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As Another British Property Price Boom Gathers Steam

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http://www.bbc.co.uk/news/magazine-23956650

As another British property price boom gathers steam, many are searching for their dream "period property". But why do people favour certain architectural eras?

Ask a Briton to describe their ideal home, and the chances are their reply will include the adjective "period".

Depending on who you ask, however, the period in question might vary wildly.

It might be Georgian, with its neo-classical stylings and clean, symmetrical lines. Or it could be Victorian - all about cornicing, bay windows and patterned brickwork.

Others might prefer the light airiness of the Edwardians or the stark geometry of the modernist era.

So it's a boom - what is Carney going to do about it?

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BBC just can't get enough:

http://www.bbc.co.uk/news/business-23983828

UK house prices 'rise at fastest rate since 2010'

UK house prices have risen by 5.4% in the year to August, according to the Halifax's latest house price survey.

It is the highest annual rate since June 2010.

On the Halifax's measure, the average price of a house also went through the £170,000 mark for the first time in five years.

However, the figures are still well below the peak of the market in August 2007, when the average price was almost £200,000.

The Halifax said housing market activity was up thanks to an improving economy, low interest rates, and government-backed schemes such as Help to Buy.

Earlier this month the Nationwide said house prices in August were rising at an annual rate of 3.5%, slightly slower than in July.

The Nationwide compares prices in one month with the same month a year ago.

However, the Halifax compares a three-month period with the three-month period in the previous year.

Martin Ellis, the Halifax's housing economist, said: "Overall, house prices are expected to rise gradually over the remainder of the year."

The Halifax believes below-inflation pay rises "are likely to act as a brake on the market".

Property bubble

The Halifax estimates the average price of a house or flat in the UK is now £170,231. The last time house prices were higher than £170,000 was in September 2008.

The number of mortgage approvals for house purchases - an indicator of completed house sales - rose by 10% between the first and second quarters of 2013.

In July alone there were 60,600 approvals, the first time the number has exceeded 60,000 since 2008.

The rise in prices and market activity, coupled with the Help to Buy scheme, which offers a government-backed loan of up to 20% of the price of the property, have increased fears that the country could be heading for another property bubble.

But last month Mark Carney, governor of the Bank of England, said he was "acutely aware" of the risks, and had a "toolkit" of measures he could employ to combat unrestrained mortgage lending.

Matthew Pointon, property economist at consultancy Capital Economics, said: "A short-term imbalance between housing demand and the number of homes on the market is driving price increases.

"But the rise in wholesale interest rates seen over the past few weeks may soon start to feed through to mortgage rates, dampening demand."

There are already signs that mortgage rates may have bottomed out, with some lenders increasing rates earlier this week.

TW*TS

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Ro be fair the article also talks of below inflation pay rises likely to put a brake on price rises and higher interest rate expectations but maybe that doesn't fit into anti BBC hysteria.

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Ro be fair the article also talks of below inflation pay rises likely to put a brake on price rises and higher interest rate expectations but maybe that doesn't fit into anti BBC hysteria.

I don't see any anti BBC hysteria. Most people will only read the headline "UK house prices rise at fastest rate since 2010". As cool_hand says, the BBC are TW*TS.

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I don't see any anti BBC hysteria. Most people will only read the headline "UK house prices rise at fastest rate since 2010". As cool_hand says, the BBC are TW*TS.

Hysteria....I think you mean fear. Everyone I know only sees the government money give away as a way of escaping the property trap.

The BBC, the banks and the politicians names are mud. The question is, especially after what happened in 2007, what will it take for them to change tact.

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According to the Torygraph it's a virtuous circle. :blink:

http://www.telegraph.co.uk/finance/personalfinance/houseprices/10292697/House-prices-spiral-up-in-virtuous-circle.html

Property values are rising at their fastest rate for three years and first-time buyers are at a six-year high, new figures reveal, creating a “virtuous circle” which has given banks and building societies more freedom to lend at the current historically low interest rates.

The result is a “contagious” confidence in the housing market, which will have a knock-on effect for the wider economy, according to industry experts.

The latest evidence of Britain’s economic recovery comes days after forecasts for the country’s annual economic growth were doubled from 0.8 to 1.5 per cent.

The Halifax’s latest monthly index recorded an annual rise of 5.4 per cent, taking the price of the average home up from £160,292 to £170,231, the fastest rate of growth since 2010.

Meanwhile figures compiled by LSL Property Services’ First Time Buyer Monitor showed 26,100 first-time buyers took out loans in July, the highest number for six years and a 45 per cent rise on the same month last year.

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I don't see any anti BBC hysteria. Most people will only read the headline "UK house prices rise at fastest rate since 2010". As cool_hand says, the BBC are TW*TS.

Maybe they should be scrapped and replaced by Fox news?

In reality, the BBC are reporting a fact. As with other facts it may not be a fact that is palatable to many and the fact that there are a substantial % of the [population that only look at headlines cannot be blamed on the messenger. People who look at the headlines and draw conclusions about the motives behind them are IMO as dumb as people that see the headlines without reading beyond them.

If you really believe that the BBC are guilty of spinning facts to suit a given agenda then what is your take on the headlines that are spouted by the predominantly right wing UK privately owned media?

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Maybe they should be scrapped and replaced by Fox news?

In reality, the BBC are reporting a fact. As with other facts it may not be a fact that is palatable to many and the fact that there are a substantial % of the [population that only look at headlines cannot be blamed on the messenger. People who look at the headlines and draw conclusions about the motives behind them are IMO as dumb as people that see the headlines without reading beyond them.

If you really believe that the BBC are guilty of spinning facts to suit a given agenda then what is your take on the headlines that are spouted by the predominantly right wing UK privately owned media?

It's not the corporations, it's their highly paid employees, mostly home owners and some heavily into buy-to-let, feathering their own nests.

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The Bbc do have a VI in high house prices. No doubt about that. Only have to watch a few episodes of homes under the hammer to know that. They also don't do any of the sort of shows that ITV do - homes from hell etc.

They are not interested in covering this story in an impartial manner. That is 100% fact.

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The Bbc do have a VI in high house prices. No doubt about that. Only have to watch a few episodes of homes under the hammer to know that. They also don't do any of the sort of shows that ITV do - homes from hell etc.

They are not interested in covering this story in an impartial manner. That is 100% fact.

Well maybe not quite 100%:

Rising wages and low house prices helped the baby boom generation to prosper. Today's young face high unemployment, expensive education, and a lifetime of renting. Have they never had it so bad?

Let's take a typical 24-year-old everyperson. This person lives in Nottingham.

There's a one-bedroom flat they want but it costs £120,000. You need a salary of more than £25,000 to get a mortgage for that.

But this everyperson has no salary. They're one of the 18.5% of people aged 18-24 in the UK who are out of work. Our 24-year-old has a degree and a £25,000 debt to pay off from university.

http://www.bbc.co.uk/news/magazine-21302065

Bl00dy boomer bashing BBC.

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The Bbc do have a VI in high house prices. No doubt about that. Only have to watch a few episodes of homes under the hammer to know that. They also don't do any of the sort of shows that ITV do - homes from hell etc.

They are not interested in covering this story in an impartial manner. That is 100% fact.

I am trying to be impartial here: offering an opinion and describing it as 100% fact does not make it so.

I like a fact as much as the next man, but 'Homes Under The Hammer' is not quite what counts as cast iron fact.

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Well maybe not quite 100%:

Rising wages and low house prices helped the baby boom generation to prosper. Today's young face high unemployment, expensive education, and a lifetime of renting. Have they never had it so bad?

Let's take a typical 24-year-old everyperson. This person lives in Nottingham.

There's a one-bedroom flat they want but it costs £120,000. You need a salary of more than £25,000 to get a mortgage for that.

But this everyperson has no salary. They're one of the 18.5% of people aged 18-24 in the UK who are out of work. Our 24-year-old has a degree and a £25,000 debt to pay off from university.

http://www.bbc.co.uk/news/magazine-21302065

Bl00dy boomer bashing BBC.

A wee back page that barely anyone will read. They have to do these things in case anyone makes a proper complaint - and they can say "oh but look what we presented here"

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I am trying to be impartial here: offering an opinion and describing it as 100% fact does not make it so.

I like a fact as much as the next man, but 'Homes Under The Hammer' is not quite what counts as cast iron fact.

Sorry but if you watch enough of them - it does.

It is a daily advert for property. Not one tiny piece of exaggeration there.

It could actually be a decent show if it was done impartially.

Anyway when i say the Bbc - i am talking generally of course. I know not every single person in it lap the same thoughts. But at an organisational level ? Definitely. It has a duty - legally bound i think - to be impartial. It is not.

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A wee back page that barely anyone will read. They have to do these things in case anyone makes a proper complaint - and they can say "oh but look what we presented here"

The piece about young people never having it so bad was featured in BBC Magazine. The piece quoted in the original post about the housing boom was featured in ,,,,,BBC Magazine. Some contradiction on your part me thinks.

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In reality, the BBC are reporting a fact. As with other facts it may not be a fact that is palatable to many and the fact that there are a substantial % of the [population that only look at headlines cannot be blamed on the messenger. People who look at the headlines and draw conclusions about the motives behind them are IMO as dumb as people that see the headlines without reading beyond them.

People might see and at some level be influenced by those headlines not because they are dumb, but just because they are there, and indeed given undue prominence on the BBC website. The viewer may not have the time to read the full story. I've noticed that news about rising house prices is generally given higher prominence (e.g. included on main news page and leading story on the business news page) whereas news about falling house prices is given lower prominence (e.g. no mention on main news page and tucked away at bottom of business news page).

And the headlines always provide a positive spin on the news (to those who subscibe to the view that rising house prices are a good thing). Why was the headline for this news "House prices increase by 0.4% in August" or similar - that is the real news.

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The piece about young people never having it so bad was featured in BBC Magazine. The piece quoted in the original post about the housing boom was featured in ,,,,,BBC Magazine. Some contradiction on your part me thinks.

So they didn't have anything else in the news about this 'joyous' news ?

We all know they are not impartial. They are not exactly shy about it. Presenters are told to smile when reading a story about prices rising.

Unless we can believe there has never been one presenter in the last ten years at the Bbc who shares similar thoughts to most on this site ?

Massively unlikely . . .

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So they didn't have anything else in the news about this 'joyous' news ?

We all know they are not impartial. They are not exactly shy about it. Presenters are told to smile when reading a story about prices rising.

Unless we can believe there has never been one presenter in the last ten years at the Bbc who shares similar thoughts to most on this site ?

Massively unlikely . . .

Here is one for starters:

https://twitter.com/andyverity

Also if you have been listening to the BBC recently you will know there are plenty of discussions that refer to rising house prices as bad news.

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BBC just can't get enough:

http://www.bbc.co.uk...siness-23983828

UK house prices 'rise at fastest rate since 2010'

UK house prices have risen by 5.4% in the year to August, according to the Halifax's latest house price survey.

It is the highest annual rate since June 2010.

People might see and at some level be influenced by those headlines not because they are dumb, but just because they are there, and indeed given undue prominence on the BBC website. The viewer may not have the time to read the full story. I've noticed that news about rising house prices is generally given higher prominence (e.g. included on main news page and leading story on the business news page) whereas news about falling house prices is given lower prominence (e.g. no mention on main news page and tucked away at bottom of business news page).

And the headlines always provide a positive spin on the news (to those who subscibe to the view that rising house prices are a good thing). Why was the headline for this news "House prices increase by 0.4% in August" or similar - that is the real news.

Some would like to carry Adam and his sort on their shoulders for 20 more years, as some sort of victim despite his freewill decision to buy, expecting loads more HPI. Makes him a really worthy cause, especially for other home-owners (outright and mortgaged) over those waiting for value. Yet also for non-owners. Don't think of your own family's future with housing and house prices, put Adam and his 5 years of saving first. It never ends.

Comments

Editor's Picks

450. adamc1979 +5

6th September 2013 - 16:47 Think I bought at just the right time then. Agreed the price at the beginning of June. I think a lot of people like me have spent the past 5 years saving and now we finally have the deposit money prices are going to inevitably increase.

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Here is one for starters:

https://twitter.com/andyverity

Also if you have been listening to the BBC recently you will know there are plenty of discussions that refer to rising house prices as bad news.

Yeah sure - i can barely switch on my tv or radio without hearing someone on tv telling me that high house prices are bed :lol:

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Maybe you should start listening then.

Are you actually being serious !?

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Yes. You obviously havn't been or should I say only listening to what you want to hear.

At a finger in the air guess - i would say for every 'high house prices are bad' chat or comment on the Bbc - there are probably 50 of the opposite.

For example homes under the hammer is on twice each and every day. And in each episode there must be at least ten 'positive' comments about high property prices.

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