Jump to content
House Price Crash Forum
Sign in to follow this  
Fairyland

Telegraph: North Beats South As Uk House Price Growth Divide Narrows

Recommended Posts

Telegraph: North beats South as UK house price growth divide narrows

A

shift in house price momentum is underway in the UK, as southern cities start to slow down with the north taking their place at the top of the leaderboard.

Glasgow has emerged as the city with the fastest growing quarterly house prices, according to Hometrack's monitor of the biggest 20 cities in the country. Prices there rose 5.2pc in the three months to July.

Leeds, Manchester, Birmingham and Cardiff all recorded high quarterly increases, benefiting from high yields on rental properties, increased affordability and low mortgage rates.

Quarterly house price increases in the 20 biggest cities in the UK - Highcharts Cloud

Percentage

Chart context menu

Quarterly house price increases in the 20 biggest citiesin the UKQuarterly house price increases in the 20 biggest cities in the UK

Hometrack's Cities Index

last quarter to July 2016

Glasgow

Oxford

Liverpool

Nottingham

Manchester

Edinburgh

Leicester

Newcastle

Sheffield

Bristol

Portsmouth

Birmingham

London

Aberdeen

Leeds

Cardiff

Southampton

Bournemouth

Belfast

Cambridge

20 city index

UK

0

-2.5

2.5

5

7.5

London‚óŹ last quarter to July 2016: 2.1

Hometrack

In these areas, Richard Donnell, the research director for Hometrack, said there was "no sign of imminent slowdown" with house prices increasing at around 7pc per year.

But it was a different story for cities in the south of England: London's house price growth was the slowest in 17 months in the quarter, at 2.1pc, and there was a 1pc fall in values in Cambridge, where house prices have been soaring for months.

Share this post


Link to post
Share on other sites

This is exactly what happened in 2007-2008.

Indeed, don't be fooled into thinking the HPI fest has magically spread due to geographical economic rebalancing in the UK from London to the North, it's just the last scraps of "value" left in an overheated market, inevitable when employment drops so low and MSM keeps spirits up.

London is the canary in the coal mine.

Share this post


Link to post
Share on other sites

"Beats"?

Like everyone is a house owner?

Fu3king tired journalism bull shit.

I fu3king laugh out loud that the Telegraph are so desperate to show us only 2 articles per cookie before they hand out their begging bowl. Fu3k you Telegraph - you are going down.

Share this post


Link to post
Share on other sites

No evidence except anecdotal, but I believe its simply that htb and ultra low interest rates make monthly mortgage payments at Northern prices relatively affordable. However, if you look at a city like manchester, productivity is below the national average with most money coming in one way or another from the government; public sector jobs, students, benefits, boomer pensions. A financial crisis that leads to higher rates and/or decreased state spending will see prices in these areas drop like a stone.

Share this post


Link to post
Share on other sites

It must be the miracle of Brexit.

It's having your cake and eat it journalism. The economy is bad the economy is good. It's contradict yourself from day to day journalism.

To be fair it's really not fit to be distributed.

http://www.telegraph.co.uk/business/2016/08/23/tax-hikes-and-brexit-vote-hit-the-summer-housing-market/

Edited by billybong

Share this post


Link to post
Share on other sites

It must be the miracle of Brexit.

It's having your cake and eat it journalism. The economy is bad the economy is good. It's contradict yourself from day to day journalism.

To be fair it's really not fit to be distributed.

http://www.telegraph.co.uk/business/2016/08/23/tax-hikes-and-brexit-vote-hit-the-summer-housing-market/

Something odd is happening at the Telegraph. They've gone full propaganda this year, removing the comments section and flip-flopping between extreme views. And currently they seem to have set an aggressive subscriber policy as it keeps nagging me to subscribe to them. I deleted the cookies a few times, but actually I get the message now - time to move on.

Share this post


Link to post
Share on other sites

Indeed, don't be fooled into thinking the HPI fest has magically spread due to geographical economic rebalancing in the UK from London to the North, it's just the last scraps of "value" left in an overheated market, inevitable when employment drops so low and MSM keeps spirits up.

London is the canary in the coal mine.

Quite.

Nearly all past British property bubbles have gone through this phase just prior to a significant correction. It is a warning sign to those heavily invested in HPI if they care to look. It is probably too late for some London speculators to get out but there is time left for mugs elsewhere in the UK to be lured into the trap.

Edited by stormymonday_2011

Share this post


Link to post
Share on other sites

Transaction numbers are still bumping around all time lows, esp in North.

MMR is sloely enforcing 4 wage multiple.

Its only loons taking on risky BTL and loonier banks lending to them

Share this post


Link to post
Share on other sites

Similar articles a couple of years back about how Greater London would 'outperform' inner London. On that occasion the EAs were bang on the money and collected an A* for delivery. In 2012 you'd have picked up a four bed detached around here for the same price as a small three bed semi or terrace at today's price. As others have pointed out a desperate attempt to push the London HPI hatefest further up North.

Share this post


Link to post
Share on other sites

Whats the median working life as an EA? 5? 10? years?

They play their part in inflating house prices, transactions slump.

Share this post


Link to post
Share on other sites

Having been up to Manchester last weekend it's clear to see much of the wealth is either those relocating from London/SE or massive debt denial, the prices there are almost more startling than the SE in comparison to the reality of the area.

Obviously lots of Chinese money up there now, constant MSM articles about the best place to invest etc. It's got a lot going for it but having spent time in the city centre, the poverty, homelessness, crime and drug use is very much still in your face, with the elite in denial as they sit in Starbucks sipping their flat whites, assessing their clothing purchases from Selfridges bought with their 40 month 0% interest platinum Mastercard.

My sympathies are with the hard working FTB hopefuls of the city that now have such little chance of affording a fair, family home in relation to their local salary. That startling reality has made me question my own thoughts of relocating as I believe "value" for money has now disappeared from Manchester. It's saving grace is that there are still pockets of affordability within a sensible commute, something that has long disappeared from London.

Anecdotal but totally relevant, another of my Landlord's long term tenants has bought 3 houses in Liverpool to rent out (innit) with no intention to buy something of their own to live in as they wish to remain here in London. This was a couple months ago.

This is really happening folks, wealth distribution and HPI due to searching for value in the North by those in the South, in an everlasting (seemingly) low interest rate environment. How else are they going to make money so "easily"? Can you believe a work colleague also asked me the other week where he should buy a flat to rent out (innit), again looking for value in the North.

I'm trying to hold onto my sanity to wait for the reaction of triggering article 50, otherwise the Chinese economy going bye bye is the UK's only chance of regaining normality, along with most other HPI hot spots in the World where wages are so insanely mismatched.

Edited by Barnsey

Share this post


Link to post
Share on other sites

My sister was telling me about a neighbour of hers (Hertfordshire) whose daughter (in her 20s) is living at home with her parents but buying a BTL flat (not sure where) so becoming a LL instead of an OO. Most LL at least start out as OOs don't they or is this the new BTL /property owning model?

Share this post


Link to post
Share on other sites

My sister was telling me about a neighbour of hers (Hertfordshire) whose daughter (in her 20s) is living at home with her parents but buying a BTL flat (not sure where) so becoming a LL instead of an OO. Most LL at least start out as OOs don't they or is this the new BTL /property owning model?

Hearing this more and more. It's a perverse incentive of the additional stamp duty for two-home owners and the ability to borrow off the back of rent. Wasn't there a Telegraph case study of someone like this?

Share this post


Link to post
Share on other sites

My sister was telling me about a neighbour of hers (Hertfordshire) whose daughter (in her 20s) is living at home with her parents but buying a BTL flat (not sure where) so becoming a LL instead of an OO. Most LL at least start out as OOs don't they or is this the new BTL /property owning model?

It's pretty emblemic of the British economy and the housing/house price market.

You don't have a job or you don't earn anywhere near enough to buy a home or you've lost your job - but you can still put hundreds of thousands towards BtL (even if it's one of the tiniest BtLs in the world).

May still dilly dallies about announcing her proposals for Britain to leave eu.

Edited by billybong

Share this post


Link to post
Share on other sites

Oxford V Cambridge. ;)

Yep Cambridge's boat entering choppy waters. Getting a bit harder to justify the crap they have on offer for 400k+

Guess the crew got a bit ahead of themselves drunk on public sector handouts.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   103 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.