MSE News: House prices up at fastest rate in three years

Former_MSE_Helen

"Annual house prices rose by 1.9% in June pushing average UK prices to £168,941, says Nationwide..."

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House prices up at fastest rate in three years




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christopher1977

luckily the regional breakdown shows this didn't apply to the North West:j

Pincher

I was planning on hyperinflation making my house worth £10million pounds on retirement. Downsize to a properly insulated new build 2 bedroom flat for £5million. Pay off a circa £150k mortgage, with about £4million pounds left to retire on.

I reckon bananas will be £15 a kg, annual grocery will be £100,000. Let's say £200k a year to live on, £4million will last me about 20 years. Under hyperinflation, the interest rate will be like 10%, which is £400,000 a year, so there is scope to stretch it a bit longer. After 20 years, cost of living will be like £2million a year, but I will probably have £10million to last another 5 years.

Such a sweet dream.

HAMISH_MCTAVISH

Prices up in 10/13 regions, rising at the fastest rate in years, and this is only the start.

Other indices have the annual rise at nearly double this one, and increasing rapidly.

NW is playing catch-up.

Great news for the economy though.

JohnRo

HAMISH_MCTAVISH wrote: »

Great news for the economy though.

How is unaffordable housing great for the economy again?

Great for smug home owners on mortgage welfare and the army of BTL slumlords leeching billions from the welfare state at the expense of taxpayers, savers, pensioners and future generations.

Seen it all before, and it crashed and burned, requiring a bailout that still hasn't ended.

SG27

HAMISH_MCTAVISH wrote: »

Prices up in 10/13 regions, rising at the fastest rate in years, and this is only the start.

Other indices have the annual rise at nearly double this one, and increasing rapidly.

NW is playing catch-up.

Great news for the economy though.

I bloody hope not!! I need to move to a bigger house at some point!

Lizling

No surprise at all to me. It's all gone crazy around my little corner of London.

I've had a massive increase in junk mail from EAs looking for homes to sell and colleagues have even been phoned at work by EAs on spec. So out of curiosity, I looked up what was going on in my immediate area on Right move, and saw that asking prices on a 2 bed flat in my south London council estate are up 10% since January. No idea if they're selling for that yet, but no reason to think they're not.

I'm watching this madness ripple out from the trendy areas to the areas bordering those to the areas bordering those ones. Whoever was on here looking in Crystal Palace the other day, I reckon you've got about 2 weeks!

HAMISH_MCTAVISH

SG27 wrote: »

I bloody hope not!! I need to move to a bigger house at some point!

Then price rises should work in your favour.

In the crash FTB houses fell much more and harder than 2TB houses as the effects of mortgage rationing disproportionately excluded FTB-s from the housing market.

So the gap between rungs widened instead of narrowing as prices fell.

What we are seeing now is the price of FTB houses rising faster than 2TB houses, so as prices rise the cost to trade up is decreasing.

:beer:

HAMISH_MCTAVISH

JohnRo wrote: »

How is unaffordable housing great for the economy again?

Housing has rarely been more affordable for FTB-s.



And that despite banksters ramping up margins to record highs, to subvert the will of the BOE in setting low rates, which have not been passed on to most FTB-s.

Seen it all before, and it crashed and burned, requiring a bailout that still hasn't ended.

Nonsense.

UK residential mortgage lending and house prices had absolutely nothing to do with banks needing bail outs.

JohnRo

Where to start on that rot...

Source for data?

SG27

HAMISH_MCTAVISH wrote: »

Then price rises should work in your favour.

In the crash FTB houses fell much more and harder than 2TB houses as the effects of mortgage rationing disproportionately excluded FTB-s from the housing market.

So the gap between rungs widened instead of narrowing as prices fell.

What we are seeing now is the price of FTB houses rising faster than 2TB houses, so as prices rise the cost to trade up is decreasing.

:beer:

Hmmm I very much doubt that my house will rise in price more than the family homes in my town.

Of course as more first time buyers but up the FTBer houses then there are more 2nd time buyers for the family homes so it just pushed the demand along the ladder! Glad we saved enough for a decent two bed house rather than a tiny flat!