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Realistbear

F T Article Says No Regional Hpi But London Soaring

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http://news.ft.com/cms/s/4fe2a684-c588-11d...20abe49a01.html

Surging London sales push up UK house prices

by Chris Giles, Economics Editor

Published: April 7 2006 09:31 | Last updated: April 7 2006 09:31

London’s house prices surged at the start of the year, raising the rate of house price inflation across England and Wales, according to the FT house price index.
Between November and February, London’s house prices jumped by 7.2 per cent, compared with an average of about 1.2 per cent over the same period in other regions of England and Wales. London’s rise, if continued for a whole year, would translate into an
annual rate of inflation of over 30 per cent.
Despite the volatility of their regional house price indices, the lenders Nationwide and Halifax also estimate that London is the only region with rising house price inflation over the past year
.
The Bank had become used to congratulating itself on engineering almost the perfect housing market slowdown. If the signs of a re-emergence of rapidly increasing house prices continue, it will soon encourage some MPC members to begin to consider raising interest rates again.

With London now alone in HPI will the MPC raise rates or just let the Capital keep inflating until it bursts showering the surrounding countryside with the blood and guts of the debt bubble?

Funny that Tony's house has dropped so much?? :blink:

Edited by Realistbear

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Between November and February, London’s house prices jumped by 7.2 per cent

This I cannot believe. Where do they get their figures? Maybe they're only looking at Westminster which goes up and down like a yo-yo depending on which property sells in a given month.

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Gary Styles, chief economist of Acadametrics, the consultancy that produces the FT index, said: “London prices have risen by over 7 per cent in three months and no other region has come anywhere close to this level of growth. Even the South East which normally moves in tandem with London has seen an increase of only 1.3 per cent in the same period”.

“We expect house prices to show further modest growth in the coming months as market expectations become more upbeat and other regions take their lead from the London market.”

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Gary Styles, chief economist of Acadametrics, the consultancy that produces the FT index, said: “London prices have risen by over 7 per cent in three months and no other region has come anywhere close to this level of growth. Even the South East which normally moves in tandem with London has seen an increase of only 1.3 per cent in the same period”.

“We expect house prices to show further modest growth in the coming months as market expectations become more upbeat and other regions take their lead from the London market.”

"upbeat" is just not realistic. IMHO prices will be frenzied as more people get on the ladder by borrowing well beyond their means from accomodative interest rates. In some areas of Wales HPI is UP a huge 20% with every sign of prices soaring well beyond that heated level by the summer when wealthy Londoners MEW to buy additional holiday homes on the British Costa:

http://www.thisissouthwales.co.uk/displayN...&folderPk=88500

CITY'S HOUSE PRICES ARE UP BY 20%

SHAUN GREANEY

BUSINESS REPORTER

SHAUN.GREANEY@SWWP.CO.UK

10:00 - 07 April 2006

House prices in Swansea have shot up by 20 per cent in the last year
, a report claims today. Figures achieved by sellers in the city outstrip increases anywhere else in Wales, says Nationwide.

20% in a year suggests that far from a HPC in Wales, its more frenzied than even Ireland! Better get in quick.

<_<

P.S.

House seller Ian Jones, aged 32, currently trying to sell a two-bedroom flat in the marina said: "I will believe it when I see it.
"I have had my property on the market for four months at a realistic price and still no real takers.
"It is not what it once was.''
Edited by Realistbear

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This I cannot believe. Where do they get their figures? Maybe they're only looking at Westminster which goes up and down like a yo-yo depending on which property sells in a given month.

I CAN believe it. Lets look at the picture.

Bankruptcies soaring, unemployment rising, wage inflation static.

AND

House prices, energy prices, debt and MEW racing ahead.

Welcome to the UK's miracle economy, where working for a living is a mug's game.

I despair, I really do! :(

Edited by Bear Goggles

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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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