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Surprise fall in retail sales in December and January

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    #21
    Originally posted by OwlHoot View Post

    I recently read that the overall UK tax burden is now the highest on record for average earners, and business rates have also recently increased.

    Perhaps that could have something to do with it.
    Yep, it's a perfect storm of factors heading our way.
    Don't forget increased austerity and spending cuts too.
    Hard Brexit now!
    #prayfornodeal

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      #22
      Originally posted by sasguru View Post
      Yep, it's a perfect storm of factors heading our way.
      Don't forget increased austerity and spending cuts too.
      Unless spending cuts provide an opportunity cost to the consumer, that won't matter.
      Disposable income will also have been affected by a slight increase in interest rates; take £50 a month out of every family on a non-fixed mortgage and that's quite a wedge off the high street. That's in addition to the increases in fuel prices which dents other spending.
      The greatest trick the devil ever pulled was convincing the world that he didn't exist

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        #23
        Originally posted by sasguru View Post
        Sold all 3 properties 2 at asking, main one I had to drop by 5% (but still made about 400K profit on it in 5 years after doing it up). Pity the fools with mortgages though.
        But look at the number of reduced properties on any website.
        But what we're they asking to start with? The ones that came on this time last year were asking 15% more than the previous year's selling price. Since then we have a dividend tax, btl tax subsidy reduction and mortgage rates rising. I struggle to see any way prices can keep rising at 5%+ over inflation.

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          #24
          Originally posted by GB9 View Post
          But what we're they asking to start with? The ones that came on this time last year were asking 15% more than the previous year's selling price. Since then we have a dividend tax, btl tax subsidy reduction and mortgage rates rising. I struggle to see any way prices can keep rising at 5%+ over inflation.
          Why would divi tax impact house prices?

          BTL mortgage relief is not yet in place. It will be phased in over the next 3 years.

          Mortgage rates have barely risen. They fell to all time lows in late-2016 but have since popped back up a very small amount. You can still get resi mortgages at 1.25%.

          The big risk factor is the mortgage relief, which will hit the market hard but not just yet.

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            #25
            Originally posted by GB9 View Post
            But what we're they asking to start with? The ones that came on this time last year were asking 15% more than the previous year's selling price. Since then we have a dividend tax, btl tax subsidy reduction and mortgage rates rising. I struggle to see any way prices can keep rising at 5%+ over inflation.
            Originally posted by ChimpMaster View Post
            Why would divi tax impact house prices?

            BTL mortgage relief is not yet in place. It will be phased in over the next 3 years.

            Mortgage rates have barely risen. They fell to all time lows in late-2016 but have since popped back up a very small amount. You can still get resi mortgages at 1.25%.

            The big risk factor is the mortgage relief, which will hit the market hard but not just yet.
            I don't know the answer to why property is beginning to soften, but after > 20 years in BTL I sense a softening similar to what I felt in 2007.
            I will test the market further now, this time as a buyer, because now I've sold main prop I need to buy something - the idea is to cash in the money I made renovating it and buy something cheaper but still nice enough - and one that I can rent out when I move abroad.
            So let's see, at the 800K mark I'm looking at , I fully expect at least 50K off.
            Hard Brexit now!
            #prayfornodeal

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              #26
              Originally posted by sasguru View Post
              I don't know the answer to why property is beginning to soften, but after > 20 years in BTL I sense a softening similar to what I felt in 2007.
              I will test the market further now, this time as a buyer, because now I've sold main prop I need to buy something - the idea is to cash in the money I made renovating it and buy something cheaper but still nice enough - and one that I can rent out when I move abroad.
              So let's see, at the 800K mark I'm looking at , I fully expect at least 50K off.
              And the rest. If you expect to pay that much on an overinflated price it's no wonder you think the market is softening.

              As a cash buyer you should be looking at 90% of the asking at max. And that's only if the asking price is near sensible.

              Comment


                #27
                Originally posted by ChimpMaster View Post
                Why would divi tax impact house prices?

                BTL mortgage relief is not yet in place. It will be phased in over the next 3 years.

                Mortgage rates have barely risen. They fell to all time lows in late-2016 but have since popped back up a very small amount. You can still get resi mortgages at 1.25%.

                The big risk factor is the mortgage relief, which will hit the market hard but not just yet.
                Because a lot of people will have less disposable income, won't they?

                And mortgage rates may not have gone up much but they aren't coming down further. I keep hearing people state that they are still near a historic low and as a result, house prices should rise again. Why? It should keep prices the same but we are back into the mentality of each house sells for 10% more than the last equivalent house.
                Last edited by GB9; 21 February 2017, 14:35.

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                  #28
                  Originally posted by GB9 View Post
                  And the rest. If you expect to pay that much on an overinflated price it's no wonder you think the market is softening.

                  As a cash buyer you should be looking at 90% of the asking at max. And that's only if the asking price is near sensible.
                  Depends on the area and the demand. Note I said at least.
                  Hard Brexit now!
                  #prayfornodeal

                  Comment


                    #29
                    Originally posted by sasguru View Post
                    Surprise retail sale fall as shoppers rein in spending | This is Money

                    Looks like UK growth, which has been powered by spending, is coming to a halt.
                    Powered by credit card debt more like
                    Warning unicorn meat may give you hallucinations

                    Comment


                      #30
                      Originally posted by sasguru View Post
                      Surprise retail sale fall as shoppers rein in spending | This is Money

                      Looks like UK growth, which has been powered by spending, is coming to a halt.
                      Less buying of imported goods....

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