House Prices Soar By 10%

doire_2

IveSeenTheLight wrote: »

Here's the article.
http://www.express.co.uk/posts/view/171286/House-prices-soar-by-10-
He's used factual figures to show that house prices nearly rose 10% according to Nationwide.

The reporter explained this as


The daily mail also has a similar headline (came up during my goolge search for "house prices soar by 10%")
http://www.dailymail.co.uk/news/article-1268671/Spring-arrived-house-prices-soar-10-year.html

Thanks for the link.

So she bases her report on
A quote from an estate agent
Figures from the nationwide
Asking prices
Stamp duty

Is she a ten year old?

neas

has nobody mentioned he puts 'Good news across UK'... erm why ?

I do sigh at the brains of the UK... its reverse evolution i tells you. Im looking and am buying a house now but actually hope house prices drop down 20% still so when i make my next jump its cheaper :P

Batchy

THE ONLY people who want prices to increase are:-

The tax man (thresholds should be increased with inflation (annually)
the banks (more stability is needed to protect them, and their security, by the government)
and BTL's (more restrictions and rights for tenants like europe is needed, to avoid empty properties and to protect them from capital gains tax evasion)
Beneficiaries of wills etc.
Current owner occupiers don't really benefit a great deal till they sell up! If they EVER do!

The economy doesn't actually need above inflation increases

dopester

chucky wrote: »

i can't really tell you house prices will fall or rise - but for me i can't see them falling in nominal terms unless the credit markets dry up again.

but i can see it in falling in real terms with a very small level of HPI or prices staying basically flat for 18-24 months.

Nothing on the horizon which worries you about the credit markets drying up / or appetite for mortgage financing falling?

I'll make my prediction that from about mid-2010, we'll begin to see the main house price indexes registering falls in house prices. 2011 depends on the political will to prevent values correcting, but they can't buck the market for years. You can't have a recovery without a crash - and we didn't have a crash. We had a partial mini-crash then steroid-money and rescue schemes to get values pumped back up.

Yesterday's Sunday Times

Also missing, according to the industry, are answers to the biggest questions facing housing over the next few years. The Council of Mortgage Lenders (CML) has been through the three main party manifestos and found policies it likes, but its big worry is in an area none of the parties appears to have ideas about: how fill a £300 billion mortgage funding gap during the next parliament.

While the Tories talk about “less reliance on unstable wholesale funding” as a long-term ambition, the shorter-term problem will arise when lenders are weaned off emergency official support and have to roll over their borrowings in the markets. The danger, says the CML, is of a prolonged mortgage famine.

ukcarper

Batchy wrote: »

THE ONLY people who want prices to increase are:-

The tax man (thresholds should be increased with inflation (annually)
the banks (more stability is needed to protect them, and their security, by the government)
and BTL's (more restrictions and rights for tenants like europe is needed, to avoid empty properties and to protect them from capital gains tax evasion)
Beneficiaries of wills etc.
Current owner occupiers don't really benefit a great deal till they sell up! If they EVER do!

The economy doesn't actually need above inflation increases

I would add present owners who are in negative equity or have very little equity, as it would help them get a better mortgage interest rate.

I’m sure most people including most home owners would have been happy if house prices had increased in line with wage inflation but that didn’t happen.

IveSeenTheLight

doire wrote: »

Thanks for the link.

So he bases his report on
A quote from an estate agent
Figures from the nationwide
Asking prices
Stamp duty

Is he a ten year old?

Two different reporters, don't get them confused or what they are reporting on.
The rises are to the Nationwide / Halifax figures. They then go into other indicators

chucky

dopester wrote: »

Nothing on the horizon which worries you about the credit markets drying up / or appetite for mortgage financing falling?

not really - unless... the government plans to pay the debt off earlier.
these low rates suit the servicing of this debt by the government...
or
Libor and Swap rates rise completely out of synch with the BOE base rate putting people in all sorts of issues.

both could happen but are IMO unlikely

you may say inflation but it's not really valid - inflation is hitting us through the rising prices of imported goods. raising interest rates does not affect this - the pound value would. this is the more likely way to deal with imported inflation.

dopester wrote: »

I'll make my prediction that from about mid-2010, we'll begin to see the main house price indexes registering falls in house prices. 2011 depends on the political will to prevent values correcting, but they can't buck the market for years. You can't have a recovery without a crash - and we didn't have a crash. We had a partial mini-crash then steroid-money and rescue schemes to get values pumped back up.

as i've always said - the last 2 years weren't a real crash. it was an induced ones due to the credity market.

the real crash related to house prices is yet to come.
this is the one were the owner occupancy levels reverse drastically due to people not being to afford - we're a good few years away from this. 2011 for me is premature. i would have said 2018 at least.

the only thing that will avoid this happening is increased immigration and the limited supply and building of new property in the UK.

Turnbull2000

dopester wrote: »

Nothing on the horizon which worries you about the credit markets drying up / or appetite for mortgage financing falling?

I'll make my prediction that from about mid-2010, we'll begin to see the main house price indexes registering falls in house prices. 2011 depends on the political will to prevent values correcting, but they can't buck the market for years. You can't have a recovery without a crash - and we didn't have a crash. We had a partial mini-crash then steroid-money and rescue schemes to get values pumped back up.

Yesterday's Sunday Times

It’s highly unlikely that the emergency support will removed. All three parties will be well aware that the removal of this scheme will create a sudden fall in mortgage availability, placing downward pressure on prices. I think it’s fair to assume that support will remain in place until the mortgage securities market recovers to a level that will sustain more transactions, higher multiples and lower deposits.

chucky

Turnbull2000 wrote: »

It’s highly unlikely that the emergency support will removed. All three parties will be well aware that the removal of this scheme will create a sudden fall in mortgage availability, placing downward pressure on prices. I think it’s fair to assume that support will remain in place until the mortgage securities market recovers to a level that will sustain more transactions, higher multiples and lower deposits.

it's absolutely spot on - it would be political suicide to remove these and push the mood of the country back to 2008.

people say that they will have no choice. however, the worse choice for any government would be to remove it.

doire_2

IveSeenTheLight wrote: »

Two different reporters, don't get them confused or what they are reporting on.
The rises are to the Nationwide / Halifax figures. They then go into other indicators

I only read the first link and have changed he to she in my post.

I didn't bother reading the daily mail as they probably blame immigrants for the price rise