The NAEA this morning called on the new housing minister to act urgently over the state of the housing market.
A statement suggested, with a hint of exasperation, that previous calls had fallen on deaf ears.
The NAEA also demanded assurances that there will be no new property taxes.
It said that the industry has stagnated for months, contracting further over the summer. Its members have been selling an average of seven houses per month per branch for the last six months, it said, and buyer demand has been reducing.
In July and August, just 18% of all sales went to first-time buyers, and the NAEA said that home ownership is at its lowest for two decades.
Mark Hayward, president of the NAEA, said: “This is a situation we have been striving to encourage the Government to change for far too long.
“Market confidence is in crisis. Concerns among potential buyers about job security, the size of deposits required and prohibitive levels of Stamp Duty mean that overall levels of home ownership are at their lowest rates for 20 years.
“We hope the new housing minister will consider our action plan to bring a much-needed injection of activity to help promote stability and growth in the market.”
The NAEA action plan calls on the Government to:
1. Introduce government regulation of letting and sales agents
Estate agents and letting agents are currently unregulated, meaning anyone can set up an agency without appropriate qualifications or knowledge. The NAEA says the Government needs to develop a nationwide regulatory regime, to ensure consumers are protected across the UK.
2. Comprehensively reform Stamp Duty and rule out any new taxes on residential property
The current ‘slab structure’ of Stamp Duty distorts the UK housing market and places a disproportionate burden on first-time buyers. The Government needs to modernise the duty, moving away from this ‘slab’ structure to create a fairer, more logical system.
3. Provide support for first-time buyers looking to save for a deposit by increasing the annual limit for ISAs and set up a Government-backed saving scheme
With 90% of first-time buyers now needing support from their family to buy a home, it is vital that the Government finds a way to incentivise people to save for a deposit earlier in life.
4. Build significantly more homes
House building should be the top priority for the new housing minister, in light of the current crisis of supply of homes for sale and rent, said the NAEA. It says vacant high street shops could be turned into housing.
5. Work closely with lenders to ensure that lending criteria are appropriate
The NAEA recognises the need for responsible lending, but says this shouldn’t curtail sensible lending.
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Comments
I can spell me name so I is able to put inits after me name to fool de public I is qualifed.
I suppose I am convinced I am right,but what I will say is neither are you willing to accept thats uk could go like japan
nothing wrong with that,but don't make out I'm the only stubborn one here
@dave on 2012-09-29 09:03:09
Not an insult, it is just my opinion.
My point is that it is not possible to 'argue' the point with you because, again in my opinion, you SEEM to be a kind of "one trick (Japanese?) pony". ;>)
well if you do remember to take your shoes off
Bit of a sweeping statement dave. You have absolutely no idea what my opinion is on house prices is. I can tell you one thing though. I am yet to sit in a vendors house and use Japan 2004 as comparable evidence for a valuation.
almost up with your ability to put your head in the sand
dave,
Your ability to copy and paste knows no bounds.
try to argue the point not the person,personal insults say more about you than me
the current situation is unsustainable and propping up bubbles is economics of madness as is printing money
is highly possible that like tokyo,some central london property drops 90-99%
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Prices were highest in Tokyo's Ginza district in 1989, with choice properties fetching over 30 million yen[7] (approximately $215,000 US dollars) per square meter ($20,000 per square foot). Prices were only marginally less in other large business districts of Tokyo. By 2004, prime "A" property in Tokyo's financial districts had slumped to less than 1 percent of its peak, and Tokyo's residential homes were less than a tenth of their peak, but still managed to be listed as the most expensive in the world until being surpassed in the late 2000s by Moscow and other cities. However, since 2012, Tokyo is once again, the world's most expensive city, followed by Osaka in number and Moscow as number 4. Tens of trillions of dollars worth were wiped out with the combined collapse of the Tokyo stock and real estate markets. Only in 2007 had property prices begun to rise; however, they began to fall in late 2008 due to the financial crisis.
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@dave on 2012-09-29 08:41:46
With respect, may I suggest that the only simple thing seems to be yourself?
the problem is very simple
prices are too high
they need to drop 30-50%
1/.raise interest rates
2/build social housing for the displaced
3/encourage lenders to agree negative equity loans like the 90s
4/regulate and improve rental market(license)
propping up a housing bubble is the economics of madness
you said "I am now 'officially' retired." that doesn't make you stupid or forget all you know, so with plenty of time how about you get in there and stir them up?
@Shouldweuseforce on 2012-09-28 10:01:48
You seem to have a point.
It all went wrong for the NAEA and ARLA when the 'Fifth Column' in the form of PBK arrived (RICS - where is he now!) and the 'empire building' of the NFoPP was started, confusion among the members and also the public has since reigned..
What is the answer now? Don't know, it is above my pay grade and I am now 'officially' retired.
Anyone know what poor sod put themselves forward?
NAEA - Driving towards a Fee - All these schemes are jobs worth Gold Diggers. I would never renew!!!
To Brit1234: land price is a residual figure from Gross development value less less costs + finance + profit, so no such thing as 'cheaper land' - that simply means someone is losing on margin, usually the vendor.
Taxing BTL mortgages would simply make private landlords sell up, as many properties would be unaffordable and risky, exacerbating the housing problem, (but might be beneficial for EAs)
To Rebel: stamp duty is adversely impacting the market by creating artificial price ceilings at £250k etc, so a proportional % solution would be more effective.
Can someone who is still in the NAEA and cares about our industry please table a no confidence motion or start a petition or something similar - we have got to get rid of these people they are damaging to us all not just their members.
Could EAT not start a proper online vote on whether we - the industry - still have any confidence in them and want them to represent us or whether we want to establish a new credible and representative body?
1,3 & 4 are complete b*ll*cks. The dim wits at NAEA have screwed up again.
1. would raise my costs
3. is nonsense
4. would reduce my sales
Is anyone out there really going to renew their membership?
"Vacant high street shops should be turned into housing"
Yeah brilliant - thats just what our high streets and town centres need isn't it - lets all move into old JJB sports and Woolworths at least we wont have to climb the staires - we can use the escalators !?!?!
On a serious note just how rediculous does the drivel from the NAEA idiots have to get before someone in the industry says enough is enough - this lot of halfwits are bringing the rest of the industry into dis-repute - please just GO so we can start again !
Now I might have this a bit wrong but happy to be corrected...
Average UK House Price (BBC 19/09/12 - pick you figure?) is about £230k.
If agents charge a sensible fee, let's say 2% like it used to be in the 90's (the last time the market was bad) the average commission would be £4,600 plus VAT.
7 average sales per month, 12 months of the year would be £380,000.
That's not a stellar income, but it's enough to make a healthy profit if you keep costs under control.
The main problem seems to be that rather than competing on service, agents compete on fee.
So 2% becomes 1% becomes a loss making business.
I stopped reading the article there, to right the above because the rest of it seems spurious.
The points made are:
1. Agree with XFNAEA Angry - but I think licensing and regulation should have been done YEARS ago.
2. Stamp Duty is FINE, leave it alone. The only way to make it fair is to have one set rate across the board and a higher initial threshold, but that would kill the middle market.
3. No - just NO - a minimum 10% deposit is sensible - either kids do it for themselves because parents have told them to or they don't - the choice is theirs. SIMPLE
4. Well Duh! You don't say.
5. No, again leave it alone - there a just 2 criteria that need to be set for everyone's sanity and safety - minimum deposit and maximum income multiple.
Back to work
It is all well and good asking for the Minister to regulate Letting Agencies, but isn't that something NAEA, ARLA, RICS ans NALs were supposed to be doing?
Instead of lobbying the government and shouting about it as a means of pretending that they are actually doing something...... Do something!
Now the dictator has gone leaving NAEA a shabby mess it is time to make NAEA an organisation that people like me want to rejoin. Forget the grandiose plans (full narcissistic meaning intended) for this that and the other, invite the Association deserters to rejoin rather than forcing them to rejoin if your calls to regulate the industry are successful. And LISTEN to what we have to say. People like Trevor Kent are what is needed to build an Association that Agents want to join and are proud to be part of.
Listen up (not something you have demonstrated recently) If you do not put the NAEA house in order it will fold and be replaced by one that simply does the things YOU were supposed to be doing.
I would pay my £175 today and again in January if you would only demonstrate an understanding of what is actually going on. This press release simply indicates that you have not got a clue.
Well done NAEA - I wonder how many hours of biscuit munching tea swilling round table debate it took you all to come up with these ground breaking initiatives !?
The most obvious flaw in them all is that like most in the Industry they purport to represent I doubt Mr prisk even knows or cares who the NAEA are!
My measures to stimulate housing market.
1, Tax unbuilt landbanks to prevent hoarding and provide cheaper land to build on.
2, End interest only mortgages on buy to lets to give a level playing field with first time buyers.
3, Introduce negative equity mortgages so people can move to different homes at equal cost to their existing mortgage.
4, Ban First time buyer scam schemes designed to keep prices inflated.
"1. Introduce government regulation of letting and sales agents"
or
make every agent pay us an annual fee...
Jog on.
"With 90% of first-time buyers now needing support from their family to buy a home, it is vital that the Government finds a way to incentivise people to save for a deposit earlier in life. "
Dangle the carrot too far in front and people wont bother trying to reach for it.