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If Even The Telegraph Is Mocking House Prices

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Housing minister : "Mortgage lending activity in the housing market remains below the historic average and relative to earnings, median house prices across England are around the same level they were in 2005,"

phew that`s ok then

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It's not a bubble; it's a boil.

Super bubble....my backside...The phrase as mega-bubble as coined by some clever bloke on this website weeks ago,!!!!

When I contacted the BoE about my concerns about a house PRICE bubble they canme back with that nonsense that house SALE VOLUMES were still low.

You work it out.

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As 2007 prices are the new bottom level then its clearly not a bubble for our party line spouting Tory MPs.

Ive a feeling they are right and it isnt a bubble compared to what its going to turn into, if you look at the OZ and Canadian bubbles we've lots of inflation to go.

Carney knew this was going to happen thus why he negotiated 5k a weeks rent money.

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Super bubble....my backside...The phrase as mega-bubble as coined by some clever bloke on this website weeks ago,!!!!

When I contacted the BoE about my concerns about a house PRICE bubble they canme back with that nonsense that house SALE VOLUMES were still low.

You work it out.

I think the lenders should lend more and print more, that should bring the volumes up and sort it. ;)

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It's a cystemic issue.

What, my backside ?

Anyway, if the main stream media are starting to come out with this you know collpase/fear/panic/sanity is just around the corner.

it's not like anyone hasn't tried to warn people !!!

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What, my backside ?

Anyway, if the main stream media are starting to come out with this you know collpase/fear/panic/sanity is just around the corner.

it's not like anyone hasn't tried to warn people !!!

Net lending to individuals is the only thing Dumb and Dumber are interested in i.e. the change in debt. According to the last BoE report (31st Mar) this was just 1.7bn for the month of Feb. There's been a clear improvement since the middle of 2013 with the introduction of HtB, but put in context the Brown years routinely saw net lending 5x that figure.

Net-lending-June-20132.png

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Volume is never going to recover unless new either new homes are built or BTL are forced to sell their stock.

The reason volumes are low now compared to the past is there are fewer homes for sale due to many of them being bough by landlords. In the past council home sales made up some of the 'volume' that BOE is whimpering on about.

I repeat the volume of property for sale can not return to where it was previously without houses being available for sale.

The situation we have currently is demand being pumped by loose credit whilst anyone who can, holds onto their 'investment' because it's going up in value. This is causing the increased demand to bid up the few remaining properties that are for sale to record levels.

It'a all really simple and London is clearly in an unsustainable bubble.

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The situation we have currently is demand being pumped by loose credit whilst anyone who can, holds onto their 'investment' because it's going up in value. This is causing the increased demand to bid up the few remaining properties that are for sale to record levels.

I wouldn't regard our home as an 'investment'. But given how quickly the rungs of the 'ladder' are spreading apart, moving up, down or sideways just wouldn't make sense..

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Volume is never going to recover unless new either new homes are built or BTL are forced to sell their stock.

Or if the costs associated with buying/selling are reduced. If Stamp Duty had kept in line with house prices since 2000, then people would be more likely to sell and buy. There is more housing stock now than in 2007, yet volumes are significantly lower. Most buyers these days are buying from developers as BTL or first time, because there is no upward chain. Hard to justify buying a property for £100K more (£450K to £550K) when you are hit a tax bill of over £20K. Also if the cliff edge effect of stamp duty was removed, it is more likely that purchases at just over £250K would occur.

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I wouldn't regard our home as an 'investment'. But given how quickly the rungs of the 'ladder' are spreading apart, moving up, down or sideways just wouldn't make sense..

I wouldn't regard our home as an 'investment'. But given how quickly the rungs of the 'ladder' are spreading apart, moving up, down or sideways OR BUYING INTO THE PYRAMID just wouldn't make sense..

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The decision to bring forward HtB2 looks like a huge mistake, as we've argued before. If it had launched on Jan 1st as originally intended then allowing for the usual winter hiatus we might not have reached this position until August/September. A little handwringing with the macropru and it's Xmas again before you know it. Osborne and Carney would have been sitting pretty with the market working flat out and just a couple of months left to the GE. Instead, they now have a long twelve months ahead of them to try to hold the show together.

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Volume is never going to recover unless new either new homes are built or BTL are forced to sell their stock.

The reason volumes are low now compared to the past is there are fewer homes for sale due to many of them being bough by landlords. In the past council home sales made up some of the 'volume' that BOE is whimpering on about.

I repeat the volume of property for sale can not return to where it was previously without houses being available for sale.

The situation we have currently is demand being pumped by loose credit whilst anyone who can, holds onto their 'investment' because it's going up in value. This is causing the increased demand to bid up the few remaining properties that are for sale to record levels.

It'a all really simple and London is clearly in an unsustainable bubble.

I know several people who, when buying a new place, have kept their old home as a BTL. I think this is really common - the banks seem to encourage it. That must have a lot to do with this lack of supply problem. In 2007 there were about 220,000 houses built. Last year was it about 100,000? That's also taking 10,000 out of the supply numbers every month. Pretty depressing.

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