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Average Uk House Price Hits £250,000, Ons Says

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Average UK house price hits £250,000, ONS says

Prices are now well above their 2008 pre-recession peak, according to the ONS

The average price of a house across the UK has hit £250,000 for the first time, according to official figures.

The Office for National Statistics (ONS) said the figure was reached at the end of 2013.

The news suggests that tens of thousands more buyers will be paying stamp duty at the 3% rate, which starts at the £250,000 threshold.

However other measures, such as those produced by the Halifax and the Nationwide, suggest prices are lower.

Their latest price indices put average prices at about £175,000.

Overall, the ONS said, house prices were now 1.6% higher than in the pre-financial crisis peak in January 2008.

Its figures, based on the number of mortgage completions, show that house price inflation in 2013 was 5.5%.

The Nationwide has estimated that prices rose by 8.4% last year.

Howard Archer, chief UK economist at IHS Global Insight, said the figures would "maintain concern that a housing bubble could really develop in 2014".

He is forecasting that house prices will rise by 8% across the UK in 2014.

'Distant dream'

But the figures vary wildly across the UK.

The ONS said house prices in Scotland were only growing at an annual rate of 0.5%, well below the current CPI inflation rate of 1.9%.

However, Wales and Northern Ireland saw significant rises in 2013.

In both regions, house values rose by 4.8%.

Prices in England went up by 5.7%, while prices in London grew by twice that rate, at 12.3%.

The campaign group Shelter said the news was further evidence of prices spiralling out of control.

"Until we build enough homes to keep house prices stable, more young people and families desperate to put down roots will see a home of their own become a distant dream," said Shelter's chief executive, Campbell Robb.

"Schemes like Help to Buy are only making the problem worse by inflating house prices further," he said.

The charity wants to see more homes built, which it says will make prices more affordable.

Earlier this month, the Institute for Fiscal Studies (IFS) said "real" house prices - ie, prices after taking account of inflation - had seen modest rises.

On that basis, the IFS said UK prices were still 25% below their peak in 2007.

what planet are these fools on? adjusted for inflation, yeah right.

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House prices up, bank balance sheets become OK, lending resumes, consumer spending increases, and the new business cycle starts. Trebles all round.

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Article in the Daily Mail reporting this with their spin that FTB are paying 7.4% more than a year ago...help to buy a roaring success for making home's affordable then ..

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Article in the Daily Mail reporting this with their spin that FTB are paying 7.4% more than a year ago...help to buy a roaring success for making home's affordable then ..

This is great news!

FTBers are less likely to be in negative equity.

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Here's one that I had never even heard of the Wrigglesworth Index.....YOY +11% to Jan 14.

http://www.wriglesworth.com/news/15-client-news/208-sequence-national-housing-market-index-february-2014?Itemid=107

Appears to be taken on exchange of contract data that they deal with.

Rather strange that we have all these near double digit rises on every index bar Land Registry....but I guess the MPC need do nothing whilst the Land Registry geometric super spin programme keeps things at near zero. I'm guessing we might need a 50% shift just to get their programme moving.

Edited by crashmonitor

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Here's one that I had never even heard of the Wrigglesworth Index.....YOY +11% to Jan 14.

http://www.wriglesworth.com/news/15-client-news/208-sequence-national-housing-market-index-february-2014?Itemid=107

Appears to be taken on exchange of contract data that they deal with.

Rather strange that we have all these near double digit rises on every index bar Land Registry....but i guess the MPC need do nothing whilst their geometric supere spin keeps things at near zero.

From their website -

(I guess you have to write something if you have blank space to fill, even if it's against your mantra)

Effective public relations in a digital landscape

As the digital communications landscape becomes ever more diverse, the opportunities for communication between companies and their audiences have never been greater. Yet while the opportunities have evolved, the aim remains the same – to communicate effectively. For there is no point filling up media channels and websites with content that is anything other than relevant and of interest to target audiences!

At Wriglesworth we develop integrated strategies centred on content with strong news appeal that will reach your target audiences across traditional, digital and social channels, driving traffic to your website, and building and protecting your reputation.

We have a key role in driving integrated communications campaigns based on the messages, content and campaigns traditionally produced for earned media, extending them creatively across digital and social media.

Our public relations skills are centred on building and protecting reputation and creating content and campaigns that deliver impact in earned media and non-paid for stakeholder channels – a highly competitive landscape that means a honed news sense and intuitive creativity are second nature. In today’s digital world this is now being used by our clients to reach a wider range of content channels and audiences.

Could be anyone - but more to the point - why do they survive ?

Edited by LiveinHope

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Must be because there are now thousands more million pound plus investment masterpieces. ;)

BBA figures this morning: Mortgage approvals Jan 2014 highest since September 2007. Net mortgage lending for the month £398m vs £389m in December. Also, £75m increase in consumer credit. Meanwhile lending to industry fell £317m.

Debt-bingeing blow out from the usual suspects. :angry:

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Don't worry PricedOut are campaigning for 0% inflation in house prices so the average price of £250,000 will be retained, they want wages to rise so those priced out by the decade plus of rampant HPI can afford to buy at this new price.

'Twas ever thus. PricedOut have always missed the point.

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BBA figures this morning: Mortgage approvals Jan 2014 highest since September 2007. Net mortgage lending for the month £398m vs £389m in December. Also, £75m increase in consumer credit. Meanwhile lending to industry fell £317m.

Debt-bingeing blow out from the usual suspects. :angry:

So basically the last 5 years didn' t happen and everyone is back to a credit spurge ..

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So basically the last 5 years didn' t happen and everyone is back to a credit spurge ..

Yes, but the ending will be different as they've used all the ammo. This is good news for those that want market forces to prevail. The more the pump now the better in my opinion. China is on the cusp of starting the next Global recession and the UK is over a barrel with its pants down and a knob of vaseline on it's ring piece. It ain't going to be pretty.

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BBA figures this morning: Mortgage approvals Jan 2014 highest since September 2007. Net mortgage lending for the month £398m vs £389m in December. Also, £75m increase in consumer credit. Meanwhile lending to industry fell £317m.

Debt-bingeing blow out from the usual suspects. :angry:

http://www.digitallook.com/dl/news/story/21501968?username=&ac=

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Yes, but the ending will be different as they've used all the ammo. This is good news for those that want market forces to prevail. The more the pump now the better in my opinion. China is on the cusp of starting the next Global recession and the UK is over a barrel with its pants down and a knob of vaseline on it's ring piece. It ain't going to be pretty.

Exactly, the faster and harder they pump now, the quicker the bubble bursts. I see the average mortgage size is growing at a nice unsustainable rate.

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Been saying this for years and then George brings out HtB and kicks it all off again. Lots of schemes can be brought in and lots of taxpayer money to keep the bubble going. In London and SE prices are up 20 to 30% since 2007 even though we have been in a recession.

Meanwhile in the North prices are only just beginning to respond and are still off peak in nominal terms. After 9 years (since about 2005) of deflating the bubble in the North, it would surprise me greatly if it burst now with ZIRP, HTB2, GDP 3% + etc.

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Meanwhile in the North prices are only just beginning to respond and are still off peak in nominal terms. After 9 years (since about 2005) of deflating the bubble in the North, it would surprise me greatly if it burst now with ZIRP, HTB2, GDP 3% + etc.

Ah the North again, and your really good value homes. :)

How about malstructured economy, and houses being worth what people will pay for them. I don't see the value you see in the North.

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Osborne's clearly managed to dupe a fresh cohort of idiots into the Ponzi with his various schemes. OTH Brown's original dupes continue to pay down their debts at a furious pace so the net GDP impulse might be smaller than Osborne and his lickspittle apologists at the CBI etc. are hoping for. FWIW I still can't see the UK economy realising even 2% growth this year.

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Osborne's clearly managed to dupe a fresh cohort of idiots into the Ponzi with his various schemes. OTH Brown's original dupes continue to pay down their debts at a furious pace so the net GDP impulse might be smaller than Osborne and his lickspittle apologists at the CBI etc. are hoping for. FWIW I still can't see the UK economy realising even 2% growth this year.

Mortgages at the highest level they've been since the 2007 peak too, according to Reuters:

UK Mortgage Approvals Highest since September 2007

Business lending not doing so well apparently but who needs businesses when you can make money selling yourself ever more expensive houses!

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BBA figures this morning: Mortgage approvals Jan 2014 highest since September 2007. Net mortgage lending for the month £398m vs £389m in December. Also, £75m increase in consumer credit. Meanwhile lending to industry fell £317m.

Debt-bingeing blow out from the usual suspects. :angry:

...well the more mortgage debt there is the the less people will have to spend with our businesses.

.....so debt all one sided means the other side get little help because the demand is not there, because the surplus income has been spent on debt fuelled interest, fuel/energy, taxes and food.....then you wonder why business can't get access to funding unless they can export to places where there is a demand, places where people don't pay so much for life's basic living costs. ;)

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Ah the North again, and your really good value homes. :)

How about malstructured economy, and houses being worth what people will pay for them. I don't see the value you see in the North.

Fair enough I will try to qualify it with saying that the houses are still well above where they should be, which is why most of my money is in cash. But waiting for a crash when prices were higher 9 years ago doesn't make sense to me, I think you need to overtake the previous peak in nominal terms at least given the more favourable interest rates etc.

I think prices will go higher but I have lost any enthuiasm i had for property, but appreciate the fact that other than houses cash is holding its value and buys a hell of a lot these days which is why I don't plough it into property like everyone else. I will leave the property hoarding for the socialists like Tony Blair.

Edited by crashmonitor

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