MSE News: 'House prices could rise 16% by 2014'

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"House prices will edge ahead by 2% next year but property values will be 16% higher by the end of 2014, an economics consultancy predicted today. The forecast contrasts significantly with those from many other economists."

Read the full story:
'House prices could rise 16% by 2014'

CloudCuckooLand

And the other side of the fence;

"Howard Archer, of IHS Global Insight, expects house prices to fall by 10% during the coming year, while Capital Economics still expects a 20% slide in values between now and the end of 2012."

mizzbiz

But it expects low interest rates, further quantitative easing (printing money) from the Bank of England and the ongoing housing shortage in the UK to offer some support to the market.

Yeah, support in the form of stopping them plummeting 50%, not going up further!!!

I do wonder where some of these people get their 'Economist' status. Although I guess it does explain why we're in such a mess - because the 'qualified experts' haven't got much more of a clue than the intelligent wo/man on the street. They don't have crystal balls either.

This article is objectively rubbish MSE.

mizzbiz

Douglas McWilliams, chief executive of the CEBR, says: "Quantitative easing is a very powerful medicine and is likely to have a strong impact on the housing market eventually.

Yes it will have a strong imact - DEVALUATION

Simon11

Can we set up a new policy?

If the economists get close to his predicted 16% increase he lives, otherwise we chop his head off

That show if hes just making new for himself and fibbing

TrickyDicky

In other news, a scientest proved that black is white and got himself killed on a zebra crossing.

dkmax_2

Assuming modest annual inflation of 4%, house prices would have to rise ~17% after 4 years just to retain their current value. A 16% nominal rise is actually a fall in real terms.

PhylPho

Ah, these impressive economics experts! Drape your 'consultancy' in some initials and there you are, instant credibility plus instant publicity.

Still, CEBR has some way to go to match the headline count of IFS, the Institute for Fiscal Studies, a body whose illustrious Executive Committee reflects the calibre of its work thanks to the presence there of an expert from the UK's greatest resource of fiscal expertise, er, HM Revenue & Customs.

Funny how when Joe Bloggs says something, no-one listens. But when Joseph Bloggs Global Equity Consulting -- JBGEC -- speaks, it's suddenly Gospel.

stevepett

If the Financial Services Authority have their way, their will be a price CRASH like we've never seen.

They feel that 46% of EXISTING people with mortgages should never have got them, and won't ever be able to get another, so their only possible move will be into long term care or rented accommodation.

These guys should have prevented the recession (which was due to financial instruments imported from the US under the sleeping eye of the FSA) and are the most corrosive influence at work in the UK today.

corbyboy

Is anybody else getting bored of MSE news articles with the words "might" and "could" in them?

Peelerfart

corbyboy wrote: »

Is anybody else getting bored of MSE news articles with the words "might" and "could" in them?

Yeah ! That's the job of the Daily Express innit ?