The Lost Decade: House Prices Stuck At The Same Level As 2004 Once Inflated London Property Market Is Removed

[interestrateripoff]

http://www.dailymail.co.uk/money/mortgageshome/article-2818946/House-prices-level-decade-ago-London-property-market-removed.html

UK house prices are at the same level as a decade ago once London homes are stripped out, according to new research.

The average property value recorded by monthly Land Registry figures stands at £177,299, but with Greater London removed the figure across England and Wales stands at just £133,538.

This is in line with the £133,126 level seen in July 2004 and should dispel fears of a new national house price bubble, claims analysis by property investment specialist London Central Portfolio.

But ONS figures also show wages adjusted for inflation back to 2004 levels too, with workers suffering their own lost decade.

....

Naomi Heaton, of LCP, said: These figures suggest that housing stock outside of Greater London is still affordable. The slow recovery indicates that positive economic sentiment and the feel-good factor are still missing.’

LCP says that once London is removed from the equation, the current residential property market growth rate stands at 3.1 per cent and if that continues it will take five more years to regain the 2007 peak.

She said: ‘Residential property prices in the UK move in cycles. Periods of growth are generally followed by periods of consolidation. We should be entering a new growth cycle given prices are only at the same level as 10 years ago and are, without doubt, suppressed currently.’

Relief all round properties are affordable.

Yes you can afford a slavebox on £20k a year, only needs around a 6x salary loan for that affordable abode.

[chronyx]

How much have wages gone up since '04?

[TheCountOfNowhere]

Wages at 2000 level nominally.

Osborne, we have a problem.

[Si1]

They were in a bubble in 2004 so they are still overpriced

[Wurzel Of Highbridge]

Are we comparing like with like? Are new homes today larger/smaller/better/worse?

Have existing homes had billions spent of upgrades, attic conversions, extensions?

Don't forget 2004 was boom-mania time and properties were well overpriced.

[doomed]

I was very close to buying in 2006. I just checked Zoopla and that house, which did sell after I pulled out, is still the most expensive house on that street. There have been a few sold since at a good 30% less.

It was a very good decision not to buy and not only for financial issues. The way the job market works these days you do not want to be tied down to one spot long term.

[Guest UK Debt Slave]

How much have wages gone up since '04?

In real terms, inflation adjusted, wages have fallen substantially for the average punter.

The media and political elite have to continuously peddle the myth that our standard of living is being maintained.

If you eat food, consume fuel, utilities and other essentials, you know better

Politicians of course have all these things paid for through a totally corrupt expenses system.

[TheCountOfNowhere]

The way the job market works these days you do not want to be tied down to one spot long term.

Im with you on that. Regardless of the argument to/for buying, if you buy an over-priced weight round your neck then loose your job you are either stuck with living away from home ( at vast expense ) or commuting ( vast distance ) to get some work in.

You might as well rent and stay flexible. The S*** could hit the fan at any point in the UK , do you want to be stuck here when it does.

It's like it's all been planned.

Edited November 3, 2014 by TheCountOfNowhere

[Corruption]

If i could get a house at 2004 bubble prices id buy one, unfortunately for me all i can find are 2007 prices plus 10-20%.

This is in Hampshire.

If that coc Gidiot hadnt came up with H2B 2 and FFL, id have somewhere ... i just hope his new thin look is due to him catching AIDS from Dave.

Edited November 3, 2014 by Corruption

[TheCountOfNowhere]

If i could get a house at 2004 bubble prices id buy one, unfortunately for me all i can find are 2007 prices plus 10-20%.

This is in Hampshire.

If that coc Gidiot hadnt came up with H2B 2 and FFL, id have somewhere ... i just hope his new thin look is due to him catching AIDS from Dave.

I said that a couple of years ago. Local prices were down 20% on the land registry. Very low volume sales. Asking prices were 2007 levels. There was no one willing to sell at 2004 prices despite the land registry saying this was clearly happening. My theory was the banker shell companies were buying them off themselves at this level to keep the land registry up ( look at the graph, it's is wholly unnatural ).

Now we have prices at 2007 less 6% or thereabouts locally but asking prices at now 2007+30%.

Someone's lying or manipulating the figures, I can't see any other explanation.

A fixed market is best avoided IMHO.

[Corruption]

I said that a couple of years ago. Local prices were down 20% on the land registry. Very low volume sales. Asking prices were 2007 levels. There was no one willing to sell at 2004 prices despite the land registry saying this was clearly happening. My theory was the banker shell companies were buying them off themselves at this level to keep the land registry up ( look at the graph, it's is wholly unnatural ).

Now we have prices at 2007 less 6% or thereabouts locally but asking prices at now 2007+30%.

Someone's lying or manipulating the figures, I can't see any other explanation.

A fixed market is best avoided IMHO.

Ive asked an agent on such a property if theyd take the 2004 price a similar house sold for, its under offer with someone else but if it falls through i'll probably buy it. I truly havent got any more life left in me to wait and i'll not have any debt should i buy at this ridiculous price.

Best we can hope for at the moment is that a UKIP landslide on Nov 20th triggers an election and we get 3 parties having to form a coalition thus causing all sorts of shyt, failing that i just see any slight tremor in the market to be met with trillions in QE. Blatant collusion between the US and Japan central banks with handing over the printy print on steroids baton tells me theyll rig it for a long as they can.

[long time lurking]

They were in a bubble in 2004 so they are still overpriced

Yup but on the brigh tside the interest only BTL game is running out of time .. almost half way through there mortgage term and not a penny in HPI earnt in most of the country..

[Corruption]

Yup but on the brigh tside the interest only BTL game is running out of time .. almost half way through there mortgage term and not a penny in HPI earnt in most of the country..

All that free money for the banks and they still take more.

[Ash4781]

Property is undervalued according to a ' property investment specialist'. I like the method. If the data doesn't fit exclude it!

[Billy Ray Valentine]

Yup but on the brigh tside the interest only BTL game is running out of time .. almost half way through there mortgage term and not a penny in HPI earnt in most of the country..

Yes. I've noticed myself the last couple of months a high proportion of 2005-8 bought houses of all types coming on 'No Chain.' The asking price for these places vary from around the price paid to as much as 20% more. Has definitely been feeling like a lot of BTL's trying to get out without too much of a loss to me.

[“Nasty Piece of work”]

Someone's lying or manipulating the figures, I can't see any other explanation.

The sales that I know about (only a handful) are DISTINCTLY different from the official data, too different, and can only be explained by the above.

[Fromage Frais]

If i could get a house at 2004 bubble prices id buy one, unfortunately for me all i can find are 2007 prices plus 10-20%.

This is in Hampshire.

If that coc Gidiot hadnt came up with H2B 2 and FFL, id have somewhere ... i just hope his new thin look is due to him catching AIDS from Dave.

Same for me in the economic powerhouse of Norwich which for some reason thinks its part of the home counties.

Any location remotely nice +20%

Prices falling and completing at still decent prices still until FFL+HTB now stagnant market with loads of houses 100k more than a couple of years ago.

[@contradevian]

Are we comparing like with like? Are new homes today larger/smaller/better/worse?

Have existing homes had billions spent of upgrades, attic conversions, extensions?

Don't forget 2004 was boom-mania time and properties were well overpriced.

Yup can actually remember trying to buy in Worcestershire area 2001 time and it was utter madness then. Almost ended up in a bidding war, on a 2 bed 60's duplex flat in Malvern which went for such a crazy price, not even the Halifax could help, despite decent income and job. Looks cheap now though!

[Timak]

Houses are easily 50-75% more expensive from 2003/4 in Cambridge.

[Neverwhere]

Houses are easily 50-75% more expensive from 2003/4 in Cambridge.

They probably categorized Cambridge as part of Greater London and excluded it from their dataset

Actually, what they have done is exclude the *best* performing areas while still including all of the *worst* performing areas in order to intentionally skew the data downwards and give a false picture of what's happening nationally. If they had excluded the *worst* performing areas in the same proportion as the *best* performing they would have ended up with figures that more accurately reflect the experiences of the majority, but then accuracy and veracity are unlikely to have been their intention.

Hilarious that having worked so hard to give a disingenuous picture their own graph still makes the market look decidedly bubbilicious!

Edited November 3, 2014 by Neverwhere

[zugzwang]

Softening up exercise for a regional HtB3 to be announced in the autumn budget?

[R K]

Relief all round properties are affordable.

Yes you can afford a slavebox on £20k a year, only needs around a 6x salary loan for that affordable abode.

Average house.

(according to article/LR data)

Edited November 3, 2014 by R K

[19 year mortgage 8itch]

They probably categorized Cambridge as part of Greater London and excluded it from their dataset

Actually, what they have done is exclude the *best* performing areas while still including all of the *worst* performing areas in order to intentionally skew the data downwards and give a false picture of what's happening nationally. If they had excluded the *worst* performing areas in the same proportion as the *best* performing they would have ended up with figures that more accurately reflect the experiences of the majority, but then accuracy and veracity are unlikely to have been their intention.

Hilarious that having worked so hard to give a disingenuous picture their own graph still makes the market look decidedly bubbilicious!

worth repeating

[The Knimbies who say No]

Big lolz from AEP again.

Anecdote: Local vicar is executor of a deceased parishioner's estate(no family as I understand it). Uses pulpit to say that the house is up for sale and 'an absolute steal' at an amount equating to greater than 10 times local earnings although it is sold strictly on the understanding that it also needs extensive renovation(3 bed bungalow in an average area).

Is there any crevice of civilization in the UK which has not been filled by this madness?

Edited November 3, 2014 by Joan of The Tower

[Eddie_George]

Big lolz from AEP again.

Anecdote: Local vicar is executor of a deceased parishioner's estate(no family as I understand it). Uses pulpit to say that the house is up for sale and 'an absolute steal' at an amount equating to greater than 10 times local earnings although it is sold strictly on the understanding that it also needs extensive renovation(3 bed bungalow in an average area).

Is there any crevice of civilization in the UK which has not been filled by this madness?