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Now The Mpc Meeting Has Passed With Out A Raise, The Bbc Is Back On Track...

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House prices show strong growth

House price inflation picked up again in July

Annual house price inflation in the UK picked up pace in July, according to the latest government figures.

The Department for Communities and Local Government (DCLG) said prices rose by 6.0% during the month, up from 5.2% in the year to June.

In particular, prices surged ahead in London, with annual price inflation in the capital rising from 5.8% in June to 7.0% in July.

The average property in the UK now costs £194,454, the DCLG said.

'Firm rebound'

Across England, house price inflation rose to 5.5% in July, compared with 4.6% in June

In Scotland, house price inflation rose to 9.3% from 8.9%.

But price inflation in Northern Ireland and Wales fell back a touch between June and July, but from historically high levels.

In Northern Ireland the rate fell from 19.1% to 18.3%, while in Wales the rate fell from 8.5% to 7.4%.

"The acceleration in house price inflation...confirms that the property market enjoyed a firm rebound during the summer months," said Milan Khatri, of the Royal Institution of Chartered Surveyors.

All regions of the UK are experiencing annual house price growth above the level of the retail price index.

The government figures confirm a trend for accelerating house prices that has also been evident in the Nationwide and Halifax house price indexes for last month.

Many analysts expect the figures to add to the pressure on the Bank of England to raise rates further in the autumn, following last month's 0.25% increase, to curb house price increases in the future.

"Many potential house buyers will be alarmed by the very real possibility that interest rates could rise again before the end of the year. We think these mounting affordability pressures will increasingly outweigh the support to the housing market coming from high employment and a relatively healthy economy," said economist Howard Archer of Global Insight.

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The CML are like the out of control drunk at the ball desperately grabbing hold of the punch bowl so the central bank doesn't take it away. Expect a spate of "moderate slowing, no more rate increases are needed!" type stories in a couple of weeks as part of the monthly spin cycle, also cue laughable contradictions from the CBI and retailers.

It seems to me that the MPC are a bit of a push over with no real credibility, as such this lack of credibility should eventually extend to our currency and the public's wider inflation expectations. "The inflation horse hasn't just bolted, he galloping down the drive" to quote a 1970's Fed official.

Edited by BuyingBear

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Remembering that there have been one or two members of our beloved site inclined to do this sort of thing I'm surprised nobody's emailed the BoE about this (I'd do it myself if I wasn't worried that the rebuff email from the BoE would send me into an anger solved only by total cardiac arrest). The constant crying wolf by the VIs days before the MPC meet (probably to discuss their BTL holdings) only to shout feignites days afterwards - it's beyong laughable. This could go on for years!!

Edited by cynic

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I have to say though article's like that on the BBC website today will make many 20 something FTB's throw in the towel and just buy at all costs. 6% on the average property in a month is vastly more than 99% of people earn.

IR rises are supposed to calm and manage the growth of the market - not be something the vast majority laugh at and continue to pile money into property.

I have many colleagues who have substantial property interests who find it laughable that rates have only gone up .25% and look reasonably likely to only ever go up to about 5.25 in this current cycle. They can easily hang on through the next few years if that is the case.

I'm 27, studied hard and in a well paying job - renting a shoe box. However I've given up on the UK housing market and economy and I'm going round the world for 6 months to forget about it all!

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6% on the average property in a month is vastly more than 99% of people earn.

The BBC are others are pretty sneaky here. The annual rate of increase has risen to 6%, it's not the month-on-month rise. This figure, incidentally is often negative due to seasonal fluctuations, but they only report it when it's positive.

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I have to say though article's like that on the BBC website today will make many 20 something FTB's throw in the towel and just buy at all costs. 6% on the average property in a month is vastly more than 99% of people earn.

I think that's supposed to be the annual rate of inflation in July i.e. prices rose 6% from July 2005 to July 2006. Not 6% in one month.

Enjoy your trip - sounds like a great idea!

Edited by Immigrant

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I can't understand why the BBC don't do a daily 'your house has increased by xxx amount' this way homeowners could decide if they needed to go to work or not?

F@cking brilliant wit, i was feeling SH1T today but that is the funniest thing i have read on here for ages.

Thanks :lol::lol::lol:

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I can't understand why the BBC don't do a daily 'your house has increased by xxx amount' this way homeowners could decide if they needed to go to work or not?

I LIKE this idea. Sky News are running jobless totals, so this would be the perfect "sunny sheeple disposition" antidote (Baaaaahhhhhh).

I love it in fact, you could choose whichever averaging period shows the highest rise, and you could switch from "seasonally adjusted" to "non-seasonally adjusted" on a daily basis - you wouldn't have to tell the viewers how the figure was derived necessarily, just always make sure it's going up.

I'm sure you could employ a team of people to decide whether to show low growth for a few months using non-adjusted figures, then switch to adjusted figures to keep the counter counting...

Could we have an "houseowner average earnings rate" in pounds per second as well? And perhaps a "prizes" selection that pops up every hour? So if a house owner makes 6K a month, the voice-over would say "6K will buy you a bottom-of-the-range Citroen C2 or a full year's fees at many of the respected London private schools. You have to be in it to win it, so start playing today".

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Remembering that there have been one or two members of our beloved site inclined to do this sort of thing I'm surprised nobody's emailed the BoE about this (I'd do it myself if I wasn't worried that the rebuff email from the BoE would send me into an anger solved only by total cardiac arrest). The constant crying wolf by the VIs days before the MPC meet (probably to discuss their BTL holdings) only to shout feignites days afterwards - it's beyong laughable. This could go on for years!!

It goes on for as long as the BoE allows it to go on, if it didn't work they wouldn't do it. One of President Reagan's aids once sent Greenspan a letter urging him to cut rates, Greenspan responded in a public letter stating that they might have to raise rates just to prove their independence. The BoE just likes to provide our drunks with endless booze, lest they create a scene.

Edited by BuyingBear

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I thought it was my imagination.

When I first news blogged this article, I was sure it read.

The Department for Communities and Local Government (DCLG) said prices rose by 6.0% during the month, up from 5.2% in the year to June.

When I came back and read it a while later, it appeared to have changed to

The Department for Communities and Local Government (DCLG) said prices rose by 6.0% in the year to July, up from 5.2% in the year to June.

Anyone else notice this? :unsure:

Edited by Son of Taeper

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It seems to me that the MPC are a bit of a push over with no real credibility, as such this lack of credibility should eventually extend to our currency and the public's wider inflation expectations. "The inflation horse hasn't just bolted, he galloping down the drive" to quote a 1970's Fed official.

The MPC will have had these government figures to hand last Thursday when they made their decision :angry:

I dont expect anything from them from now on. Browns tow new uberdoves join the MPC this month, and will be voting for cuts

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I have to say though article's like that on the BBC website today will make many 20 something FTB's throw in the towel and just buy at all costs. 6% on the average property in a month is vastly more than 99% of people earn.

6% over the year. The BBC ******ed up. They have now corrected this due to my rather rude complaint.

I thought it was my imagination.

When I first news blogged this article, I was sure it read.

When I came back and read it a while later, it appeared to have changed to

Anyone else notice this? :unsure:

Yup. http://www.housepricecrash.co.uk/forum/ind...st&p=445359

Edited by Jason

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Guest muttley

I can't understand why the BBC don't do a daily 'your house has increased by xxx amount' this way homeowners could decide if they needed to go to work or not?

Lol. :lol::lol:

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The MPC will have had these government figures to hand last Thursday when they made their decision :angry:

I dont expect anything from them from now on. Browns tow new uberdoves join the MPC this month, and will be voting for cuts

Merv is a bit of a Geoff Howe--being attacked like him is like being mugged by a toothless old sheep. "Vigilance" has taken on a whole new meaning with the BoE and with Gordon's latest two doves joining the muppet show his bid for No. 10 will remain alive for a few more months anyway. That said, I am not so sure it matters one way or the other what Merv does as the world wide recession will superceed events.

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I can't understand why the BBC don't do a daily 'your house has increased by xxx amount' this way homeowners could decide if they needed to go to work or not?

"
http://news.bbc.co.uk/1/hi/business/5255688.stm' rel="external nofollow">
that the value of my home fluctuates every hour by more than the value of the mobile phone I am so worried about losing.
It will not be the house price, but the theft of the phone that upsets me."

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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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