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Daily Mail: House Prices In Monthly Drop

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http://www.dailymail.co.uk/news/article-1290258/House-prices-monthly-drop-year.html?ito=feeds-newsxml

_________QUOTE______________________________________________________________________________

House prices in first monthly drop in more than a year

By Daily Mail Reporter

Last updated at 12:45 PM on 28th June 2010

House prices in England fell 0.2 per cent in May, figures showed today, the first monthly drop in 12 months.

The decline takes the price of an average home to £165,314, and follows a rise of just 0.1 per cent in April, according to the Land Registry.

Despite the drop, the year-on-year average rose 8.2 per cent, the seventh consecutive month that the annual rate has risen.

Decline: House prices experienced their first monthly drop in 12 months, figures showed today

article-1290258-0964882C000005DC-517_468x286.jpg

Decline: House prices experienced their first monthly drop in 12 months, figures showed today

But the rate of annual house price growth fell slightly - down from 8.5 per cent in April - the first time annual house price inflation has worsened since February last year.

The most up-to-date figures available show that during March 2010, the number of completed house sales in England and Wales rose by 37 per cent to 48,577 from 35,449 in March 2009.

The figures come as property intelligence group Hometrack said house prices edged ahead by just 0.1 per cent during June as demand from potential buyers stalled.

The housing market suffered a slow start to the year due to a combination of the end of the stamp duty holiday, the severe winter weather and uncertainty caused by the general election.

But the market has failed to regain momentum as the impact of these factors has worn off, leading economists to speculate that the recovery may have run out of steam.

The Land Registry figures showed that the number of homes being sold had picked up in March, the latest month for which figures are available, with 48,577 properties changing hands, 37 per cent more than in the same month of 2009.

But the figure still remains well down on the 77,408 sales completed in December.

Howard Archer, chief UK and European economist at IHS Global Insight, said: 'The Land Registry data for May and the June Hometrack survey both add further substance to our long-held belief that house prices will struggle to make significant gains over the coming months.

'Housing market activity remains well below long-term norms despite edging up recently. The economic fundamentals of high unemployment, still falling full-time employment and low earnings growth are hardly ideal.

'Also very significantly, more properties are coming on to the market thereby moving the supply/demand balance more in favour of buyers.'

House prices rose in only three regions of England and Wales during May, with the South East leading the way with a gain of 0.9 per cent, followed by London at 0.7 per cent and the North West at 0.5 per cent, while prices in Yorkshire and The Humber were unchanged.

But at the other end of the scale, house prices fell by 3.6 per cent in the East Midlands and by 1.9 per cent in the North East.

All regions reported positive annual house price growth, with London continuing to post the biggest gain of 14.2 per cent, while house prices in the North East are only 1.8 per cent higher than they were a year ago.

Read more: http://www.dailymail.co.uk/news/article-1290258/House-prices-monthly-drop-year.html?ito=feeds-newsxml#ixzz0s9U0Pzud

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FT : http://www.ft.com/cms/s/0/9a94a312-82a8-11df-85ba-00144feabdc0.html

Sales index shows UK house prices falling

By Norma Cohen, Economics Correspondent, Published: June 28 2010 13:27

House prices in England and Wales recorded a month on month fall for the first time in over a year in May, suggesting that the rise that looked so strong late in 2009 may be running out of steam.

According to the Land Registry House Price Index – which only includes houses which have changed hands at least once since April 2000 – average prices fell by 0.2 per cent in May from April. It is the first time since March 2009 that the Land Registry Index has recorded a month-on-month decline.

The Land Registry Index is considered a lagging indicator because it records prices as much as three months after transactions have occurred while the closely watched indices from lenders reflect deals struck before completion. Nevertheless, because the Land Registry Index is composed of actual completed sales, its results are regarded as significant.

“The Land Registry data for May and the June Hometrack survey [which also showed house prices slowing] both add further substance to our long-held belief that house prices will struggle to make significant gains over the coming months,” said Howard Archer, economist at IHS Global Insight.

“Housing market activity remains well below long-term norms despite edging up recently. The economic fundamentals of high unemployment, still falling full-time employment and low earnings growth are hardly ideal. A major fiscal squeeze is starting, credit conditions remain tight and house price/earnings ratios have moved back up,” Mr Archer added.

The Land Registry noted that price movements were not uniform geographically or by housing type. For example, despite the average price decline nationwide, house prices in London rose 0.7 per cent in May from April – the third monthly rise in a row. House prices suffered their biggest monthly declines in the East Midlands and North East of England, falling by 3.6 and 1.9 per cent respectively.

And while house prices on average in May stood 8.2 per cent above their level a year earlier, semi-detached and terraced houses showed smaller rises of 7.9 per cent and 7.6 per cent respectively. Detached houses, in contrast, posted gains of 9.6 per cent.

The latest data come amid other evidence that mortgage volumes are slowing and that the number of properties placed on the market for sale is rising. The dearth of houses for sale was widely viewed as one reason why house prices bounced back so sharply in the second half of last year. Indices from lenders’ surveys are also showing weak and falling prices.

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So is this the turn?

May should be one of the best months for house sales, spring bounce and all that rubbish. Ok, there was the election etc. but it's serious when we get a fall in May.

Is the bull trap finally over? A couple of months more like this and we'll have our answer.

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So is this the turn?

May should be one of the best months for house sales, spring bounce and all that rubbish. Ok, there was the election etc. but it's serious when we get a fall in May.

Is the bull trap finally over? A couple of months more like this and we'll have our answer.

Halifax data shows the rally ending in febuary. They will all probably show slightly different tops but I'd say after 3 months relatively flat then a fall that land registry has peaked.

Edited by Pent Up

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So is this the turn?

May should be one of the best months for house sales, spring bounce and all that rubbish. Ok, there was the election etc. but it's serious when we get a fall in May.

Is the bull trap finally over? A couple of months more like this and we'll have our answer.

I do hope so.

Spiney

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So is this the turn?

May should be one of the best months for house sales, spring bounce and all that rubbish. Ok, there was the election etc. but it's serious when we get a fall in May.

Is the bull trap finally over? A couple of months more like this and we'll have our answer.

I hope so. It must be.

After all the news about Housing Benefits going down in the next 3 years, who would invest in BTL?

And considering all the Emergency Budget, all the incoming cuts, and unemployment, who can still believe that house prices will go up in the next few years?

It must fall now.

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So is this the turn?

May should be one of the best months for house sales, spring bounce and all that rubbish. Ok, there was the election etc. but it's serious when we get a fall in May.

Is the bull trap finally over? A couple of months more like this and we'll have our answer.

yes, it looks like the turn is finally here, and the VI's must know it.

Wth all the negative stories appearing in the media today, the all important sentiment for house prices, must be about to become negative.

I was amamzed by the amount of bear media reports posted in threads on the front page of our hpc forum today.

eg...

1)The Telegraph, "Prime property most at risk of slump, says Savills.",

2)The FT ""House prices in England and Wales recorded a month on month fall for the first time in over a year in May, suggesting that the rise that looked so strong late in 2009 may be running out of steam"

3) Daily Mail "House prices in first monthly drop in more than a year."

4) Independant "House price gains are dropping back, under pressure from economic uncertainty and a growing mismatch between supply and demand, property analyst Hometrack will say today. "

5) The Times ""Britain’s housing market recovery has come to a standstill, according to two influential indicators released today."

We haven't seen this for a while.

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"But the rate of annual house price growth fell slightly - down from 8.5 per cent in April - the first time annual house price inflation has worsened since February last year."

I had to read that again to make sure I wasn't seeing things.

One would normally expect "worse inflation" to be higher inflation...perhaps not.

Wonder how the Daily Mail will report rising petrol and food prices.....another good news story in the pipeline?

Shows how maliciously misinformed and brainwashed the mainstream media is.

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yes, it looks like the turn is finally here, and the VI's must know it.

Wth all the negative stories appearing in the media today, the all important sentiment for house prices, must be about to become negative.

I was amamzed by the amount of bear media reports posted in threads on the front page of our hpc forum today.

eg...

1)The Telegraph, "Prime property most at risk of slump, says Savills.",

2)The FT ""House prices in England and Wales recorded a month on month fall for the first time in over a year in May, suggesting that the rise that looked so strong late in 2009 may be running out of steam"

3) Daily Mail "House prices in first monthly drop in more than a year."

4) Independant "House price gains are dropping back, under pressure from economic uncertainty and a growing mismatch between supply and demand, property analyst Hometrack will say today. "

5) The Times ""Britain’s housing market recovery has come to a standstill, according to two influential indicators released today."

We haven't seen this for a while.

I agree. I am feeling the same. Today could be the day "sentiment turned". But for this to happen we would need the 2 main popular evening news - BBC and ITV - to report it very clearly. And I doubt they will. I'll record both though, just in case.

Channel 4 and Newsnight have less censorship, but their audiences are much smaller - though probably more influential.

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"But the rate of annual house price growth fell slightly - down from 8.5 per cent in April - the first time annual house price inflation has worsened since February last year."

I had to read that again to make sure I wasn't seeing things.

One would normally expect "worse inflation" to be higher inflation...perhaps not.

Wonder how the Daily Mail will report rising petrol and food prices.....another good news story in the pipeline?

Shows how maliciously misinformed and brainwashed the mainstream media is.

Good point.

But I think the answer is in your comment. I bet farmers and oil companies like when food and oil prices go up. Same for property owners - all similarly b@stards!

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I agree. I am feeling the same. Today could be the day "sentiment turned". But for this to happen we would need the 2 main popular evening news - BBC and ITV - to report it very clearly. And I doubt they will. I'll record both though, just in case.

Channel 4 and Newsnight have less censorship, but their audiences are much smaller - though probably more influential.

If nationwide is negative wednesday and a further negative from Halifax next week we could see it go mainstream.

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The really disturbing thing is the partisanship of Daily Mail reporting. It reminds me of An Phoblacht (Republican News) celebration of London bombings in the 70s. That we should have a newspaper celebrating runaway inflation in basic costs of living is disgraceful. To describe a drop in annual inflation from 8.5% to 8.2% as bad news beggars belief. The forces of the establishment and their press lackeys seem hell bent on provoking disintegration of our social fabric. What I can't understand is why.

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"House prices in first monthly drop in more than a year

House prices in England fell 0.2 per cent in May, figures showed today, the first monthly drop in 12 months."

House prices fell 0.6 % in March according to the land registry.

:lol:

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The confidence in the residential property market has been sliding for the last few months. And that despite the market not really suffering any effects of what is in the pipeline. When the masses become aware of what has happened they’ll be little point in any attempted interference from the state, politically it’ll me a none starter.

I think we are going to see a lot of pain, which is unfortunately what we’ve inherited from NuLabour.

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"House prices in first monthly drop in more than a year

House prices in England fell 0.2 per cent in May, figures showed today, the first monthly drop in 12 months."

House prices fell 0.6 % in March according to the land registry.

:lol:

And I thought it was just my mind playing tricks :D

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The really disturbing thing is the partisanship of Daily Mail reporting. It reminds me of An Phoblacht (Republican News) celebration of London bombings in the 70s. That we should have a newspaper celebrating runaway inflation in basic costs of living is disgraceful. To describe a drop in annual inflation from 8.5% to 8.2% as bad news beggars belief. The forces of the establishment and their press lackeys seem hell bent on provoking disintegration of our social fabric. What I can't understand is why.

I agree HPI shouldn't be classed as good news, but given the majority of people are homeowners you can see why the newspapers look at it that way.

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And I thought it was just my mind playing tricks :D

Im confused someone else in another topic is giving totally different values than those in the land registry.

The land registry is the only index worth worrying about.

THis is the other topic:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=146003&st=45

Am I missing something ?

Have the BBC revised them to more "suitable" values ?

Edited by TheCountOfNowhere

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"House prices in first monthly drop in more than a year

House prices in England fell 0.2 per cent in May, figures showed today, the first monthly drop in 12 months."

House prices fell 0.6 % in March according to the land registry.

:lol:

That was revised up:

Heres the last 4 months of land registry after revisions.

Febuary: £165,420 0.2%

March: £165,490 0.0%

April: £165,601 0.1%

May: £165,314 -0.2%

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Im confused someone else in another topic is giving totally different values than those in the land registry.

The land registry is the only index worth worrying about.

THis is the other topic:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=146003&st=45

Am I missing something ?

Have the BBC revised them to more "suitable" values ?

I remember talking to someone about the march figure at the time. It's a massive revision up from -0.6 to 0. They are always revised as more data comes in for the last few days of the month.

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The really disturbing thing is the partisanship of Daily Mail reporting. It reminds me of An Phoblacht (Republican News) celebration of London bombings in the 70s. That we should have a newspaper celebrating runaway inflation in basic costs of living is disgraceful. To describe a drop in annual inflation from 8.5% to 8.2% as bad news beggars belief. The forces of the establishment and their press lackeys seem hell bent on provoking disintegration of our social fabric. What I can't understand is why.

Social control.

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Public sentiment has turned since the election - as before election most people thought recession etc all behind us and forgotten.

And now with the HB cap, makes BTL much less of a certain long term bet.

Anecdotally, my BIL trying to sell house - they reduced it by 10%, then they got offer shortly after than, by buyer now pulled out.

My other BIL trying to buy - they put in stupidly high offer on a house (because someone bidding against them) then they got cold feet, and guess what the person bidding against them pulled out too. They have got an offer on their flat at the same price they paid in 2004.

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The housing market suffered a slow start to the year due to a combination of the end of the stamp duty holiday, the severe winter weather and uncertainty caused by the general election.

But the market has failed to regain momentum as the impact of these factors has worn off, leading economists to speculate that the recovery may have run out of steam.

The market failed to regain momentum. What a joke. They were saying the snow and then the election meant figures were one off weirdly low, but everything was ok and would adjust itself later. Now those have both gone .... 'its run out of steam'. Admit it media, you all called it wrong, the market was never there and now you've been caught with your trousers down.

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The Bank of England fully backs these austerity measures. They were worried they were losing the illusion of the paper money system with all this deficit spending.

Sorry, if this means house prices will go down.

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"Don't put down to malice what you can put down to stupidity". Most "reporters" (they're not "journalists", they just regurgitate press releases) are just not very bright and very, very mainstream. I've met a good few of them, and also ran a company that used a PR agency. Our PR agents were very explicit - their objective was to make the journalist's life as easy as possible by effectively writing their stories for them. It works too, as we can see.

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  • 259 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% +
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