Nationwide- +0.8% MoM +3.9% YoY

HAMISH_MCTAVISH

Prices continue to rise in real terms as well as nominal.

Excellent news.

:beer:

eelsoup

Why is this excellent news?

• Housing has just become less affordable to those who are not already home owners
• For those who don't own their own homes, increasing house prices will go someway to increasing the cost of renting a property too.

What is there to celebrate about an essential need in life becoming less affordable?

Even more so when it is clear that the market is being manipulated by artificial supply constraints, and "electioneered" economic conditions to create another house price boom.

92203

Nice one Hamish. Smug as ever, and gloating at the fact that what you already have is becoming less affordable and accessible to future generations.

Fella

Change the record, aren't you a bit embarrassed spending half your life gloating.

Most people I know who've actually achieved anything have far more class (& far more useful things to do with their time).

Lots of people could come on here & gloat, most choose not to...

Carl31

eelsoup wrote: »

Why is this excellent news?

• Housing has just become less affordable to those who are not already home owners
• For those who don't own their own homes, increasing house prices will go someway to increasing the cost of renting a property too.

What is there to celebrate about an essential need in life becoming less affordable?

Even more so when it is clear that the market is being manipulated by artificial supply constraints, and "electioneered" economic conditions to create another house price boom.

For most people, this is not, but when your whole life depends on the value of the bricks you own, its is

Read any other finance site, or comments on any article about house prices and you can see that there is only a small minority that see HPI as good news

IveSeenTheLight

eelsoup wrote: »

Why is this excellent news?

• Housing has just become less affordable to those who are not already home owners
• For those who don't own their own homes, increasing house prices will go someway to increasing the cost of renting a property too.

What is there to celebrate about an essential need in life becoming less affordable?

I'm sure this has been articulated before and with more detail, however here's my snapshot response.

1. Fo many "newer" owners, the house price correction of 2008 / 2009, this news means that those in NE will be moving closer / back to a point where they started
2. As prices rise, homeowners build equity which should mean that they may have the opportunity to finance the mortgage at a cheaper rate due to a lower LTV
3. with many hit with pensions and shares not returning the expected and projected annuity, many see their homes as an investment for their pensions.
4. It is easier to sell (and recover costs) in a rising market than a falling market

Now you could say this is focusing only on homeowners and you have referred this is a political manipulated event, which really is unsurprising given home ownership is circa 64% and the majority of voters are homeowners.

eelsoup wrote: »

• Housing has just become less affordable to those who are not already home owners

What is there to celebrate about an essential need in life becoming less affordable?

In terms of property, affordability really needs to be assess against the costs of servicing the finance on the property.
Statistically, properties are historically more affordable now when compared to the last 30 year average.

• For those who don't own their own homes, increasing house prices will go someway to increasing the cost of renting a property too.

This has forever been and will always be the case.
This is the reason why there is a high desire to become owners.
Historically not everyone has been able to buy and there needs to be a sense of realism that this is and will always be the case.
Should you believe that property ownership should be available for ALL, then there needs to be a substantial increase in properties built in the UK to cater for the needs, also factoring in that more wealthy will at the same time be able to afford a primary residence, seaside residence, country residence etc.

ukcarper

IveSeenTheLight wrote: »

I'm sure this has been articulated before and with more detail, however here's my snapshot response.





In terms of property, affordability really needs to be assess against the costs of servicing the finance on the property.
Statistically, properties are historically more affordable now when compared to the last 30 year average.



QUOTE]

I suppose that is strictly true but if you don't earn enough to get mortgage isn't that irrelevant

IveSeenTheLight

ukcarper wrote: »

I suppose that is strictly true but if you don't earn enough to get mortgage isn't that irrelevant

I think I covered that in the last paragraph

Historically not everyone has been able to buy and there needs to be a sense of realism that this is and will always be the case.
Should you believe that property ownership should be available for ALL, then there needs to be a substantial increase in properties built in the UK to cater for the needs, also factoring in that more wealthy will at the same time be able to afford a primary residence, seaside residence, country residence etc.

ukcarper

IveSeenTheLight wrote: »

I think I covered that in the last paragraph

True and I don't see that there will ever be a time when they can but the higher prices are in relation to earnings the more people are prevented from buying I'm not convinced high prices are a benefit.

IveSeenTheLight

ukcarper wrote: »

True and I don't see that there will ever be a time when they can but the higher prices are in relation to earnings the more people are prevented from buying I'm not convinced high prices are a benefit.

Your looking at it too simplistically and in reality, this is not what we are seeing.

According to the CML's latest statistical release

42% more first-time buyers in May than a year ago
Lending to first-time buyers, home movers and remortgagors all increased in May, with a particularly marked increase in lending to first-time buyers, according to the latest Regulated Mortgage Survey data published today by the Council of Mortgage Lenders.

First-time buyers

The number of mortgages to first-time buyers in May reached 25,100 - 29% higher than in April, and 42% higher than in May last year. First-time buyers accounted for 45% of all loans for house purchase, similar to the levels of the past few months but considerably higher than the 38% seen on average since 2007.

The number of first-time buyer loans was the highest monthly figure since late 2007, and a marked contrast to the low point of just 8,500 loans in January 2009. By value, first-time buyer lending reached £3.4 billion in May, up from £2.5 billion in April and £2.2 billion in May last year.

For some months, there has been an increase in the number of first-time buyers entering the market with smaller deposits - this has now resulted in a shift in the average first-time buyer loan-to-value ratio rising to 83%, up from 81% in April and the highest ratio since November 2008. First-time buyers are also typically borrowing more (£113,400 in May, on average, compared with £110,000 in April and £105,000 in May last year), and typically now have higher incomes (£35,700 in May, up from £33,500 in May last year). The age of the typical first-time buyer remained at 29.

chucknorris

I'm starting to lose count of the number of positive news items now, those still hoping for a crash must be getting quite desperate. I don't think anybody even remembered that yesterday was the first Thursday of the month and the BOE base rate was yet again held at 0.5%, it isn't even newsworthy any more and hasn't been for some time.