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House Price Rising Fast....2000 Pounds a Month
Sibley
Posts: 1,557 Forumite
http://www.express.co.uk/news/uk/414000/House-prices-rise-by-2-000-a-month-as-market-continues-to-boom
House prices rise by £2,000 a month as market continues to boom
PROPERTY prices are soaring by £65 a day as Britain’s housing market continues to boom.
House prices have increased by at least 1.6 per cent in all regions
The cost of the average home rose by £2,000 a month between April and June to stand at £235,912 – up 2.6 per cent.
For the first time since the financial meltdown of 2008, all the regions saw price increases of at least 2 per cent with the strongest performance in the East Midlands, Yorkshire and Wales.
The cost of the average London home rose by £12,610 to £478,256 but the hottest spots, according to online experts Zoopla, are Ellesmere in Shropshire, Ripon in North Yorkshire, Snodland in Kent, Totnes in Devon and Ormskirk in Lancashire, where increases are 3.2 per cent or above.
Even the worst-performing areas – Glenrothes in Fife, Heywood in Greater Manchester and Spennymoor in County Durham, saw prices go up by at least 1.6 per cent in the past three months.
Ray Boulger, from mortgage experts John Charcol, said he had revised his forecast for a 2 per cent price rise this year to a “minimum of 6 per cent – more likely 8 per cent”. He added: “All the signs indicate the upward trend will continue for the rest of this year.”
The Royal Institution of Chartered Surveyors had predicted that prices would rise by 2 per cent this year but now believes the figure could be closer to 4 per cent.
Mr Boulger said the Government’s Funding For Lending scheme, launched last year, had brought down the cost of mortgages, stimulating competition among housebuyers.
The scheme allows banks to borrow at advantageous rates if they lend to households and businesses.
New government schemes hope to get more young people onto the property ladder
The Government hopes further initiatives such as New Buy and Help To Buy will encourage young people with small deposits
to get on the property ladder.
Lawrence Hall, spokesman for Zoopla.co.uk, said: “Confidence is beginning to return to the market, with both lenders and buyers seemingly more convinced that the worst of the economic crisis is behind us.
“Mortgage lending has improved markedly this year, which is unclogging the bottleneck at the lowest end of the market. This is starting to drive activity all the way up the housing chain.”
With demand for homes outstripping supply, sellers are becoming bullish about sticking to their asking price.
However, there are fears of a housing “bubble” with borrowers in danger of over-stretching themselves.
Stephen Bacic, of Sandringham Financial Partners, said: “Rising house values help current mortgage holders when re-mortgaging as their loan-to-value percentages improve.
“The flipside is that while prices go up people trying to get on to the ladder will find it increasingly hard. More often than not deposits are coming from the bank of mum and dad – in some cases the bank of granny and granddad.”
House prices rise by £2,000 a month as market continues to boom
PROPERTY prices are soaring by £65 a day as Britain’s housing market continues to boom.
House prices have increased by at least 1.6 per cent in all regionsThe cost of the average home rose by £2,000 a month between April and June to stand at £235,912 – up 2.6 per cent.
For the first time since the financial meltdown of 2008, all the regions saw price increases of at least 2 per cent with the strongest performance in the East Midlands, Yorkshire and Wales.
The cost of the average London home rose by £12,610 to £478,256 but the hottest spots, according to online experts Zoopla, are Ellesmere in Shropshire, Ripon in North Yorkshire, Snodland in Kent, Totnes in Devon and Ormskirk in Lancashire, where increases are 3.2 per cent or above.
Even the worst-performing areas – Glenrothes in Fife, Heywood in Greater Manchester and Spennymoor in County Durham, saw prices go up by at least 1.6 per cent in the past three months.
Ray Boulger, from mortgage experts John Charcol, said he had revised his forecast for a 2 per cent price rise this year to a “minimum of 6 per cent – more likely 8 per cent”. He added: “All the signs indicate the upward trend will continue for the rest of this year.”
The Royal Institution of Chartered Surveyors had predicted that prices would rise by 2 per cent this year but now believes the figure could be closer to 4 per cent.
Mr Boulger said the Government’s Funding For Lending scheme, launched last year, had brought down the cost of mortgages, stimulating competition among housebuyers.
The scheme allows banks to borrow at advantageous rates if they lend to households and businesses.
New government schemes hope to get more young people onto the property ladderThe Government hopes further initiatives such as New Buy and Help To Buy will encourage young people with small deposits
to get on the property ladder.Lawrence Hall, spokesman for Zoopla.co.uk, said: “Confidence is beginning to return to the market, with both lenders and buyers seemingly more convinced that the worst of the economic crisis is behind us.
“Mortgage lending has improved markedly this year, which is unclogging the bottleneck at the lowest end of the market. This is starting to drive activity all the way up the housing
chain.”
The Government hopes further initiatives such as New Buy and Help To Buy will encourage young people with small deposits to get on the property ladder
In a sign of growing confidence, Leeds Building Society yesterday launched a mortgage with a “zero” interest rate for the first six months.With demand for homes outstripping supply, sellers
are becoming bullish about sticking to their asking price.However, there are fears of a housing “bubble” with borrowers in danger of over-stretching themselves.
Stephen Bacic, of Sandringham Financial Partners, said: “Rising house values help current mortgage holders when re-mortgaging as their loan-to-value percentages improve.
“The flipside is that while prices go up people trying to get on to the ladder will find it increasingly hard. More often than not deposits are coming from the bank of mum and dad – in some cases the bank of granny and granddad.”
We love Sarah O Grady
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Comments
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More good news.
:beer:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
However, there are fears of a housing “bubble” with borrowers in danger of over-stretching themselves.
Sensationalist media tripe.
There wasn't a housing bubble in the mainland UK even in 2007, just a good old fashioned imbalance between supply and demand, and I do wish journalists would learn the difference.
A genuine "bubble" requires purely speculative price rises completely unsupported by fundamental shortages of supply.
If those shortages of supply exist then it's not a bubble. It's the market rationing scarce goods through price exactly as it's supposed to.
Ireland had a bubble, with 17% of houses empty, and a glut in supply big enough to house their entire population growth for 30 years.
Spain had a bubble, with a million surplus houses.
The UK did not have a bubble... Thanks to a long term structural shortage of housing and rapidly increasing population.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
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Sibbers you forgot the bit in your article stating 'picture of an ecstatic, borderline orgasmic first time buyer signing exchange of contracts.'0
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Its about time we had an express house price headline
Since when has the average house price been £235k?0 -
Its about time we had an express house price headline
Since when has the average house price been £235k?
I'll let Hamish explain this one to you because it's way over my head.0 -
Price rises like this arent sustainable and arent good news. And i say this as a homeowner.HAMISH_MCTAVISH wrote: »More good news.
:beer:0 -
HAMISH_MCTAVISH wrote: »More good news.
:beer:
Why is that good news?0 -
Great news for the wider economy.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Great news for the wider economy.
How does it benefit the wider economy?0
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