Monday, May 03, 2010
House prices set to soar
Express.co.uk: House prices are set to soar
Makes a change from the election
Posted by p. doff @ 08:10 AM (4053 views) Add Comment
28 Comments
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1. tenyearstogetmymoneyback said...
Link doesn't work - Try this one http://www.express.co.uk/posts/view/172847/House-prices-will-increase-by-5-
I have to say the Express sometimes get their prediction right. No one can deny this one
http://www.express.co.uk/videos/v/iLyROoafIKQH/Petrol-prices-set-to-soar
2. it_is_going_with_a_bang said...
Unlikely really isn't it. Maybe a quick glance at Greece will get people thinking hard about what happens when you ignore reality for too long.
3. mrflibble said...
'House prices are set to soar' is what they have splashed across the front page. Obviously nothing else happening in the world!
Can you imagine the FTB's reading this, especially on the back of the recent rises, what must they be thinking?
4. debtfree said...
This is based on the asumption that IR will be low the next 4 years...
What happens if there is a run on Sterling ?
5. happy mondays said...
This is also based on the assumption that the British public are very gullible...I read some where lately that Osama bin laden is opening an estate agents in the mountains of Afghanistan as this will be the next place to buy HOT property..
“Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe." Albert Einstein
6. little professor said...
Working linky
7. icarus said...
p doff said "Makes a change from the election". Isn't this article a part of the election campaign? "Post-election we would expect to see house prices continue to firm up as a result of renewed consumer confidence in the market, with a Conservative majority encouraging the highest levels of growth.”
8. Goldbug99999 said...
The express seem to be the worst rampers of the lot, thing is im not entirely sure what they thing they have to gain by doing this.
9. tenyearstogetmymoneyback said...
If there is a change of Government waht is the chances of a change at the Bank of England ?
How long can they keep interest rates near zero when inflation keeps going up. The next Chancellor
might send the letter of excuses back to the BoE with the instructions to do something about it.
10. mark wadsworth said...
What Icarus says.
11. quiet guy said...
Yes, what Icarus says.
This is fascinating. I never expected house prices to rise to such prominence as an election issue. The next week could be very interesting. Also, I was heartened to see the overwhelmingly hostile comments to this piece from the Express.
12. str 2007 said...
I can't understand how the Expres find this news more important than Diana.
Seriously though it would be a worry if interest rates were to say this low for much longer.
My reasoning to that is that it will make more people rush into this bubble and at the end of it there won't be more interest rate cuts to save them.
If interest rates are to be used as a tool to keep house prices under control then they should be going up soon otherwise they won't have a tool to use next time.
Re : the price they're dur to rise to according to the article £200k ish.
Wasn't that where they were in 2007 peak according to Halifax.
In the South I reckon they're already upto 2007 levels. Maybe the rest of the countryu will be catching up.
13. smugdog said...
Mr King can see no reason why interest rates should not remain this low
for perhaps the next 4 years.
"To offset the pain of higher taxes" Mr King is quoted.
So unless the next government are forced to increase rates by external forces,
which I see as extremely unlikely, housing seems a tantalising bet over this period.
The big losers are savers, miniscule returns, painfully high taxes, very depressed STR's.
Our Bruno could have something after all... bless.
14. matt_the_hat said...
I think house prices will soar - along with everything else - it's called hyperinflation and a worthless currency
15. titaniccaptain said...
@Smugdog
I wonder who else uses the word "... bless." at the end of their comments?
:-) lol
16. titaniccaptain said...
I think know who Smugdog is however I am remaining silent because he is one of two people I know......
The one candidate is obvious of word "Bless" at the end of a comment the other less but also because of that word. And no it isn't Jack C lol
I will however not reveal either out of respect for one of the candidates for "Who is Smugdog"....nothing like a good mystery....all we need is a good old fashioned murder to accompany it.
Back to the article.......(Well its headline don't have time to read the full shabang... I must go out shopping for pears...I feel like eating pears.)
House prices to soar after huge public sector cuts start pushing up unemployment?
Not so sure........but high unemployment is the only thing that will trigger off a full scale HPC.
17. smugdog said...
Ah me ol Captain,
It's a slightly condescending term I use when I'm being a little sarcastic.
Am I someone else who has trod the HPC once before? Categorically not so.
I do not have alias, however, I honestly thought better of the Moderators to allow
me to continue, after all, they DO know who I am.
Now, haven’t you got some near relative to tend to up on the Beacons this bright May holiday?
18. quiet guy said...
"So unless the next government are forced to increase rates by external forces, which I see as extremely unlikely, housing seems a tantalising bet over this period."
In other words, you must take a seat at the casino if you want to buy property because you're gambling on factors that you cannot possibly control such as the gilts market. I wouldn't have used the word 'tantalising' to describe this situation. Also, why make such a bold prediction a week before the election? By the end of the year we should have some idea of what the next government's approach to tackling our national debt will be.
19. titaniccaptain said...
Indeed I have Smugdog and a flock of sheep to worry.
But they come second to the desire I have for the pear right now......the pear is humble compared to the apple and I am all for the underdog.
20. smugdog said...
QG, fair point.
Unless we get a major seismic jolt, then low interest rates, I believe, are with us for quite some time.
'Tantalising', perhaps not quite, but that's my bet.
21. smugdog said...
Well said Captain (I laugh out loud!).... bless
22. mrflibble said...
18. quiet guy said...
In other words, you must take a seat at the casino if you want to buy property because you're gambling on factors that you cannot possibly control such as the gilts market.
Well put, at the moment both currency and housing feel the tables in a casino. If you are not prepared to play the high stakes housing table then you'll be forced to play the even higher stakes currency table.
As a whole the UK seems to have bet the whole wedge on a never ending racket of selling piles of bricks to each other for ever increasing sums. Should this housing racket falter then then the currency will be sacrificed further so it can start back up again.
23. Skempy said...
. happy mondays said... whilst you say, tounge in cheek that 'Afghanistan as this will be the next place to buy HOT property..' you might not have read a recemendation in the Times overseas property article in around 2006/07 that Kabul was a potential hotspot. I kid you not
24. clockslinger said...
Smugdog is quite right. There will certainly be no increase in IR despite what many a misguided poster on this site seemed to believe (six months ago) an incoming Tory govnt would do. Increasing IR is the last thing they will do.
This will quickly become one of the most unpleasantly divided countries in Europe, with the winners being the speculators who can service the biggest debts as asset values inflate and prudent savers being shafted...just like in the Thatcher years before the ERM debacle. No such discipline to save the prudent saver this time however.
Meanwhile the last sliver of welfare that saves the UK from becoming a materialistic free for all as bad as the US will be stripped away.The mantra is cut the state, give the money to the banks to lend and inflate away the debt. Pound dives...so what? Property stays high, majority of population who ower occupy take wage cuts but still feel like they are "ahead" and government stays in power on such policies I'm afraid. So please, no more convoluted explanations involving Iceland, Ireland or Greece, no speculating about failed gilt auctions and no thinking the Tories will do anything to tackle asset price inflation; none of these will happen. That is what the spending was about wasn't it...prevent a deflationary spiral? I don't like it and I'm sure few here do. Doesn't mean Smugdog is wrong though. And if you really want fecking over, just remember who Cameroon has as housing advisor.
25. quiet guy said...
@clockslinger
"no more convoluted explanations"
It's quite simple really - we're borrowing money to pay for day-to-day expenses. I presume that you've had enough of listening to doomers for now so I'll offer you something a bit different this time:
http://www.explosm.net/comics/1198/
26. This comment has been removed as it was found to be in breach of our Blog Policies.
27. growler said...
Smugdog is Stuart Law
As TC says, the thing that will kick off HPC is unemployment. With billions set to be cut (whoever "wins"), this is sure to happen.
Interest rates might well be desired to be low, but we are not the only ones with a hand on the tiller.
Given the above, we will just have to wait. Estate agents know from Wimbledon tennis the market goes dead. Expect a lot of tosh about it being a great time to buy for a month. From then, the first signs will appear and autumn will look an awful lot different.
28. mark wadsworth said...
As Clockslinger explains most eloquently at 23, The Tories will/would be even more ruthlessly Home-Owner-Ist than Labour, but the question is, will it work? Somehow I doubt it.