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House Prices To Rise £33,000 - Todays Friday Fun

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http://www.express.co.uk/news/uk/419142/House-prices-to-rise-33-000

Despite a series of increases already this year, homes are still heavily under-valued, experts said yesterday.

They also dismissed warnings from doom-mongers that the market is heading for a house price bubble.

A 13 per cent rise would add nearly £33,000 to the asking price for a typical home.

But that would still mean it was cheaper than six years ago, once retail price inflation is taken into account.

With property prices already rising at an annual rate of three per cent, some analysts fear we are heading back to the days of boom and bust. But Simon Ward, chief economist at Henderson Global Investors, said:

Worries about a housing bubble are premature. Unless you see some reason for believing supply is going to increase substantially, I don't think there is any prospect of another housing bust.

"Based on the rental yield, where rents are divided by the value of the housing stock, I estimate that property is 13 per cent under-valued. That compares with a 28 per cent over-valuation in 2007, on the cusp of the financial crash."

Instead we are heading towards ever increasing house prices for perpetuity, exponential growth forever.

Got to love the VI ramping away, got to get the air back in the bubble.

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Christopher Down, chief executive of Hearthstone Investments, said: "Current valuations in the residential market are far from bubble territory.

While average prices are nominally at similar levels to 2007, taking retail price inflation into account UK properties are 13.4 per cent cheaper than they were six years ago. "This represents an actual fall in the relative cost of housing.

The market has Cheaper effectively been standing still for five years. "One of the reasons for strong rental growth in the buy-to-let sector, which has expanded from 13 per cent of households in 2001 to over 20 per cent today, is the shortage of new homes being constructed."

Britain did not experience the plunge in house prices that the US, Ireland and Spain suffered, because values in many areas were propped up by the Bank of England's record low base rate. Buyers look set to benefit from cheaper mortgages for the foreseeable future after the Bank's Monetary Policy Committee yesterday voted once again to keep the interest rate at 0.5 per cent.

Just hilarious because the US didn't cut base rates did it!!!

Still current valuations are far from bubble territory, I'm so glad we've got some eminent experts to tell us this.

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I posted this a few days ago. This metric is based upon imputed rent amongst other things.

What a massive fudge. The Daily Sexpest is getting slow, taken 2 days to get a story out and quoted on here.

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these articles are mostly written by sarah o'grady. I recon she's desparate to talk prices up cos she's petrified of losing her buy to let empire built on debt. she is really annoying me now .

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these articles are mostly written by sarah o'grady. I recon she's desparate to talk prices up cos she's petrified of losing her buy to let empire built on debt. she is really annoying me now .

If you live in Peterborough you should write to your MP about it.

http://en.wikipedia.org/wiki/Stewart_Jackson

In July 1999, Jackson married Sarah O'Grady, Social Affairs and Property Correspondent with the Daily Express

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