' to the public in the last week, month, year? More than the average EA, or less? What qualifies her, if the answer is 'less'?

    Again, you spout 'most EAs' as though it's verified fact. How do you KNOW why 'most people instruct EAs' .... is there a survey somewhere? Or are you just making up figures again?

    • 07 August 2012 18:17 PM
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    Ok, negative equity.

    Firstly, the vast majority of older people are MILES away from negative equity territory

    Secondly, Pbro Agent, people in negative equity are in fact unwilling rather than unable to sell. This unwillingness hinges on a belief that prices will subsequently recover. When they realize both that they are in nequity and also that prices are going to continue to decline they will soon choose to cut their losses.

    • 07 August 2012 17:21 PM
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    "can you imagine a world where these two sides of the spectrum were let loose on each other in any degree of volume"

    Gisele seems to want to give it a go...and she is as qualified as anyone else to sell her house, ;0) but the move to more individuals selling there own homes will be very slow.....most people instruct EA's because "thats what you do when you sell a house" :0)

    • 07 August 2012 16:55 PM
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    recycling isolated views is okay,because sometimes the truth needs to be told.

    you can debate,argue and dismiss all you wish but nothing will change the inevitable fact that we are in a property bubble that is bursting

    just 'cos the majority here don't seem to understand,doesn't mean they are right

    check out peter schiff about the US

    http://www.youtube.com/watch?v=2I0QN-FYkpw

    • 07 August 2012 15:31 PM
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    @dave

    Do you have a book of quotes that you pick one from and cut n paste in?

    Try a direct reply and engage with other posters, as jonnie says you recycle isolated views, try and enter the debate and stop the series of soundbites

    • 07 August 2012 15:23 PM
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    its a well known fact in markets that more people sell as prices tumble because they

    1/throw in the towel
    2/desperate to raise some cash
    3/forced to by their lenders(btl or arrears)

    we are on the cusp of a terrible property crash and all the signs are there in the public domain

    • 07 August 2012 15:07 PM
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    Bit of an old chestnut as debates go so the facts remain the same as they have since last time this subject was kicked around.

    Its true that there are some truly dreadful EA’s around that cant grasp how top get a place on the market at the right money and there are some good ones that manage their vendors well from day one (even if they are forced to take it a steamy money to start with) however the main issue is the vendors – for every Japanese Dave there is his opposite number, housepriceboom.comers, just as the HPC’ers provide views on the future of house prices with various levels of sanity there is a world of sellers, just as extreme in some cases but always as convinced about the direction of prices, just they believe its up not down.

    This also brings me to the private seller thing that also gets covered on here a bit – can you imagine a world where these two sides of the spectrum were let loose on each other in any degree of volume?

    And one last thing – @dave, look mate – you are here everyday now so we know that you are convinced all BTL’ers will loose everything and even have their kids repossessed, we also know your views on Japan so its okay, you don’t need to start every day with either one of them anymore fella……..we get you, okay?

    Jonnie

    P.s – I do think prices will / are falling, not sure how fast or by how much and as, no one has predicted it right so far im not going to try.

    • 07 August 2012 14:13 PM
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    "90% of the time it works every time."

    Good grief, I hope that comment was made tongue in cheek - although I suspect you were serious.

    @dave "as prices fall more people will sell"

    As prices fall surely even more people will be in N.E. and thus will actually be less able to sell. One of the reasons we are selling so few properties and yet we see such high prices today is because many vendors are deluded in thinking that their house is still worth what they paid for it in the good times - or if they "get" that prices have fallen decide to wait until prices "go up again".

    • 07 August 2012 13:56 PM
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    the delusion of this propped up credit bubble that has been bailed out is understandable

    some simply think its inconceivable that prices will fall

    despite the evidence that wages are falling and that prices could fall for 20 years(japan)

    as prices fall more people will sell(historically true of markets) and btl landlords will wonder where all the renters have gone

    anyone who thinks we are in the new normal is in for a shock

    • 07 August 2012 11:16 AM
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    I'll take one of those thanks Fantana.

    I may also ask the checkout girl if I can pay 25% more for my groceries tonight. Lifes winners pay too much.

    • 07 August 2012 10:35 AM
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    I value everything at least 20% over the top. It rarely fails to win me the instruction and there's a chance it'll sell at a high price. If not it's no sweat off my sack, I just get the vendor to reduce.

    90% of the time it works every time.

    • 07 August 2012 10:28 AM
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    I agree with Cash Is King. Have read and re-read KPI's advice and the only way it makes sense is if there is a period of rapid wage inflation at some point in the near to medium term. Sounds very 1970s to me and certainly not a reflection of where the UK's economy currently lies in today's globalised world.

    "Rents however are simply indexed linked to demand and will be significantly higher in 20 years time." Nope. Rents are linked to wages. Landlords who push the rents too high just face voids and costly evictions of non-paying tenants. House prices are more closely linked to demand, but that is still a secondary factor compared to the amount of credit that is available to buyers.

    • 07 August 2012 10:03 AM
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    Chuckle!

    • 07 August 2012 06:12 AM
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    KPI - I have rarely seen such financial illiteracy even on this site. Wow.

    • 06 August 2012 18:13 PM
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    Strange question! A home?

    Very probably not the biggest or best home in the land but after 15 or 20 years a place one owns outright. Beholding to no-one and only paying for the services one uses. 5%, 10% even 25% too much now is worth how much in 20 years time? Rents however are simply indexed linked to demand and will be significantly higher in 20 years time.
    I know there are folk on here who will disagree but think about paying £40,000 over the odds right now. that is only £133 a month for the life of the mortgage and despite what Dave will claim that £40000 will remain as value in the property.
    It is only possible to lose money on a property if one sells it.

    • 06 August 2012 17:46 PM
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    @KPI

    What do you achieve by paying over the odds for stuff?

    • 06 August 2012 17:26 PM
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    Given that most properities will attract 8-10 viewers this story says that 4 or 5 won't think the price is low enough. 4 or 5 will think the price is OK. Isn't it simple enough to not bother with those that haven't worked hard enough? Concentrate on the achievers and let the rest wait to scrabble for the dregs.

    • 06 August 2012 17:17 PM
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    Gisele if you do not need the services of a traditional estate agent, then an online agent will be able to get your property on to Rightmove and other portals for low one off fee (a few hundred pounds) most have different payment options. perhaps try hatched or e-moov.

    • 06 August 2012 17:17 PM
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    @wardy
    ==========================================
    'but it won't be long before some agents begin the process of lowering properties to price areas where there are buyers'
    That’s the sort of nonsense that we usually hear from another poster
    ==========================================

    lol...the most stupid post of the year(so far)

    agents acting as brokers/agents..chain building...NEVER!!!!!!!MADNESS

    • 06 August 2012 15:58 PM
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    dave, please try and understand some basic fundamentals.
    ESTATE AGENTS DO NOT DECIDE HOUSE PRICES.
    We do not get to 'slash' our client’s asking prices.

    You are becoming more ignorant with every post

    • 06 August 2012 15:57 PM
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    bury your heads in the sand if you wish,but agents will start slashing prices to get sales

    Its called running an estateagent

    you match sellers to buyers,but now its at the buyers price in a BUYERS market

    no different to any market...no sales..no income

    • 06 August 2012 15:51 PM
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    Dear Dave 'the rave'

    How do you think it will go down with our clients (the owners of property) if all agents in the UK suddenly 'slashed' asking prices by 20%

    Good thinking Dave, well done on getting GOLD in stupidity.

    Take a bow!

    • 06 August 2012 14:48 PM
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    I actually meant what evidence do you have that agents all own portfolios?
    None is the answer. You made it up.
    oh and this:
    'but it won't be long before some agents begin the process of lowering properties to price areas where there are buyers'
    That’s the sort of nonsense that we usually hear from another poster. I smell a rat.

    • 06 August 2012 14:08 PM
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    in the early 90s agents realised they were not selling enough property to survive so started slashing the prices 10% or disinstructing

    there is little evidence of that at the moment,posibly because of the lack of instructions

    but it won't be long before some agents begin the process of lowering properties to price areas where there are buyers,then getting the owner to start making offers comparable on properties they want to buy

    i.e chain building...beginning the spiral down

    • 06 August 2012 13:47 PM
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    Another pointless article stating the obvious. If something is overpriced it will not sell. All you need is one buyer to pay the price, and that is the market price at the time. Does not matter if all other buyers are lower.

    It is our job as agents to get the best price, but to also find a buyer. If the property is over priced, the only solution is to lower the price until the market bites. It is not rocket science.

    Sellers ultimately hold the cards with the listing price, but the market holds the cards on what will actually sell.

    • 06 August 2012 13:30 PM
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    @dave on 2012-08-06 13:09:25

    One issue that we don't hear a lot about is the fact that many EA's are up to their necks in property speculation. They have a vested interest in maintaining local prices and would rather save their own equity than actually sell any houses.
    ============================================
    "spot on...the vested interest of keeping prices high"

    You too must be a fully paid up member of the 'silly thinking brigade' ;>)

    • 06 August 2012 13:26 PM
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    To the anonymous poster 2012-08-06 11:00:47:

    May I respectfully suggest suggest you take a long, hard look at what you HAVE said - type up a serious justification for what you are actually TRYING to say - and proofread it three times before you post it and potentially make yourself look dafter again!

    I know where you're coming from - but the vultures are hungry...

    • 06 August 2012 13:23 PM
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    dave, pack it in. You have absolutely no evidence of that whatsoever.

    • 06 August 2012 13:17 PM
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    Estate Agents blamed for lack of gold medals.

    • 06 August 2012 13:11 PM
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    ===========================================
    One issue that we don't hear a lot about is the fact that many EA's are up to their necks in property speculation. They have a vested interest in maintaining local prices and would rather save their own equity than actually sell any houses.
    ============================================
    spot on...the vested interest of keeping prices high

    many agents face bankruptcy because they have too many eggs in one basket...they'll take the family home as well....all you need to owe is £750 for a petition for bankruptcy

    • 06 August 2012 13:09 PM
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    Gis.

    Pop into any local estate agent. They will do it for you for free.

    • 06 August 2012 12:57 PM
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    Does anybody know if I upload my own house details to Rightmove, in an Ebay/gumtree fashion?

    If so, what does it cost?

    Thanks

    Gis

    • 06 August 2012 12:18 PM
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    'If a FTB can't afford £125,000 house, he can't afford a £100,00 house, a £90,000 house or an £80,000 house.'

    Has a more daft comment ever been posted here?

    How about a 60k house or a 40k house

    I'd say that if in most reasonably pleasant parts of the country house prices fell 50%, the next generation would be able to afford them and we could get the economy back on an even keel - after the debt taken on to buy overpriced property has been paid down.

    I guess 25 years would do it.

    • 06 August 2012 11:38 AM
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    @14 on 2012-08-06 11:01:27

    You must be a fully paid up member of the 'silly thinking brigade' aged 14 ;>)

    • 06 August 2012 11:08 AM
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    Estate Agents cannot be blamed for the high house prices, they simply supplied to a demand.

    If there were no estate agents in 2006/2007 and you could only list on private sales sites, prices would have gone up exactly the same because people could afford the mortgages and you'd be daft to sell something for less than what somebody is prepared to pay.

    Who would you have blamed then, the private listing sites?

    Lol, these comments only come from people that can't afford a house. It's not a god given right. You have to work for it!

    • 06 August 2012 11:03 AM
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    One issue that we don't hear a lot about is the fact that many EA's are up to their necks in property speculation. They have a vested interest in maintaining local prices and would rather save their own equity than actually sell any houses.

    • 06 August 2012 11:01 AM
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    Haha, Chas, Rightmove will never cut out the middleman because they wouldn't have a business.

    The site would be an absolute mess full of crap descriptions, crap photos, over inflated claims etc. Rightmove would lose all credibility in an instant.

    It doens't matter if house prices came down, because first time buyers still wouldn't be able to afford a "mortgage", not the property.

    Pirce makes no difference, it is the availablity of mortgages to buy them.

    If a FTB can't afford £125,000 house, he can't afford a £100,00 house, a £90,000 house or an £80,000 house.

    • 06 August 2012 11:00 AM
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    This Rightmove mob talk a lot of sense. I like them.

    The sooner that vendors can advertise with them direct and cut out the BS spouting, EA middlemen the better.

    • 06 August 2012 10:56 AM
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    So Miles Shipsides thinks sellers and buyers need to compromise on price to attain a sale? Wow! That's earth shattering news!

    Don't suppose RM might compromise what they charge agents to what is an "acceptable" level of fees. Thought not! They will only go one way - up, up and away. #Don't you like to fly in my beautiful baloon?#

    • 06 August 2012 10:54 AM
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    This stand off situation ain't going to do you Estate Agents any good.. All the buyers know houses are ridiculously over-priced and are reticent to part with hard earned cash on a perceived over-priced asset that will inevitably go down in value due to our weakning economy. All the sellers also know that houses are over-priced but are greedy , desperate,intransigent,brain-wahed and do not seem to able able to grasp (choose to ignore) the reality that our weakening economy simply cannot sustain high house prices.

    • 06 August 2012 09:51 AM
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    ALL buyers think house prices are too high even the few desperate fools that buy.The EA's are a contributary factor in high house prices (which will also contribute to many going bust over the next year unless they can sell at them lower prices) but the Banks and the Government were the biggest culprits in creating the bubble that will burst over the next 4/5 months.

    • 06 August 2012 09:37 AM
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    It don't matter this week, coz Murray got a GOLD!

    • 06 August 2012 09:24 AM
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    Not suprising that London folk think that their house prices are beyond what their worth. So does 99% of the planet.

    Its also no surprise that buyers think that house prices are too high and sellers don't.

    • 06 August 2012 09:13 AM
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