Thursday, Sep 28, 2006

House prices see strong growth in September

BBC: UK house prices see 'strong' rise

According to the Nationwide house prices saw unseasonably strong growth in September. Nationwide's housing survey found that prices rose by 1.3% during the month, lifting the annual rate of growth to 8.2%.

Posted by denzil @ 09:38 AM (568 views)
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1. sovietuk said...

Article says

"that many first-time buyers are being helped to get a foot on the property ladder by their parents remortgaging their own properties"

Insanity manifesting itself through bricks and mortar.

Thursday, September 28, 2006 10:08AM Report Comment

2. Surfgatinho said...

Obviously the shot across the bows from the BOE has had no effect on these lemmings!

Thursday, September 28, 2006 10:24AM Report Comment

3. Fair_deal said...

>>>>---- "that many first-time buyers are being helped to get a foot on the property ladder by their parents remortgaging their own properties"

A question that comes to my mind is what do parents gain by doing so ? Let us take an example say a parent borrowed 100,000 pounds a few years ago when the rate was lower than Today ( say 4% ). By re-mortgaging they will have to pay back the same equity with a higher interest rate (for example say 5%). Isn't that a loss for parents ?
Instead of doing that can't they let the children stay in their house till they have a decent deposit saved ?
I have seen many pensioners having big houses ( that they are even unable to maintain ) lying down vacant most time of the year. They ask the children to pay a discounted rate of rent if they are very worried about their pension provision.
May be this is not the reality, it is the VI's trying to put this crap in the younger generation's heads. To me it is a loose loose situation for both the parents as well as the children, neither of them benefits from this.
Another angle of the situation is - the greedy BTLs who swallowed all the market properties are having to put that money back in the market thro' their children's properties. But it is still the banks who benefit in this way. Who knows some time in a few years the banks will pay for what they did as well....

Thursday, September 28, 2006 10:30AM Report Comment

4. harold said...

Actually come to think of it, it's probably not a bad idea to spread future negative equity across several generations - that way people can commiserate with each other at family get-togethers, rather than parents and in-laws just sitting there feeling smug. Should do wonders to defrost the atmosphere at Christmas.

Thursday, September 28, 2006 11:34AM Report Comment

5. C'mon Correction said...

Two years ago I thought the Bank of England had finally committed to controlling house prices(regardless of their inflation targetting), it looked like they were sending a message of "enough is enough, if this bubble isn't reduced quickly and softly - it will lead to big problems both economically and socially for the country further down the line". Mervyn was very clear - "house prices are unsustainable" - several times.

It is VERY clear they have not been hard enough (and stupid even reducing rates last year), it is hard to think who - BOE, government, banks - is going to really take a good look 5-10 years down the line at the problems this bubble will cause (and is causing - tens of thousands bankcrupt and growing). Something has to be done - Yesterday.

'A stitch in time, saves nine' - 0.5% rate rise in October.

Thursday, September 28, 2006 11:46AM Report Comment

6. george monsoon said...

Well what a surprise, house prices are booming!!

Hang on, I will take my ignorance pill... ... ahh thats better..

Wow, house prices are booming, my partner and I must take out a mortgage at 8 times our joint salary for that quaint little 1 bedroom end terrace next door to the sewage plant !

Thursday, September 28, 2006 02:28PM Report Comment

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