House prices just keep on rising

bap98189

House prices going down or holding steady eh! Doesn't look like it.

Where are all these buyers getting the money from? As a non home owner who is completely priced out of the market it's beyond my comprehension.

http://news.bbc.co.uk/1/hi/business/5334044.stm

Annual house price inflation in the UK picked up pace in July, according to the latest government figures.

The Department for Communities and Local Government (DCLG) said prices rose by 6.0% during the month, up from 5.2% in the year to June.

In particular, prices surged ahead in London, with annual price inflation in the capital rising from 5.8% in June to 7.0% in July.

The average property in the UK now costs £194,454, the DCLG said.

Across England, house price inflation rose to 5.5% in July, compared with 4.6% in June

In Scotland, house price inflation rose to 9.3% from 8.9%.

But price inflation in Northern Ireland and Wales fell back a touch between June and July, but from historically high levels.

In Northern Ireland the rate fell from 19.1% to 18.3%, while in Wales the rate fell from 8.5% to 7.4%.

"The acceleration in house price inflation...confirms that the property market enjoyed a firm rebound during the summer months," said Milan Khatri, of the Royal Institution of Chartered Surveyors.

All regions of the UK are experiencing annual house price growth above the level of the retail price index.

manhattan

"dont believe the hype"

F_T_Buyer

It's 6% over the year, the BBC are clueless.

Eitherway, it shows what other surveys have been showing. The interesting bit is what the leading surveys show in the months ahead after the rate rise!

bap98189

manhattan wrote:

"dont believe the hype"

What hype? The statistics are presumably based on land registry data, so should be accurate.

manhattan

bap98189 wrote:

What hype? The statistics are presumably based on land registry data, so should be accurate.

"presumably" thats a good word.

Angela_D_3

Disagree they fell 12% in my area in the last 6 months, one house is down from £405k to £340k and still hasn't sold.

movieman

The statistics are presumably based on land registry data, so should be accurate.

But there's a problem.

If you look at, say, the price of a gold krugerrand today and compare it to the price last year, you can easily see how much it's increased or decreased in price, because they're essentially identical. But unless the land registry data is for exactly the same houses as last year, there's no way to do a similar comparison. If a lot of cheap houses sold last year with no-one buying expensive houses, and this year no cheap houses sell but one expensive house does after the seller cut the price by 100k, then the housing market is collapsing but the average sale price is going up!

So about all you can really say from these figures is that some people are buying houses. Anything more than that is just a guess unless you do a detailed study of the figures, which might show a rise, a drop or stagnation.

Doozergirl

Angela_D wrote:

Disagree they fell 12% in my area in the last 6 months, one house is down from £405k to £340k and still hasn't sold.

Err, I think that's what you'd call an over-optimistic vendor. You get those in any area in any market; it's hardly indicative of HPI.

Victoria_Falls

This is a good website for information on the current housing market.

https://www.hometrack.co.uk

SmartGirl_2

Angela_D wrote:

Disagree they fell 12% in my area in the last 6 months, one house is down from £405k to £340k and still hasn't sold.

Which area is this in?

SammyD_2

My house was valued at £289 000 in January, which at the time I thought was about right. It went on the market last week at £325 000 - got six offers by Saturday, three of which were at the asking price. All with no chain.

It all depends on the area and the house (obvious really)...we held out for ages to find our house (we looked at 37 houses and then sat in a chain for six months) but chose it because of a quiet location, close to transport and good room sizes. Things in our area are having price reductions though, but usually it is for a good reason - the house is on a busy road, or has very small rooms. Everything else is snapped up.

Not celebrating just yet though - wait for exchange for that.