Tuesday, May 8, 2007

House buying falls – market running out of steam

House buying falls for first time in six months

House purchases have fallen for the first time in six months it emerged today in a report that signals Britain’s red-hot housing market may finally be running out of steam.The Bank of England is almost certain to increase interest rates to 5.5 per cent this Thursday in a bid to bring inflation and house price growth under control.

Posted by stew @ 12:46 PM (517 views)
Please complete the required fields.



8 thoughts on “House buying falls – market running out of steam

  • Surfgatinho says:

    CML to the MPC: ‘bleat, bleat, please don’t put up IRs’!

    Reply
    Please complete the required fields.



  • dohousescrashinthewoods says:

    “inflation and house price growth” – that may be true, but it misrepresents the bank’s remit to those who don’t know.

    I ovorheard someone saying that the bank are “raising rates to control the housing market”. Ouch, not a good misperception. What happens when prices start falling but the bank is still raising rates to control inflation and protect the pound?

    Reply
    Please complete the required fields.



  • Wow, another last minute plea article hoping the MPC take note. Yawn, it really is becoming a joke now.

    Reply
    Please complete the required fields.



  • To save the financial analysts at the various banks having to write their own articles for Fridays papers, simply cut and paste the below….after all you say the same thing every month…
    “We don’t think it was the right decision by the MPC and we believe some owners won’t be able to find the money. Ultimately this has the potential to seriously damage the the housing market. However, we think people will be able to absorb the rise, and the housing market won’t be adversly affected because it is still very strong.”

    Reply
    Please complete the required fields.



  • speculatorone says:

    Houses are still selling like hot cakes in my neck of the woods?

    Sales have surged recently, I don’t understanding it anymore, I feel sorry for all those when it goes wrong, if it goes wrong that is…………

    Reply
    Please complete the required fields.



  • We always get a few pieces like this when rates are on course to rise..

    The question this week is will it be a quarter – or a half?

    The MPC is a much more skittish bunch now than was the case a year back – so anything is possible – even no change

    Personally, I think a quarter point rise is much the most likely outcome, with a further rise in June or July. It would not surprise me if they follow the Fed’s example, and make several successive quarter point hikes.

    If our Merv is serious about taming money supply growth, he’ll probably need to head towards 7% and beyond…

    Reply
    Please complete the required fields.



  • I agree UT, this rise is an easy one to call.

    The very fact that this situation has taken the MPC by complete surprise should be a big worry – it smacks of being out of control, and ad-hoc firefighting.

    Still, they have performance benchmarks which they have to keep to.

    Oh, hang on …

    Reply
    Please complete the required fields.



  • This types of propoganda is always published just before Mervin King and his doves have their monthly chinwag at the Bank of England. Presumable, the authors think that somehow King and his Zip head commitee will read them, then draw in their breath and reduce rates. The Bank of England has been treating interest rates as if it was their favourite grandchild. Too late now, Old Moor’s Almanack says that July is the month of the property downturn. Mervin King will only blame Starlin Brown and his treasury Goolags for the problem.

    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>