Wednesday, July 23, 2014
An interesting one for the Homeowenerists…
BBC drives biggest rise in house prices
What to say? It's absolutely fine for idle landowners to trousers billions from CrossRail, but what if the source of the unearned windfall is that enemy of capitalism, the BBC?
Posted by mombers @ 02:22 PM (1854 views)
3 thoughts on “An interesting one for the Homeowenerists…”
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Jazzman says:
The media continue with their drive for self-fulfilling prophesy, no doubt sponsored by large developers who have been active in areas such as Salford due to its captive market. It has seen a 9% increase in home values this year, but that almost certainly is due to high demand for flats in new developments near the BBC. However, prices are only back to spring 2012 values which saw a similar rally followed by a two year decline, and they are still 17% lower than 2008 peak prices. Zoopla data are pretty suspect from what I’ve seen. The best source for price movements is the Land Registry which uses repeat sales considered the most accurate measure of prices. So before you go diving into Salford buy to lets, it is far from clear the area is doing well. Since 2008, there have been three mini rallies followed by long periods of declining prices. Why should we expect this one to be any different, especially in light of imminent interest rate hikes. Moreover, in terms of investing, Salford offers a paltry capitalization rate due to high prices and low rents, a good measure of affordability.
hpwatcher says:
I’ve heard lots of first hand accounts about BBC Manchester staff being robbed, mugged and generally beaten up.
Salford is a VERY rough place. I stayed in a hotel there once….it had 15ft high fencing all around it.
Joe says:
Salford saw three small rallies in prices since the bust. However, each rally was followed by long declines in prices, wiping out all the gains. The rally at the beginning of this year will likely follow suit as higher interest rates kick in.