Halifax May +3.9% MOM, +8.7% YOY

Graham_Devon

(Reuters) - British house prices spiked higher in May, returning the annual rate of growth to its fastest in more than six years as economic recovery bolstered demand, mortgage lender Halifax said on Thursday.

Prices jumped 3.9 percent in May after declining in the previous two months, far outstripping average forecasts in a Reuters poll for a 0.7 percent increase.

This left house prices in the three months to May 8.7 percent higher than a year earlier, the same rate of growth as in March and a level of growth last exceeded in September 2007.

Marvelous, I guess.

http://uk.reuters.com/article/2014/06/05/uk-britain-houseprices-halifax-idUKKBN0EG0RU20140605

Generali

From the mouth of the old nag herself:

http://www.lloydsbankinggroup.com/media/press-releases/2014/halifax/house-price-index---may/

• House prices in the latest three months (March 2014-May 2014) were 2.0% higher than in the preceding three months (December 2013-February 2014). House price change on this measure has now remained steady in a narrow range of 1.9% - 2.3% since June 2013.

• Prices in the three months to May were 8.7% higher than in the same three months a year earlier. This was marginally higher than in April (8.5%).

• After falling in the previous two months, average price increased by 3.9% in May - this was the third monthly price rise since January. Monthly movements, however, can be volatile and the quarter on quarter change is a more reliable indicator of the underlying trend.

• Home sales edged down by 1% in April to 103,690, however, transactions are still a third higher than in April 2013. Annually, transactions grew to 1.142 million in the year to March 2014 - a rise of 23% from the same period a year earlier (Source: HMRC, seasonally-adjusted figures.)

• The growing difference between housing demand and supply continues to be a key driver of house price increases. Growth in new buyer enquiries have remained steady so far this year while the number of homeowners providing instructions to put their property on the market for sale declined for the fourth consecutive month. (Source: RICS) However, latest housebuilding figures show signs of improvement which could help to bring demand and supply into better balance. The number of private housing starts in England in the year to March 2014 increased by 34% to 108,400 from a year earlier. (Source: CLG)

So the Halifax are saying the same thing as the EU, the FT and errm.....me. Build More Houses. It's not that complicated!!!

To be fair, it looks like more houses are being built and the Government have promised specific measures in the Queen's Speech for more houses to be built.

ruggedtoast

This is another morning when the nations first time buyer renters have nothing more than the cornflakes of misery, the toast of despair and the tea of hopelessness to digest.

How can you ever plan to buy anywhere when the place you want to buy is growing in price many times faster than your savings? And when landlords are given huge tax deductible loans at low rates for the express purpose of pricing you out of a property.

This is a blo00dy disgrace. House prices must fall or there will be a crisis of homeless families.

:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

Jack_Johnson_the_acorn

ruggedtoast wrote: »

This is another morning when the nations first time buyer renters have nothing more than the cornflakes of misery, the toast of despair and the tea of hopelessness to digest.

How can you ever plan to buy anywhere when the place you want to buy is growing in price many times faster than your savings? And when landlords are given huge tax deductible loans at low rates for the express purpose of pricing you out of a property.

This is a blo00dy disgrace. House prices must fall or there will be a crisis of homeless families.

:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

You clearly feel very strongly on this subject with all those smilies...... How would increased availability of homes for rent cause homelessness?!?!

ruggedtoast

They are going beserk about this over on the forum hpc.co.uk, they wont take this lying down.

I can feel something is changing, people have had enough, politicians will be called to answer. Even the boomers are becoming concerned now.

wotsthat

Generali wrote: »

So the Halifax are saying the same thing as the EU, the FT and errm.....me. Build More Houses. It's not that complicated!!!

A few ladies in my office who keep weight watchers in business occasionally ask how I keep so lean and lush. I tell them it's not that complicated - eat less and exercise more. They don't listen and continue with their complicated approach to a simple problem.

I suspect my colleagues will remain chunky and the housing shortage unresolved.

Generali

ruggedtoast wrote: »

This is a blo00dy disgrace. House prices must fall or there will be a crisis of homeless families.

Gotta be honest mate, I don't get this bit.

If houses are too expensive to live in, either via renting or owning, then they will stay empty and the price will fall.

Graham_Devon

Generali wrote: »

Gotta be honest mate, I don't get this bit.

If houses are too expensive to live in, either via renting or owning, then they will stay empty and the price will fall.

Not necessarily. There is an increasing trend in London (and news items have covered this) where investors are buying up homes, and in some cases 3-4 apartments at a time and then leaving them empty.

They see these homes as a place to store wealth. Nothing more.

The amount of empty homes in London is increasing, alongside prices, especially at the higher end, but this is filtering out.

And just yesterday there was an article looking at the effects of this in the outer areas of London. Again, pushing prices up as the effect ripples out.

And as the investors move in and leave homes empty, the people previously occupying those homes move out....Though in some cases, these are second homes.

In the past 12 months, Londoners have bought 44,000 properties worth a total of £15bn outside the capital, according to research by property company Hamptons International – the highest level in terms of both volume and value since 2007. In the first four months of this year, 14,700 properties were bought for a total of almost £5bn.

When Londoners take their money and move out, there are not many that can afford to move in....bar foreign investors.

http://www.theguardian.com/money/2014/jun/02/londoners-flocking-out-capital-exploit-house-price-gap-property

wotsthat

Graham_Devon wrote: »

Not necessarily. There is an increasing trend in London (and news items have covered this) where investors are buying up homes, and in some cases 3-4 apartments at a time and then leaving them empty.

A factor but surely insignificant when compared to..
- a shortage of housing in London
- large increases in population
- a growing economy

wotsthat wrote: »

A few ladies in my office who keep weight watchers in business occasionally ask how I keep so lean and lush. I tell them it's not that complicated - eat less and exercise more. They don't listen and continue with their complicated approach to a simple problem.

I suspect my colleagues will remain chunky and the housing shortage unresolved.

Graham_Devon

wotsthat wrote: »

A factor but surely insignificant when compared to..
- a shortage of housing in London
- large increases in population
- a growing economy

Indeed.

But I wasn't responding to that. Was responding to a specific point raised by Generali.

The overarching point is that there are many factors. Building more houses doesn't necessarily solve the problem for UK citizens. Say for instance in a situation where newly built homes are bought by foreign investors. Something which is happening. Many issues need looking at. The problem isn't solved by building more homes alone. The demand side and what that demand is made up of (investors, increase in loans etc etc, second / third homes) is also something which needs looking at.

CLAPTON

Graham_Devon wrote: »

Indeed.

But I wasn't responding to that. Was responding to a specific point raised by Generali.

The overarching point is that there are many factors. Building more houses doesn't necessarily solve the problem for UK citizens. Say for instance in a situation where newly built homes are bought by foreign investors. Something which is happening. Many issues need looking at. The problem isn't solved by building more homes alone. The demand side and what that demand is made up of (investors, increase in loans etc etc, second / third homes) is also something which needs looking at.

It seems unlikely that all new builds are being bought by foreign investors to keep empty or by second/third home owners for own use


building more properties is essential


the opportunity to squeeze some more tax out of foreigners and to encourage actual occupation of properties does seem a good idea however.