Wednesday, July 2, 2014

Here we go again

House prices soar by 11.8% in a year, the biggest increase for almost a decade as the average London home tops £400,000 Read more: http://www.dailymail.co.uk/news/article-2677627/House-prices-soar-11-8-year-biggest-increase-decade.html#ixzz36IgrKtfT Fo

Now they are saying measures that are being taking now will stop any future problems with excessive rises. What utter rubbish; this is total mismanagement on housing policy.

Posted by sosoon @ 10:15 AM (3056 views)
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6 thoughts on “Here we go again

  • Price rises are easy when you have a 42 billion pound government scheme pumping money in – that’s the wonder of FLS.

    So why would they try and stop any future problems, when UK government created them?

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  • The proposed BOE measures limit risky lending growth to double its present levels. Most risky lending will happen in the Capital. House prices there, particularly in the suburbs could double in the next ten years as waves of immigrants pour in from a depressed Europe and corporations flock to the capital with corporation tax plummeting to 20% vs almost 40% in France and USA.

    Britannia now rules the waves with the banksters in the City of London using the financial crisis and the various recent wars to position London plc. for global hegemony.

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  • House prices there, particularly in the suburbs could double in the next ten years as waves of immigrants pour in from a depressed Europe and corporations flock to the capital with corporation tax plummeting to 20% vs almost 40% in France and USA..

    And there speaks a true housing perma-bull.

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  • @libertas – You have one thing wrong about the doubling of risky lending levels.

    New loans with income multipliers above 4.5 x ‘gross household income’ where over 20% in London. BOE has taken the step of reducing the number of high income loan to value mortgages to a maximum of 15%.

    In other words 5% of highly leveraged London sales will not be going through and the price of those high end properties will have to be reduced to match the new lower price demand – BOE having effectively reduced demand for highly priced London property.

    This negative feedback loop will cascade through London in a reversing the trend we have witnessed over the last couple of years.

    You ca come here justifying your London purchase every day if you like, but that still does not change the fact you have way overpaid for a pile of deteriorating bricks at the top of the biggest bubble in history. To me it looks much like self sabotage.

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  • bidin'matime says:

    @Libertas – ‘House prices there, particularly in the suburbs could double in the next ten years as waves of immigrants pour in from a depressed Europe’ – just how are immigrants from a depressed Europe going to be able to double London house prices? Unless you expect wealthy Europeans to be flocking here – seems unlikely. Also don’t overlook the CGT charge that comes in from April 2015 on non-residents owning UK residential property – that will slow down the wealthy investors.

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  • Bidin-time, I’d imagine that European investors will be treated as residents. CGT changes will only apply to people from outside Europe, or else there would be challenges in the European courts. It will have minimal impact, as these folks will purchase mainly via limited companies owned in Britain that are already subject to CGT.

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