Friday, Jan 19, 2007
£100k house price 'normal'
The Sun: £100k house price 'normal'
THERE's no escape from the creep of house prices.
Halifax are claiming today that the average house price in every county across the UK is above £100,000 for the first time.
Posted by david20040_0 @ 02:45 PM (207 views) Add Comment
11 Comments
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1. Dohousescrashinthewoods said...
little professor, enuii, looks like david20040_0 to the rescue.
Not just the Mirror turning bear then. Crikey.
2. Truckdriver said...
I would be very suprised to see a real increase in house prices in 2007. I have no access to official figures but traffic volumes to me seem lower, job adverts outside IT are much lower, and I live in a smart studio within very easy travelling distance of Leeds many of which appear to be empty. Dare I mention tax cuts to stimulate growth?
Trucker
3. nearly30 said...
Yes - makes for scary reading.
Sorry for re-posting this but if you missed some research I did for a previous blog it makes interesting reading - see below:
Went on to land registry website and looked at the sales volume figures - it tells an interesting picture
http://www.landregistry.gov.uk/assets/library/documents/hpir1206.pdf
Volume of Sales by price Sept 2005 to Sept 2006 comparison % change
£150,000 and under = change of minus 66%
£150,000 to £300,000 = change of 31%
£300,000 to £1M = change of 140% (sorry for aggregate but thought out of reach for most)
Over 1M = change of 122%
Overall change of total volume = 1% or 1,000 homes
4. paul said...
I met a traveller from an antique land
Who said:—Two vast and trunkless legs of stone
Stand in the desert. Near them on the sand,
Half sunk, a shatter'd visage lies, whose frown
And wrinkled lip and sneer of cold command
Tell that its sculptor well those passions read
Which yet survive, stamp'd on these lifeless things,
The hand that mock'd them and the heart that fed.
And on the pedestal these words appear:
"My name is Ozymandias, king of kings:
Look on my works, ye mighty, and despair!"
Nothing beside remains: round the decay
Of that colossal wreck, boundless and bare,
The lone and level sands stretch far away.
Percy Bysshe Shelley, "Ozymandius"
Not only is this my favourite poem ever, it seems very apt here.
The Sun newspaper says "100k is now normal" for an average house. I'm quite sure that a well known popular broadsheet in Japan may have said something similar some time in the late 1980s. Japanese Uncle?
5. headmelter said...
Halifax are claiming today that the average house price in every county across the UK is above £100,000 for the first time.
If this is the case a couple both need to be earning nearly twice the minimum wage and working full time to qualify for a mortgage (under the more traditional 3.5 times earning criteria) to be able to afford an "average" house.
6. paul said...
Exactly headmelter.
This looks like a new reality but in fact its almost certainly a false dawn.
For the first time ever, I got a call from an EA at 9.45pm this evening asking "are you still looking for a property?". When I hesitated he asked why and when I answered about interest rates he didn't have an answer. Says an awful lot more to me than any figures currently in circulation.
It's a new dawn for EAs, and I bet they don't like it.
7. Denzil said...
>>Merthyr Tydfil recorded the biggest hike, with typical prices in the county putting on an extra 175 per cent , up from £45,578 in 2001 to £125,450.
Just goes to show housing is in a speculative bubble. With the greatest respect to anyone from Merthyr it is always advisible to drive through with the eyes tightly shut.
8. David20040_0 said...
I thought I'd post this to show it isn't just the broadsheets and the vested interest papers like the Mail and the Express reporting the stupid prices now.
To afford an 'average' home now you have to stump up £100k, this is crazy but people only believe prices will go up. And interest rate rises are just not making any difference at all.
I am 21, by the time I am 26 an average house price will be around 180k.
I suggest that all young people leave the UK, there is no future here anymore for us.
Some new one bedroomed falts built near the bus station here in Leicester are offering 25% ownership for 38k. People are so desperate to get onto the ladder they will do anything to get some property. The boom will continue with record immigration.
I have given up ever thinking of buying a home here and how I can just leave.
9. paul said...
David, no need to be so pessimistic.
My feeling is that the BofE ignored the inflationary effects of HPI 2 years ago, and the chickens are coming home to roost. The bank ignored the warning signs and are very likely to lose control of the situation completely. Remember the underlying suspicion regarding official inflation figures too? That will make controlling inflation very very difficult now.
Also, I believe that what we might be seeing is that controlling inflation with interest rates is like pushing on a piece of string - because so much of the population is mortgaged and indebted up to the hilt, a rise in interest rates (instead of acting as a disincentive to spend) acts as an incentive to ask for more money to cover rapidly growing household costs.
So in summary, the BofE is buggered. The only blunt tool the BofE have is interest rates, and the only choice they will have is to raise them in response to inflation. All bets are off I think.
This is almost certainly the beginning of the end of the property boom, and as others have pointed out, the government will come out so badly that they will pass legislation never to let HPI run out of control again. And rightly so.
10. bidin'matime said...
Paul said..
"because so much of the population is mortgaged and indebted up to the hilt, a rise in interest rates (instead of acting as a disincentive to spend) acts as an incentive to ask for more money to cover rapidly growing household costs"
Absolutely, Paul. That's why they are completely stuffed. They are like a sailor drilling a hole in the bottom of his boat to let out the water that's flooding in over the deck - doomed to failure.
11. paul said...
bidin,
I think I'm really seeking clarification for that though. But I forsee that that alone could stymie the economy straight away. As these demands escalate profits diminish and growth is choked. Anyone else have an insight on this?