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House Prices Still Slowing Down

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http://news.bbc.co.uk/1/hi/business/7269025.stm

House price growth in England and Wales is still slowing, according to the latest Land Registry figures.

Prices rose by 0.9% in January, taking the average property price to £186,045.

However, the annual rate of increase continued to slow, to 6.4% in January from 6.7% in December, the fifth such fall in a row.

The figures confirm the picture from all other surveys, which indicate the housing market has undergone a sharp slowdown since last summer.

The Land Registry figures show that prices in London are still rising at an annual rate of 13.1%, almost twice the rate for England and Wales.

But the capital has not been immune from the general slowdown.

"The downward trend in annual growth rates nationally is also visible in the data for London, although London growth rates continue to be stronger than those of England and Wales," said the Land Registry.

Tougher lenders

Overall the volume of sales has dropped steeply in the past year, down in England and Wales by 22% between November 2006 and November 2007.

The demand for mortgages has dropped under the impact of previous interest rate rises, judging by recent figures from the British Bankers' Association and the Bank of England.

Lenders are now becoming much more fussy about who they lend to because of the crisis in the banking industry.

This has caused a shortage of funds for banks and building societies to distribute as mortgages.

Loans that are higher than the value of a home are now almost impossible to come by.

Recently a member of the Bank of England's Monetary Policy Committee, Kate Barker, warned that a drop in lending might contribute to a downward spiral of house prices, which could in turn become a big short-term threat to the UK economy.

Lack of cheap property

The worst-performing area in the past year was Wales, where prices fell by 0.3% in January and went up over the past 12 months by just 1.3%.

The only city or major town where prices have actually fallen over the past year is Nottingham, down by just 0.1%.

By contrast, Reading has seen prices rise by 12% in that time.

The general rise in average prices means it will soon be impossible to find anywhere to buy in the lower price bands that were once commonplace.

In November 2007, the last month for which transaction numbers are available, there were just 748 sales for properties valued at less than £50,000 in England or Wales.

That month also saw just 43 properties sold in London for between £50,000 and £100,000, - 66% fewer than a year ago.

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"The" LR stats showing a far more realistic picture for the final Q of 2007:

ALL PROPERTIES - SORT BY:

NAME AV PRICE (£) QUARTER ANNUAL SALES

Greater London £356,209 -5.7% 10.6% 32835

South East £266,820 -3.2% 7.6% 63138

Northern Ireland £250,586 4.2% 39.1% N/A

South West £234,847 -2.3% 8.2% 27600

East Anglia £205,894 -2.3% 6.5% 12162

West Midlands £178,829 -1.1% 3.9% 23312

East Midlands £171,559 -0.2% 5.1% 21880

Wales £163,454 -1.8% 4.1% 12401

Yorks & Humber £162,705 -0.6% 5% 25090

North West £161,566 -0.8% 5.5% 30704

Scotland £158,360 -1.0% 10.7% 41,455

North £148,686 -0.4% 3.7% 15661

Sources:

England and Wales

Land Registry of England and Wales. The information above is based on figures provided by the Land Registry of England and Wales.

Figures for England and Wales are for the period October to December 2007.

http://news.bbc.co.uk/1/shared/spl/hi/in_d...tml/regions.stm

All regions went negative in the final Q except NI where credit is still a free for all and where jobs are highly paid courtesy of Gordon.

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Yeah, but the negative figures are for 2007 following the crunch. We're now into 2008 where it is back to positive. Hurrah.

This crash (save for yuppy flats in grim Northern towns that have no yuppies) is some way off yet.

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Yeah, but the negative figures are for 2007 following the crunch. We're now into 2008 where it is back to positive. Hurrah.

This crash (save for yuppy flats in grim Northern towns that have no yuppies) is some way off yet.

What positive?

The figures for LR are last years released today.

Perhaps you are right, let's see what Nationwide and Halifax say. Let's also see what banks say when people apply for their mortgage, remortgage or MEW.

Many here on HPC have been in denial for years (sometimes including myself) but I don't think there is anymore denying. The crash has started.

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Yeah, but the negative figures are for 2007 following the crunch. We're now into 2008 where it is back to positive. Hurrah.

This crash (save for yuppy flats in grim Northern towns that have no yuppies) is some way off yet.

What's dename of debig river in deEgypt?

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Has Anne Ashworth become a member now?

It's really pathetic when the bulls only pop out when a report like this reappears amongst all the gloom, while remaining silent the rest of the time. Proof, if any were needed, that the crash is here.

Here are the facts.

YOY rates have been falling for 6 consecutive months from about 14% to just over 6%.

Most of the regions have had price falls since August.

The most spectacular price fall (of around 5%) is in London. At it's current rate, it is going for the biggest boomer to the biggest bomber in just a year.

But you can cling to your 0.9% rise if it stops your crying.

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Yeah, but the negative figures are for 2007 following the crunch. We're now into 2008 where it is back to positive. Hurrah.

This crash (save for yuppy flats in grim Northern towns that have no yuppies) is some way off yet.

:lol:

Slow day in Connell's today is it? ;)

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  • 295 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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