MSE News: House prices show biggest annual growth in two years 6 March 2013 at 12:02PM in House buying, renting & selling 9 replies 2K views

Former_MSE_Helen

"House prices saw their biggest year-on-year growth in more than two years in February, says Halifax..."

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House prices show biggest annual growth in two years




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poppy10_2

1.9% per year is still lower than the CPI/RPI. If wages were rising in line with inflation this would be a real-terms fall in house prices.

martinsurrey

poppy10 wrote: »

1.9% per year is still lower than the CPI/RPI. If wages were rising in line with inflation this would be a real-terms fall in house prices.

but wages have only risen by 1.3% in 2012

http://www.ons.gov.uk/ons/key-figures/index.html

so a real increase in house prices compared to wages.

a house is cheaper now measured in loaves of bread, but not in terms of income multiples.

zerog

What's the rise (or maybe even fall) if houses in London (+/- south east) are not included?

poppy10_2

zerog wrote: »

What's the rise (or maybe even fall) if houses in London (+/- south east) are not included?

I think the Halifax regional data is only updated quarterly - this is from Q4 2012:

Tancred

Where I live, in Berkshire, asking prices are rising relentlessly. Of course this doesn't mean that sales are forthcoming at those prices, but the number of properties on the market is very low. Competition is forcing buyers to offer more for houses that are not really worth the money.

Old_Git

Northern Ireland -18%.I think I will keep my money under the mattress a bit longer

HAMISH_MCTAVISH

Scotland +6.7%.

Nice.

marathonic

I've just recently bought in Northern Ireland. Have to take the plunge sometime and I'd rather avoid the bidding wars on the way up. I may not have timed the bottom but I don't think I'm too far away.

The thing about Northern Ireland is that a lot of places are cheaper to buy than rent (in the sub £125k bracket).

Therefore, in buying, you're saving money every month compared to renting (very little in it though according to my calculations for my own house when including 1% of property value for annual maintenance).

Also, regardless of salary inflation, the mortgage debt is being eroded away.

HAMISH_MCTAVISH

poppy10 wrote: »

1.9% per year is still lower than the CPI/RPI. If wages were rising in line with inflation this would be a real-terms fall in house prices.

Other indices such as Acadametrics or ONS are showing prices rising in real terms.

http://forums.moneysavingexpert.com/showthread.php?t=4485757