TwentyOneEleven Posted March 28, 2008 Share Posted March 28, 2008 http://business.timesonline.co.uk/tol/busi...icle3637380.ece From Times OnlineMarch 28, 2008 House price growth is weakest since 1996 Steve Hawkes House prices are rising at the slowest rate for 12 years in a blow that could force the Bank of England to bring forward an interest rate cut to April, Britain’s second biggest mortgage lender said today. Figures from the Nationwide showed that the price of a typical house dropped 0.6 per cent - or nearly £250 - in March to an average of £179,100. The drop means the annual rate of house price inflation is now 1.1 per cent - the lowest since March 1996. Fionnuala Earley, group economist at Nationwide, said it was clear there was now a “sharp slowdown” in house prices and that the credit crunch and false rumours of problems at HBOS had severely dented consumer confidence. She added: “We think these latest developments, along with the continued weakening in the housing market, will mean that the [bank of England\] will bring forward its rate cut to April.” Nationwide was one of two major lenders to put up its mortgage rates yesterday to close the door to all but the most creditworthy customers. The building society said that it did not want to take on many more customers as it would add to much risk. Within hours of the announcement, Norwich & Peterborough Building Society said that it was increasing its mortgage rates by up to half a percent. Howard Archer, chief economist at Global Insight, warned there was now the real possibility of a "sharp correction" in the property market. He has been predicting a 5 per cent fall in both 2008 and 2009. He said: "We believe the downside for house prices will be limited to some extent by the rising number of households, an overall shortage of supply, high employment, further gradual but steady interest rate cuts over the coming year and the fact that few vendors are currently having to sell for "distressed' reasons. Nevertheless, the current escalation of the credit crunch means that there is an increased risk that a significantly sharper housing market correction could occur." Quote Link to comment Share on other sites More sharing options...
PunK BeaR Posted March 28, 2008 Share Posted March 28, 2008 House prices are rising at the slowest rate for 12 years in a blow that could force the Bank of England to bring forward an interest rate cut to April, Britain’s second biggest mortgage lender said today. Since when was it the BoE job to control house prices? Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted March 28, 2008 Share Posted March 28, 2008 Yes cut rates to zero Quote Link to comment Share on other sites More sharing options...
TwentyOneEleven Posted March 28, 2008 Author Share Posted March 28, 2008 Since when was it the BoE job to control house prices? It's not, but cut they probably will! Won't make any difference though, as noted on many other threads in recent days/weeks, the banks will move their interest rates however they see fit regardless of what the BOE base rate is ... and for many recently that has meant an increase rather a reduction! With HPI just 1.1% YOY now, we should see negative YOY HPI within the next couple of months ... 'Spring Bounce' notwithstanding! Quote Link to comment Share on other sites More sharing options...
stuckmojo Posted March 28, 2008 Share Posted March 28, 2008 House prices are rising at the slowest rate for 12 years in a blow that could force the Bank of England to bring forward an interest rate cut to April, Britain’s second biggest mortgage lender said today.Since when was it the BoE job to control house prices? ever since gordon decided so. Quote Link to comment Share on other sites More sharing options...
Guest AuntJess Posted March 28, 2008 Share Posted March 28, 2008 Yes cut rates to zero Yeah problem is if that happened no one would save - thry'd keep it in a sock under the bed! - and there'd be no money to lend. Quote Link to comment Share on other sites More sharing options...
insidetrack Posted March 28, 2008 Share Posted March 28, 2008 Yeah problem is if that happened no one would save - thry'd keep it in a sock under the bed! - and there'd be no money to lend. And HMG needs to borrow gazillions extra to plug all the holes in its books. Oh dear what a mess! Quote Link to comment Share on other sites More sharing options...
Paddles Posted March 28, 2008 Share Posted March 28, 2008 HBOS! HBOS! How on earth did the HBOS rumours affect last month's HPI figures????? It was last week! Good grief, she's scraping the barrel of excuses now Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 28, 2008 Share Posted March 28, 2008 funny, house prices are falling yet they are rising at 1.1% or whatever. People should realise that the YOY is a Derivative. And we know what they do to an economy- dont we Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted March 28, 2008 Share Posted March 28, 2008 Media experts have just released the following joint statement on what they think the Bank of England should do: Fionnuala Earley: Stamp duty cuts or tax rebates, maybe liquidity guarantees. Declan Curry & Kirstie Allsopp: Buying junk assets? Anne Ashworth: Interest rate cuts? All: We'll have to wait and see. Hope it's cuts, it's cuts; we hope it's cuts, it's cuts. Quote Link to comment Share on other sites More sharing options...
stuckmojo Posted March 28, 2008 Share Posted March 28, 2008 I think that gordo has already decided: screw the GBP and inflation, he can fiddle with that as long as people are thick as shit and don't argue with the figures, cut IR to the lowest possible and hope that someone invests in the UK like some suckers invested in Ireland in the late 90's when they were nearly bankrupted. He knows that most of the UK citizens are not very well educated, under-skilled and generally quite happy to be subdued. the blossoming of the Nulab-nu-service economy will be us having call centres for indian and chinese customers. wait for it. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 28, 2008 Share Posted March 28, 2008 I think that gordo has already decided: screw the GBP and inflation, he can fiddle with that as long as people are thick as shit and don't argue with the figures, cut IR to the lowest possible and hope that someone invests in the UK like some suckers invested in Ireland in the late 90's when they were nearly bankrupted.He knows that most of the UK citizens are not very well educated, under-skilled and generally quite happy to be subdued. the blossoming of the Nulab-nu-service economy will be us having call centres for indian and chinese customers. wait for it. he will also be aware that mortgage costs are going up in spite of CB rate cuts. Quote Link to comment Share on other sites More sharing options...
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