House prices still rising, says Nationwide

Spiv_2

Prices went up by another 0.5% in May, pushing the price of the average UK home up to £169,162 which was £15,000 more than a year ago.
Annual house price inflation fell slightly last month though, from 10.5% to 9.8%.
But the Nationwide said prices might keep on rising modestly as few properties were being put up for sale.
"Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months," said the Nationwide's chief economist Martin Gahbauer.
"The current supply-demand balance on the market is still consistent with relatively stable to modestly upward trending prices."

http://news.bbc.co.uk/1/hi/business/10219681.stm


also http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aDCXlirvVRSY

and http://m.guardian.co.uk/?id=102202&story=http://www.guardian.co.uk/money/2010/jun/03/house-prices-edge-2007-peak

HAMISH_MCTAVISH

Spiv wrote: »

"The current supply-demand balance on the market is still consistent with relatively stable to modestly upward trending prices."

Says it all, really.

DaddyBear

Slow and steady is good. Looks like the YOY figure has peaked. I'd expect that to be around 5% by the turn of the year.

Spiv_2

He said that the plans to increase capital gains tax (CGT) on the sale of assets, which currently include buy-to-let properties, could have an impact on the market in the current months depending on how they are timed.
"If there is a significant time lag between the announcement of the increase and its actual implementation, then some second home owners and buy-to-let landlords may decide to sell in advance of the higher rate being introduced," he said.
"Such a development could lead the supply-demand balance to shift more in favour of buyers and relieve the current upward pressure on house prices."
He added that if the changes were to be implemented with immediate effect from the budget, on 22 June, then sellers would not have time to react and the impact would barely be noticeable.
However, there is already evidence that some sellers are trying to shift properties ahead of a CGT announcement. A number of estate agents, predominantly in the south-east of the country, claim they have been contacted by buy-to-let landlords pressing for a quick sale in the last few weeks.

Nationwide's chief economist, Martin Gahbauer, said the above about impending CGT rise

Spiv_2

Nationwide's house price report reflects similar findings from the Land Registry, which were released earlier this week. It reported that overall, house prices rose slightly by an average of 0.2% in England and Wales during April and 8.5% over the past 12 months, although there have been big regional disparities. Houses in Brighton and Hove produced the highest annual price change during April, it said, rising by 16.8% year-on-year.

16.8% :eek:

HAMISH_MCTAVISH

DaddyBear wrote: »

Slow and steady is good. Looks like the YOY figure has peaked. I'd expect that to be around 5% by the turn of the year.

Absolutely.

YoY has peaked, 5% by the end of this year sounds about right, and I'd expect it to slow to around 3% by next spring.

2011 will be the slowest growth year, but prices will pick up markedly again in 2012.

pault123

UK house prices are now less than 10pc below their record peak



http://www.telegraph.co.uk/finance/economics/houseprices/7799835/UK-house-prices-are-now-less-than-10pc-below-their-record-peak.html

dgl1001

pault123 wrote: »

UK house prices are now less than 10pc below their record peak



http://www.telegraph.co.uk/finance/economics/houseprices/7799835/UK-house-prices-are-now-less-than-10pc-below-their-record-peak.html

We had our house valued the other day. We bought it at the peak with the valuation coming in at about 10% off the purchase price. Was expecting a drop in house prices for the month due to the lack of confidence/ euro troubles. Perhaps the market is stronger than I first thought?

doire_2

0.5% - is that the spring bounce?

IveSeenTheLight

Spiv wrote: »

Nationwide's chief economist, Martin Gahbauer, said the above about impending CGT rise

If there is a reduction in rentable properties, what is the likely impact on rents?

IveSeenTheLight

doire wrote: »

0.5% - is that the spring bounce?

What would a monthly rise of 0.5% compound to annually?
The answer is 6.17%.

Are you happy with an annual house price increase of 6%?