Rising House Prices now helping wider economy

HAMISH_MCTAVISH

Builders' merchants have already reported that sales in May were 9 per cent higher than a year earlier as rising confidence in the housing market spurred homeowners to take on repairs neglected during the recession.

But a further boost to home maintenance is expected once the second stage of the Help to Buy scheme comes into force next year, according to research by Liberum Capital, the investment bank.

Charlie Campbell, author of the Liberum Capital report, noted that mortgage transactions are the biggest driver of housing repair and maintenance, and lending volumes have already improved as a result of previous stimulus schemes – such as Funding for Lending and First Buy

“If you become more upbeat about the value of your house, you’re much more willing to install a new kitchen or a sundeck,” he says. “The builders' merchants are gaining strength anyway because of the underlying rise in housing transactions but once the measures come in on January 1 it will have a much bigger impact.”

http://www.ft.com/cms/s/0/57d79792-ef9b-11e2-8229-00144feabdc0.html#axzz2ZnVfPFHb

:beer:

Graham_Devon

Right, so let me get this straight...

These people who can't afford deposits and are having to use government packages to buy a house, are suddenly going to go out and splash the cash on new kitchens and install sundecks?

It's a bit like assuming the starving in Africa will celebrate with a bottle of Dom Perignon as they have found a new water well.

Secondly, one minute you crucify these people for wanting it all. The next, you appear to be celebrating these people wanting it all AND going out and getting it, right after using a scheme which they required because they couldn't afford the market rates.

I really don't know where you stand on anything. Buy an iphone and you deserve to rent forever. But buy a house with double loans, and then splash out on a new kitchen and you raise a toast?

grizzly1911

HAMISH_MCTAVISH wrote: »

http://www.ft.com/cms/s/0/57d79792-ef9b-11e2-8229-00144feabdc0.html#axzz2ZnVfPFHb

:beer:

One thing I do know know is that merchants, producers and retailers have hiked prices in the last 3 months.

I am shortly due to renovate a property and costed items back at the nd of April, now the project has gone firm and orders need to be placed increases of up to 10+% are evident from timber to sinks to white goods.

Graham_Devon

grizzly1911 wrote: »

One thing I do know know is that merchants, producers and retailers have hiked prices in the last 3 months.

I am shortly due to renovate a property and costed items back at the nd of April, now the project has gone firm and orders need to be placed increases of up to 10+% are evident from timber to sinks to white goods.

Hmmm, strange you should say that! Only at the weekend dad was moaning that the taps he didn't buy two months ago are now 15 pounds more expensive per unit. They weren't on offer, they have had their eye on them for a while. I just told him to go elsewhere, but if you are noticing increases maybe its genuine.

HAMISH_MCTAVISH

Graham_Devon wrote: »

maybe its genuine.

Not just taps...

The sudden uplift in building has led to a shortage of aerated and lightweight blocks, with manufacturers citing delivery times of up to three months.

Now there's a shortage of bricks.:)

wotsthat

Graham_Devon wrote: »

Right, so let me get this straight...

These people who can't afford deposits and are having to use government packages to buy a house, are suddenly going to go out and splash the cash on new kitchens and install sundecks?

It's a bit like assuming the starving in Africa will celebrate with a bottle of Dom Perignon as they have found a new water well.

Who says they are going to splash the cash or rush and buy sundecks & new kitchens?

They'll need some stuff though. Pots & pans, new bedding etc.

Maybe their parents will help them out a bit. Not every parent can afford to help with a deposit but many can afford to help with furnishings and the essentials of modern life.

Maybe they're just sprucing things up with things like new taps.

Just normal life - nothing like starving Africans drinking Champagne - nothing at all.

wotsthat

Wonder if this is also a function of rising transactions. My kitchen and flooring is serviceable but I'd never contemplate trying to sell the house without some investment.

grizzly1911

SAVING_IS_DEAD_MONEY wrote: »

We're groin thristing our way to recovery one month at a time.

You really are having a bad spelling day - more self abuse?

wymondham

I'm doing my bit as I bought some anti mould paint the other day...

grizzly1911

wymondham wrote: »

I'm doing my bit as I bought some anti mould paint the other day...

Have you used it before? I was sceptical first time round but it really didi seem to do the job in a bathroom of ours.

I will be buying some more tomorrow for my project.

Conrad

Graham_Devon wrote: »

Right, so let me get this straight...

These people who can't afford deposits and are having to use government packages to buy a house, are suddenly going to go out and splash the cash on new kitchens and install sundecks?

It's about rising confidence and the feel good factor causing more of us to spend and invest.

I offered on another flat today, a 1 bed which I can let as 2 rooms (£550 each in case you wonder Devon). I will be offering it furnished hence spending on white goods, beds, wardrobes etc, and probably getting it wi - fi'd and also buying materials from Selco builders merchants.

This is the ripple effect I've been preaching would come about if we were to dilute over-zealous regulation. As it turns out we've managed a similar boost without touching regulation.