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TheCountOfNowhere

Uk House Prices 'rise 9.9% In A Year'

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Great news, a couple more months of the Treasury and BoE moving the fiscal deckchairs should just about guarantee HPC.

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BBc straight out with this great news.

http://www.bbc.co.uk/news/business-27885185

"House price increases accelerated in April, rising by 9.9% compared with the same month a year ago, according to official figures.2

MEGA BUBBLE ALERT

But magically the official CPI and RPI inflation is only about 2%. Hallelujah brothers! It seems people do not need houses/flats anymore ....

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No need to worry. George is on the case! :P

Last week, Chancellor George Osborne announced plans to give the Bank of England the power to impose a cap on home loans related to income or the value of the house.

At present, the Bank can advise on such a cap, but not impose it. The new power should be in place before the end of this Parliament in 2015, the chancellor said.

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You have got to hand to the government they have one survey that shows house prices at a virtual inflation adjusted nadir...the land registry and this one that shows it well past nominal peak and heading for an inflation adjusted peak.

Talk about bloody confusing, but what else would you expect from these comedians.

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Mr Carney! What rate of HPI is required before you deploy your bubble busting tools? 10%? 15%? 25%?

When will the idiots of the BoE acknowledge that we're in the teeth of a bubble?

Just as soon as the political and banking elite have sold off their BTL portfolios ...

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It's all right. Carnage won't hesitate........

http://www.telegraph.co.uk/finance/personalfinance/houseprices/10906356/Mark-Carney-Bank-will-not-hesitate-to-cool-UK-housing-boom.html

What's the chuffin' delay then? *****!

Edit filters won't let me name check a certain Anglo Scandinavian king that attempted to stop the waves.....

Edited by John The Pessimist

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The average London house is now approaching the half-million mark.

Campbell Robb, the chief executive of Shelter, said: "Each rise in prices means more people stuck living in their childhood bedrooms, or trapped in the cycle of moving from one expensive rented home to the next.

"This is a problem that the government can fix. We need a new generation of quality part-buy, part-rent homes, and to make sure that small builders can get hold of the land and finance necessary to build them.

'Part-buy, part-rent' is a scam that props up bubble prices. The same amount of money that would have bought you 100% of a house now buys a 25% share (or less) - decoupling the price of housing from people's ability to pay for it. Why on earth are Shelter pushing it as a solution?

Writing in the Bank's annual report, Mark Carney said: "We will not hesitate to take further proportionate and graduated action as warranted,"

Is it warranted yet?

Surely we're reaching the tipping point. Even the children of the very rich must now be priced out. Even if we had 'normal' levels of wage inflation, no-one can keep up with these increases.

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Land Registry tweet:

"Our May HPI shows a monthly change of 0.4%. Average house price in England and Wales now £172,035. Full HPI out 9.30am on 27 June."

The May figure is actually lower than the published April one (£172,069) which has obviously been revised down.

The Land Reg peak price for England & Wales is £181,572 (Nov 2007).

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Prices have gone mad in the last four or five years in parts of greater London....people are either sticking because there is no way they can gather the funds together to pay the extra to move up so they stick...or they are cashing in their chips, downsizing to release some free spending money to enable them add value to a lesser lower place....where there were four or five homes for sale at any one time in certain roads I am thinking of, now there are none, and there have been none/zero/ziltch for quite a while now....stuck sitting on a gold mine unable or reluctant to move. ;)

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The average London house is now approaching the half-million mark.

[snip]

Surely we're reaching the tipping point. Even the children of the very rich must now be priced out. Even if we had 'normal' levels of wage inflation, no-one can keep up with these increases.

Earlier on another thread I posted the executive remuneration table from the Bank of England 2014 Annual Report:

BoERemuneration2014.gif

I wonder how many of them could afford this dream semi-detached home:

GibbonRoad170614.jpg

http://www.rightmove.co.uk/property-for-sale/property-45923078.html

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The UK, and London esp., has some really scary multiples.

I was in the SE as the prices went from 5+ PE (1989)-> about 2.5 (97).

Then, the fall was cushioned by medium wage inflation - 5% to 10%.

London wages are just that higher than the UK average - ~26K.

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Also, once properties go over £500k, the stamp duty goes up to 4%, so they are not only paying way over the odds for a home but they are also having to pay so much more in tax for the privilege of being priced out. Meanwhile the boomers enjoy a tax free windfall while the person paying for their overpriced home has to pay from their taxed income. It is totally upside down.

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Also, once properties go over £500k, the stamp duty goes up to 4%, so they are not only paying way over the odds for a home but they are also having to pay so much more in tax for the privilege of being priced out. Meanwhile the boomers enjoy a tax free windfall while the person paying for their overpriced home has to pay from their taxed income. It is totally upside down.

You know the answer....don't buy an overpriced house, stick with the equity you have already earned and invest your taxed income in something that has more going for it with more room for improvement. ;)

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