Monday, September 10, 2007

Pwned!!! House prices rising even faster

House price inflation picking up

Average house prices in the UK are accelerating again, according to the Department of Communities and Local Government (DCLG). Its latest survey shows that in July prices across the country rose by 2% to an average of £218,479. The annual rate of house price inflation rose from from 12.1% to 12.4%, its highest since March 2005. The main factor was soaring prices in London and the South East. Outside those two areas, prices in the UK in fact slowed down and were rising at a rate of just 10.6% a year, compared to 10.9% in June.

Posted by little professor @ 12:19 PM (2417 views)
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29 thoughts on “Pwned!!! House prices rising even faster

  • little professor says:

    Nothern Ireland’s annual rate of house price inflation fell from a ridiculous 55.9% in June this year to a slightly less ridiculous 46.8% in July.

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  • “The main factor was soaring prices in London, where house price inflation is now 19.1%, and the South East.”

    The mathematical distorted average figure trickery at work again. I am covertly observing two detached houses in the South east at the moment that are close to me and have been on the market for at least 6 months each. Both have unrealistic price tags and neither seems to be doing much. The market seems to be definitely at a plateau where I am at least.

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  • Statistics are like a lamp-post to a drunken man – more for leaning on than illumination.

    David Brent

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  • planning4acrash says:

    Are these asking prices? – David 90210, where are ya?!

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  • “at a rate of just 10.6% a year” – How long can this go on for ?

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  • “Are these asking prices?”

    No – they are land registry derived, and based on sales that were mostly agreed in May & June…

    .. a lot has happened since then…!

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  • Prices only go up!!

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  • i am starting a landlord association.. anyone want to join…lol

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  • I agree! alot has happened since May. May was probably the peak in London but the problem is that so many people are still refusing to lower asking prices especially at the top of the chain. this is restricting supply more than lack of houses. A house on the market for ridiculous money isn’t really for sale. I have direct experience of this as have have been under offer twice since Feb this year.

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  • Thanks little professor for posting something against the prevailing opinion at HPC.

    Estate agents up and down the land will be very grateful for this publicity.

    Imagine the scene in a house where retired middle class parents tell their 30 something offspring that they simply ‘must’ buy in to the market and there will never be a good time to buy a house. Meanwhile 30 something looks at this article and feels the fear – will they be left out? If they don’t buy in now, how will they ever afford a house? A modern tragedy.

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  • I’m sick of hearing these meaningless 12 month averages – for NI to have dropped from 55.9 to 46.8%, surely that must mean an actual month on month drop? The average price for July was £242391 – anyone know what it was in June? Incredibly, the only one I can see from the DCLG website is July’s figures – no other figures from the start of the year will download – strange or what….

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  • After going up from £231210 in May to £240302 in June, in July they went up to £242391. I would call that a collapse in HPI for Northern Ireland.

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  • planning4acrash says:

    Shipbuilder. Yearly rates are useful in that they help to iron out seasonal changes. Clearly they don’t show fundamental shifts in markets until long after the date, but that’s why you get both figures. That VI’s focus solely on year on year averages when they so choose is their choice and thats just the nature of stats.

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  • tyrellcorporation says:

    This bullish reporting is actually in our favour as it gives the BoE little room for downward IR moves if the shinola starts to hit the fan. As mentioned these are old figures and therefore give a false impression of bouyancy.

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  • Markets collapsing, house prices rising. Where is all of this extra money coming from?

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  • Expect even higher rises through August and the rest of the year. Nothing can stop this relentless train. Still time to hop on board guys and make some easy cash…

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  • Maddison and others,
    IMHO this is “very” old information. Really a lot has happened since May/June. just look at the daily news on lenders struggling.
    August was the month the tune has finally changed. Impact of credit crunch on the DCLG figures not before December

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  • This is a rather sad attempt to paint over the cracks which are about to appear in the UK banking system, by claiming that the cracks aren’t such an issue after all because the asset values on which the didgy deals are based are still rising in value.

    The reality is that the market ground to a halt some time ago. Look in estate agents’ windows and see how many are NOT doing sales any more, only rentals.

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  • Does anyone know exactly why Northern Ireland has seen such huge growth? I know there is supposed to be a “peace” now, but why such a huge increase in house prices?

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  • @su

    “Does anyone know exactly why Northern Ireland has seen such huge growth?”

    I’d love to know as well. My guess is greed and hubris. I fear that there will be an eye wateringly painful correction for those who have bought recently.

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  • House price inflation increases again!

    I am waiting for the “2008 will be an interesting year” quote.

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  • Hi David

    Good to have you back. We’ve missed you!

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  • C'mon Correction says:

    “2008 will be an interesting year”.

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  • Su, Northern Ireland’s never seen a house price boom or crash before, so greed took over when the prices started going up, with investors piling in from the Republic of Ireland and locals panic buying. It became self-fulfilling to an extent because prices started at such a low level that many people were able to withdraw equity to become amateur BTLers. In short a combination of greed, stupidity and the arrogance of the ‘big fish in a little pond’ mentality so prevalent over here.
    Rows of listed buildings in tree-lined avenues are being knocked down to be replaced with apartments, planning is out the window. Really it’s a perfect example of how an unregulated free market in housing is nonsense – the damage is done and the environment ruined before any sort of ‘correction’ happens. Despite what you may have heard, little has changed with the economy or immigration.

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  • David, go to the DCLG website, look at the figures and don’t be an idiot.

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  • David,
    You are in the box seat, evidence is on your side…… at the moment!! However, for the first time in a number of years the economy is entering a period of stress that will really test the housing market and for most of us on HPC, we only need to be right once, whereas most homeowners have to rely on impossible odds for many years to come!

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  • Shipbuilder. How can listed buildings be knocked down? Are we talking corruption in certain depts?

    I suppose if there is no real reason for the large increase in house prices, then it would be reasonable to see prices start falling especially if house prices are starting to fall in Eire. My guess would be that BTLers from the south would want to sell up in NI and reinvest in cheaper property closer to home.

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  • Van Hoogstraten says:

    Sounds like time for a calming rate rise.

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  • @ Dr K

    +1

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