Jump to content
House Price Crash Forum
bubbleturbo

House Prices Rose By 8.4% In 2013, Says The Nationwide

Recommended Posts

Bahhhh

http://www.bbc.co.uk/news/business-25575964

UK house prices rose by 8.4% in 2013 as the economy started to gain momentum, according to the Nationwide Building Society.

The annual rise meant the average home was now valued at £175,826, it said.

The change was driven by annual house price growth of 14.9% in the final quarter compared with a year earlier in London, but prices rose in all regions.

However, it said the average UK property price remained 5% below the peak in prices in late 2007.

If the rising cost of living was taken into account the gap would be greater.

The Nationwide's figures are based on the lender's own mortgage data, so do not give a complete picture of the UK housing market.

Regional picture

This is the first house price survey to be published that offers an estimate for property price changes for the whole of 2013.

It suggested that UK house prices had accelerated at the end of the year, rising by 1.4% in December compared with November. Prices were up by 2.9% in the three months to the end of December compared with the previous three months.

The year-on-year comparison sees prices 8.4% higher than a relatively low point for prices in December 2012.

Continue reading the main story

BBC housing calculator

Renting example

Let's you see where you can afford to live - and if it would it be cheaper to rent or buy

Enter how many bedrooms, which end of the market and how much you want to pay each month

As you move the payment slider, parts of the UK light up to show you where you can afford

Based on pricing and rental data from residential property analysts Hometrack

BBC housing calculator

House price predictions for 2014

"The UK housing market followed the trajectory of the wider economy through 2013, gaining momentum as the year progressed," said Robert Gardner, Nationwide's chief economist.

"Part of the reason for the acceleration in house price growth is that the supply side of the market has not kept pace with the upturn in demand, even though buyer numbers remain subdued by historic standards."

London rises

Other surveys published in recent months have suggested that the housing market, and rising prices, have been driven by London.

The latest figures from the Office for National Statistics, based on mortgage completions, said that average property prices in London increased by 12% compared with 5.5% for the whole of the UK in the year to the end of October.

The same pattern is present in the Nationwide data. It suggested that average prices in London were now 14% higher than their previous peak in 2007. The typical London home now cost £345,186.

In the English regions, London saw the greatest acceleration by some distance, with the North of England registering the slowest annual price growth, up 1.9%.

Meanwhile, there was a 7% year-on-year rise in house prices in Northern Ireland, Scotland saw a 3.7% increase over the same period, and prices were up 6.1% in Wales.

Commentators are expecting UK house prices to continue to rise in 2014. Those asked by the BBC News website said they expected prices to go up by between 4% and 8% next year.

Edited by bubbleturbo

Share this post


Link to post
Share on other sites

The change was driven by annual house price growth of 14.9% in the final quarter compared with a year earlier in London, but prices rose in all regions.

And 14.9% is STILL not a bubble, Mr Carney?

Share this post


Link to post
Share on other sites

The change was driven by annual house price growth of 14.9% in the final quarter compared with a year earlier in London, but prices rose in all regions

So that suggests that the average increase of 8.4% is nearly all driven by the 14.9% London increase.

As for

..but prices rose in all regions.

Is that so - in ALL regions. If so there'll be a few regions where the price rises are negligible to next to nothing - but more likely the "in all regions" will in time turn out to be just another exaggeration.

It's shameful that 14.9% in a quarter isn't recognised by the BoE and the government as a bubble.

Edited by billybong

Share this post


Link to post
Share on other sites

We may see the standard bs 'we see no bubble but are keeping a watchful eye'

Vigilant is I believe the key word

Share this post


Link to post
Share on other sites

House prices show biggest monthly jump in over fours years - Nationwide

Prices are now rising at their fastest annual rate since June 2010, and both the annual and monthly increases are bigger than any forecast in a Reuters poll before the data.

Reuters in on the spunkfest as well.

Luckily we aren't in a bubble.

Share this post


Link to post
Share on other sites

Luckily we aren't in a bubble.

Absolutely. As TPTB will be saying, transactions are well below what they were a few years ago. Also, prices are 5% less than their peak and there's work to be done until that figure is reached. Of course, then they'll say how there isn't a bubble because prices are below their real term peak. That way they can justify spinning this to the election....

Share this post


Link to post
Share on other sites

And 14.9% is STILL not a bubble, Mr Carney?

NO.

They dont monitor prices...they DO monitor Borrowing costs.

Share this post


Link to post
Share on other sites

BoE lending data for November 2013 is out today.

Seasonally adjusted mortgage approvals rise above 70K, highest since Jan 2008:

approvals1113.gif

Average mortgage approval value hits a new high at 157K:

AvMortApproval1113.gif

http://www.bankofeng...eyandcredit.pdf

I say its down to a shortage of properties...the increase in lending averages has nothing whatsoever to do with peoples ability to pay...you should stop posting this nonsense.

Share this post


Link to post
Share on other sites

I say its down to a shortage of properties...the increase in lending averages has nothing whatsoever to do with peoples ability to pay...you should stop posting this nonsense.

Why is it nonsense? Regrettable, stupid, short-term, destructive and low-volume (historically), I'll grant you, but if those are the numbers...

Share this post


Link to post
Share on other sites

Why is it nonsense? Regrettable, stupid, short-term, destructive and low-volume (historically), I'll grant you, but if those are the numbers...

humour failure alert....

Share this post


Link to post
Share on other sites

So that suggests that the average increase of 8.4% is nearly all driven by the 14.9% London increase.

As for

Is that so - in ALL regions. If so there'll be a few regions where the price rises are negligible to next to nothing - but more likely the "in all regions" will in time turn out to be just another exaggeration.

It's shameful that 14.9% in a quarter isn't recognised by the BoE and the government as a bubble.

This. Is insanity fuelled with FLS cheap money...low rates...Htb...foreign money and a whole load of greedy idiots.

The.railway bubble took two bank collapses before they did something about it...I fear this will be the same.

How stupid are the British?

Share this post


Link to post
Share on other sites

The shortage of property meme makes me rage.

This village has <30% bedroom occupancy.

There are enough houses - it's just incorrectly distributed right now - most family housing is occupied by boomers whose kids** have left the investmenthome.

** kids that are living 2 couples to a 2-bed flat at 35 years old and have nothing more to their name than a scratched iPhone and a push bike

Share this post


Link to post
Share on other sites

BoE lending data for November 2013 is out today.

Seasonally adjusted mortgage approvals rise above 70K, highest since Jan 2008:

approvals1113.gif

Going by that chart, 80k a month seems like a healthy transaction level to me. About where it was before the madness started.

Share this post


Link to post
Share on other sites

Since wages are lower than they were in 2007/8 it would make sens to say that prices must peak lower than last time..

But, Based on £200k 80% LTV

Fixed Interest rates repayments are about 30% less than 2007/8, wages 15% less, so prices have an extra 15% margin?

I believe the biggie that is driving the current speculative boom is the sub 2% interest rates that are being offer on a two year resettable basis.

Chelsea Building society: 1.64% then 5.65% Fixed rate until 30/03/2016 £1,545 £163 5.2% (APR)

These hyper low interest rates has a far bigger scope to push up property way, way past the 2007/8 peak, possibly double?

The big big big big big problem is in two years time when people find themselves with still stagnant wages and their mortgage rate has doubled.

It's just a repeat of the 2002-2008 madness, but with very low interest rates.

The biggest issue is that they won't be able to lower interest rates next time it collapses. If property prices keep 'recovering' by 10% to 20% each year for the next few I am going to 'sell pickaxes' and shift all my money into Gold and await the total collapse. The collapse will make 2008 look like a blip as they won't be able to reduce rates and it has been proved that QE is ineffective.

Make the most of the boom without getting involved and protect yourself.

Share this post


Link to post
Share on other sites
The big big big big big problem is in two years time when people find themselves with still stagnant wages and their mortgage rate has doubled.

It's just a repeat of the 2002-2008 madness, but with very low interest rates.

This is 2002-08 with bells on. It is very sad watching my country destroyed with no one to help.

Share this post


Link to post
Share on other sites

Going by that chart, 80k a month seems like a healthy transaction level to me. About where it was before the madness started.

Transactions are a side-show. The market will be healthy when prices get back to about where they were before the madness started.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   218 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.