Express - HOUSE PRICES SET TO SOAR

Turnbull2000

http://www.express.co.uk/posts/view/172842/House-prices-are-set-to-soar

HOUSE prices are to soar by at least 20 per cent to crown a hat-trick of good news for homeowners, property experts predicted last night.

Rock-bottom interest rates, cheap mortgages and a shortage of supply are set to fuel a “significant” new property boom.

Stuart Law, chief executive of Assetz, said: “These latest figures confirm that the UK housing market is well advanced on its path to recovery. Post-election we would expect to see house prices continue to firm up as a result of renewed consumer !confidence in the market, with a Conservative majority encouraging the highest levels of growth.”

Property investment expert Sarah Barrett said: “It’s imperative that interest rates don’t rise any time soon. That would have a catastrophic effect on the housing market recovery and could see us plunge into a double dip. This would have an impact on the wider economy. Low rates help owners who are struggling.”

The Express stays true to form as always, whereas Channel 4 report this prediction in a less sensationalist manner. Either way, headlines and reports like this can only tip sentiment and prices expectations in one direction.

http://www.channel4.com/news/articles/uk/house+prices+will+increase+by+5/3634397

House prices will rise by 5% during 2010 despite their sluggish start to the year, research claimed.


The centre for economics and business research (cebr) said a combination of low mortgage rates and a shortage of new homes being built would push up house prices by 5.3% during the year to average £172,500.


It then expects lower price growth of 3.4% during 2011, followed by a strong rise of 9% in 2012.

So how long will this new upward phase last? The last one was 13 years following the early 90's crash. The 2008 crash was relatively short, leaving prices somewhat higher than expected - so we're already starting from quite a high point. Both Labour and Tories have pledged to push shared-ownership quite hard if elected, but I can only see this being effective i.e. pushing up prices, if the government is willing to subsidise old build as well as new.

Emy1501

If peoples opinions on house prices are simply based on Haliwide figures then I suspect we will have rises for ever.

I suspect the fact that we will see cuts over the next few years bigger than anything since the war or the 80's means something.

Also which figures show that the markets on its way to recovery? Is it the low mortgage approvals? The poor figures from RICS? No its the Haliwide figures which are simply based on properties which actually manage to sell. Of course homeowners will be able to take comfort from the fact their house is worth X. The fact they cant actually sell them will be seen as irrelevant!

AbbieCadabra

i always feel like i've slipped into the twighlight zone when i see these type of reports! perhaps i just have a simplistic/naive view of things, but i just can't understand where all this 'boom in the housing market' is going to come from when people are losing jobs at such a rapid rate at the moment...

chucky

Emy1501 wrote: »

Also which figures show that the markets on its way to recovery? Is it the low mortgage approvals? The poor figures from RICS? No its the Haliwide figures which are simply based on properties which actually manage to sell.

or you could accept the fact that every single house price index is showing the same trend or are all of the house price indexes wrong?

you can't go and say the Halifax is wrong when they all say the same thing


not too long ago you weren't a fan of the RICS report - have you changed now because it suits your viewpoint or you don't want to accept house prices may have risen.

you're going to have to get your story straight at some point... :eek:

Emy1501 wrote: »

Personally it would not surprise me if RICS end up wtih egg on their face. How they believe they can predict public sentiment in the present climate is beyond me.

and you weren't a fan of them here either...

Emy1501 wrote: »

RICS also said at the end of 2008 that prices would fall by 10% in 2009 so they were wrong again.

MrEnglish

If house price actually go up even more as wages continue falling and credit tightens then no one will be able to buy a house. Wait a min..........

nollag2006

MrEnglish wrote: »

...as wages continue falling and credit tightens ..........

Neither of these things are occurring, in fact the opposite is the case.

MrEnglish

nollag2006 wrote: »

Neither of these things are occurring, in fact the opposite is the case.

So after the election you dont think there will be cuts? :rotfl:

chucky

MrEnglish wrote: »

So after the election you dont think there will be cuts?

and these cuts are just going to affect home owners exclusively...

DaddyBear

chucky wrote: »

and these cuts are just going to affect home owners exclusively...

Yes. Either directly or indirectly as tenants struggle
to pay rent.

FATBALLZ

chucky wrote: »

and these cuts are just going to affect home owners exclusively...

No they will also affect those looking to become homeowners

MrEnglish

chucky wrote: »

and these cuts are just going to affect home owners exclusively...

When I said that I meant pay cuts, we were talking about wages continue falling.

Of course there has to be cuts in general as well as tax NI raises or maybe VAT going up to 20%.

All this does indeed have an big impact on house prices.