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House Prices To Soar 25Pc In Just Five Years!

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http://www.telegraph.co.uk/finance/personalfinance/houseprices/10344481/UK-house-prices-to-rise-by-a-quarter-with-London-average-to-hit-500000-by-2018-CEBR.html

UK house prices to rise by a quarter with London average to hit £500,000 by 2018 - CEBR

House prices across Britain will soar by nearly a quarter to record levels over the coming five years with homes in London averaging more than half a million pounds in 2018.

A think tank has upgraded its forecasts in figures that will trigger yet more concern about the long-term effects of the Government's Help to Buy cheap credit scheme to kick-start the property market.

The Centre for Economics and Business Research (CEBR) said prices across the country will rise 2.9 per cent to an average of £225,000 this year, followed by a 3.9 per cent jump in 2014. Between now and 2018, the average UK price will jump 23.7 per cent to a record of £278,000.

In London house prices will leap 43.5 per cent by 2018, pushing average values in the capital up to a staggering £566,000.

The figures came as the Bank of England revealed the number of mortgage approvals hit their highest level for five-and-a-half years in August and estate agent Haart predicted housing transactions will rise by up to 15 per cent over the next 12 months.

CEBR economist Daniel Solomon said the Government's Help to Buy scheme had provided a "shot in the arm" to the market. But he insisted that talk of a house price bubble was "premature" and that a housing shortage was a bigger factor.

etc etc.

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Yeah, most people would define a bubble as massive price inflation fuelled by speculation and a perceived shortage.

Not these dickheads.

It's volume of transactions. :rolleyes:

So when it burst and everybody tries to get out and volumes go up.... is that the time to raise interest rates and remove HTB1...HTB2.... .... HTB37.01v2?

At what point is it a bubble, 100% a year?

Edited by XswampyX

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:rolleyes::rolleyes:

I have been here in HPC for 10 years now..... And, I can't deny it, I am stupefied by all that has gone on under Niueue Labbia - and now this stupid thick government....... They had their chance to lance the boil of disgustingly inflated house prices -- and they have failed miserably, going in exactly the opposite direction - inflating the bubble even more - i.e. using every available means [whether legal or criminal] to the means they could have taken to deflate the bubble and get this country back to a fair one where you are not extorted by the shyster banksters to put a basic shelter over your head.

SO - this stupid govt has -- JUST LIKE NIUEU LABBIA DID -- got into bed with the Banksters.....

I feel 95% sure that the Banksters have held a gun to their heads - and threatened Armageddon unless the Govt made sure interest rates were artificially kept at virtually nil, ....and all the rest....

& Instead of grabbing the bull by the horns - and sending x 0000 bankers to jail like they should have, they have caved in like the moral cowards they are.....

I am beyond caring now. I am now so disillusioned and cynical - that I just couldn't give a sh*t anymore.

The UK is a cesspit - ruled by utter scum. :angry:

Edited by eric pebble

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Don't fall into the trap of assigning some massive conspiracy between bankers and gvt. That sort of agreement would be hard to set up, dangerous to discuss, and impossible to police.

I suspect strongly it's just gvt desperately trying to generate a feelgood effect for the 2015 election. plus, once announced, the party machine has to support. read up on how in the recent oz elections rudd was making speeches on the fly with new policy shifts and his staffers were running round saying "what the feck" and drafting press responses afterwards, even when it was obviously mental.

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Daily Express will need to be a broadsheet tomorrow to do justice to the 'Joy For Home Owners!!!' headline this will generate......

Surely we're in the realm of the 'paradigm shift' that marks the peak of the bubble?

You forget, "it's different this time"

"Shortage of properties, wealthy foreign buyers, massive immigration blah blah"

Seriously when was it a good time to start a housing boom when prices in parts are still ten times earnings? I can only see this ending in one way, and it will involve more tax payers money and a lot of very distraught FTBers.

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Don't fall into the trap of assigning some massive conspiracy between bankers and gvt. That sort of agreement would be hard to set up, dangerous to discuss, and impossible to police.

I suspect strongly it's just gvt desperately trying to generate a feelgood effect for the 2015 election. plus, once announced, the party machine has to support. read up on how in the recent oz elections rudd was making speeches on the fly with new policy shifts and his staffers were running round saying "what the feck" and drafting press responses afterwards, even when it was obviously mental.

My view also, how long after the next election which the conservatives will win that they increase interest rates.

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Don't fall into the trap of assigning some massive conspiracy between bankers and gvt. That sort of agreement would be hard to set up, dangerous to discuss, and impossible to police.

I suspect strongly it's just gvt desperately trying to generate a feelgood effect for the 2015 election. plus, once announced, the party machine has to support. read up on how in the recent oz elections rudd was making speeches on the fly with new policy shifts and his staffers were running round saying "what the feck" and drafting press responses afterwards, even when it was obviously mental.

'That sort of agreement would be hard to set up, dangerous to discuss, and impossible to police.':-

I don't agree at all. It doesn't have to be a formal binding agreement. There could be a gentleman's understanding, 'You scratch my back and I'll scratch your back' sort of agreement, or even a hint here, a nod and a wink there. It could just be effective lobbying in private. Or just a belief that the bankers' interest agree with the government's interests. All sorts of nebulous possibilities.

Things would only be dangerous to discuss if there was a serious crime involved that could be proven. :blink:

Edited by Giordano Bruno

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'That sort of agreement would be hard to set up, dangerous to discuss, and impossible to police.':-

I don't agree at all. It doesn't have to be a formal binding agreement. There could be a gentleman's understanding, 'You scratch my back and I'll scratch your back' sort of agreement, or even a hint here, a nod and a wink there. It could just be effective lobbying in private. Or just a belief that the bankers' interest agree with the government's interests. All sorts of nebulous possibilities.

Things would only be dangerous to discuss if there was a serious crime involved that could be proven. :blink:

"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild.

"The few who understand the system, will either be so interested in its profits, or so dependent on it's favors, that there will be no opposition from either class." - Rothschild Brothers of London, 1863

This has been going on since the 1800's there is no wrong time to buy ?

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:rolleyes::rolleyes:

I have been here in HPC for 10 years now.....

SO - this stupid govt has -- JUST LIKE NIUEU LABBIA DID -- got into bed with the Banksters.....

I feel 95% sure that the Banksters have held a gun to their heads - and threatened Armageddon unless the Govt made sure interest rates were artificially kept at virtually nil, ....and all the rest....

I am beyond caring now. I am now so disillusioned and cynical - that I just couldn't give a sh*t anymore.

The UK is a cesspit - ruled by utter scum. :angry:

Hi Eric Read my quotes above

This has been going on for hundred of years especially in the UK.

World wide printy printy for hundreds of years . I'f you can't beat em, join em.

Shall I send you a link to a good video explaining it all.

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My view also, how long after the next election which the conservatives will win that they increase interest rates.

I would have thought banks liked high interest rates they make more money that way......it is only because they are lending more to buy security/property/land that interest rates can be kept low....it is only because governments are helping people borrow more that income to banks from debt interest can stay high....it is only because banks no longer pay interest on savings they can keep interest to debtors so low...it is only because so far the banks and governments have access to cheap money that interest rates can be kept low....it is only because they keep creating new money and manufacturing inflation in a deflationary market that interest rates can stay low......IT is only because interest rates are so low that house prices can inflate/bubble so high........ ;)

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I would have thought banks liked high interest rates they make more money that way......it is only because they are lending more to buy security/property/land that interest rates can be kept low....it is only because governments are helping people borrow more that income to banks from debt interest can stay high....it is only because banks no longer pay interest on savings they can keep interest to debtors so low...it is only because so far the banks and governments have access to cheap money that interest rates can be kept low....it is only because they keep creating new money and manufacturing inflation in a deflationary market that interest rates can stay low......IT is only because interest rates are so low that house prices can inflate/bubble so high........ ;)

+1

an excellent summary of why iRs are low and being kept low when logic suggests they should some time rise to 'normal'

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+1

an excellent summary of why iRs are low and being kept low when logic suggests they should some time rise to 'normal'

...makes me think of the type of contracts there are where they tie you in, then increase the price....brand new customers only. ;)

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Dont say I havent warned you.

HEAVY HEAVY DAILY HYPE about missing the boat in the housing market.

This is going to get more and more annoying.

The upside of this, is that as the claims become more and more transparently stupid, then that is the time just before the change to reality...think Conservative corruption before Nulab, think Nulab stupidity before the coalition, and now the Coalition is such ashort space of time is looking more and more stupid.

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Heads up for c4+1. c4 news 19.30 onwards running a thouroughly depressing piece on rents rising, housing affordability, the rise of rent to remt, hong kong property investors building micro apartments in oldham, government house building levels and the history of social housing.

£6 billion per year state building on houses

£24 billion per year on housing benefit.

Seems obvious to me, build more social housing, we're never going to see sensible interest rates in the country until the boomers and pensioners are dead, and even then its not guaranteed.

wil self on now, love him or loathe him he's doing his bit highlighting how fecked the uk housing market is.

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