Agents have been warned that they risk letting down their clients by denying the prospect of a housing market correction.
Charlie Lamdin, founder of estate agent finder website BestAgent, claims firms are talking up the market too much.
Lamdin warns there is a perfect storm, that many agents are ignoring, consisting of rising bills from the cost of living crisis and a radical change in monetary policy, including increasing interest rates amid forecasts of 18% inflation.
He said he has been inundated with comments and messages on his BestAgent and Moving Home with Charlie YouTube pages from buyers and sellers unsure what to do amid the current cost of living crisis and economic situation.
All this, he says, will impact bank lending as well as consumer spending and buying power, which in turn could lead to a decline in house prices and push people into negative equity.
Speaking to Estate Agent Today, Lamdin said official HMRC and Land Registry data on the property market is historical and doesn’t reflect what is happening at the coalface, including price cuts and buyers and sellers hesitating or pulling out of deals.
Lamdin said: “It is not going to be sudden, it will take a while for the effects to come through and we will probably see an increase in new stock and unsold stock.
“First-time buyers should be ultra cautious as all the measurable factors are higher than they have been since the 1990s.
“Agents shouldn’t be tying people into expensive deals just for their pipeline.”
He said agents are in three categories, adding: “The wiser ones are saying there is going to be some kind of price correction.
“The second category is the silent majority who don’t know what to think or say but they have to think hard about what we tell our clients
“Then you have the downturn deniers, who are just saying not to be negative and warning that if you talk it down it will go down.
“Agents are feeling threatened.
“It is bad for agents who rely on overvaluing to get business, those are the agents who will be most at risk as you can’t continue to do that in a falling market.”
Lamdin outlines why he thinks agents shouldn't be "downturn deniers" in the video below:
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This is breaking news?
“Agents shouldn’t be tying people into expensive deals just for their pipeline.”
I'm sorry, you can't view with us, our vendors don't want you viewing and we certainly don't want you in our pipeline. Maybe next year, OK?
An EXCELLENT video - thanks Charlie!
Really, is this whilst you're trying to get the listing from the other agents, when you have several best and final offers or just don't bother taking the instruction? not good advice or just trying to cover every eventuality. Best Agent ?
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