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House Prices 'have Peaked And Will Fall For Rest Of Year' As Flood Of New Sales Follows Hips Axe!

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House prices 'have peaked and will fall for rest of year' as flood of new sales follows HIPs axe

By Sean Poulter

Annual house price rises have peaked and are predicted to fall back over the rest of the year amid an economic squeeze, it is claimed.

Figures from the Nationwide building society show the annual rate of growth dropped from 10.5 per cent in April to 9.8 per cent.

Increases in prices in the first half of this year have been driven by a shortage of homes - particularly family properties in the south east - for sale.

However, there has been a flood of homes onto the market in the last ten days since the Government announced it was suspending rules requiring sellers to buy a Home Information Pack.

At the same time, predictions of massive job losses in the public sector and increases in taxes later this year could driver buyers out of the market, leading to lower prices.The average cost of a UK home rose 0.5per cent in May and is now £169,162, according to Nationwide.The figure is some 12.2 per cent above the low point of May last year and 9.5 per cent below the peak of £186,900 in October 2007.Martin Gahbauer, Nationwide's chief economist, said the market in May was characterised by thin transaction volumes and a relative scarcity of properties for sale. However, this is changing with reports of an increase of more than 30 per cent in the number of new homes being listed in estate agents windows in the last 10 days. Agents say the lifting of the requirement to have a HIP has freed up sellers to put homes up for sale on spec to see if they can get a good price. Robert Scarff, managing director of Countrywide’s estate agents, the largest in the country with 1,200 offices, said the suspension of HIPs was crucial to bringing more homes onto the market. ‘This decision has provided homeowners with the incentive they need to put their properties on the market. ‘Those sellers that were in two minds are now doing so and causing a big spike in activity for agents,' he said. Last month, property analysts at Capital Economics, predicted that April would be the peak for annual property price rises. A spokesman said: 'It is still early days, but our prediction last month that April would be the high water mark for house price inflation appears to have been borne out. 'For now, house prices continue to rise, but easing supply shortages, overvaluation and, of course, the weak economic backdrop, all argue for renewed falls later this year.'


Maybe The Mail and The Express aren't joined at the hip ..... after all! :o

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Or maybe the Mail have realised that there is a significant and increasingly vocal minority that do not want HPI, and that balanced articles do better than VI ramping.

Covering their own backs perhaps. Put out one or two articles amongst the stream of VI propaganda then when it all goes wrong point to them and say "we did warn you".

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In a moment of madness I shorted the UK Housing Market.

I only mention this as the last price index adjustment was a fall of 0.3% (yesterday). I believe IG's index is Halifax though and not Nationwide.

Perhaps we have reached a peak?

(damn this HPC site for taking up my lunchbreaks and generally stressing me out!)

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...Maybe The Mail and The Express aren't joined at the hip ..... after all! :o

The Daily Heil is unpleasant publication but it's quite cleverly written and does a few things well [mostly, admittedly, drumming up hatred against homosexuals, immigrants, and the BBC, but it's also quite good at gossip column-y stuff...]... the Express, on the other hand, is just nothing, it's mush, it's brain dead... its circulation is supposedly still well over half a million a day [down from nearly a million a decade or so ago] but my guess is that a sizeable proportion of that figure comes from daily subscribers who’ve actually passed away but none of their relatives have got round to cancelling the subscription...

Edited by the flying pig
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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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