Saturday, Mar 17, 2007

What happens when the tide goes out?

Firstrung: House prices fall by over £4,500 in February - NAEA

The National Association of Estate Agents (NAEA) has released figures from its latest housing market survey, revealing that the residential housing market has begun to feel the full effects of the interest rate rises seen in the past few months.
AVERAGE ASKING PRICE FEBRUARY 2007 £213,259
AVERAGE ASKING PRICE JANUARY 2007 £217,955

Posted by converted lurker @ 01:54 PM (146 views) Add Comment

15 Comments

1. sovietuk said...

Given that there is such a supposed short supply of properties in certain parts of the country (e.g. the southeast) this is really quite significant. Basically something very nasty is heading in our direction.

Saturday, March 17, 2007 03:46PM Report Comment
 

2. enuii said...

This is not really new news as many properties are already changing hands at up to 20% less than the estate agents inflated board prices in many areas outside London. Add in the fact that a lot of retailers are starting to publicly struggle with private equity victims Debenhams heading the list with their February figures recently released and I would imagine that job losses in the retail sector may start to appear.

Hold on tight the ride appears to have started!

Saturday, March 17, 2007 05:08PM Report Comment
 

3. This comment has been removed as it was found to be in breach of our Blog Policies.

 

4. Weycresto said...

Yes glad you mentioned private equity. Debenhams will stuggle, its PE days have left it layered with
debt, (the PE owners put £600m into the deal and took out £1.3bn in dividents).
I doubt it even owns its stores anymore. Boots will probably will go the same way.

While the Tories are welcoming Private Equity (George Osbornes team is staffed with KPMG who know a thing or too about tax evasion) Germany has more sense and is clamping down by changing the tax treatment on interest payment. If this effects the PE sector "so be it" said the German Finance Minister!

Saturday, March 17, 2007 06:58PM Report Comment
 

5. David20040_0 said...

Watch the Bank of England panic and slash interest rates.

Saturday, March 17, 2007 08:54PM Report Comment
 

6. dohousescrashinthewoods said...

Well, many of us have been tentatively calling it, but this is something very real.
It may only be the asking prices, other indicators may still be holding steady and the truth may already be different but..
It does feel like the first official step.
Crikey.

Saturday, March 17, 2007 09:53PM Report Comment
 

7. Davros said...

Well it had to happen at some point. Hopefully the other surveys will back this one up. If nothing else, it proves the mood is changing.

Saturday, March 17, 2007 10:19PM Report Comment
 

8. Steve said...

I read in the papers today however that we need to build 220k houses a year for the next decade, surely even if prices do drop now then they will surely just pick up again.

Saturday, March 17, 2007 11:07PM Report Comment
 

9. paul said...

And GBP is steadily falling in value so the BofE will have to raise rates to protect the pound ...

Where are you glorious sunshine??

Sunday, March 18, 2007 01:13PM Report Comment
 

10. David20040_0 said...

I have seen the £GBP steadily losing its value over the past few days. It was 1.96$ at XMAS, it is 1.86$ now.

Sunday, March 18, 2007 01:34PM Report Comment
 

11. sirgoogle said...

Let us hope that Crash Gordon doesnot listen to the quote .... "and would like to take this opportunity to encourage the Chancellor to address the issue of stamp duty thresholds in his imminent budget announcement".....

This would simply heat up the market again and postpone the HPC for another 6 months

Sunday, March 18, 2007 04:28PM Report Comment
 

12. little professor said...

can you do fancy html in these comments paul?

Sunday, March 18, 2007 04:45PM Report Comment
 

13. little professor said...

Oh, I didn't realise you could.

cool

Sunday, March 18, 2007 04:46PM Report Comment
 

14. Benstar said...

Sorry to have to correct "David 20040_0", who mentioned in his comments that the GBP - USD exchange rate has fallen from $1.96 to $1.86 since Xmas...it actually hasn't fluctuated much since then and is currently at $1.94. check out the following BBC link to get the latest USD exchange rate:

http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/currency/11/12/default.stm

Sunday, March 18, 2007 07:23PM Report Comment
 

15. David20040_0 said...

Sorry, I meant the tourist exchange rate.

At my local American Express Currency centre they display the currency values on a big sign on my way to work.

Beofre Xmas you could pick up $1.96 for £1, now it is $1.84.

Sunday, March 18, 2007 10:07PM Report Comment
 

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