U.K. Home Prices Rise After London Reaches Record, Group Says

mystic_trev

April 9 (Bloomberg) -- U.K house prices increased in March for an 11th month after values in London reached a record, research group Acadametrics Ltd. said.

The average cost of a home in England and Wales was 227,788 pounds ($339,707), up 1.1 percent from the previous month, the group said in an estimate released by e-mail today. Values in London reached a record 376,605 pounds in February, the month with the latest available regional data, Acadametrics said. U.K. prices are now up 13.4 percent from year earlier.

British Banks expect demand for mortgages will increase in the second quarter as interest in housing revives, according to a Bank of England survey last week. The Acadametrics price measure for March matches that of Lloyds Banking Group Plc’s Halifax division released yesterday. Rising values may cheer home-owning voters in time for the May 6 election.

http://www.bloomberg.com/apps/news?pid=20601085&sid=afI78mS6bbE0

HAMISH_MCTAVISH

London at new peak, UK at + 13.4% YoY, mortgage lending increasing.......

:beer:

brit1234

The average cost of a home in England and Wales was 227,788 pounds ($339,707), up 1.1 percent from the previous month, the group said in an Estimate released by e-mail today.

Estimate ie guess tainted.

If everything is so rossy then why am I being penalised £1,000s of interest each year on my savings. Raise rates now then.

HAMISH_MCTAVISH

brit1234 wrote: »

If everything is so rossy then why am I being penalised £1,000s of interest each year on my savings.

Because low rates mean far more money available for spending in the economy.

From memory, the latest estimate is that low rates are costing savers 16 billion, but borrowers gain by 24 billion.

That's a net gain for society and the economy of 8 billion.:D

Raise rates now then.

Rates will be staying low for a long, long time. Best get used to it.;)

lostinrates

The other day I mentioned I knew of proerty being sold ATM by investors. Property in Londn is among that,. Property that had been planned to sell (market depending) in summer this year is instead being marketed NOW because the investor concerned believes the market will dip again soon, for a year or so, and he wants to realise the cash at somepoint in the next 2 years.

HAMISH_MCTAVISH

lostinrates wrote: »

Property that had been planned to sell (market depending) in summer this year is instead being marketed NOW

A whopping 2 months early.

I'm underwhelmed.....;)

because the investor concerned believes the market will dip again soon, for a year or so, and he wants to realise the cash at somepoint in the next 2 years.

If someone needs cash in a fixed timeframe, and can sell now for an acceptable price, then it makes perfect sense.

I don't expect big gains this year, and I do expect prices to fluctuate downwards as well as upwards over the next 18 months as the election progresses and the new government beds in.

But the chances of significant further falls are now vanishingly small. And fluctuations of a few percent won't bother anyone in it for the long term, investors or otherwise.

ruggedtoast

These increases in prime London property are excellent news for leveraged hovel owning slumlords in Scotland.

Somehow.

Harry_Powell

This underlines my decision to ignore the frightened bears on here and buy a house. We've seen 11% gains in my area, which would effectively priced me out of the market. 11% falls in the same period would have had little or no affect on my finances, other than annoying the hell out of me.

Bear advice should be given a health warning. In fact they should all have to divvy up to compensate anyone who followed their risky advice!!

ruggedtoast

Harry_Powell wrote: »

This underlines my decision to ignore the frightened bears on here and buy a house. We've seen 11% gains in my area, which would effectively priced me out of the market. 11% falls in the same period would have had little or no affect on my finances, other than annoying the hell out of me.

Bear advice should be given a health warning. In fact they should all have to divvy up to compensate anyone who followed their risky advice!!

I've always said people should buy if its right for them and they can afford it.

As far as risky advice goes. Well I work with a chap, him and his wife sunk all their savings, £40k into a house in London, along with a £210,000 fixed rate interest only mortgage, in 2007.

Now they are about to be booted onto the banks SVR, whch they can't afford. They are having real problem remortgaging onto another product as despite the £40k they put in the lender says they are now almost in negative equity. There are no more interest only products available to them.

I really hope they can keep their home, it is no fun seeing a friend so worried every day.

lemonjelly

lostinrates wrote: »

The other day I mentioned I knew of proerty being sold ATM by investors. Property in Londn is among that,. Property that had been planned to sell (market depending) in summer this year is instead being marketed NOW because the investor concerned believes the market will dip again soon, for a year or so, and he wants to realise the cash at somepoint in the next 2 years.

Interesting.

Presumeably, as an investor this person is a professional in business? If that is the case, why do they believe a dip is forthcoming?

lostinrates

lemonjelly wrote: »

Interesting.

Presumeably, as an investor this person is a professional in business? If that is the case, why do they believe a dip is forthcoming?

Hamish, the two months early is an issue: the tenants have had to be ''bought off'' on a few million pounds worth of residential property that's not underwhelming. That the tenants were willing to be is also fairly interesting. I can't imagine that they'll get better rents than say, 9-10 months ago?

No, not main line of business. An aside. To explain the conversation would be too revealing of source on open forum. Sorry! I'm fairly happy to tell you via PM if you are really interested?