MSE News: House prices continue to rise, says Halifax

Former_MSE_Helen

"House prices rose at their fastest rate for almost three years in June, says Halifax..."

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House prices continue to rise, says Halifax




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brit1234

Clearly not sustainable when people are stretching themselves with interest rates are 0.5%, QE, funding for lending an Help to buy. Wages are technically falling with high inflation and no pay rises, this is going to burn a lot of people who buy now.

gazzabboi

Same old boring argument from same people..........

ukcarper

brit1234 wrote: »

Clearly not sustainable when people are stretching themselves with interest rates are 0.5%, QE, funding for lending an Help to buy. Wages are technically falling with high inflation and no pay rises, this is going to burn a lot of people who buy now.

Are lending multiples higher now than when interest rates were higher as people coped then so why would they not be able to cope now.

brit1234

ukcarper wrote: »

Are lending multiples higher now than when interest rates were higher as people coped then so why would they not be able to cope now.

Simple - 5 years of above target inflation, 5 years of wages freezes/ below inflation rises. Disposable income is falling year after year as well as living standards.

Ulfar

ukcarper wrote: »

Are lending multiples higher now than when interest rates were higher as people coped then so why would they not be able to cope now.

Lending multiples are much higher than they were say 10 years or more ago.

If you have a mortgage imagine what would happen if your interest rate went up by 2 to 5%. For a lot of people this would be a disaster.

Now combine that with the universal credit replacing tax credits. This on top of inflation in prices squeezing incomes. Also any new graduates are going to have a massive millstone of student debt in the coming years.

It is creating the conditions for a perfect storm when it comes to the economy and household expenditure.

HAMISH_MCTAVISH

Hi Brit....

-Why haven't you updated your signature in 9 months?

-Why did you remove the $500 silver line from your sig when silver started crashing?

-What happened to "50% off house prices by Xmas 2009"?

HAMISH_MCTAVISH

From the report.....

Key facts

House prices in the second quarter of 2013 (April-June) were 2.1% higher than in the first quarter of the year (January-March). As a result, house price growth between the latest three months and the preceding three months edged above the 1-2% range that it had been in throughout the preceding five months. This was the biggest increase on this measure since January 2010 (2.9%).

Prices in the three months to June were 3.7% higher than in the same three months a year earlier. This was the biggest increase in this annual measure since August 2010 (4.6%).

House prices increased by 0.6% in June. This was the fifth consecutive monthly rise.

Activity is also picking up. The number of mortgage approvals for house purchases – a leading indicator of completed house sales – increased by 7% between April and May to 58,200; the highest monthly level since December 2009.

Approvals in the three months to May were 2% higher than in the previous three months. (Source: Bank of England, seasonally-adjusted figures).

Home sales in May were the highest in any month since March 2012 when there was a rush to beat the end of the stamp duty holiday for first-time buyers on properties priced below £250,000. (Source: HMRC, seasonally adjusted figures)

Supply conditions remain tight. The stock of unsold properties remains relatively low and was 5% lower on an annual basis in May 2013, according to the latest figures. (Source: RICS)

Excellent news for the wider economy and great to see more people being able to buy now that mortgage rationing is easing.

:beer:

houseimprover

Happy days!!!!

HarryBarry

HAMISH_MCTAVISH wrote: »

From the report.....



Excellent news for the wider economy and great to see more people being able to buy now that mortgage rationing is easing.

:beer:

As I pointed out in the other thread, this is pretty much no different to 2010, 2011 and 2012. Although last year they didnt quite reach the high of 2010 and 2011, but 2013 has hit that high - resulting in the "fastest rise bla bla bla etc".

But I dont expect you to recognise that, as you only see what you want to see.

So in conclusion, there is pretty much no change in the pattern. If house prices were reaching higher points than previously seen since the crash, or continue into the winter months... THEN come back and celebrate the change in the market. I suspect there will be a good few years yet until significant change though. With a good few years after that until there is plenty of new builds that you seem desperate for (builder by any chance?).

Excited13

This isn't scientific or anything other than personal experience. If you don't agree fair enough but this is my experience...

In the last 18 months credit has been thrown at me left right and centre despite selling a house (massive loss) and moving into rented accommodation. The companies I had already had credit with are constantly increasing my limits.

I went to buy a house at the start of the year and was offered 4 times my income on a mortgage. Now I'm being offered 5+ times my income and the lack of checks by some lenders is scary.

Back to the point of house prices there are two houses within the last couple of weeks I know of that have gone above asking prices. The housing market is moving very quickly in the area I currently live.

In January this year it was easy to find a 4 bed detached for under £200k but now if you find one it isn't in a good area and the 4 beds are closer to the £250k mark.