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Bbc News: House Prices Remain Buoyant

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An April Fool courtesy of "khards" on the blog but since few here venture there to post (and vice versa) I thought it was actually worth reposting here for greater discussion and awareness raising among our younger, perhaps more recent visitors.

Whichever way you look at it, and no matter what the date, or indeed decade, this whole housing escapade has not only been a national disgrace but also a complete and utter joke ...and, alas, one that continues to be on us.

BBC News: House prices remain buoyant

Tuesday, 5 June, 2001, 09:20 GMT 10:20 UK

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UK house prices are up 7.3% from the same time last year, according to the latest survey from mortgage bank Halifax.

The bank's figures, which are for May, showed the year-on-year rate of increase at its highest level since last September.

In May alone, prices rose 1.5%, down slightly from 1.8% in April.

"The prospects for the housing market remain positive with prices set to continue rising over the remainder of 2001," said Halifax in a statement.

However, the bank did warn that slower economic growth could eventually put the brakes on accelerating house prices.

For the present, prices seem not to have been badly affected by the global economic slowdown, the fall in share prices or the outbreak of foot-and-mouth disease, said Halifax.

Consistent data

The findings by Halifax are roughly in line with figures released by Nationwide last week.

The UK building society found that May house prices were 7.7% higher year-on-year, and 0.8% up from the previous month.

"If anybody needs any convincing that the domestic side of the economy is in good shape, this should provide it," said Neil Parker, market strategist at RBS Financial Markets.

The general election on Thursday could also discourage the Bank from lowering interest rates - because it would want to avoid any charges of political bias.

Mr Parker added that the strength of domestic demand was offsetting the gloomy outlook overseas.

Consumer confidence

House prices are seen as a key economic indicator in the UK because so many people own homes.

Three previous cuts to interest rates this year - bringing them down to 5.25% - are credited with boosting the housing market by reducing the cost of mortgages.

The fall in UK unemployment to a 26-year low and steady increases in income have also bolstered consumer spending.

The increase in house prices during May was the fifth successive monthly gain.

Over the past three months, house prices have climbed 4.2%.

The average price of a home is now £90,707.

"The average price of a home is now £90,707."

:lol::lol::lol::(

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And if you fancied a further chuckle then check out...

BBC News: Fears of crash blight housing market

Monday, 21 May, 2001

UK mortgage lending in April was at the highest level since records began, fuelled by this year's interest rate cuts, the Council of Mortgage Lenders said on Monday.

But the figures come as concern grows that the market may soon be due for a big correction.

It is feared that many first-time buyers are over borrowing to buy their new homes and could be heavily exposed to a downturn in the property market.

Yeah, I remember reading that... TEN YEARS AGO.

A decade long April Fool.

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Actually this one's a belter...

BBC News: Fears of crash blight housing market

Monday, 21 May, 2001

UK mortgage lending in April was at the highest level since records began, fuelled by this year's interest rate cuts, the Council of Mortgage Lenders said on Monday.

But the figures come as concern grows that the market may soon be due for a big correction.

It is feared that many first-time buyers are over borrowing to buy their new homes and could be heavily exposed to a downturn in the property market.

Gross lending rose to £12.6bn in April from £12.2bn the month before and £9.2bn a year earlier, the highest levels since monthly records began in June 1998.

"Reductions in interest rates have come at exactly the right time to stimulate the normal spring upturn in the housing market," said CML's head of research Bob Panell.

"Our initial estimates suggest that lending for house purchases in April was more than a fifth higher than a year ago."

Credit crunch

The lending figures could support claims that many people are buying homes they can't afford.

A study among 10,000 borrowers by the Consumer Credit Counselling Service found the biggest concentration of those seeking help in debt problems was among homeowners aged 25 to 39.

Their problems would be compounded by a sharp fall in house prices, which the independent think-tank Cambridge Econometrics has predicted will happen soon.

The average house prices are now five times average household income which is the same level as just before the collapse of property prices in 1989, it said.

The Financial Services Authority recently added to concerns after it complained of lax and over-generous mortgage lending by banks and building societies.

Rate cuts

The Bank of England has cut interest rates three times this year, from 6% at the start of the year to 5.25% in May, bringing the cost of borrowing down for homeowners.

The resulting cuts in mortgage rates have also increased lending, especially for first-time buyers, the CML said.

"May's cut in base rates should help the housing market remain buoyant over the coming few months, although further ahead, modest growth income is expected to curb the potential for renewed rapid house price growth," Mr Pannell said.

"This represents a significant turn-round from the subdued conditions experienced since the middle of last year," he added.

Just where do you start.

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  • 277 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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