Thursday, Sep 07, 2006

House prices bounce back

BBC: UK house prices climb in August

House prices rose by 1% in August, bouncing back from a shock drop in the previous month, according to Halifax, the UK's biggest mortgage lender. In the three months through August prices rose 0.2%, compared with 2.9% in the preceding three-month period.

The Halifax's findings echo those of the latest survey from the Nationwide building society, which said prices rose by 0.8% in August.

Posted by little professor @ 09:55 AM (511 views)
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6 Comments

1. Bfskinner said...

this seems reasonable. I'd assume that the data from August will be from mortgages and sales agreed in june or july. the summer is a busy time and there are still some optomists left out there (especially before the Aug rates rise as well). it will be interesting to see how the market copes during its traditional down period over autim and winter in a climate of rising rates. but well done the BBC for pointing out that houeprice inflation is still and issue on the morning of the MPC meeting ;-)

BFS

Thursday, September 7, 2006 10:18AM Report Comment
 

2. tyrellcorporation said...

Things are going well but we expect growth to moderate and in fact everything is actually quite fragile...but did I mention how rosy things are and the housing market is fundamentally sound...but increased bills may dampen things a little...blah, blah, blah...

The same old pre-IR decision guff...

Keep those plates spinning matey!

Thursday, September 7, 2006 10:49AM Report Comment
 

3. uncle chris said...

Surprised they didn't leave this till after the MPC decision. Just a quick note - a friend just received an offer on her house from a polish family, who say they can get a 100% 5x joint income mortgage after being in the country for less than 6 months, and apparently when viewing, neither of them could speak any English and got their 12 year-old son to translate. If the banks are really being so foolhardy, I wouldn't be surprised if we get a depression on the scale of the 1920's when the downturn comes.

How in God's name did we get into this state with our "no more boom and bust" chancellor and "let's get tough on immigration" soon to depart prime minister.

Thursday, September 7, 2006 11:35AM Report Comment
 

4. the bald man said...

Never any mention of underlying fundamentals and how stretched things the prices are. I am concerned that so much money has been borrowed from the future that when the downturn comes it will be severe.

Thursday, September 7, 2006 11:55AM Report Comment
 

5. indiablue19 said...

I know a young couple who have financed a home and a business in the Highlands with "prospective" earnings, no cash in at all. Their salaries on the application were "theoretical" based on figuring out how to fund and run the business side with no experience. Gives me the shivers that young people are encouraged into these schemes. And if repayments turn out to be "theoretical" as well who can the Bank thank for that? Merely demented. If this type of financial thinking is the economic engine supporting the BBCs inane success stories, we have much to fear.

Thursday, September 7, 2006 02:21PM Report Comment
 

6. inbreda said...

Prices for the three months to August rose 0.2% ???? So, in a market that is clearly turning it would be optomistic to suggest annual gains of 0.8%??? Which is a couple of percent below inflation. And a big bunch of percent below REAL inflation? PRICES ARE FALLING - HOW CAN THE BBC MAKE THIS SOUND SO POSITIVE?!?!?!?!

"The mortgage lender added that annual house price inflation was 8.2% in August, down from 8.8% in July. It expects the rate of growth to slow to 5% by the end of this year."

Taking an index value of 100 on 1st January 2006, if annual house price inflation was 8.2% in August then the index would be 106.15. If they expect the annual rate of growth to be 5% by the end of this year, that means they expect prices to FALL by more than 1.08% in the next three months.

So a VESTED INTEREST is expecting the average house to lose over 2,000 in the next few months. And they make it sound positive. Amazing.

It makes the fact that they can't even show Blair as being anything other than slimey and manipulative even more scary.

God help us.

or Allah, whatever, I'm not fussy.

Thursday, September 7, 2006 11:28PM Report Comment
 

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