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rantnrave

Nationwide House Price Index July

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They are removing some key 'hedonics' from their calculations because the unfortunate truth is that homes are getting smaller, garages being removed etc.

Of course this would be keeping their price index back.

2isi0er.jpg

Money lenders main advertising tool adjusted to make advert look better.

Go figure.

Pay more = Borrow More.

For me, IMHO, we'd all be better off without the nationwide. They are pretending to be a caring sharing Building society when in reality they have become, via the back door, nothing more than a house bubble pumping bank....my opinion of course, i'm sure many people think otherwise. I'd not shed a tear if they go under like the NR.

Edited by TheCountOfNowhere

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I've asked them from @ShiresCrashing if they will be releasing figures using old methodology for comparison sake.

Changing methodology without some idea of the impact is nothing short of outrageous. They need to run the figures side by side for a couple of years.

Maybe that doesn't suit their agenda.

Alarm bells should be ringing.

Have a loook at the nominal price chart ( i guess driving by london and the SE ) and tell me we are not at the peak of a dangerously unstable bubble.

Edited by TheCountOfNowhere

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not using actual valuations?....sounds like the return to dodgy lending again via the valuation route.

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not using actual valuations?....sounds like the return to dodgy lending again via the valuation route.

Just look at the graphs, bearing in mind the 0.5% IRS, FLS, HTB etc.

The unaffordability graph is a fiddle when you think how low rates are and cost of living has shot up to the point people people are stood in super market door ways asking you to buy some shopping for total strangers.

I'd say in reality houses are back at 2007 insane affordability levels.

What happens next....loads of pay rises or collapse of the nominal prices......take your pick.

Anyone getting a 10% pay rise this year ?

Edited by TheCountOfNowhere

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yes, count of nowhere has it

here we have a lender, with access to essentially free money via QE (even if it is via a circuitous route, it is still as good as free) and an implicit bail out guarantee from the taxpayer, trying to drum up lending business

quelle surprise

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Happy days are here again.....house prices cheaper than 1997 (so says an estate agent), and for home owners, a nice & steady house price growth (so says a lender).....all is well in the land of the United Kingdom. Those under 40s are really missing out because they buy iPads.

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Recall the OBR projections. Osborne's 'recovery' is predicated on a monstrous run-up in household borrowing, far beyond that accomplished by Brown.

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The word "afford" in the context of UK house prices is an abuse of the English language. I could afford a £10 pint of beer, but would choose not to buy it because I think it's a bloody rip off. Or does everybody just buy a house so long as they can "afford" it (i.e. they pass the mortgage test and cross their fingers for 25 years)? Am I so different?

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The word "afford" in the context of UK house prices is an abuse of the English language. I could afford a £10 pint of beer, but would choose not to buy it because I think it's a bloody rip off.

Spot on. I've tweeted that comment.

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They are removing some key 'hedonics' from their calculations because the unfortunate truth is that homes are getting smaller, garages being removed etc.

Of course this would be keeping their price index back.

2isi0er.jpg

The small size of houses becomes so apparent when driving around, they are so "thin". All just a reflection of whats going on of course.

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The word "afford" in the context of UK house prices is an abuse of the English language. I could afford a £10 pint of beer, but would choose not to buy it because I think it's a bloody rip off. Or does everybody just buy a house so long as they can "afford" it (i.e. they pass the mortgage test and cross their fingers for 25 years)? Am I so different?

Exactly. If an acre of land actually *cost* in the free market the thick end of £1 million an acre, I would grin and bear it.

What I can't stand is paying over the odd's just because government has decided high housing costs are a policy objective.

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Exactly. If an acre of land actually *cost* in the free market the thick end of £1 million an acre, I would grin and bear it.

What I can't stand is paying over the odd's just because government has decided high TAXATION via housing costs are a policy objective.

Corrected for accuracy

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The small size of houses becomes so apparent when driving around, they are so "thin". All just a reflection of whats going on of course.

People are getting thinner?

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People are getting thinner?

Not round here. Fatty central.

Though some of the really hungry immigrants are thin

Edited by TheCountOfNowhere

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People and cars are getting bigger, but houses and garages are getting smaller. Home builders design buildings for their profits, not their actual customers. You could have a decent housing estate with ample back gardens, wide roads, pavements, front gardens, and a garage that actually fits a car, or you could squeeze 10% more houses into the estate and forgo all of the aforementioned for every house. You can do the latter because there's no end of fools buying absolutely crap housing at eye-watering prices.

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People and cars are getting bigger, but houses and garages are getting smaller. Home builders design buildings for their profits, not their actual customers. You could have a decent housing estate with ample back gardens, wide roads, pavements, front gardens, and a garage that actually fits a car, or you could squeeze 10% more houses into the estate and forgo all of the aforementioned for every house. You can do the latter because there's no end of fools buying absolutely crap housing at eye-watering prices.

I should say that it remains to be seen whether anyone in Chester is tempted by these prices, but check out the garden on this one, photo 4 for the rear. A 4 bed house for £300k beside a main road:

http://www.rightmove.co.uk/new-homes-for-sale/property-49731388.html

For the more aspirational in the area, well those who aspire to live further away from town and beside the other main road -a snip at £580k:

http://www.rightmove.co.uk/new-homes-for-sale/property-29309686.html?premiumA=true

Edited by Cry and Regret

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QE does not create mortgages. It has NOTHING to do with them.

Banks create mortgages out of thin air.

Hence why they dont mind lending any amount against some dried mud bricks and some in-situ mud.

Edited by TheCountOfNowhere

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