Mudshark..
Sorry for the delay in my answer but I was out.. on my bike.
Where did you get that from? They certainly do auction property and I’m not aware of them holding onto stuff so curious. If developers or banks are holding onto stock then I assume they’re confident about prices picking up soon. I suppose with interest rates so low they might only sell if they need the cash in the short-term.
Banks ARE holding onto stock. There are many reports about this and it has nothing to do with them expecting the market to pick up. Yes, they send stock to auction, but with unreasonable reserves that in the main are never reached.
There’s a saying in the trade.. “a rolling loan gathers no loss”. ie. It is much better for the banks to show a 100% mortgage asset on their balance sheet than a big loss if they have to sell the property at a price people are willing to pay.
Unfortunately neither the gov nore understandably the banks have any intention on working with this as a large proportion of pensions ‘values’ are unfortunately tied up in the value of property (commercial and residential stock).
We can continue kicking the can down the road or we can face what has to inevitably be done and housing assets take a hit.
My personal theory is that they’re simply playing for time whilst they re finance the banks with OUR money before this ultimately happens.