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bomberbrown

Houseprices On The Up - Bbc Breakfast

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Went along these lines:

BBC Breakfast Business Reporter: "House prices always go up...blah blah"

Ed: "We're not going to see 2007 prices for at least a decade......"

BBBR: "Please tell us housprices are going up....blah blah"

Ed: "F@#k off knob!......"

BBBR: "Ah....but what about supply and demand..... tiny island"

Ed: "Do you mean demand in the sense people want houses or do you mean demand in the economic sense in the ability to pay?......"

Sian also chipped in with the bull mentality: "How can we be sure they will continue to rise?" Can only assume that Sian is no FTB.

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Went along these lines:

BBC Breakfast Business Reporter: "House prices always go up...blah blah"

Ed: "We're not going to see 2007 prices for at least a decade......"

BBBR: "Please tell us housprices are going up....blah blah"

Ed: "F@#k off knob!......"

BBBR: "Ah....but what about supply and demand..... tiny island"

Ed: "Do you mean demand in the sense people want houses or do you mean demand in the economic sense in the ability to pay?......"

Sian also chipped in with the bull mentality: "How can we be sure they will continue to rise?" Can only assume that Sian is no FTB.

Was it Ed Stansfield the Capital Economics guy? I have seen him live destroy a very senior person in The Nationwide but again not difficult

Edited by Greg Bowman

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Guest P-Diddly
Same old shite.

Priced in any other currency bar sterling and prices are tanking, can anyone figure out why?

Why not just give everyone say, 1 billion pounds and the houses will be worth a fortune :))

What a retarded country the UK is...

I scream this. At the very top of my tarred out lungs. Does anyone here listen?

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Guest P-Diddly
Yes, I've heard you. What does it mean though?

It means QE is having the effect of maintaining prices (in GBP) but nowt else.

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Guest P-Diddly
It means the natives are too poor to buy a shelter.

Yes.

Now, turn QE off, markets finally set real interest rates (risk pricing and wotnot) and BAM! You guys might just see 'em tumble yet. In Quids I mean.

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Was it Ed Stansfield the Capital Economics guy? I have seen him live destroy a very senior person in The Nationwide but again not difficult

Was indeed. To be fair to the BBC - this was far more of a balanced view on the market than they usually give.

BBC presenter - positively desperate to get some news that means prices won't fall.

Guest - not convinced in the slightest.

= Balanced.

I would be happy if the BBC gave more interviews like this. At least they showed 2 sides of the argument.

One other point. Anyone notice how he was introduced ? "Ed Stansfield from Capital Economics, who is a doomsayer"

I kid you not. This was his introduction.

Anyone remember an EA, chump from the CML or such ever being introduced by the BBC as a "Pie in the sky pink fluffy cloud optimist" ?

Thought not..... :rolleyes:

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It means QE is having the effect of maintaining prices (in GBP) but nowt else.

Yep. If I wanted to buy a place in the UK today, my euros would get me 30% more than they did 24mnths ago. Take into account the slide in prices, and a euro buyer could get 40-50% off the 2007 price , today.

Now, why they would want to buy a still overvalued UK asset is beyond me. 2011 seems a nicer time.............. ;)

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I understand why people bring up the price of UK houses in other currencies. However it is not really relevant to most that will ever buy a UK house. What % of UK residential houses are bought with anything other than the £ ? Must be a pretty small number. I just don't think discussing how much a UK house costs in other currencies is that relevant to most. In the relation to QE, currency devaluation, overseas buyers etc.. of course it is worth discussing.

I don’t think we have to worry about prices not falling further in the UK. Most people buy them with a UK mortgage, get paid in UK £ and pay a deposit with UK £.

Prices are still too high, and any influx on foreign money to 'snatch' these assets is not going to make much of a dent. It is the price of a UK house bought by someone earning UK pounds that matters. Until this reaches a reasonable level - prices will have to fall further.

Only problem is this Government seem intent in dragging this out for as long as is humanly possible.

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uk house prices could well go up since the pound is taking such a battering lately

i noticed it's now 54p to 1 AUS$

But how is that relevant to a couple looking to buy a semi in Doncaster ? Unless of course some property investors from Australia decide to head over and buy them all up instead. I am sure this may happen on a very small scale, however it won't even make a dent in the bigger picture.

Look at the US or Spain for the proof. Bargains to be had all over the shop. Yet people are not exactly clammering from abroad to get a piece of the action....

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Was indeed. To be fair to the BBC - this was far more of a balanced view on the market than they usually give.

BBC presenter - positively desperate to get some news that means prices won't fall.

Guest - not convinced in the slightest.

= Balanced.

I would be happy if the BBC gave more interviews like this. At least they showed 2 sides of the argument.

One other point. Anyone notice how he was introduced ? "Ed Stansfield from Capital Economics, who is a doomsayer"

I kid you not. This was his introduction.

Anyone remember an EA, chump from the CML or such ever being introduced by the BBC as a "Pie in the sky pink fluffy cloud optimist" ?

Thought not..... :rolleyes:

He probably won't be invited back in hurry. :lol:

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I caught a bit of this this morning, and was impressed because I think that it is the first time that I have seen the 'lack of supply' argument debunked so succinctly in mainstream media.

This argument is something I hear all the time. No one is trying to say that we will ever have a surplus of houses, just that a standard FTB on £30k is not going to be able to raise the capital for a £300k flat/house.

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He probably won't be invited back in hurry. :lol:

I hope so. A different view is always welcome. Although to be fair to the BBC chump - at the end he pointed out that FTB's will all be hoping Ed was right. Again just a wee thing - but for a change a balanced view on the subject. Let's hope we get more of this.

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But how is that relevant to a couple looking to buy a semi in Doncaster ? Unless of course some property investors from Australia decide to head over and buy them all up instead. I am sure this may happen on a very small scale, however it won't even make a dent in the bigger picture.

Look at the US or Spain for the proof. Bargains to be had all over the shop. Yet people are not exactly clammering from abroad to get a piece of the action....

CCC, as you point out, there is NO relevance in UK prices being attractive to foreign buyers have an impact on a UK couple looking to buy. However, for the last 10 years the VI's have been telling the public the opposite.

If I was looking to buy in the UK as a retirement I'd still be sitting on the sidelines with my euros. As all the bears on here know, this HPC still has some way to go. ;)

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I caught a bit of this this morning, and was impressed because I think that it is the first time that I have seen the 'lack of supply' argument debunked so succinctly in mainstream media.

This argument is something I hear all the time. No one is trying to say that we will ever have a surplus of houses, just that a standard FTB on £30k is not going to be able to raise the capital for a £300k flat/house.

Yes the argument was debunked succinctly enough, but the impact on the average viewer would have been somewhat diminished by the attitudes of the BBC interviewer/presenters. They pretty much skimmed over what the 'doomsayer' had to say and carried on the general theme of house prices rising being fantastic news for all. I almost felt they were taking pity on the loony doomsayer by giving him 30 seconds or so to give his view before moving on with more of the same deluded smugness they constantly spout.

They really don't get it!

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Guest P-Diddly
I understand why people bring up the price of UK houses in other currencies. However it is not really relevant to most that will ever buy a UK house. What % of UK residential houses are bought with anything other than the £ ? Must be a pretty small number. I just don't think discussing how much a UK house costs in other currencies is that relevant to most. In the relation to QE, currency devaluation, overseas buyers etc.. of course it is worth discussing.

I don’t think we have to worry about prices not falling further in the UK. Most people buy them with a UK mortgage, get paid in UK £ and pay a deposit with UK £.

Prices are still too high, and any influx on foreign money to 'snatch' these assets is not going to make much of a dent. It is the price of a UK house bought by someone earning UK pounds that matters. Until this reaches a reasonable level - prices will have to fall further.

Only problem is this Government seem intent in dragging this out for as long as is humanly possible.

It's not really about foreign buyers it's about domestic mathematics with this QE thing. Either the price of houses goes or the Pound does. Ultimately of course it will be both, but for now they choose to maintain UK house prices . . . priced in Pounds and let Pound hit wall.

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It's not really about foreign buyers it's about domestic mathematics with this QE thing. Either the price of houses goes or the Pound does. Ultimately of course it will be both, but for now they choose to maintain UK house prices . . . priced in Pounds and let Pound hit wall.

Unless you think that overseas buyers are stepping into the UK property market or many UK citizens have wealth stored in overseas currency then the exchange rate with other currencies makes no difference what so ever.

Can you explain how the £ depreciating against say the $ transmits to a rise in UK house prices?

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Guest P-Diddly
Unless you think that overseas buyers are stepping into the UK property market or many UK citizens have wealth stored in overseas currency then the exchange rate with other currencies makes no difference what so ever.

Can you explain how the £ depreciating against say the $ transmits to a rise in UK house prices?

Nothing to do with it. Both are a consequence of QE and have no direct relationship to one another.

Edited by P-Diddly

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I caught a bit of this this morning, and was impressed because I think that it is the first time that I have seen the 'lack of supply' argument debunked so succinctly in mainstream media.

This argument is something I hear all the time. No one is trying to say that we will ever have a surplus of houses, just that a standard FTB on £30k is not going to be able to raise the capital for a £300k flat/house.

Surely all the unlet flats and houses are surplus?

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Nothing to do with it. Both are a consequence of QE and have no direct relationship to one another.

So what you mean is QE will in time cause general price inflation which over time will cause increases to nominal value of everything. Something which has not yet happened in any meaningful way.

Not that sterling has depreciated 40% against the $ so house prices have really crashed (which you imply) and are now affordable again. If everyone ( or nearly everyone) who is interested in UK property is paid/has their wealth in Sterling. Than the exrate by itself has NO effect on prices. Although it might be a symptom of something else which does.

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Guest P-Diddly
So what you mean is QE will in time cause general price inflation which over time will cause increases to nominal value of everything. Something which has not yet happened in any meaningful way.

Not that sterling has depreciated 40% against the $ so house prices have really crashed (which you imply) and are now affordable again. If everyone ( or nearly everyone) who is interested in UK property is paid/has their wealth in Sterling. Than the exrate by itself has NO effect on prices. Although it might be a symptom of something else which does.

I think it's a shorter timeframe than that. The QE desperation is propping stuff up right now, FTSE, housing market etc, but putting serious pressure on the Pound. Therefore, for now, house prices stay the same, may even increase whilst the Pound goes down. Again, house prices and Pound depreciating value have no direct link, only being related by their cause . . . being QE.

This of course cannot last. Not sure how long but something has to give. People discuss bond strikes etc here, which is likely to be the 'give'. Markets reprice risk and real interest rate rise . . . you know the rest.

So I say, yes, house prices down in anything but Pounds . . . for now.

What think?

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