Nationwide UP 0.6% MoM & UP 0.9% YoY

Generali

wotsthat wrote: »

I think you're right. Most people work on nominal values so if house prices recover most won't realise or care that they are really worth less.

The problem as I see it is that we're in a phoney war. We'll continue to see sub inflationary increases in house values but this can't continue as there's a shortgage of housing and low confidence and restricted mortgage conditions means demand is being artificially removed.

I suspect increasingly the problem is that the Government is borrowing most of the cash that is available for lending, after all you can only lend a pound once so if the Government takes it then that's a pound that's unavailable to potential house buyers or businesses to invest.

Graham_Devon

wotsthat wrote: »

Governments doing all they can to try and maintain economic stability. It seems crazy - you'd think they learnt nothing from the depression of the thirties that led to a wonderful period of world peace and prosperity.

Apart from this is nothing like the depression of the 30's.

I listened to an article on my local station the other day, as the traffic news cuts in whle driving, and they seem to forget to turn it off. Was discussing local housing, so tuned in.

They had 2 people discussing the issue, one a BTL. The BTL landlord had, since 2008, taken on another 7 properties. This, in his own words, was due to lower mortgage payments on his existing portfolio allowing him to direct the cash saved into a 2nd mortgage. He stated he is able to pretty much pay 2 mortgages for the price of 1 in 2006.

That got me thinking, as BTL's have no real problem in getting mortgages. Were seeing the effects of this, as he can't be the only one taking advantage of cash flow, in the home ownership statistics.

We've got a lending / debt / housing crisis issue, allowing more debt and lending to happen for those in the game.

We've got, what are now classed as completely normal rock bottom interest rates which we are now building new foundations on. We've got to a point where gone is the prospect of interest rates going up and people holding back. People are now treating them as the new norm and plannign around it. Taking finance based on it and building up new portfoilios.

We've got stock markets that take not a blind bit of notice of the Greek crisis anymore, but have a mini surge when another unsustainable package is announced. The markets now KNOW that Greece will not be allowed to default, and therefore take no notice of all the nonsense surrounding issues.

We've probably got more QE coming, as no matter how much they pump in, the pound still rises. Must be annoying Mervyn somewhat....or is it?!

That Thursday meeting at the start of the month used to mean something. Now no one even cares. We all just assume, quite rightly to be honest, nothing will be done to upset the new applecart.

My point isn't being made very well, I realise that. What I am saying is I was wrong. I assumed, naively that a crash meant a crash. I didn't assume a crash meant everything that caused the crash got richer and thrown not only a lifeline, but better conditions to carry on with the problems that caused the crash in the first place.

Graham_Devon

noodle_doodle wrote: »

It's a house price stagnation, but that doesn't make for a snappy web site title

inflation will chomp away at the real prices of houses, and quickly too - anyone who believes inflation is just 4% when you look at how petrol prices, food prices, childcare etc are soaring is on crack. I was in the supermarket the other day, over £2 for a single packet of mcvities chocolate digestives! I ask you!

The only problem is our wages aren't shrieking up with inflation either

Doesn't help with affordability though. House prices can fall against inflation, but so are earnings.

System

JonnyBravo wrote: »

Yep and a bit more anecdotal for the (improving?) picture.
Our company is giving an average of 3% this year in payrises.
Sure, it's under inflation but it's a been an increasing trend for 3 years now.... slow but sure it seems.

3.5% at our place, up from 2% last year

Interestingly at our place they are giving the highest payrises to the lowest earners, so the low grades are getting 4.5% and the high grades getting 2.5%, to recognise the impact inflation has on people.

This is the first time I've felt that things seem to be sorting themselves out. Also noticed the DOW and FTSE are hovering around a 2 year high.

Pimperne1

CRASH_BANG_WALLOP wrote: »

House price rise is temporary, says Nationwide

Whilst Nationwide are pretty good at reporting what has happened they are woeful in forecasting what might happen in the future.

nicko33

Graham_Devon wrote: »

Doesn't help with affordability though. House prices can fall against inflation, but so are earnings.

In one way it does. If you're saving for a deposit, the target amount stays still rather than increasing.

Mr._Pricklepants

Things are definitely picking up.

At our place, salaried staff was on a pay freeze since 2008 and this year there will be approx. 4% increase.
I'm on a bonus structure, so not that bothered, but another good sign is we are recruiting full blast again after years of nagging on head count and related expenses.

CRASH_BANG_WALLOP

Joeskeppi wrote: »

3.5% at our place, up from 2% last year

Interestingly at our place they are giving the highest payrises to the lowest earners, so the low grades are getting 4.5% and the high grades getting 2.5%, to recognise the impact inflation has on people.

This is the first time I've felt that things seem to be sorting themselves out. Also noticed the DOW and FTSE are hovering around a 2 year high.

amazing dude a couple of pay rises here and there and things are now sorting themselves :rotfl:someone tell the greek dudes or the youngsters signing on everyhting is ok now

MrRee_2

It's coming up roses for WINNERS!!

Losers will always be also-rans in the race of life.

Big payrises are feeding through - 6% minimum here due very soon ....

Savings UP massively - FTB's saving £1000 a month minimum.

Buyers buying ....

It really does feel like summer!!

I'm so pleased for everyone who makes winning their motto!!

REJOICE!!!!

IveSeenTheLight

noodle_doodle wrote: »

It's a house price stagnation, but that doesn't make for a snappy web site title

inflation will chomp away at the real prices of houses, and quickly too - anyone who believes inflation is just 4% when you look at how petrol prices, food prices, childcare etc are soaring is on crack. I was in the supermarket the other day, over £2 for a single packet of mcvities chocolate digestives! I ask you!

The only problem is our wages aren't shrieking up with inflation either

I'm sure the pack of chocolate digestives would fall under the luxury category.
It's not exactly staple food.

You also need to wonder why chocolate has increased so much.
Could it be because of supply and demand?

There are still chocolates buying chocolate (no offence just meant as a stupid joke), thus demand is maintained, meanwhile supply can be restricted because of investor cornering the market
http://www.bbc.co.uk/news/business-10682433

As in any market, supply and demand drive the prices and whilst we can complain that inflation is high it's simply a reflection of the affecting parameters.

I saw a documentary the other day regarding the cost of childcare in the UK compared to other places such as Norway.
UK costs were higher predominantely because the cost of employees (partly as a result of minimum wage and regulations).

They will rise until the market demand is reduced to meet the supply, else the supply is increased to cope with the demand.