Friday, January 13, 2012

No, it’s not the Express.

U.K. House Prices Climb to Eight-Month High

U.K. house prices rose to an eight- month high in December as homebuyers rushed to complete their purchases before the end of the year and demand from investors increased, Acadametrics Ltd. and LSL Property Services Plc said. The average price of a home in England and Wales rose 0.2 percent from November to 220,385 pounds ($338,000), the groups said in an e-mailed report in London today. Transactions rose 3 percent. From a year earlier, values were down 0.5 percent.

Posted by khards @ 09:05 AM (2900 views)
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19 thoughts on “No, it’s not the Express.

  • Unrelated, but what the hell.

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  • BTL is driving the market.

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  • hpwatcher – we are constantly being told BTL is driving the market – on a personal and professional basis I don’t see anything driving the market which is by my interpretation static – 0.2% up or down is frankly neither here nor there

    “Out of the 10 regions in England and Wales tracked by Acadametrics, all apart from London and Wales saw their average values decline in the past three months compared with a year earlier. Values in the capital rose 0.2 percent in November, according to the latest available regional data, after increasing 0.5 percent in October.”

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  • Moneyfacts have reported the same as follows

    Property prices fall 0.5%

    Property prices in the UK fell by 0.5% last year, according to new figures. Research by LSL Property Services and Acadametrics found that property prices increased by 0.2% in December to £220,385. The monthly increase couldn’t stop an annual fall, with house prices ending the year 0.5% down. London bucked the national trend, with a 3.1% rise in 2011. Despite the falls, Richard Sexton, director of e.surv, said the market had shown ‘remarkable resilience’. “Despite the growing fears of a debt crisis in the Eurozone, prices rose 0.7% in the second half of 2011 and, with high inflation and reasonably static prices; this has helped make property more and more affordable,” he added.

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  • ”with high inflation and reasonably static prices; this has helped make property more and more affordable,”
    Eh? Not unless you get wage inflation too, which clearly there isn’t much of. Also, inflation means your other basic costs have risen, so less left over to pay your mortgage.

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  • would you ask a car salesman how are car sales and expect on honest answer

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  • Not everyone with cash wishes to become a BTL investor. All of those maintenance calls, fees and trying to get out when the economy shifts in another direction.

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  • hpwatcher – we are constantly being told BTL is driving the market – on a personal and professional basis I don’t see anything driving the market which is by my interpretation static – 0.2% up or down is frankly neither here nor there

    That maybe so……but house prices aren’t dropping to any significant degree.

    A house I phoned up about this morning was under offer after 1 week only. The EA is still having a lot of inquiries about it, goes to show….

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  • hpwatcher – where abouts are you looking to buy?

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  • why can agents get away with so much

    an end of terrace is a semi or an ex council house is a cute charming cottage

    this is one of the most expensive purchases people will make in their lives yet it is one of the least regulated you probably have more rights buying a can of soup than buying a house

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  • I had an interesting thought as to why the LSL index is £220k vs c. £160k at the Land Registry. Could it be that most £1m+ transactions are now avoiding stamp duty (trivial through an offshore company) and hence don’t show up at the Land Registry? I don’t have time to research the exact methodology of the index…

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  • hp are you sure it is under offer or just the Estate agent scam to panic people, they use it around the area near me yet the houses reappear on the market with a different agent a month or so after it was “sold” there is one house now I have lost count how many different agents and how many times it has been “sold” over 2 years, bet you if i phone up i will get the following response “there is a lot of interest in this property” “it is under offer if you would like to make a better offer” “this is a rare property better put a high offer in to secure it” etc etc

    there is the 2 step response i have always had over the phone lot of interest and looks like someone will be making an offer

    phone any agent and try it

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  • mark – agree 100% with your experience – how do we know that the EA is lying? Answer his/her lips are moving !

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  • oldfashionedbanker says:

    @11 mombers

    The acadametrics index is a composite of other indices, so maybe includes the inflated asking prices from the Right Move survey? 220k does seem a significant difference. If it is just on actual sold price then its very odd indeed. I remember David Smith used to tout this index as being the ‘most reliable’ probably because that eternal property bull saw this had the highest number!

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  • hp are you sure it is under offer or just the Estate agent scam to panic people, they use it around the area near me yet the houses reappear on the market with a different agent a month or so after it was “sold” there is one house now I have lost count how many different agents and how many times it has been “sold” over 2 years, bet you if i phone up i will get the following response “there is a lot of interest in this property” “it is under offer if you would like to make a better offer” “this is a rare property better put a high offer in to secure it” etc etc

    Under offer, no more viewings wanted – or needed. Best not to look deeper than that – I think there is a danger or reading too much into these things.

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  • mark wadsworth says:

    “I had an interesting thought as to why the LSL index is £220k vs c. £160k at the Land Registry.”

    According to Academtrics, they use mathematical average which is £220,000 and the median is about £180,000, they say so themselves. As we know, the median is far more interesting as a statistic.

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  • hpwatcher – under offer to me is irrelevant – I’ve even had one instance last year where contracts were exchanged and the buyers then pulled out !

    I consider myself to be very fair minded and reasonable but you are dealing with EA’s here – f00kwits and liars in my experience (and I’m going back to 1984)

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  • BTL investors may find themselves in a very different position. HB to be capped full stop. housing associations planning to reach affordable rents to be at about 80% of market value? Bearing in mind housing benefit will need to be able to cover these new housing association rents I can’t see they will be terribly high which will have a knock on effect to private BTL asking rents. To finish this off universal credit will be capped at earnings of £26000 so government are planning on rents becoming more affordable or they just haven’t got a clue.

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  • @15 hpw. The ea has proably encouraged the owner to sell at a snip,and now protecting his back-hander! In this instance a letter direct to the owner explaining your position might help. Help you, and help weed out crooked ea’s.

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