Land Registry DOWN again in May.

Generali

Masomnia wrote: »

March's RPI was -0.4% I believe, so if house prices fell 0.2%, does this mean we've technically had real terms HPI?

Kinda.

If you believe that the RPI is the best measure of inflation right now (it usually is but due to rapidly falling interest rates RPIX would be my prefered measure for the time being) then yes, in real terms house prices rose.

mewbie_2

Generali wrote: »

in real terms house prices rose.

Now you're just messing with my head.

Generali

mewbie wrote: »

Now you're just messing with my head.

Sorry about that old thing.

Masomnia

Generali wrote: »

Kinda.

If you believe that the RPI is the best measure of inflation right now (it usually is but due to rapidly falling interest rates RPIX would be my prefered measure for the time being) then yes, in real terms house prices rose.

Yeah just how appropriate it is as a measure did cross my mind, according to the BBC my personal rate of inflation was 5.6% a few months ago; so clearly bears little relevance to me personally. For those on base rate trackers who are worried about their house's value I guess it's pretty good news.

Graham_Devon

mewbie wrote: »

Now you're just messing with my head.

It's easy. Like Brown telling us cuts are investments and he's raising the amount he spends. With figures you can massage them to tell people whatever you want.

If Brown can call cuts, rises, I'm sure we can call falls rises too

ad9898_3

chucky wrote: »

that's a whopping massive 0.2%
Timber!!

That's absolutely fine, I think we have all been spoiled with th large drops last year, however those drops are likely to come back in the winter. Any drop is a good drop, yes ?

chucky

ad9898 wrote: »

That's absolutely fine, I think we have all been spoiled with th large drops last year, however those drops are likely to come back in the winter. Any drop is a good drop, yes ?

yep - hence the sarcasm. drops may come, they may not - more than likely they will.

what was your point, about any drop being a good drop?

ad9898_3

chucky wrote: »

what was your point, about any drop being a good drop?

Just that really, from my side of the fence I enjoy seeing prices fall, just as someone who is maybe a BTL'r or employed in construction etc, may see price rises as a good thing.

Price rises would have been a good thing if they had stayed at wage inflation levels, but without legislation it will never happen........ which is a pity really because the prices of houses is always the subject of misery for everyone, it just affects different parts of the population at different parts of the cycle............ house price boom and bust is always bad for someone. It needs legislation to end it, once and for all......... this is the forth boom/bust in the last 4 decades, and the result is always the same..........bad.

chucky

ad9898 wrote: »

Just that really, from my side of the fence I enjoy seeing prices fall, just as someone who is maybe a BTL'r or employed in construction etc, may see price rises as a good thing.

Price rises would have been a good thing if they had stayed at wage inflation levels, but without legislation it will never happen........ which is a pity really because the prices of houses is always the subject of misery for everyone, it just affects different parts of the population at different parts of the cycle............ house price boom and bust is always bad for someone. It needs legislation to end it, once and for all......... this is the forth boom/bust in the last 4 decades, and the result is always the same..........bad.

if i was really honest - i don;t actually know if house prices falling or rising are a good thing. there are too many good points for both. however, the house rise argument can be interpreted as a selfish one though. price rising at inflation rates is impossible to legislate for in western society

btw - BTL's do best from lower prices as long as they don't need to sell during a HPC.

skap7309

chucky wrote: »

btw - BTL's do best from lower prices as long as they don't need to sell during a HPC.

A good point to make, however how many saw the money being made over time and jumped on the steam train that was BTL during the 'crazy' period, i.e. when HPI was beyond rampant?

BTL lending rose from 630,000 mortgages only as far back as the end of 2005 to a whopping 1,156,000 :eek: by the end of 2008. Anyone who failed to put down a substantial deposit (and i am sure this will be a large percentage) may well find themselves getting deeper into NE & the brown stuff.