Bruce Banner Posted February 28, 2014 Share Posted February 28, 2014 BBC News are running a piece on Nationwide figures this morning. Presenter "We're seeing, at the moment, inflation running at 1.9% and you were saying that we're going to see forward price increases of perhaps over 10% and to me that sounds like a bubble". Noddy from Nationwide replied that prices are affordable due to record low interest rates . Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted February 28, 2014 Share Posted February 28, 2014 Name and credit the presenter then Bruce. I always assume that being Nationwide's economist is some kind of community service punishment for coming bottom in your year at college. "What you do is you go out there and talk about mortgage affordability. Just that, affordability. Do not under any circumstances enter into a debate about the level of house prices or you're sacked. Don't try to hold onto any personal credibility as you lost that when you signed up here." Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted February 28, 2014 Author Share Posted February 28, 2014 Name and credit the presenter then Bruce. Victoria Fritz http://www.mediauk.com/tv/people/29844/victoria-fritz Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 28, 2014 Share Posted February 28, 2014 made a film in the 70s? ...fritz the cat? Now its Fritz the market. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted February 28, 2014 Author Share Posted February 28, 2014 (edited) On again now. Edit: Shortened version without the bubble comment . Edited February 28, 2014 by Bruce Banner Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 28, 2014 Share Posted February 28, 2014 On again now. didnt realise you were a masochist...have you been converted by the Masked Tulip? Quote Link to comment Share on other sites More sharing options...
billybong Posted February 28, 2014 Share Posted February 28, 2014 Does that mean she'll be offered protection as a whistle blower. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted February 28, 2014 Share Posted February 28, 2014 This seems to have become the Nationwide thread - can we tweak the title to reflect that and add the numbers in? Quote Link to comment Share on other sites More sharing options...
cool_hand Posted February 28, 2014 Share Posted February 28, 2014 http://www.bbc.co.uk/news/business-26368709 House prices rose by 0.6% in February, a 9.4% increase on the same month in 2013, according to the Nationwide Building Society. The annual rate of growth is the fastest for almost four years. It puts the average price of a UK home at £177,846, which is still almost 5% below the 2007 peak. The Nationwide said sales and prices were being driven by record low interest rates, higher employment and the easier availability of mortgages. The lender's chief economist, Robert Gardner, acknowledged that prices could accelerate even faster in the coming months, as more people took the plunge to buy for the first time or move. But he denied a house price "bubble" was being created. "If you look at prices relative to earnings then housing does look relatively expensive by historic standards," Mr Gardner told BBC News. "But if you look at how much it costs to service a typical mortgage, that suggests that housing isn't overly expensive at this point... because interest rates are at such low levels." The Nationwide pointed out that prices were also being driven higher by a continued lack of new homes. "Price growth is being supported by the fact that the supply of housing remains constrained, with housing completions still well below their pre-crisis levels," said Mr Gardner. He added that just 109,500 new homes were built in England in 2013, which was 38% below the level recorded in 2007, and about half the projected number of new households expected to form each year. The Nationwide's figures are based on a sample of its own lending and they show that on its own measure, house prices across the UK have been rising for the past 14 months in a row. London has again led the surge in prices. The building society said house prices in the capital, at £345,186, were almost twice those elsewhere in the UK. The precise level of house prices, and how fast they are rising, is a matter of some dispute. The numerous monthly surveys give quite different readings, though they are all recording a rise. For instance, the government's own house survey, published by the Office for National Statistics (ONS), said earlier this month that prices were only 5.5% higher than a year ago - but that they had already reached a record national average of £250,000. Help to Buy The Nationwide figures come in the same week that some UK housebuilders reported their profits had more than doubled, thanks to the past year's revival of activity and subsequent increased demand for new homes. Barratt Developments on Thursday recorded a 162% rise in pre-tax profits to £120m for the six months to the end of December. Redrow's comparable figures revealed a 107% growth in profits to £48m. Meanwhile, Persimmon said its profits jumped by more than 50% last year to £337m, thanks in part to the government's Help to Buy scheme. The government's own figures show that despite the attention being given to Help to Buy in the housebuilding industry, its "equity loan" element, launched in April last year, has so far financed only 15,000 completed house purchases in England. However, there are more in the pipeline, and even more sales may yet be stimulated by the recently launched second part of Help to Buy, which offers a government guarantee against losses for lenders who are prepared to offer mortgages to people with only a small deposit. An admission that prices are high relative to earnings but it all OK because interest rates are low and of course interest rates are never ever going to go up again… until they do. Quote Link to comment Share on other sites More sharing options...
WageWar Posted February 28, 2014 Share Posted February 28, 2014 I could have sworn I heard the business guy on the BBC breakfast program quote the average house price in the UK and then say something like - "that sounds like a huge amount of money". I honestly don't know whether it was his personal opinion or some Cameron style staged bull. Maybe he's a sympathiser. Quote Link to comment Share on other sites More sharing options...
Starla Posted February 28, 2014 Share Posted February 28, 2014 I'd like to give Alex Jones the female presenter on the One Show a name check. Ok, I know The One Show is like Blue Peter for grownups, and I admit to watching it. They were doing a segment earlier this week on house prices and the north/south divide. They had some woman doing the feature who was getting positively excited and enthusiastic about London properties having open days and going for record amounts of money blah etc. As the segment closed, Alex Jones, dryly said "... Hmmm until interest rates go up of course..." Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted February 28, 2014 Share Posted February 28, 2014 http://www.bbc.co.uk/news/business-26368709 House prices rose by 0.6% in February, a 9.4% increase on the same month in 2013, according to the Nationwide Building Society. The annual rate of growth is the fastest for almost four years. It puts the average price of a UK home at £177,846, which is still almost 5% below the 2007 peak. The Nationwide said sales and prices were being driven by record low interest rates, higher employment and the easier availability of mortgages. The lender's chief economist, Robert Gardner, acknowledged that prices could accelerate even faster in the coming months, as more people took the plunge to buy for the first time or move. But he denied a house price "bubble" was being created. "If you look at prices relative to earnings then housing does look relatively expensive by historic standards," Mr Gardner told BBC News. "But if you look at how much it costs to service a typical mortgage, that suggests that housing isn't overly expensive at this point... because interest rates are at such low levels." The Nationwide pointed out that prices were also being driven higher by a continued lack of new homes. "Price growth is being supported by the fact that the supply of housing remains constrained, with housing completions still well below their pre-crisis levels," said Mr Gardner. He added that just 109,500 new homes were built in England in 2013, which was 38% below the level recorded in 2007, and about half the projected number of new households expected to form each year. The Nationwide's figures are based on a sample of its own lending and they show that on its own measure, house prices across the UK have been rising for the past 14 months in a row. London has again led the surge in prices. The building society said house prices in the capital, at £345,186, were almost twice those elsewhere in the UK. The precise level of house prices, and how fast they are rising, is a matter of some dispute. The numerous monthly surveys give quite different readings, though they are all recording a rise. For instance, the government's own house survey, published by the Office for National Statistics (ONS), said earlier this month that prices were only 5.5% higher than a year ago - but that they had already reached a record national average of £250,000. Help to Buy The Nationwide figures come in the same week that some UK housebuilders reported their profits had more than doubled, thanks to the past year's revival of activity and subsequent increased demand for new homes. Barratt Developments on Thursday recorded a 162% rise in pre-tax profits to £120m for the six months to the end of December. Redrow's comparable figures revealed a 107% growth in profits to £48m. Meanwhile, Persimmon said its profits jumped by more than 50% last year to £337m, thanks in part to the government's Help to Buy scheme. The government's own figures show that despite the attention being given to Help to Buy in the housebuilding industry, its "equity loan" element, launched in April last year, has so far financed only 15,000 completed house purchases in England. However, there are more in the pipeline, and even more sales may yet be stimulated by the recently launched second part of Help to Buy, which offers a government guarantee against losses for lenders who are prepared to offer mortgages to people with only a small deposit. An admission that prices are high relative to earnings but it all OK because interest rates are low and of course interest rates are never ever going to go up again… until they do. High prices wrt incomes, and record low rates, yup, no problems there. Real wages back to levels seen over a decade ago. Sounds healthy. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted February 28, 2014 Share Posted February 28, 2014 (edited) Victoria Fritz http://www.mediauk.c.../victoria-fritz Not destined for a long career at the BBC methinks. The genius of the landowners was to allow the surfs to own their own slave boxes. They are now in on the scam. Edited February 28, 2014 by aSecureTenant Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted February 28, 2014 Share Posted February 28, 2014 I'd like to give Alex Jones the female presenter on the One Show a name check. Ok, I know The One Show is like Blue Peter for grownups, and I admit to watching it. They were doing a segment earlier this week on house prices and the north/south divide. They had some woman doing the feature who was getting positively excited and enthusiastic about London properties having open days and going for record amounts of money blah etc. As the segment closed, Alex Jones, dryly said "... Hmmm until interest rates go up of course..." Very nicely pitched Alex Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted February 28, 2014 Author Share Posted February 28, 2014 BBC are doing well today. They are broadcasting, live, Farage's opening speech at the UKIP conference. Quote Link to comment Share on other sites More sharing options...
R K Posted February 28, 2014 Share Posted February 28, 2014 Victoria Fritz http://www.mediauk.c.../victoria-fritz She was following me on twitter at some point. Wouldn't surprise me if she's a poster/lurker on here. Quote Link to comment Share on other sites More sharing options...
billybong Posted February 28, 2014 Share Posted February 28, 2014 (edited) http:// www.bbc.co.uk/news/uk-politics-26376026 ... On Europe, Mr Farage said the UK had been "betrayed" by "a political class that had sold out to Brussels", resulting in the supremacy of British political and legal institutions being lost. He suggested fundamental changes in the UK's relationship with Brussels were "unobtainable" and that David Cameron's pledge of a referendum in 2017 was designed to "kick the issue in the long grass" until after the general election. One recent poll suggested UKIP was currently in third place behind both Labour and the Conservatives. ... Just surprised he didn't say "the UK had been "betrayed" by "a political class AND had sold out to Brussels" ". Edited February 28, 2014 by billybong Quote Link to comment Share on other sites More sharing options...
dkujsbap Posted February 28, 2014 Share Posted February 28, 2014 Are there no journalists capable of pointing out these short termist views on a 25 year mortgage? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 28, 2014 Share Posted February 28, 2014 Thankfully the man responsible for the biggest house price bubble in history ( in Canada ) will step in at any moment to stop this madness. Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted February 28, 2014 Share Posted February 28, 2014 Thankfully the man responsible for the biggest house price bubble in history ( in Canada ) will step in at any moment to stop this madness. Maybe he's a secret HPCer. I recall Gordon Brown being repeatedly portrayed by the media as a bit tight and forever banging on about prudence, well they got that right Quote Link to comment Share on other sites More sharing options...
eric pebble Posted February 28, 2014 Share Posted February 28, 2014 Not destined for a long career at the BBC methinks. The genius of the landowners was to allow the surfs to own their own slave boxes. They are now in on the scam. Wonderfully succinct. 10/10. Quote Link to comment Share on other sites More sharing options...
Quicken Posted February 28, 2014 Share Posted February 28, 2014 The lender's chief economist, Robert Gardner, acknowledged that prices could accelerate even faster in the coming months, as more people took the plunge to buy for the first time or move. But he denied a house price "bubble" was being created."If you look at prices relative to earnings then housing does look relatively expensive by historic standards," Mr Gardner told BBC News. "But if you look at how much it costs to service a typical mortgage, that suggests that housing isn't overly expensive at this point... because interest rates are at such low levels." Oh Robert, low interest rates inflate bubbles. It's not rocket science. Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted February 28, 2014 Share Posted February 28, 2014 I'd like to give Alex Jones the female presenter on the One Show a name check. Ok, I know The One Show is like Blue Peter for grownups, and I admit to watching it. They were doing a segment earlier this week on house prices and the north/south divide. They had some woman doing the feature who was getting positively excited and enthusiastic about London properties having open days and going for record amounts of money blah etc. As the segment closed, Alex Jones, dryly said "... Hmmm until interest rates go up of course..." Yeah, but she's dancing to the same tune. Mortgages are expensive even if interest rates don't rise. Alphaville chewed it over recently - can't find link. Quote Link to comment Share on other sites More sharing options...
wonderpup Posted February 28, 2014 Share Posted February 28, 2014 It's never a bubble until it pops. At which point everyone involved will be happy to opine on it's inevitable demise. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted February 28, 2014 Share Posted February 28, 2014 Yeah, but she's dancing to the same tune. Mortgages are expensive even if interest rates don't rise. Alphaville chewed it over recently - can't find link. You rang? http://www.housepricecrash.co.uk/forum/index.php?showtopic=196877&st=0 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.