Tuesday, March 13, 2007

DCLG data shows inflation increase

House prices show sharp increase

The average house in the UK now costs £205,286, according to data released by the Sept for Communities and Local Government. January saw an annual rate of inflation of 10.9%, up from 9.9% in December. This is somewhat at odds with RICS data released today.

Posted by jellycaster @ 08:50 AM (453 views)
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8 thoughts on “DCLG data shows inflation increase

  • So now not only is there not a slowdown the rate of house price increases is actaully starting to pick up again.

    This just shows that the British mentality is now that house prices will never crash and that it is a safe investment. More and more British people are now just using their homes as massive cash machines on the back of these huge increases.

    The BoE doesn’t even have the balls to make a 0.25% increase anymore which to be honest wouldn’t have much of an effect anyway.

    As I and the Daily Mail artictle below have been saying for years house prices will not crash until base rates are at least 8%. Until then there won’t even be a slowdown.

    Parents will equity release from their homes to help their offspring and the cycle of extreme house price rises will continue.

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  • You are right jelly and the data is at odds with RICS comments. However, the market does seem to be all over the place at the moment. Around my way it is pretty hot but the heat does not seem to be generating HPI at present. Just had an email from a mate who is an EA out in the wilds of southern Somerset and he says things are very patchy. I looked at land reg for Somerset (a bit dated now) and the last quarter ranges from -5.6% for Bath +5.5% for Taunton Deane. Bath is only +2.7% YoY again Taunton Deane is +15.4% YoY.

    Things don’t look particularly bouyant and neither do they look crashing either at present.

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  • Time to raise rates again …

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  • If Taunton is posting YOY gains of 15.4% then the madness must be near an end!!! there just arn’t the jobs in the area to support it.

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  • tyrellcorporation says:

    Sorry Millard but I live in Exeter and the only people buyinhg there are loaded Londoners – my guess is that it’s the same in Taunton. Unfortunately the SW is one of the top destinations for ‘White Flighters’ wanting to breed. Best to buy or ship out IMHO. The SW is turning into Second Home Land!

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  • I live in Bath and the estate agent next to me has just closed down, maybe things are starting to cool off although one Swallow doesn’t make a summer.

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  • I live in the Gin-and-Jag belt in Hertfordshire (all bankers and lawyers). Prices here are sky-high, but static. Seems to have reached a ceiling since before Christmas (for the time-being anyhow). Quite a few properties have been on the market for months and are not selling.

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  • Steve, shut it!

    I’m from Cornwall. Prices there are far beyond 6 x earnings. Not even desirable areas too. Still, if miners cottages in industrialised areas of central Cornwall are going for 10 times average earnings, it doesn’t say much for the fundamentals everyone’s banging on about does it?

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