Thursday, Apr 12, 2007
House prices accelerate
Telegraph: House prices accelerate
The housing market has given the Bank of England Governor Mervyn King more to think about, with the latest survey showing prices rose at a faster pace in March.
Posted by sonic @ 01:36 PM (154 views) Add Comment
4 Comments
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1. denzil said...
Reading this just highlights how screwed up everythng is. Gordon Brown's preferred measure of inflation that the MPC should follow is the consumer prices index (CPI). Now as we all know CPI does not include property, mortgages etc.
So the point is that Mervyn King and his backing singers have the instruction to control inflation based on CPI. Now in the meantime house price inflation (HPI) can go wandering off into never never land and King and Brown can quite happily sit and swivel on their fingers because it is of little concern to them.
Now it is touted that CPI will fall to 1.9% by July and the pound is pretty strong so if push came to shove there is no
doubt some slack to cut rates by a .25% if required.
This scenario is obviously no good for an HPC but until such time that the government realise that it is only fair that some measure of HPI should be built into the inflation measure HPI can continue completely unchecked We could even have a house building program that addresses the balance of supply and demand for a nation undergoing massive change through high migration and higher number of people living alone than ever before. But no, what do we end up with a completely fudged system that keeps house prices out of the inflation measure because Gordon Brown knows only too well that if HPI was factored into the equation then his economy would quite simply be seen for what it is, a mirage and a house built on sand.
The damage socially that HPI will do to the UK in the long-term is frightening.
2. tyrellcorporation said...
Jeremy Leaf, a spokesman for the RICS, said: "The housing market has absorbed the initial interest rate barrage, but history tells us that further rates rises could knock confidence and activity significantly later in the year."
'The warning from the RICS about the impact of further increases in interest rates echoes those made recently from mortgage lenders Halifax and the Nationwide Building Society.'
'Despite this, both lenders still expect the housing market to extend its decade-long boom this year.'
It's booming but it could cool down, but actually it's booming but things may deteriorate, but actually everything is amazing but things....
AAARRRGGGGHHHHHH!!!!!
3. Scott said...
Sod it. Let's all move. An exodus from the UK, larger than the exodus of the Jews from Egypt thousands of years ago. Let's leave the buy-to-let idiots to it. Next headline "100,000 would-be first time buyers seek asylum in Turkey".
4. george monsoon said...
Denzil.. Mervyn and his backing singers......!!
funny