Hometrack- Help to Buy and FfL set to bolster house prices, and safe haven UK

Turnbull2000

http://www.dailymail.co.uk/news/article-2298606/Biggest-rise-house-prices-years-Overseas-buyers-Britain-safe-haven-eurozone-crisis.html?ito=feeds-newsxml

"Looking ahead, the continuation of the FLS together with Budget initiatives aimed at supporting lending and demand for new housing, will only serve to support pricing levels.

"The general improvement in market sentiment on the back of rising prices will be welcomed across the housing industry.

London has enjoyed strong demand from wealthy overseas buyers who see the capital as a "safe haven" from the troubles of the eurozone.

Richard Donnell, director of research at Hometrack, said that the latest crisis in Cyprus "will only serve to further boost the flow of international funds into the capital".

All signs point to further price improvements this coming year. Looks like the strong Spring bounce I predicted is gathering pace too.

dryhat

Billionaires buying london property.

That's gotta be great news for the rest of us.

We're saved.



Moved out of your sister's spare room yet?

moneyinmypocket

Yes good news for home owners ladder up jack

Conrad

dryhat wrote: »

Billionaires buying london property.

Why did you choose to frame this as the activity of billionaires? Plenty of ordinary Frenchies and others are buying modest property in the UK.

cepheus

I can see why it stimulates builders and new house prices, but why would this increase the prices of property generally?

Long term it could end in tears, stoking up debt again at a time of low interest rates exactly the opposite of what is needed. The taxpayer may be lumbered with the cost if things go awry.

davo75

cepheus wrote: »

I can see why it stimulates builders and new house prices, but why would this increase the prices of property generally?

Long term it could end in tears, stoking up debt again at a time of low interest rates exactly the opposite of what is needed. The taxpayer may be lumbered with the cost if things go awry.

I agree it will end in tears for the average taxpayer. According to this article I just read, prices are already up 2.2% since January 2012!

http://www.struttandparker.com/news/residential-property/uk-experiences-annual-rise-in-house-prices/

It says "The average first time buyer in the UK will have to shell out around £3,500 more for their first home than in January last year"

That's a ridiculous amount if you're already struggling to get on the property ladder! Lets hope this Help to Buy scheme helps us out.

moneyinmypocket

As long as prices keep going up the country will be doing better. Homeowners are the key to a healthy country.

Graham_Devon

Yet "mortgage lending falls in February despite funding for lending".

http://www.bbc.co.uk/news/business-21923828

cepheus

Coincidentally I've been reading a book which critically examines data the Signal and the Noise by Nate Silver.

He says when a correlation is found such as between economic prosperity and house prices, and an artificial stimulus is then used to increase house prices, the relationship fails to hold. We saw this in the US with the sub-prime loan scam. This UK scheme is a sub prime loan.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Yet "mortgage lending falls in February despite funding for lending".

http://www.bbc.co.uk/news/business-21923828

Yes we've been telling you that for some time.

Ffl has not been stimulus for the market, as the banks taking part have seen negative net lending since it started.

HAMISH_MCTAVISH

cepheus wrote: »

. This UK scheme is a sub prime loan.

.

We really need a better class of bear around here.....:(