Pete95 Posted December 28, 2006 Share Posted December 28, 2006 http://news.bbc.co.uk/1/hi/business/6213549.stm "Nevertheless, Ms Earley predicted that UK interest rates had "peaked" at 5%, while house prices would jump by between 5% and 8% during 2007." The usual stuff from the BBC - prices rocketing and set to continue to rocket, and dont worry about this talk of interest rate rises - they've peaked at 5% so can only go down!.... BBC really do take the biscuit! I'm glad my house mate has decided to stop paying the licence fee Quote Link to comment Share on other sites More sharing options...
Levy process Posted December 28, 2006 Share Posted December 28, 2006 http://news.bbc.co.uk/1/hi/business/6213549.stm "Nevertheless, Ms Earley predicted that UK interest rates had "peaked" at 5%, while house prices would jump by between 5% and 8% during 2007."[/b] So if interest rates rise again, then we can safely ignore all her other predictions as also being wrong. Perfect. Quote Link to comment Share on other sites More sharing options...
Ah-so Posted December 28, 2006 Share Posted December 28, 2006 So if interest rates rise again, then we can safely ignore all her other predictions as also being wrong. Perfect. She is sticking her neck out - nearly every other economist totally disagrees with her. Quote Link to comment Share on other sites More sharing options...
charmer Posted December 28, 2006 Share Posted December 28, 2006 She is sticking her neck out - nearly every other economist totally disagrees with her. She doesn't have a f*cking clue - none of these so called experts do, all they say is "unlikely to moderate in the short to medium term" - what does that mean? "Stable foundations", again, what? I can't be arsed to read these "predictions", if anyone wants me I'll be reading my horoscope, apparently pisces are going to have good year. Now THAT'S science. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted December 28, 2006 Share Posted December 28, 2006 http://www.manchestereveningnews.co.uk/new..._northwest.html Wednesday, 27th December 2006 House prices 'virtually stagnant' in Northwest HOUSE prices in The North of England were virtually stagnant in 2006, new figures from property website Hometrack have revealed.The region saw price increases of 0.5% this year, just behind the East Midlands, which saw a rise of 0.7%. Not the BBC news.` Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted December 28, 2006 Share Posted December 28, 2006 (edited) She is sticking her neck out - nearly every other economist totally disagrees with her. Not the Nationwide's economist apparently,they are running with the same idea that we are at the peak.The MPC are doing nothing to dispell this.These are worrying times indeed,I can see some panic buying this Spring. Wake up Mervyn King you f**king idiot. Edited December 28, 2006 by crashmonitor Quote Link to comment Share on other sites More sharing options...
nic Posted December 28, 2006 Share Posted December 28, 2006 Futures chart would suggest two more increases pretty much priced in by June. http://www.futuresource.com/quotes/quotes....SS&t=Future It seems people are actually believing 5% is the peak, and that's why the two recent rises have had little effect on the market. Perhaps we'll see a bigger effect when reality hits home after a few more rises. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted December 28, 2006 Share Posted December 28, 2006 Futures chart would suggest two more increases pretty much priced in by June. http://www.futuresource.com/quotes/quotes....SS&t=Future It seems people are actually believing 5% is the peak, and that's why the two recent rises have had little effect on the market. Perhaps we'll see a bigger effect when reality hits home after a few more rises. Why the f**k are the MPC raising rates and then giving the impression it is the last one,thus negating any effect.They want a rocket up their backsides. Quote Link to comment Share on other sites More sharing options...
nic Posted December 28, 2006 Share Posted December 28, 2006 Why the f**k are the MPC raising rates and then giving the impression it is the last one,thus negating any effect.They want a rocket up their backsides. Exactly. One would think it makes more sense to warn the public that rates may rise further, and then they may not have to actually raise them that much in the end. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted December 28, 2006 Share Posted December 28, 2006 Why the f**k are the MPC raising rates and then giving the impression it is the last one,thus negating any effect.They want a rocket up their backsides. The MPC have Gordon up their backsides and until the Miracle Man is in No. 10 there will be no action taken that might jeopardise inflation in house prices. Quote Link to comment Share on other sites More sharing options...
tenroom Posted December 28, 2006 Share Posted December 28, 2006 I read somewhere yesterday that British Gas and a load of other large gas & electricity suppliers are going to be making some "very significant" price cuts which might reverse the near 25% hikes we've suffered recently. If this dents inflation, we could all be looking at lower interest rates. Good and bad news for anyone looking to move up. Quote Link to comment Share on other sites More sharing options...
nic Posted December 28, 2006 Share Posted December 28, 2006 (edited) I read somewhere yesterday that British Gas and a load of other large gas & electricity suppliers are going to be making some "very significant" price cuts which might reverse the near 25% hikes we've suffered recently. If this dents inflation, we could all be looking at lower interest rates. Good and bad news for anyone looking to move up. It won't as energy bills are not included in inflation (CPI). A lower oil price will have an effect on inflation in the long term though, as oil is used for pretty much everything. However, that will take time to filter through, and IMO the inflation we're seeing now is still the effects of the oil price having more than doubled over recent years, and there's more to come. Edited December 28, 2006 by nic Quote Link to comment Share on other sites More sharing options...
rainbow Posted December 28, 2006 Share Posted December 28, 2006 I listened to Miss Earley on Radio4 this morning, must say she sounded very flustered for someone spreading good news, strange she made no mention of the two latest interest rate rises and what the effects might be or the possibility of future rises, but preffered to harp back to the interest rate cut of 18 months ago still having a positive effect on the market She claimed the market was being supported by the return of priced out FTB's not actually buying but renting, can't see how these can be classed as FTB then Quote Link to comment Share on other sites More sharing options...
tenroom Posted December 28, 2006 Share Posted December 28, 2006 It won't as energy bills are not included in inflation (CPI). Are you sure ? Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted December 28, 2006 Share Posted December 28, 2006 It won't as energy bills are not included in inflation (CPI). .......yet. Quote Link to comment Share on other sites More sharing options...
Prof Posted December 28, 2006 Share Posted December 28, 2006 I heard Miss Earley on Sky News. She mentioned solid foundations and the banks increasing lending. Apparently, according to Nationwide, average houses prices rose 1.2% in December. It`s getting a bit silly now, IMO. If prospective buyers actually thought about what they were doing, and weren`t "brainwashed" by the smiling "experts" on the TV, most would probably not go ahead and resign themselves to 25 years of paying a large mortgage. The reason a lot of people do go ahead and take on huge debt is the "promise" of more price increases (by smiling "experts"), and the worry of "missing out". And that just about sums up the situation at the moment. Us bears believe that prices are too high, and are not willing to pay 1.2% more for a house than we would have done last month, or 10% more than last year, or twice more than about 5 years ago. I`d rather have some money to spend on things I want/need, rather than paying over the odds for a pile of bricks and mortar. Quote Link to comment Share on other sites More sharing options...
Jason Posted December 28, 2006 Share Posted December 28, 2006 I think it's gone past the stage where HPI can easily be explained. FTBs returning, but as renters? Firstly, they are then not FTBs, secondly we would hear about rents rising inline with house prices - yet they are not. This is the winners curse alright, it's all now based on speculation and speculation alone. I just hope it ends soon. Quote Link to comment Share on other sites More sharing options...
DesperateHousewife Posted December 28, 2006 Share Posted December 28, 2006 I think it's gone past the stage where HPI can easily be explained. FTBs returning, but as renters? Firstly, they are then not FTBs, secondly we would hear about rents rising inline with house prices - yet they are not. This is the winners curse alright, it's all now based on speculation and speculation alone. I just hope it ends soon. FTB are now renter from the BTL baby boomers, they want lining up and shooting. Quote Link to comment Share on other sites More sharing options...
Prof Posted December 28, 2006 Share Posted December 28, 2006 FTB are now renter from the BTL baby boomers, they want lining up and shooting. Yes, they should be lined up against a wall of the property they own. Just before they`re shot, the deeds of the property should be handed over to their tennants, or a young couple who are struggling afford their first home. That`s justice ! Quote Link to comment Share on other sites More sharing options...
Guest grumpy-old-man Posted December 28, 2006 Share Posted December 28, 2006 (edited) I read somewhere yesterday that British Gas and a load of other large gas & electricity suppliers are going to be making some "very significant" price cuts which might reverse the near 25% hikes we've suffered recently. If this dents inflation, we could all be looking at lower interest rates. Good and bad news for anyone looking to move up. you really think that any UK business would reduce their profit margin by lowering their prices to the consumer most companies just shuffle around the profit to try to hide what they are charging, so if the pence per therm comes down a touch, the standing charge goes up to reflect this......it's always been the same & gets worse every year. do you think if councils had money left over from their budget they would lower council tax?? Edited December 28, 2006 by grumpy-old-man Quote Link to comment Share on other sites More sharing options...
Europa Posted December 28, 2006 Share Posted December 28, 2006 It won't as energy bills are not included in inflation (CPI). A lower oil price will have an effect on inflation in the long term though, as oil is used for pretty much everything. However, that will take time to filter through, and IMO the inflation we're seeing now is still the effects of the oil price having more than doubled over recent years, and there's more to come. Nonsense Energy bills are indeed included Clicky (page 16) http://www.statistics.gov.uk/articles/nojo...basket_2005.pdf Quote Link to comment Share on other sites More sharing options...
Guest Yeahbutnocrash Posted December 28, 2006 Share Posted December 28, 2006 Yes, they should be lined up against a wall of the property they own. Just before they`re shot, the deeds of the property should be handed over to their tennants, or a young couple who are struggling afford their first home. That`s justice !Or the plebs could be shot thus reducing demand for btl and general strain on the economy & resources She is sticking her neck out - nearly every other economist totally disagrees with her.We'll be able to judge at the end of 2007 - Should be interesting! Quote Link to comment Share on other sites More sharing options...
nic Posted December 28, 2006 Share Posted December 28, 2006 Nonsense Energy bills are indeed included Clicky (page 16) http://www.statistics.gov.uk/articles/nojo...basket_2005.pdf Thanks, I stand corrected. What I meant was of course Core CPI, which does exclude food & energy. Quote Link to comment Share on other sites More sharing options...
Europa Posted December 28, 2006 Share Posted December 28, 2006 Thanks, I stand corrected. What I meant was of course Core CPI, which does exclude food & energy. Fair enough - we can both come away from this with the satisfaction of being right Quote Link to comment Share on other sites More sharing options...
Guest Yeahbutnocrash Posted December 28, 2006 Share Posted December 28, 2006 http://www.manchestereveningnews.co.uk/new..._northwest.html Wednesday, 27th December 2006 House prices 'virtually stagnant' in Northwest HOUSE prices in The North of England were virtually stagnant in 2006, new figures from property website Hometrack have revealed.The region saw price increases of 0.5% this year, just behind the East Midlands, which saw a rise of 0.7%. Not the BBC news.` Good - So I guess that means property in those areas will be getting more affordable for ftb's Quote Link to comment Share on other sites More sharing options...
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