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House Prices Wobble And Have A Long Way To Fall

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Anyone subscribed, who could post the full article?

House prices wobble and have a long way to fall

By Friederike Tiesenhausen Cave and Chris Giles

Published: Financial Times (web), August 29 2005 19:41 | Last updated: August 29 2005 19:41; URL: http://news.ft.com/cms/s/4d09ce50-18b4-11d...000e2511c8.html (subscription required)

ARTICLE REMOVED DUE TO BREACH OF FT COPYRIGHT.

PLEASE DO NOT POST THE CONTENTS OF NEWS ARTICLES.

Edited by Webmaster

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Good analysis by the FT, particularly this:

Verdict: Grotesquely overvalued. Ratio of house prices (as measured by the Office of the Deputy Prime Minister) to income (measured by household disposable income) is 60 per cent above its long-run average.

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Hate to say this, but people really shouldn't republish articles like that. Webmaster will not be pleased.

You're right, of course. Just got carried away by the sheer brillance of the summary and the fact that no non-subscriber could have read the article.

Have sent the link to webmaster who can publish the article in the news blog (full-length, hopefully) and delete this thread.

sceptic ;)

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I don't understand this bit:

"low and stable inflation as a reason for people to be happy borrowing more"

Why would someone be more happy to borrow when there's 'low and stable' inflation?

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I don't understand this bit:

"low and stable inflation as a reason for people to be happy borrowing more"

Why would someone be more happy to borrow when there's 'low and stable' inflation?

Too right - in a few year's time a lot of people are going to realise that their mortgage payments don't get eroded by inflation-driven pay rises. The housing market has become utterly irrational. Sooner or later it will get through to people that ultra-low interest rates are a sign of a desperately weak economy, not a strong one.

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As we're still here, let me tell you what I find particularly interesting about this analysis:

Some experts even argue that no measure based on house price transactions captures the real extent of the slowdown. Only particularly attractive houses are selling in the current market, the belief has it, suggesting that a “flight to quality” is hiding the actual fall in house values across the board.

An explanation, finally, for the large gap between figures as reported by the various VI institutions and the anecdotal evidence given by so many on this site.

sceptic

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Hate to say this, but people really shouldn't republish articles like that. Webmaster will not be pleased.

I think that if you trawl back through the HPC, you will find we have studied most of the points raised in the FT article . ;)

Edited by RRP

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I think that if you trawl back through the HPC, you will find we have studied most of the points raised in the FT article .  ;)

All well and good, but you still can't republish an entire article without the author's consent.

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  • 302 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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