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House Prices Go Into Reverse

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http://news.bbc.co.uk/1/hi/business/5153140.stm

UK house prices go into reverse

House prices fell unexpectedly by 1.2% in June, according to Halifax, the UK's biggest mortgage lender.

The fall in prices follows several months where the UK housing market has been very buoyant, beating economists' expectations, particularly in London.

Householders were feeling the pinch because of rising utility and council tax bills, the Halifax said.

But overall, during the second quarter of 2006, UK house prices have risen 2.6% on average.

No crash

The bank, though, was keen to emphasise that June's fall did not necessarily mean that house prices were about to crash.

"Sound fundamentals, underpinned by a strengthening economy, high levels of employment and low interest rates, will continue to support housing demand over the second half of 2006," Martin Ellis, Halifax chief economist, said.

Price growth in the first half of 2006 had already exceeded the bank's and many other economists' expectations.

House prices had risen in all parts of the UK, apart from Wales, during the second quarter, the Halifax added.

But the Halifax survey will add to the weight of evidence that the market has slowed as spring has rolled into summer.

Last week, Nationwide said that house price inflation in June was subdued at 0.3%.

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http://news.bbc.co.uk/1/hi/business/5153140.stm

UK house prices go into reverse

House prices fell unexpectedly by 1.2% in June, according to Halifax, the UK's biggest mortgage lender.

The fall in prices follows several months where the UK housing market has been very buoyant, beating economists' expectations, particularly in London.

Householders were feeling the pinch because of rising utility and council tax bills, the Halifax said.

But overall, during the second quarter of 2006, UK house prices have risen 2.6% on average.

No crash

The bank, though, was keen to emphasise that June's fall did not necessarily mean that house prices were about to crash.

"Sound fundamentals, underpinned by a strengthening economy, high levels of employment and low interest rates, will continue to support housing demand over the second half of 2006," Martin Ellis, Halifax chief economist, said.

Price growth in the first half of 2006 had already exceeded the bank's and many other economists' expectations.

House prices had risen in all parts of the UK, apart from Wales, during the second quarter, the Halifax added.

But the Halifax survey will add to the weight of evidence that the market has slowed as spring has rolled into summer.

Last week, Nationwide said that house price inflation in June was subdued at 0.3%.

Is this the headline that everyone has been waiting for? :) Not sure if this is the first such headline of this kind that has been in the mainstream press?

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It's a move in the right direction, but monthly ups and downs are not that meaningful. HOWEVER what is interesting is that the BBC reported it is such a bearish way. All credit to them - maybe, just maybe they have taken cogniscence of comments amde about lazy journalism (at best) and spin (at worst).

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this is just what i was looking for to keep me on track as i was starting to lose faith!

And beginning to think about buying again!

Thanks for the post!

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http://news.bbc.co.uk/1/hi/business/5153140.stm

The bank, though, was keen to emphasise that June's fall did not necessarily mean that house prices were about to crash.

Well they would say that wouldn't they? The Banks have a vested interest in the party continuing for as longs as possible. I can see when prices are sliding 10% a month - they will still say "overall house prices are on the increase, if you look at the last 50 years of data"

It's a sign, hopefully for sensible people, that this madness is going to end. They should refurbish all the estate agencies into drop in centres for the financially deluded.

Clangnuts

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I think this article is a double bluff conjured up by the banks and the government.

They just want people to think this so they dont have to raise interest rates....

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"unexpectedly"

?

I would have used "predictably."

I like how they have said "unexpectedly" hopefully this will fuel uncertaintly amongst the more sensible FTB's and some BTL muppets. The VI's have been telling us for months that prices will at worst stablise - if people start to doubt them than that can only be good news (for those currently priced out)

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IHOWEVER what is interesting is that the BBC reported it is such a bearish way. All credit to them - maybe, just maybe they have taken cogniscence of comments amde about lazy journalism (at best) and spin (at worst).

I have noticed a similar thing with regard to immigration. The BBC have been almost totally pro-immigration so far highlighting the benefits etc. with a token link to Migration Watch at the side. But a few days ago they published the comments of Frank Fields. I think that was the first time I have seen some rational two-sided publishing about immigration from the BBC. Perhaps they are reacting to public criticism there to.

This is just my observation BTW. It's not intended to trigger an immigration debate in this thread.

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I think this article is a double bluff conjured up by the banks and the government.

They just want people to think this so they dont have to raise interest rates....

I do think it's time we began to accept these monthly figures from the banks and building societies. We accuse them of lying when they show rises, now we do the same when they show falls!

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Guest The_Oldie

I do think it's time we began to accept these monthly figures from the banks and building societies. We accuse them of lying when they show rises, now we do the same when they show falls!

A cynic could say that a drop in prices during the summer quiet season is rather convenient. Get the bad news out of the way in a month when no one's buying anyway :rolleyes:.

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I think this article is a double bluff conjured up by the banks and the government.

They just want people to think this so they dont have to raise interest rates....

I would agree wholeheartedly with this comment. Dya not think the timing of the MPC results and the biggest mortgage lender saying that prices are starting to reverse at the current rate a bit coincidental????? I certainly do....

I reckon they will back up buy 0.7% at least next month.

TB

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if halifax say -1.2%, its through gritted teeth, cos even they couldn't massage the numbers.

there comes a time when, if they dont state falls, they look like clowns or con-men.

i suspect the reality is worse than they are letting on.

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if halifax say -1.2%, its through gritted teeth, cos even they couldn't massage the numbers.

there comes a time when, if they dont state falls, they look like clowns or con-men.

i suspect the reality is worse than they are letting on.

Don't forget that the annual rise in prices is still going UP.

Halifax said UP 9.4% YOY in June. Up from 9.1% the month before.

Just thought I'd mention this as some of you may have missed it...

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I would agree wholeheartedly with this comment. Dya not think the timing of the MPC results and the biggest mortgage lender saying that prices are starting to reverse at the current rate a bit coincidental????? I certainly do....

I reckon they will back up buy 0.7% at least next month.

TB

To be honest, I think next months figures probably will be up BUT if this is the case what are the odds that that report is published the day AFTER the August MPC meeting :unsure:

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House prices in reverse? Can't happen and won't happen, by all accounts. :D

Near me, on Rightmove now, no link sorry since a builder I know who seems a decent guy is involved, badly i think.

It's a crap pad in a crappier location. They bought to flip about six months ago, went on at £449k, dropped to £420k and it's now £398k.

Nice one, property is a one way bet, it only goes up. It's my pension. Hmmm...

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House prices in reverse? Can't happen and won't happen, by all accounts. :D

Near me, on Rightmove now, no link sorry since a builder I know who seems a decent guy is involved, badly i think.

It's a crap pad in a crappier location. They bought to flip about six months ago, went on at £449k, dropped to £420k and it's now £398k.

Nice one, property is a one way bet, it only goes up. It's my pension. Hmmm...

How much did the builder pay for it?

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How much did the builder pay for it?

Not sure but he's rather glum these days, normally a jolly fellow. I've been past many times and seen his blokes working on it that have done work on my place before.

It's a stunningly bad location for a so called 'country property' and no amount of decking/gravel/magnolia will change that.

It was a neglected property that was used for commercial use (looked & seemed right). However the 'developers' of this world thought they could make a fast buck, big mistake.

It's a bit sad really. Has big banners up outside saying 'Completed', 'Luxury blah, blah'. It's my personal barometer of three properties near me that have lingered for up to 18 months, one at £699k that I expect to come back (unexpectedly!) at about £725k, :D

It CANNOT last, my house is in no way worth over half a mill, ever, period.

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  • 336 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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