Debate House Prices


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British house prices show surprise fall in June

Thrugelmir
Thrugelmir Posts: 89,546 Forumite
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in Debate House Prices & the Economy
What the papers say
British house prices unexpectedly fell last month, taking the annual rate of price increases to its lowest in two years, mortgage lender Nationwide said on Thursday.

Nationwide said house prices dropped by 0.2 percent on the month in June -- well below economists' forecasts of a 0.2 percent rise -- pushing the annual rate of growth to a two-year low of 3.3 percent from 4.6 percent in May.

"This maintains the gradual downward trend that has been in evidence since mid-2014," Nationwide economist Robert Gardner said. "House price growth continues to outpace earnings, but the gap is closing, helped by a pickup in annual wage growth."

http://uk.reuters.com/article/2015/07/02/uk-britain-houseprices-nationwide-idUKKCN0PC0F520150702
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Comments

  • padington
    padington Posts: 3,121 Forumite
    London up, up, up.
    Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.
  • Generali
    Generali Posts: 36,411 Forumite
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    One month's data is just noise.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Generali wrote: »
    One month's data is just noise.

    Trend reflects the introduction of MMR and tightening of lending regulations. Interest rate rises to follow. Which will add further downward pressure.
  • Generali
    Generali Posts: 36,411 Forumite
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    Thrugelmir wrote: »
    Interest rate rises to follow. Which will add further downward pressure.

    Maybe.

    Interest rate rises will also reflect a strengthening economy which is a potential plus for house prices.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Generali wrote: »
    Maybe.

    Interest rate rises will also reflect a strengthening economy which is a potential plus for house prices.

    If there's no further intervention then rates may edge upwards slightly on their own accord. FLS is still having a material impact on 2 year fixed funding rates.
  • purch
    purch Posts: 9,865 Forumite
    Generali wrote: »
    One month's data is just noise.

    Speak up man :eek:
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • wymondham
    wymondham Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic Mortgage-free Glee!
    Generali wrote: »
    Maybe.

    Interest rate rises will also reflect a strengthening economy which is a potential plus for house prices.



    I always thought interest rate rises were good for holding down house price increases as people become more hesitant. Do you think the economy 'feel-good' factor would outweigh this effect?


    It would be good to see interest rates head up. My FIL is having an awful time with his savings not being able to give him the retirement he so carefully planned for... Who could have predicted the last few years..!
  • padington
    padington Posts: 3,121 Forumite
    I imagine the cost of interest rate rises will be mostly passed on to people renting. Could things get any worse for generation rent ?
    Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.
  • Carl31
    Carl31 Posts: 2,616 Forumite
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    edited 3 July 2015 at 1:13PM
    Generali wrote: »
    One month's data is just noise.


    isn't this the 2nd or 3rd month now?


    If we are now down to 3.3% growth, any further falls may have an affect on those who own in this country purely for capital gain, could see quite a few more properties being sold
  • mayonnaise
    mayonnaise Posts: 3,690 Forumite
    edited 3 July 2015 at 2:21PM
    Carl31 wrote: »
    isn't this the 2nd or 3rd month now?
    Nope. In April and May, the Nationwide was positive.
    In February we had another -0.1% whopper though.
    Don't blame me, I voted Remain.
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