Tuesday, Feb 13, 2007
House prices still soaring ahead
Daily Express: House Prices up 10% a year
More signs that there is still no let up in the rate of house price increases.
Posted by j tallis @ 11:40 AM (130 views) Add Comment
15 Comments
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1. dohousescrashinthewoods said...
Yaddah yaddah yaddah. VI written all over it.
For: "some areas had seen the market slow down somewhat"
Read: only London, Scotland and NI did well last year [and who knows what will happen this year]
The nearest thing to news is in the last para:
"We suspect that over time the growing affordability pressures resulting from higher interest rates, relatively moderate real earnings growth and elevated house prices will increasingly feed through to curb house price rises. Furthermore, it seems highly likely that interest rates will rise further."
The headline should read "House prices in selected areas up 10% last year".
As someone astutely pointed out on another thread, e.g. just because we now have 4 more daylight hours since, December, does not mean that we will have a further 16 hours of daylight next December. Something about natural limits and cycles in there.
2. David20040_0 said...
As I keep saying. people expect them to rise by 10% a year so keep putting money in.
Parents are releasing equity from their homes to help their kids further fuelling the market.
Banks are offering higher and higher multiple lending.
With parents' house prices rising and then releasing money to their kids this only means one thing, house prices will keep going up.
The BoE does not have the balls to raise rates any higher.
We need 7% at least to get any form of a slow down, but that isn't going to happen.
I want to be able to buy a house, I am able to save £500 a month. But if house prices are going up by £200 a week then I never will be able to.
I want house prices to drop, but I also realise that they won't and that I have missed the boat. Time to wake up to reality.
3. David said...
House prices in Manchester went up by about the same amount too.
I don't know much about fancy macro economics and how they "should" influence house price crashes/increases, but the reality is that I have been reading these blogs for years now, with the constant clamour of HOUSE PRICE CRASH. And the opposite has happened. Sure, one day, something different will happen. It always will. When though? It sure as hell seems that no one on this website can predict.
Is every article that talks of increases "utter tripe", and each article that spells doom; the "truth"? Are we all hpoing that prices will crash so that we can get our fist foot on the ladder?
4. David20040_0 said...
Parents in general have houses, they help their kids by taking money from these houses and help their kids to buy their own. Thereby further in flating prices.
Banks make it worse by also offering higher and higher multiples of your salary. I would not be surprised to see 10* soon.
All of these factors mean that house prices will keep on rising.
200k is absolutely crazy.
However, people now expect house prices to rise at 10k a year at least. I cannot save that every year.
This mentality is engrained so it will continue for a long period of time.
Interest rates will not go any higher, seen all the news reports that inflation has now "peaked". If people believe this then rates won't rise. 5.25% won't make any difference to prices. We need interest rates of at least 7%.
And yes you lot are delluding yourself thinking there will be a crash. You guys are just clutching to straws.
I want there to be a house price crash so I can buy a house and build a future for myself in the UK, but I have relaised that I never will be able to.
I save £500 a month every month hoping to be able to get a deposit, but if prices keep going up like this. I never will.
5. Geneer said...
Not many articles about the falls of the last quarter.
Funny that.
6. Cstanhope707 said...
Well this little Real Estate Industry Propoganda rag missed a trick here. Over the weekend we had House Prices rise some £80 something pounds a day or even with the current rise in January they could have extrapolated using some dodgy stats (sorry research from experts) and had a House Prices rise 18% a year. They are eventually going to be found out when the sheeple in this country learn how to use a calculator and do basic arithmatic. Remember only a couple of weeks ago they said House Prices will rise £1000 per month which worked out about some 6% and as I said at the time even this Rag was starting to call an end to the boom.
7. Bob Bingle said...
Typical crap for that paper. What the hell is it with that paper and house price ramping?
8. Speculatorone said...
Has anyone heard complete drivel Ruth Kelley has been spouting today. According to our great government all is well our valley of roses. Do you know what, until I listened to these labour politician's I never realised how well off I am and what a great job they are doing.. I think I am getting old and grumpy?
9. paul said...
Daily Express Delivery. Nnnnnnnngh. Fresh on your doorstep!
10. enuii said...
Horse - Door - Bolted
11. Cwelsh said...
Going going gone
12. Davros said...
> 200k is absolutely crazy.
You said it. Which is a sure sign we're in a bubble isn't it?
13. Nohpc said...
I don't think many people still believe property will rise by 10 % this year. I think there is just as little a chance of them dropping however.
14. Chilli said...
Yeah, a while ago I really believed there would be a house price crash. I've come to the conclusion, that if there is one, I won't know when it actually happens. Too many false alarms. What I do know is that the higher house prices go, the more people want to buy them (or fewer people with more money -somehow?). Unless its speculative - but BTLs rarely detach themselves completely from the yield of property, because they generally want their yield to pay for it all. And what that really means is the higher house prices go, the worse it is going to be to live in the UK as it means more people here wanting to buy limited housing. Sounds like a ghetto to me.
Gross mis-management.... a shortage of housing is the government's fault for not controlling immigration and for not building more houses. The excuse is that an increase in housing means an increase in infrastructure like roads, trains, sewage, power, water which all costs money, so they would have to raise taxes, unless they sell them off to private enterprise via PFI and outright ownership like Thames Water, or all the rail companies. So if we want to build more 'green-field' houses we need to get all these private enterprises in line so that the new tenants will at least have running water when they move in. No wonder its such a pain. Why the hell didn't they just raise taxes and pay for it all and manage it all under the umbrella of government? We might just all be better off.
Right now I'm wondering how we have this situation where the government seems to have moved much of the actual work of government into private enterprises (who are out for profit, rather than good service), yet the government is spending more many than it ever has. And how is it that one out of every four people in wales works for the government????
15. Leafybrow said...
I waited for many years for the drop. Nothing. Of course house prices are crazy high but then this means people will demand higher wages then they will afford the houses leading to higher prices. Of course increasing the borrowing rates changes nothing in the long run as people will need higher wages as the mortuage has gone up leading to hgher house prices again. The govenment seems to not notice this simple fact.