Wednesday, October 4, 2006

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

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 (534 views)
Please complete the required fields.



16 thoughts on “House prices going up…really…read it again..

  • 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.

    Reply
    Please complete the required fields.



  • the bald man says:

    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?

    Reply
    Please complete the required fields.



  • “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*

    Reply
    Please complete the required fields.



  • Plumbing4leaks says:

    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!

    Reply
    Please complete the required fields.



  • Plumbing4leaks says:

    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!

    Reply
    Please complete the required fields.



  • My call for this MPC – but FAR from certain is:

    0.25% INCREASE TO 5%

    Reply
    Please complete the required fields.



  • 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 :-(.

    Reply
    Please complete the required fields.



  • 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!

    Reply
    Please complete the required fields.



  • C'mon Correction says:

    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 !

    Reply
    Please complete the required fields.



  • tyrellcorporation says:

    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!

    Reply
    Please complete the required fields.



  • tyrellcorporation says:

    …also, didn’t our last rate hike coincide with an ECB hike?

    Reply
    Please complete the required fields.



  • 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)

    Reply
    Please complete the required fields.



  • 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 ……..

    Reply
    Please complete the required fields.



  • george monsoon says:

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

    Reply
    Please complete the required fields.



  • 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…

    Reply
    Please complete the required fields.



  • 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.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>