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Bloom Or Bust

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First time that I've seen it suggested that journalists might have VI...

When they suffer a shortage of punters coming through their doors, estate agents usually blame "negative media comment". But they certainly won't be able to use that excuse this year, should the property market get into problems. The headlines have been anything but downbeat: "February surge in prices"; "Buy-to-let buyers back" and "City boys snap 'em up" are a few of the headlines which appeared last week alone. Either a lot of journalists must be moving - or they have tired of writing that house prices are set to crash.
But does the market really live up to the hype? Not everyone is quite so excited. The latest Hometrack report shows that prices are rising in 22 per cent of postcodes. But that still means that prices are either static or falling in the other 78 per cent - hardly a runaway market.

The idea that this is just the beginning of yet another cycle of mad house price inflation, which plenty of estate agents would have us believe, needs some qualification. The last big upwards loop in the housing market occurred when property prices, in real terms, were 30 per cent beneath their long-term trend. In spite of last year's slowdown, prices are now 30 per cent above their long term trend. The average house price (£191,327 according to the Land Registry) is nearly eight times the average annual earnings (£24,500 according to the Office of National Statistics).


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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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