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House Price Inflation Back To 10%, Government Says

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http://news.bbc.co.uk/1/hi/business/10317283.stm

Annual house price inflation is back in double-digits, according to government figures.

The Department for Communities and Local Government (DCLG) said prices in April were 10.1% higher than a year ago.

That was the highest rate of inflation since October 2007, when prices were on a downward trend.

UK house prices rose by another 0.4% in April, putting the cost of the average UK property at £207,516.

Annual house prices rose in all UK countries except Northern Ireland in the year to April 2010, the DCLG said.

Annual house price growth was 10.9% in England, 2.2% in Scotland and 11.3% in Wales.

But in Northern Ireland prices fell by 8.9% on average in the year to April.

Mortgage lending

Separate figures from the Council of Mortgage Lenders (CML) show that mortgage lending this year has been modest.

Continue reading the main story The low share of the market shows that getting a mortgage remains problematic for first-time buyers who tend not to have a substantial deposit

CML

It said the number of loans granted to home buyers fell by 9% in April to 40,000.

The CML explained that this was a seasonal effect due to the Easter holidays, and said lending was still 15% higher than a year ago.

"Lending for house purchase still looks modestly positive compared to 2009," said Michael Coogan, director general of the CML.

"First-time buyers were particularly affected, perhaps because of the alteration to stamp duty, and in anticipation of the changes arising from the economic and political uncertainty of recent months."

However the proportion of loans made to first-time buyers was just 35% of the total - the lowest figure since September 2007.

With only a gradual easing of mortgage rationing in the past few months, first time buyers are still having to put down an average 25% deposit when buying a new home.

"The low share of the market shows that getting a mortgage remains problematic for first-time buyers who tend not to have a substantial deposit," Mr Coogan said.

Andrew Montlake, of mortgage broker Coreco, said: "Even taking into account the traditional Easter dip in activity, the figures for first-time buyers are still disappointing, and highlight how difficult it remains to secure finance without a sizable deposit."

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If a link is provided, why paste in the whole page?

I provide a small sample when using a link myself, but I at least remove all the html stuff and paragraph headings. I mean, what the hell is this:

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(...)

Annual house price inflation is back in double-digits, according to government figures.

See the reality in the chart below. To use "annual" at this moment is misleading spin.

House-price-indices-graph-001.jpg

Edited by Tired of Waiting

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The story around here is complete different (East Sussex, east Of Brighton). 3 friends all trying to sell. One sold and the buyer pulled out so house is back on the market at a lower price. Another friend has an up-scale house on the market with low-ball offers and nothing even close to asking. The third friend has now got an offer at 5k below asking. 2 houses within walking distance of my gaff sold in the last month and are both back on. A house I have been eyeing in a prime location was reduced by 25k from 350 to 325 and now has an offer. Reductions are the order of the day if you want to sell in the Southeast.

Based on what I know to be happening around here houses are probably 10% less than they were a year ago.

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No, houses will rise because that's what every home owning tax payer in the UK wants.

They are the ones with the money. Nobody cares about peasants that don't own property. Been going on for 100's of years.

There will never be a HPC in this country. If you were lucky enough to be on the ladder 10 years ago you have everything. A large profit on your house,pension and future.

Now it's done. No house and no chance of making anything of yourself.

Keep rowing down below. :(

wolf_in_sheeps_clothing.jpg

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Before we all celebrate, let us remember a few things about government HPI stats:

1. They lag by several months and reflect what WAS happening (HPI had picked up last year and was slow to correct as Acadametrics have pointed out with the last 3 months showing moderate falls).

2. They overlook repossessions and auctions.

3. They fail to take account of refurbishments over recent years with the result that an increase on paper may be a considerable loss in reality.

4. Transactions are at all time lows which means fewer, more expensive, homes are exchanging hands but the absence of FTBs means an essentially stagnant market.

5. Credit is still tight and down payments are restricting sales.

6. We are now alone in the western world not having any meaningful hosing correction which must mean the artificial stimulus is yet to wear off and the new government have suggested rises in taxes and more unemployment.

In the meantime I know its like one of those Hollywood horror movies when you think the last enemy is dead but it always seems to come back to life again and grab you around your ankle as you make your way out the door.

The market will win in the end and our houses are still unaffordable and rely on Brown style irresponsible credit to keep going.

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Its the deadcat bounce on absolute ******** volumes. I'm not at all bothered, the choreography is almost comically accurate. The budget on the 22nd will put in the OMFG leap-off-a-cliff fall, CGT sideshow permitting. Although I am a bear I don't normally post bearish things, I'm not a perma-doom and gloomist, but on this occasion I'm completely unfazed by it. Just my opinion.

Edited by Cogs

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The story around here is complete different (East Sussex, east Of Brighton). 3 friends all trying to sell. One sold and the buyer pulled out so house is back on the market at a lower price. Another friend has an up-scale house on the market with low-ball offers and nothing even close to asking. The third friend has now got an offer at 5k below asking. 2 houses within walking distance of my gaff sold in the last month and are both back on. A house I have been eyeing in a prime location was reduced by 25k from 350 to 325 and now has an offer. Reductions are the order of the day if you want to sell in the Southeast.

Based on what I know to be happening around here houses are probably 10% less than they were a year ago.

At the moment banks aren't lending more than 4 times the joint salary, house price will come down no matter what will happen in the next few months, recession or not. Mortgage will be refused and then house will go back on the market. Will be great to know how many people from 2003 to 2009 bought their house with a mortgage less than 4 times their salary, and worst with interest paid only?

Now it will take a year before to see the market going down badly, coz it 's time for people to realize that they need a massive deposit from mummy and daddy (which start now to think and to be worried about their pension) or to buy a house at 250k they need to earn £62.5k.. And around London for that price u get a dump (excuse my french). People just cannot afford anymore..and worse if recession is coming!

Seller can't sell coz buyers don't have enough cash and become more realistically about house quality (large rooms, large garden and not a tiny sh*t hole) , which means seller can't buy either..

Give them a year, and then Press will start to realize they cannot continue to lie and try to encourage citizen to get in debt for all their life for a dump!!

Shame on Gordon and People who encouraged this crazy house prices....but never mind they will go down anyway :lol:

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No, houses will rise because that's what every home owning tax payer in the UK wants.

They are the ones with the money. Nobody cares about peasants that don't own property. Been going on for 100's of years.

There will never be a HPC in this country. If you were lucky enough to be on the ladder 10 years ago you have everything. A large profit on your house,pension and future.

Now it's done. No house and no chance of making anything of yourself.

Keep rowing down below. :(

Precisely what the VIs want you to believe in order to sustain the....unsustainable.

Did you miss the crash back in 2008? halted only by the most savage cuts in IRs and a government campaign to ensure the bubble didn't burst further. Until the election, at least.

And now, ask yourself, where are we? In a more stable, sustainable environment for house prices?

Or one that has just 'enjoyed' a bump in prices due to low levels of transactions against a backdrop of a very fragile economy with a government intent on austerity measures while they can still blame the previous administration?

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Yes but HPI is the answer to everything.

Once people can tap into that equity they will forget the credit crunch ever happened.

The 4x4's, , foreign holidays and dinner parties where hosts tell you how much their house has gone up and why do you rent? will soon be back.

The reason we will never see a HPC is because homeowners held onto the houses only ever go up dream against all odds. In fact they did the right thing by holding out. I didn't think it would end up like this but they won.

I can't believe any graphs, statistics or news that points to reductions. In SE London prices are sky high as ever. You need £250,000 for a 2 bedroom house where I live minimum.

15% deposit is £37,500. Add a bit of moving in money and solicitors costs. You will be closer to £50,000 then have a nice £200,000+ mortgage.

We are renting at £600 a month plus bills and I earn £35,000.

How will we ever own a place here? Could never save the deposit. Only chance we have is with a liar loan over 30 years then pray for HPI.

Sorry, needed to get that off my chest haha :)

Hi Sibley.

Welcome back old chap.

Did your Thai gold-digger kick you out then? I guess she decided she needed something more substantial, downstairs, to keep her happy in the long run.

AWOOOGA!!

B

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Its already Coalition assumption that house prices will continue to grow.

Not sure if its due to the cuts, room for lower interest rates, trade surplus, or something else.

The Office for Budget Responsibility has released its first report this morning. Here are some interesting points to note:

* The growth rate for 2011 has been downgraded to 2.6% from the Labour government’s previous 3.25% (that seems about right to me).

* The trend growth rate of the economy has been downgraded from 2.75% per year to 2.35% per year out to 2014 and 2.1% thereafter (this still seems rather too high to me, but not ridiculously so).

* The estimated structural deficit (the bit of the deficit that recovery in growth won’t eliminate) has been increased from 7.3% of GDP to 8% (about £110bn).

* The headline deficit for 2010/11 is virtually unchanged at £155bn (the previous figure was £163bn as in Labour’s budget minus the £6bn of spending cuts announced after the Election = £157bn).

* The OBR estimates a 20% probability of another recession in 2014 (I expect such a recession in 2013 or 2014).

* Growth in whole economy earnings is expected to rise more slowly than the RPI for the next three years (not good for bankruptcies!).

* Claimant unemployment is expected to fall consistently from here on (not gonna happen).

* Residential property prices are expected to rise hereafter (unlikely, I think).

* The forecast short-term interest rates at 1.8% for end-2011 (which seems about right to me), but show them rising only slowly thereafter (which I consider unlikely).

* They have the gilts rate rising above 5% in 2014.

http://conservativehome.blogs.com/centreright/2010/06/an-interesting-innovation.html

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Its already Coalition assumption that house prices will continue to grow.

Not sure if its due to the cuts, room for lower interest rates, trade surplus, or something else.

The Office for Budget Responsibility has released its first report this morning. Here are some interesting points to note:

* The growth rate for 2011 has been downgraded to 2.6% from the Labour government's previous 3.25% (that seems about right to me).

* The trend growth rate of the economy has been downgraded from 2.75% per year to 2.35% per year out to 2014 and 2.1% thereafter (this still seems rather too high to me, but not ridiculously so).

* The estimated structural deficit (the bit of the deficit that recovery in growth won't eliminate) has been increased from 7.3% of GDP to 8% (about £110bn).

* The headline deficit for 2010/11 is virtually unchanged at £155bn (the previous figure was £163bn as in Labour's budget minus the £6bn of spending cuts announced after the Election = £157bn).

* The OBR estimates a 20% probability of another recession in 2014 (I expect such a recession in 2013 or 2014).

* Growth in whole economy earnings is expected to rise more slowly than the RPI for the next three years (not good for bankruptcies!).

* Claimant unemployment is expected to fall consistently from here on (not gonna happen).

* Residential property prices are expected to rise hereafter (unlikely, I think).

* The forecast short-term interest rates at 1.8% for end-2011 (which seems about right to me), but show them rising only slowly thereafter (which I consider unlikely).

* They have the gilts rate rising above 5% in 2014.

http://conservativeh...innovation.html

i dont understand why peopel continue to work in this country, its become unaffordable to work in this country.

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There's a big difference between "average house prices are 10% up" and "the average price of houses that have been sold recently is up 10%", which is what these stats really are saying.

A stagnation at the cheaper end of the market relative to the middle/top will push the average up, making it look like a real increase. In reality is anyone getting an extra 10% on their sale?

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http://news.bbc.co.u...ss/10317283.stm

Annual house price inflation is back in double-digits, according to government figures.

................

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I do not care. Halifax is negative and will stay like it for next 10 years. Nationwide and LR will join soon ...

DF

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"The reason we will never see a HPC is because homeowners held onto the houses only ever go up dream against all odds. In fact they did the right thing by holding out. I didn't think it would end up like this but they won.

I can't believe any graphs, statistics or news that points to reductions. In SE London prices are sky high as ever. You need £250,000 for a 2 bedroom house where I live minimum.

15% deposit is £37,500. Add a bit of moving in money and solicitors costs. You will be closer to £50,000 then have a nice £200,000+ mortgage."

that 15% £37 plus grand deposit would have bought you an average house 15yrs ago in my area. house prices are overvalued by TEN TIMES and the fall will be spectacular when it comes.

Edited by davemb

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<snip>

Annual house price inflation is back in double-digits, according to government figures.

<snip>

With inflation this high for such a significant portion of people's expenditure, shouldn't the BoE have an emergency meeting to raise rates to inflation plus 3% by to-morrow morning?

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  • 140 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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