Thursday, Oct 12, 2006

House prices at 4-year high

Bloomberg: U.K. House-Price Index Rises to Four-Year High

An index of U.K. house prices rose to the highest level in four years in September as more buyers chased fewer properties, the Royal Institute of Chartered Surveyors reported. The number of real-estate agents and land surveyors reporting higher home values outnumbered those showing declines by 45 percentage points.

Sellers appeared to feel less pressure to put their property on the market, RICS said. The stock of unsold property on agents' books fell to 66.9 in September, the lowest level since August 2004. `With stocks of property low and buyer enquiries on the increase, sellers remain in pole position to benefit,'' a spokesman said.

Posted by little professor @ 03:37 AM (512 views)
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1. little professor said...

Also: Gazumping Is Back, Says RICS.

Fears of a fresh bubble in the property market rose today after a housing body said gazumping - where sellers raise the price at the last minute - had returned.
Housing market activity has hit its strongest level in four years because of rising number of house-hunters, a bonus bonanza in the City and a shortage of homes, a survey showed today. Rics said prices in London were rising at their fastest pace since January 2000, boosted by a booming City economy. "Estate agents report that gazumping is taking place," it said. In the South-east, prices rose at the fastest pace since December 1999.

The upbeat tone of the report was confirmed by surveyors. "Due to lack of supply, some agencies are deliberately adding 10 to 15 per cent to the asking price," James Scott-Lee at Chancellors in Banbury, said.

Thursday, October 12, 2006 04:02AM Report Comment

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3. sold 2 rent 1 said...

The final spike in prices is under way.
All the biggest crashes have had a huge surge just before. Remember the NASDAQ in 1999.

I reckon that HPI will get close to 15% next year (before July).
Ireland hit 15% last July (after 3 ECB rate rises). Prices there are now levelling out

Renter said in a previous article. The cycle is Aussie, UK then US.
I wouldnt worry about the order in which economies go into a downturn. All these economies have had significantly different forces on them. (immmigration, IR changes, city bonuses, foreign investors)

The upward forces on wages are firming up too.
The 2 polish painters I hired recently were complaining that their rent had gone up from 50pw to 75pw in 2 years (thats 50%). With the minimum wage increasing too, these immigrants will not hold down wages for much longer.

Thursday, October 12, 2006 06:33AM Report Comment

4. p. o. o. r said...

I visited 3 estate agents yesterday, in the South East and they all said the same thing - The market is very very quiet especially for September which is normally a good month - I was advised that they are getting very few instructions, which is meaning a lack of supply, but also they have very few people registered who are looking to buy - lack of demand - Regarding prices, they all said the same and that was that there has been no movement in prices this year. Asked on how people could afford, and was told interest only mortages, with very high multiples of salary. Where did they see the market going - and they all said down, however they did point out that this is what they have been predicting for the last 2 years and so far prices have not dropped. Finaly I asked where is this reported growth was coming from - and the answer was some of the northern counties have seen growths 15% + (The wave effect), as this is what they saw in 2005.

Thursday, October 12, 2006 08:31AM Report Comment

5. Distant_daz said...

'Sellers appeared to feel less pressure to put their property on the market, RICS said'
What kind of twisted logic is this - since when has some-one felt pressure from the market to sell their house? I thought people usually sold their house when THEY decided the time was right. Consequently, this suggests to me that 'sellers' CAN NOT AFFROD to sell the place the place they live in. Simple as.

Thursday, October 12, 2006 10:01AM Report Comment

6. the bald man said...

p.o.o.r ..Theis is the same news two estate agenst in Kent told me. No buyers few sellers. an estate agent also admitted the only way to go was down.

Thursday, October 12, 2006 10:03AM Report Comment

7. Property Abroad said...

Why are we all crying about a SO possible house price crash in the UK ?
Rent in the UK and buy abroad ! Or just move abroad !

We are now asking in London 200 pw for a double bedroom in a 5 bed shared house with only 2 bathrooms !
How ridiculous is that ? Demand in the UK comes from abroad for the renting market. I don t believe that it will carry on.

Put your money abroad guys

Thursday, October 12, 2006 06:11PM Report Comment

8. inbreda said...

Yes propertyabroad. Maybe we could all buy in Oz or US where house prices are already falling.


Friday, October 13, 2006 10:00AM Report Comment

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