Wednesday, Oct 04, 2006

House prices going up...really...read it again..

Firstrung: Halifax report house price inflation falling for third successive month to 8.0%, the lowest rate since April 2006

Commenting, Martin Ellis, Chief Economist, said: "House prices rose by 1.0% in September. The annual rate, however, eased for the third successive month to 8.0%, the lowest rate since April 2006. We expect increased utility bills and higher interest rates to curb housing demand over the coming months, causing annual house price inflation to ease between now and the end of the year."

Posted by converted lurker @ 11:04 AM (491 views)
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16 Comments

1. sovietuk said...

Artifcle quotes

"Sound fundamentals, underpinned by a stronger economy and record high levels of employment, will continue to support a healthy housing market over the coming months."

and

"UK economic activity has picked up in 2006 following the weakest growth for ten years in 2005. The latest ONS figures show that GDP increased by 0.7% for the third successive quarter in 2006 Q2. This is slightly above the long-term historical average of 0.6%."

and

"The strengthening in the economy has underpinned the ongoing good health of the labour market with employment increasing by 220,000 over the past year, according to the ONS."


Well this jourmalist has alot of faith in the government statistics and bases his 'sound fundamentals' on these. It's as if these people think that the world (outside of the UK) will never change and that the pound will remain as strong as ever until the end of time. Sadly this will not be the case and a day will come (maybe sooner rather than later) when Sterling as a foreign currency reserve will become insignificant. Just something unimportant or rather obscure.







Wednesday, October 4, 2006 11:26AM Report Comment
 

2. the bald man said...

What sound fundamentals? This economy has been built on consumer spending funded by house price inflation. As long as we borrow the economy appears to grow. This has nothing to do with increased productivity or increasing our poistion in teh global market place. What about the mountain of debt?

Wednesday, October 4, 2006 01:29PM Report Comment
 

3. paul said...

"Please don't raise rates again"
"Housing market remains strong"
"Please don't raise rates again"
"Housing market remains strong"
"Please don't raise rates again"
"Housing market remains strong"
"Please don't raise rates again"
"Housing market remains strong"

Gaaaah! *KERBOOM*

Wednesday, October 4, 2006 02:16PM Report Comment
 

4. Plumbing4leaks said...

I agree with the bald man said...

what about the mountain of debt?

furthermore I would rather put this as "what about the continously growing mountain of debt.

Just out of curiosity does anyone no what is the collective monthly repayment at 5% on 1.4 trillion loan ?
Surely that is money that will not be spend at the local Curry's or other retailer.

I bailed out last year before the general election.....still cant believe that someone paid us 360.000 for what is basically a turn of the century agricultural workers cottage.
Total and unrelenting collective brainwashing is what this government is good for. Never in history has the brit had to pay so much for so little!


Wednesday, October 4, 2006 02:34PM Report Comment
 

5. Plumbing4leaks said...

I agree with the bald man said...

what about the mountain of debt?

furthermore I would rather put this as "what about the continously growing mountain of debt.

Just out of curiosity does anyone no what is the collective monthly repayment at 5% on 1.4 trillion loan ?
Surely that is money that will not be spend at the local Curry's or other retailer.

I bailed out last year before the general election.....still cant believe that someone paid us 360.000 for what is basically a turn of the century agricultural workers cottage.
Total and unrelenting collective brainwashing is what this government is good for. Never in history has the brit had to pay so much for so little!


Wednesday, October 4, 2006 02:35PM Report Comment
 

6. uncle tom said...

My call for this MPC - but FAR from certain is:

0.25% INCREASE TO 5%

Wednesday, October 4, 2006 02:55PM Report Comment
 

7. Kc said...

I have approximately 30k deposit and earn above average wage but seeing articles like this make me realise that I will never be able to buy a house and will just have to give up :-(. I refuse to pay over the odds for a shoebox so my life is in limbo, as I am very soon 31. I am applying to emigrate to Oz, but just to give me an option which I may well be forced into if house prices do not crash. I am soooooo frustrated :-(.

Wednesday, October 4, 2006 03:03PM Report Comment
 

8. holding out said...

UT - It's a brave call and in line with the shadow MPC but not many other commentators - I Hope your right but I aint usually that lucky!

Wednesday, October 4, 2006 03:43PM Report Comment
 

9. C'mon Correction said...

UT - I think you' re right, most economic data points to the fact a hike is needed asap.

If you're wrong then it'll be because of Brown's new selectives, not because of the correct cause !

Wednesday, October 4, 2006 04:30PM Report Comment
 

10. tyrellcorporation said...

UT... you're feeling frisky eh!

I have to say I agree though, with the 'surprise' move a few months back, I reckon the MPC might have a taste for the theatrical now!

Wednesday, October 4, 2006 05:09PM Report Comment
 

11. tyrellcorporation said...

...also, didn't our last rate hike coincide with an ECB hike?

Wednesday, October 4, 2006 05:10PM Report Comment
 

12. paul said...

On the back of Uncle Tom's call, I'm forced into a devils advocate position ...

RATES HOLD AT 4.75%.

(basing my logic on the workshy "wait and see" temperament that seems to have gripped the MPC recently)

Wednesday, October 4, 2006 09:40PM Report Comment
 

13. Davo453 said...

As someone living in Oz and having just experianced a 45% annual increase in property prices in our area (western australia), Oz may not be as cheap as you once thought. Mind you if your prepared to travel you can still get a 3 bed house on 60 acres for 230,000 pounds.

Personaly though i'm selling, it all looks shakey to me ........

Thursday, October 5, 2006 07:56AM Report Comment
 

14. george monsoon said...

We have to follow Europe. the MPC will up the rate to 5% today.

Thursday, October 5, 2006 08:39AM Report Comment
 

15. p. o. o. r said...

I think it is probable that they will increase later today, and again in November - then we will not see another increase until Mar / Apr 07. My guess also is that we will see a flurry of increases spring and summer next year - and will end the year (07) around 6 to 6.5% - My guess is that the knock on effect to the housing market will not be seen until Easter next year - and then we will get the crys from the estate agents and prices will have to start to fall. If Mr Brown wants any chance of winning the next election he will have to keep to his word that there will be no crash - not sure he can hold things back that long. I will watch for the update later today with interest. Boy do I wish I had a crystal ball...

Thursday, October 5, 2006 09:58AM Report Comment
 

16. harold said...

Reckon the MPC might look at the oil price/recent commodity prices, get complacent and keep IR on hold until November - so I guess no change. Hope I'm wrong.

Thursday, October 5, 2006 10:18AM Report Comment
 

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