The UK property market is a house of cards

Housebuilders and property developers are throwing in ever more enticing sweeteners to ensure a sale. But such tactics have damaging ramifications for the property market.

With the housing market weakening rapidly, sellers seem to be willing to do anything to close a deal. John Bradley, selling a three-bedroom house near Lymington in Hampshire, will throw in a £20,000 Porsche Boxster with only 12,000 miles on the clock. Or, if you want to get away from the UK altogether, Michael and Selma Decker are offering a four-week break in their St Lucia Villa if you take their £1.25m home on London's South Bank off their hands.

But when it comes to throwing in sweeteners, no one is more accomplished at the art than property developers. Ross Clark in The Times highlights one lucky buyer on a development in Ipswich who secured £1,000 cashback, £5,000 in furnishings and her 5% deposit paid by the developer on a £110,000 flat. Sounds great. But, of course, it's nothing of the kind. All of these little extras' are simply paid for by an inflated asking price.

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Eoin came to MoneyWeek in 2006 having graduated with a MLitt in economics from Trinity College, Dublin. He taught economic history for two years at Trinity, while researching a thesis on how herd behaviour destroys financial markets.