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Bbc Reports Biggest Monthly House Price Fall In A Year

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Too early to call it a trend, prices often slow down this time of year. However, I fancy prices to continue their decline into next year.

MMR is a big factor and they can't hold off raising interest rates for much longer.

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A link under "More on this story" in the bbc link



http://

www.bbc.co.uk/news/business-27253097

The Bank of England has given a stark warning that the recent surge in house prices could end in a crash.

So SELL SELL SELL


Sir Jon Cunliffe, one of the Bank's deputy governors, said it would be "dangerous to ignore the momentum that has built up in the housing market".

He also warned about a possible "sharp correction, with negative equity and an overhang of debt for many households".

So SELL SELL SELL


His comments came amid reports that the UK's most expensive flat ever has been sold for £140m.

Sir Jon, who has responsibility for financial stability, predicted that house prices would continue to rise for some time.

Earlier this week the Nationwide Building Society said prices had grown by 10.9% over the past year, the highest inflation rate for seven years.

So BUY BUY BUY?

As usual the BoE's three faced opinion.

Edited by billybong

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Was last month adjusted down again ?

Th east midlands has gone pop. 0.8% down. The 6% rise being reported will disappear quite quickly unless something can be done to help those poor hard working people, neigh, families who need someone else's money to buy themselves a free money generated pile of dried mud bricks.

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MoneySavingExpert.com's forums are experiencing technical difficulties, we hope to be back with you shortly.

Thanks for your patience.

The main site www.moneysavingexpert.com is still up and running with no problems though.

MoneySavingExpert.com's users are currently experiencing a reality check, we hope to get back our equity shortly.

Thanks for your patience.

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The Bank of England has given a stark warning that the recent surge in house prices could end in a crash.

Not the past 10 years then?

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MoneySavingExpert.com's users are currently experiencing a reality check, we hope to get back our equity shortly.

Thanks for your patience.

it had all gone a bit quiet over there before they shut down the forum

LR is their holy grail. looks like they'll have to turn to ONS now

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MoneySavingExpert.com's users are currently experiencing a reality check, we hope to get back our equity shortly.

Thanks for your patience.

Where has the 'Housing Debate' part of the forum gone? Ii'm sure it disappears and reappears at will.

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Guest

Too early to call it a trend, prices often slow down this time of year. However, I fancy prices to continue their decline into next year.

MMR is a big factor and they can't hold off raising interest rates for much longer.

I'm interested to know why you think BoE will raise rates.... I always thought they would eventually, but with a still fragile economy and dropping deflation... why would they? It doesn't mean banks won't raise the IRs on mortgages though.

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As usual the BoE's three faced opinion.

Not so hard really.

If left to market forces, there should be a sharp correction in some places.

With appropriate policy intervention, house prices will continue to rise. ;)

Edited by porca misèria

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I'm interested to know why you think BoE will raise rates....

Once upon a time, with memories of rates over 20%, we thought under-15% wouldn't last. Though that was mortgage rates: there wasn't a BoE rate back then.

Some things just don't change.

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Not so hard really.

If left to market forces, there should be a sharp correction in some places.

With appropriate policy intervention, house prices will continue to rise. ;)

Indeed it's not hard for them to be three faced and cover their backs with every option.

The difficulty is in producing a policy that produces a reasonably broad and healthy economy.

;)

Edited by billybong

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I'm interested to know why you think BoE will raise rates.... I always thought they would eventually, but with a still fragile economy and dropping deflation... why would they? It doesn't mean banks won't raise the IRs on mortgages though.

Totally understand your logic, in many ways it wouldn't make sense.

I expect a nominal increase next year, a token gesture that will do nothing but appease the savers and give Carney a chance to show he's doing something (which he's not) to justify that ludicrous salary.

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Telegraph 28/10/14

'Property prices in England fell 0.2pc from August to September as prospective homeowners struggle to access finance.

The biggest drop was seen in Yorkshire & Humberside, where monthly prices were down 2.2pc.

Further declines were seen in the West Midlands (-1.3pc), followed by a 0.8pc fall in the East Midlands and a 0.7pc drop in London, according to the Government's Land Registry.

The only regions to escape house price falls were the East, the South West and Wales.

September data from the Land Registry - considered to compile the most accurate house price index based on sale values - showed an annual price increase of 7.2pc, taking the average property in England and Wales to £177,299.

However the monthly fall of 0.2pc echoes a raft of other indicies released last month.

Data from Hometrack and the Royal Institution of Chartered Surveyors both showed the housing market finally cooling.

This correction follows a year in which values and transactions were buoyed by pent up demand, flowing credit and the Government's Help to Buy scheme.

"This is a big monthly fall for Yorkshire & Humberside which has not seen the same profit as the south of the country and therefore this drop is not easily digestible," said Henry Pryor, private property buyer.

A lack of access to finance following a six month spell of regulatory pressure on lenders and buyers alike has dampened house prices, he explained.

The Mortgage Market Review was introduced in April, enforcing future interest rate stress testing, with reports of three-hour long mortgage application meetings and limited finance for contractors, freelancers and entrepreneurs.

These new, strict rules were followed up Mark Carney's policy to cap high low to value mortgages, which came into play the end of June. However, there are signs this October that the criteria is loosening again (although this will not show in the Land Registry data.)

Talk of interest rate rises and uncertainty ahead of next year's general election, is also having a dampening affect on the housing market as a whole.

London and the South East

The average house price in London increased 20pc in the year to August, according to the Land Registry, with luxury property in the capital's core now deemed the most expensive in the world by square footage.

However, the annual pace of growth in the mainstream market then dropped back to 18.4pc in the 12 months to September, with the monthly rate showing a 0.7pc fall to £460,521.

"These figures show there is still a disconnect between the sellers' and estate agent asking prices and they have to get with the programme. Even those who are bullish about the central London housing market have had to admit a drop in transactions over the last six to eight weeks," Mr Pryor said.

The Land Registry even recorded a decline in sales values in the South East (0.2pc to £236,996) which has been touted as the "new London" in recent weeks, with forecasts suggesting that a price surge should be expected over the next five years as the commuter belt benefits from the capital's overspill.'

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Totally understand your logic, in many ways it wouldn't make sense.

I expect a nominal increase next year, a token gesture that will do nothing but appease the savers and give Carney a chance to show he's doing something (which he's not) to justify that ludicrous salary.

I've argued all year that the next move in UK rates would be down not up. How long before the UK is back in recession is the question we should be asking ourselves now. Christmas, Easter or post-GE?

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Where has the 'Housing Debate' part of the forum gone? Ii'm sure it disappears and reappears at will.

You have to be logged in to view it, it is back up now, but as someone said, very quiet...... :lol:

Edited by dances with sheeple

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