Firangi

I didn't say that you can brainwash me. I just said that you are trying. There are various factors ( and yeah including IR movements in other countries) which will affect BOE's decision. Oil, energy, HPI and public perception are the immediate worry for BOE. I don't look at what's happening one day and what's happening the other day. I think the long term trend in IR movement is upwards rather than downwards. Oil prices have started going up just now, so what relevance the figures since sept have. Wait for a few more months and then we will talk.

Sorry who's lacking common sense?????

I meant your efforts of brainwashing us into thinking that next IR movement will be downwards. One month's figure doesn't make much difference. What's the point highlighting it so much.

cos people have been brainwashed to thinking that house prices always go up and one day all house owners will be super rich who wouldn't need to do anything except MEWing equity from their houses. I met a lot of young boys recently who'r predicting 8% HPI for next 10 yeras. This tells, how out of reality our young generation is.

But public perception is very different to govt figures, which is a big concern for BOE along with HPI and surging oil, energy and commodity prices. Personally I wouldn't read too much into the montly figures. We all (including BOE) knows inflation is increasing. Next move to IR will be up despite all your (vane) efforts.

This kind of assumption makes no sense. There are regions in the UK which are already 8-10% down. There are other regions rising at 8-10% yoy. National averages make no sense.

Well I take RB's posts with a pinch of salt. Though he provides a good insight into the info he tends to spin all this info to favour his bearsh view. Btw I firmy believe that the UK housing market is seriously overvalued and is on the tipping edge. I think the real blow will come from the credit tightening or the drying up of liquidity. If he is right that it has already started then I am with him that crash is pretty much on it's way.

IUN's posts make me laugh the most. 'I have been right for 18 months so I'll be right for the foreseeble future'. I am sure he will be, as he appears to be pretty short sighted.

oh so what's stopping BOE from cuttiing interest rate and bringing pound down. I have checked it's again going up against US $ and euro.

>>Using a Japanese bank as a counterparty, foreign banks borrowed huge amounts of yen at very low interest rates in 2005. This yen was swapped for foreign currencies and invested in other Asian countries as well as in the United States. This points to one interesting fact. While this access liquidity in 2005, caused boom in stock and commodity market as well as in housing market in many Asian countries, it failed to materialise any boom in the UK housing market ( except the much hyped mini winter/spring boom). Does it show how seriously the UK houses are overvalued and how far will they correct when this liquidity is gone.

>>House prices have only historically fallen when interest rates have risen by at least 3% in the preceeding 12months But we have been told it's different this time

House prices are going up and down a few %age here and there. Neither a booming nor a crashing market around my area (Birmingham). Renting is much cheaper and more convenient than buying. The market was pretty much dead until december last year. The august's rate cut has made some effect in Feb and March but its back to now where it was last year. Though I can afford to buy I see no reason to buy now. There's no loss in waiting and watching while your money is doing well in other areas.

Halifax has also increased 3y/5y fixed term mortgage rates by 0.3% in last couple of days

exactl, all my colleagues here who are predicting an interest rate cut in autum have just fixed their mortgages for 2 years.

yep no HPC as yet but all the ingredients and recipe are pretty much ready. However I have seen people providing facts for the regional falls as much as 10-15% YOY.

yep, not looking any good for pound. http://www.x-rates.com/d/EUR/GBP/graph120.html

I suggest you to go back to school to correct your mathematics.

hi, i am new to this forum though have been reading posts here for quite a while now. I can't believe what land registry figures are showing and looking around where i live doesn't match with it. 5.1% quarterly increase in birmingham, my a55!! nothing is selling here. Asking prices slashed by 7 to 10 % and still properties are there on market for 4-5 months. A few properties which were sold earlier have come back to market. Is it called a bounce back?