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Christine of Crouch End

All Signs Point To Property Boost

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Lower interest rates have triggered a resurgence in demand for mortgages and breathed fresh life into the housing market

First-time buyers are trickling back to the housing market, enticed by lower rates and sellers dropping asking prices. The low borrowing costs of 4.5% appear to have sent a message to buyers that interest rates are unlikely to go back up and could fall further. At the same time, many house hunters appear to have taken the view that property prices will not fall much further and there is little reason to wait to buy.

The strongest growth in lending was boosted by high levels of remortgaging as people take advantage of lower interest rates and switch to cheaper deals.

Figures from the British Bankers' Association (BBA) today also pointed to a recovery in confidence among people wishing to take a loan out on a new home.

The latest data provides evidence that the housing market is in relatively good health, and households are not lacking confidence to take on mortgages.

The recovery in mortgage lending has clearly been boosted by high levels of remortgaging as many borrowers on the cheap two-year fixed rates of 2003 rebroke their loans to avoid a jump in their monthly mortgage payments.

However, it is not only homeowners remortgaging who are bolstering this month's figures. Homemovers' activity demonstrates increased confidence in the housing market as price growth stabilises.

The property market is steady and set for recovery. The positive effects of August's long-awaited interest rate cut have fed through and, with rates remaining constant, the general feeling seems to be one of optimism among agents and consumers alike.

Compared with the same time last year, prospects are looking healthy. The property market is expected to be lively come January.

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Figures from the British Bankers' Association (BBA) today also pointed to a recovery in confidence among people wishing to take a loan out on a new home.

I am a personal friend of the marketing director of the BBA. When I went to see her at christmas we discussed my decision not to buy, and she still backs it fully.

The problem here is that the BBA is a non-profit organisation which is funded entirely by the major UK banks. Their major purpose is to suggest codes of practice, investigate ways to prevent fraud etc, and to promote and enhance the image of the UK banks. After all, the BBA relies entirely on the funding of the UK banks for its existence. Even her latest pay rise (meagre) had to be passed by the board, which is made up of representatives from the banks.

In essence, what she tells me is that all the figures they put out are selected to improve the standing and outlook of the banks.

Internally, they know what is happening in the housing market, but are powerless to say anything negative about it. Instead they have to spin the figures on which you rely in your argument.

So she supports my decision as a friend, but not as marketing director of the BBA. Go figure.

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The problem here is that the BBA is a non-profit organisation which is funded entirely by the major UK banks. Their major purpose is to suggest codes of practice, investigate ways to prevent fraud etc, and to promote and enhance the image of the UK banks.

Ha ha! Let's examine that again: The BBA is a "not for profit organisation". Oh that makes it alright then....how silly of me. The fact that the BBA is an umbrella organisation of banks most of whom have made billions in profits against ever-worsening consumer service renders its "non-profit" status as a masquerade, a dishonesty, a well oiled spin machine.

Your post's transparency is only matched by its temerity.

VP

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Excellent Christine so why are you posting on this website? If you believe this then surely you should be rushing to get hold of as much property as you can and keeping the "good news" as far as possible to yourself? That's the way to get the bargains isn't it?

I would suggest your employer's branch wasn't open today or if it was no-one was looking at the pictures in the windows.

If even the most optimistic vested interest quoted in all the year-end reviews isn't expecting the growth this year to cover a purchaser's stamp duty and legal fees (0-5%) then why should anyone except an estate agent or an optimistic vendor say anything else? Why would a quarter point interest rate cut 5 months ago interest anyone now?

"The property market is expected to be lively come January" - sounds like the minutes from the local NAEA meeting. It's called "whistling in the dark" Christine and it is because you are scared.

"Compared with the same time last year, prospects are looking healthy." Am afraid not. This time last year you had "the Sipps bonanza" to look forward to.

Keep trying love.

The Fox

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Excellent Christine so why are you posting on this website? If you believe this then surely you should be rushing to get hold of as much property as you can and keeping the "good news" as far as possible to yourself? That's the way to get the bargains isn't it?

I would suggest your employer's branch wasn't open today or if it was no-one was looking at the pictures in the windows.

If even the most optimistic vested interest quoted in all the year-end reviews isn't expecting the growth this year to cover a purchaser's stamp duty and legal fees (0-5%) then why should anyone except an estate agent or an optimistic vendor say anything else? Why would a quarter point interest rate cut 5 months ago interest anyone now?

"The property market is expected to be lively come January" - sounds like the minutes from the local NAEA meeting. It's called "whistling in the dark" Christine and it is because you are scared.

"Compared with the same time last year, prospects are looking healthy." Am afraid not. This time last year you had "the Sipps bonanza" to look forward to.

Keep trying love.

The Fox

Once again any view but your own is scorned and why do you say she should be off buying property instead of posting Maybe she is You all sound like a bunch of schoolboys in a playground This site has given me plenty of fuel for my next article LOOK OUT FOR IT!!

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Ha ha! Let's examine that again: The BBA is a "not for profit organisation". Oh that makes it alright then....how silly of me. The fact that the BBA is an umbrella organisation of banks most of whom have made billions in profits against ever-worsening consumer service renders its "non-profit" status as a masquerade, a dishonesty, a well oiled spin machine.

Your post's transparency is only matched by its temerity.

VP

Did you actually read ANY of my post?

Which part is transparent? The part accusing the BBA of being a spin machine?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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