Friday, Jul 27, 2007
Land Registry confirms the slow down
LandRegistry: House Price Index - June2007
"House price change in England and Wales remained positive for residential property transactions that completed in June 2007. The 0.4 per cent rate of monthly increase is slightly less than the previous month." slightly less!?... yes, it is 0.3% less than last month's growth, small difference? 0.3% less means HALF the growth of last month, dear land registry!!
Posted by confused76 @ 03:08 PM (191 views) Add Comment
13 Comments
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1. Ironlady said...
YEY!
2. paulos said...
Check out page 5...
Prices rising in 5 regions BUT...
Prices falling in 5 regions.
3. Whiteknight said...
The next shock decision for people will be the following one:
The brown stuff is hitting the fan so they stop raising rates and even consider reducing them.
However this is stagflation so prices will keep rising. They will then realise they have to raise rates even though the brown stuff is hitting the fan.
or else "currency go bye bye."
The vicious cycle being caused by the realisation that the entire basis of the current credit system is a pile of rubbish is unavoidable.
4. confused76 said...
I am bit worried about the growth here in London, which seems very stubborn
BTLers are pushing rents up like crazy, well cant blame them their arses are on fire because of the interest rates, really desperate situation. However, if they do not manage to pass the costs to tenant, then we will have fun this autumn. If they pass the rate increase to tenants, we will have to wait for the first layoffs in the city, usually announced after Christmas (like in 2001 and again in 2002), to make a difference.
5. tyrellcorporation said...
YAY! SW prices drop by 0.5%!!! Not really surprising as we've got third-World wages down here. The SW housing market is totally reliant on a steady stream of Hugh-Fearnley Whittingstalls retiring at the age of 35 with their fat city bonuses and then telling all the locals how easy it is to make a comfortable living selling chutney and devilled pigs ears!
6. wage slave said...
Ultimately BTLers may be able to raise rents a bit because some tenants will not want the hassle of moving vs the rent increase, but ultimately BTLers operate in a free market and they have to compete against other landlords in the area.
I'd imagine that if they try to increase rates significantly then more and more people will flatshare, move back in with parents, or rent in a cheaper area.
The bottom line is that the BTLers mortgage is decided by interest rates set by the MPC, and the rents they receive are set by market forces. The two are not connected and never will be, no matter how much BTL wishful thinking there is.
7. Popalot said...
Th rentals in central London are so fantastical as to only be affordable by the big money posse of: bankers, foreign specualtors and foreign tax dodgers...................if the financial markets go the way they are seeming to, those guys will evaporate and central London BTLers will be high and dry.
8. paul said...
"The bottom line is that the BTLers mortgage is decided by interest rates set by the MPC, and the rents they receive are set by market forces. The two are not connected and never will be, no matter how much BTL wishful thinking there is."
Mine is a case in point. My landlord proclaimed (through the estate agent) that because his costs had increased, and the market value of the property had increased, the rent had to increase. So I politely asked "Over and above what I had last year for the current rate, what are you offering me to justify the increased rate?". Many estate agents seem to think this is a given too - that the brunt of the increase should be borne by the tenant for no extra benefit!
Oh how much they have to learn - I'm moving to a bigger place for the same money!
9. Theeconomist said...
Ok, once and for all.. Landlords CANNOT pass on their increased costs to the tenant. Bearing in mind landlords wish to maximise their profits they will set the highest rent that they can achieve in the market that they operate within.. any further costs or increase in costs must 100% fall to the landlord.. the argument (and economic theory) is that if they could increase the rent they would have already done so..
10. denzil said...
tyrell,
>>"selling chutney and devilled pigs ears"
Oh so true, made me chuckle that one.
We get a few up in my end of Somerset. They always seem to presume we are all turnip farmers who have never heard of television or cars and believe the world is in fact flat and the edge of it is slightly north of Bristol.
11. deepak said...
We must remember that these are deals done a few months ago and now finalised.
As there is a lag. What is happening today will be seen in figures of September.
12. paul said...
I won't say this again, but if this isn't the HPC, I'm afraid it's not going to happen, guys.
13. Voiceofreason said...
There should be two currencies in the UK.
M25Pounds and Pounds Sterling.
M25Pounds are earned by those working within the confines of the M25.
One Pound Sterling would be worth approx 3 M25Pounds.
Though the two would be openly tradeable. Would be interesting to see where they float to.