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F T Index Shows More House Inflation In London

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http://news.ft.com/cms/s/86f6057c-af98-11d...20abe49a01.html

Housing market gaining strength, FT data show

by Chris Giles, Economics Editor

Published: March 10 2006 09:32 | Last updated: March 10 2006 09:32

The housing market has strengthened, led by rapid price rises in London, the FT house price index showed on Friday.
From December onward, prices have been rising at a much faster pace – about 0.7 to 0.9 per cent a month – after almost a year of stagnation. This acceleration pushed up the annual rate of house price inflation from 3.2 per cent in November to 3.4 per cent in February, after it had fallen consistently from its peak of 15.2 per cent in August 2004.
Some regions, however, are still experiencing extremely slow housing markets. Over the past three months, house prices grew by only 0.6 per cent in East Anglia, 0.5 per cent in Wales and they fell by 1.2 per cent in the East Midlands.

Not much room for the B o E to go against the worldwide trend in raising the rates?

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It does appear that the BoE is scared of the housing market taking off again...but enough to spook them into an IR rise??

ECB rise in May is almost inevitable, especially now that German inflation is back over 2% following a 0.4% MoM rise (link). Will we have to wait for the pound to really fall off a cliff before the BoE has the balls to up IRs?

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Some regions, however, are still experiencing extremely slow housing markets. Over the past three months, house prices grew by only 0.6 per cent in East Anglia, 0.5 per cent in Wales and they fell by 1.2 per cent in the East Midlands.

Not much room for the B o E to go against the worldwide trend in raising the rates?

Sorry to hear the bad news for everyone else. But prices falling in the East Midlands? More of this please.

Billy Shears

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Wait a second, if there has been a 1.2% drop over the last three months in the East Midlands, then that actually covers my rent for those three months.

Billy Shears

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Guest Fiddlesticks

Hmmm, not what I was hoping for, I must say, although can't really say it's unexpected based on the other indices.

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Where are you Billy?

I'm in Derby and my view of the current situation is mixed. Last summer and through into autumn the amount of for sale signs I saw were incalcuable, the market was satured and shifting nothing.

I don't know what has changed over winter but quite a few houses around me in Ockbrook (quite large properties) have shifted. Compare this to Oakwood (mid priced properties) which still has things on the market i looked at 18 months ago.

I think it is a general reflection of the market in general that only those properties that are priced "sensibly" are shifting.

I must admit the 1.2% drop in prices surprises me and although I would like the trend to continue and be backed up by other indecies i can't help but think this won't be the case........

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Where are you Billy?

I'm in Derby and my view of the current situation is mixed. Last summer and through into autumn the amount of for sale signs I saw were incalcuable, the market was satured and shifting nothing.

I don't know what has changed over winter but quite a few houses around me in Ockbrook (quite large properties) have shifted. Compare this to Oakwood (mid priced properties) which still has things on the market i looked at 18 months ago.

I think it is a general reflection of the market in general that only those properties that are priced "sensibly" are shifting.

I must admit the 1.2% drop in prices surprises me and although I would like the trend to continue and be backed up by other indecies i can't help but think this won't be the case........

I'm in Leicester. Things seem quite slow here. Lots of for sale signs and not much sign of things shifting in my local area. I think the whole country is in a state of flux, and things may wax and wane for a bit. I'd heard that Derby was one of the cheapest places around here, hence it's easier for prices to rise. On the other hand, global averages are often more reliable than small sample anecdotal evidence.

While it's dangerous to mix figures from different sources, Leicestershire was quoted as going down 1.4% last year, and now 1.2% in an overlapping quarter. While I expect some changes in direction before the fundamentals really start to bite on a country-wide basis, I don't expect a sudden upturn over and above any 'spring bounce'.

Billy Shears

Edited by BillyShears

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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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