Thursday, December 4, 2014

Prices still rising, but not so quickly

House price growth slows in November, says the Halifax

Halifax, part of Lloyds Banking Group, said that property prices were 0.4% higher last month than they were in October. "The price of the average home in the UK was £186,941". That's 8.2% growth YoY.

Posted by alan @ 09:12 AM (2824 views)
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16 thoughts on “Prices still rising, but not so quickly

  • It’s amazing that house prices rose at all with some of the current headwinds against house prices. On the other hand, this site is a great indication of how keen people remain to own a house. There are hardly any renters left here now. If hpc’ers are nearly all owners now, imagine how keen ‘normal’ people are. In a year of falling mortgage approvals what could have caused house prices to rise by about 8%? Answers on a postcard. The winner gets a cigar for stating the obvious. Anyone suggesting that its because our population has shrunk and that we now have more houses per person than ever before, gets the 2014 Coco the Clown award

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  • Near zero rates bailed out potentially struggling homeowners who now cannot move because they don’t fit
    Into MORTGAGE criteria so they are staying put and are not forced to sell causing a supply shortage

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  • tafee you are confusing the number of houses on the market at any one time with a physical shortage. They are different things. It doesn’t matter if 10 houses are for sale or 100, people remain in their house whilst it is for sale. When people put their house on the market, they don’t suddenly evaporate leaving an empty house.

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  • It’s amazing that house prices rose at all with some of the current headwinds against house prices.

    Never heard of the 42 billions of FLS….or even help to buy? What about the lowest interest rates in 300 years?

    On the other hand, this site is a great indication of how keen people remain to own a house

    Obviously, but at a fair price. But membership of this website has fallen dramatically in the last few years. Now, it’s a pale imitation.

    For someone who seems to pride themselves on their objective view, it’s surprising how little you know of what is really going on.

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  • Flashman

    There was no shortage of property when rates were 5.75% and btl went down the pan and there were forced sellers

    Simple as that…there is always demand for property is credit supply/props and near zero rates distorting the market

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  • with some of the current headwinds against house prices

    You mean like a fake recovery?

    Just wait until after the general election; things will start to look VERY different then. All the pieces of the puzzle are now in place.

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  • taffee, the shortages were less then because in the six years since those sort of rates, the population has increased by a few million people and in that same time we’ve been building at near record low rate. Do you think that every major political party and every housing trust and charity is screaming about dire shortages for a joke? Do you really think you know better? I like the occasional alternative theory but these days people who say that there is no shortage of housing are putting themselves on the same inane level as people who say that inter species sex caused aids and black people can’t swim because they’ve got heavy bones.

    hpw, your FLS comment illogical and at odds with mortgage approvals falling this year. FLS for mortgage related borrowing was scrapped in 2013. Repeat: mortgage approvals have fallen this year. I don’t think this sort of debate is your thing really.

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  • “It might have been scrapped, but the money was already sitting with the banks, waiting to be pumped in”

    Third repeat: mortgage approvals are down this year.

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  • Third repeat: mortgage approvals are down this year.

    So what? The prices are up this year to the tune of 8.5%, I am saying that it’s due to FLS money.

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  • “Prices are up this year to the tune of 8.5%, Im saying that it’s due to FLS money”

    That’s actually impossible. You’ve been repeatedly making the same claim without once bothering to read “the literature” on the transmission mechanism of the FLS. Cheaper funding was only given to the banks in increments after they’d shown willing to lend …not before. If they didn’t lend they wouldn’t get the next increment. As the housing loan part of the FLS scheme was terminated in 2013, it’s a somewhat ludicrous argument to make that they would still be receiving cheaper funds for making loans in 2014. Quite apart from that, its a bit silly to claim that more credit caused the 8.2% rise in pricing when mortgage approvals were down. Are we on candid camera?

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  • Here is a simple explanation of why house prices are increasing despite the fact that mortgage approvals are falling. If you take the total value of credit issued as mortgages (on dwelling purchases, not housing association stuff or remortgaging) in Bank of England series B4B5, and divide this by the number of house purchases (VTVX) over the past 1.5 years you get an upward sloping graph and about 6% y-on-y increases. So credit issued per house purchase has been increasing. I imagine it only takes a small number of competing buyers armed with large mortgage facilities to drive up house prices, and this effect will be more marked the less sellers there are on the market Stats are here http://www.bankofengland.co.uk/statistics/Documents/bankstats/current/TabA5.4.xls. Discalimer: first time I’ve looked at these specific tables & I haven’t read all the footnotes so I could be talking crap! But on the face of it …

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  • And according to official statistics there are more dwellings per head of population than there ever were before.
    Yours,
    CoCo.

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  • “So I could be talking crap”

    You do realise that home economics is not the same thing as economics?

    “There are more dwellings per head than ever before”

    Bungle bangle floop?

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  • As usual Flashman, when it comes down to it, you don’t actually engage with any contrary points of view, you just espouse your own viewpoint and apparently want to score rhetorical points with silly soundbites. Which is a shame.

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  • >bungle bangle floop

    Er, no, DCLG and the census, actually. Last time we discussed this you spouted some unsubstantiated opinion about sewage being an additional indicator of population growth not measured by the census.

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  • Ah yes but green Froogle goop. Magna carting censusing bat wongle. Sorry can’t think of any response more appropriate to you level of comment. Or perhaps like this….

    Do di di doot dooo dooooo. Here comes preposterous south coast man armed only with his intimate knowledge of SLR cameras taking on the considered opinion of all three main parties, every housing association, housing trust and housing charity along with every major council in England and the army of analysts and professionals who work for these organisations.

    Don’t take offence, I’d be just as dismissive of someone claiming to have seen the tooth fairy.

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