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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 4th Jul 13, 10:06 AM
    • 2,324Posts
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    Former MSE Helen
    MSE News: House prices continue to rise, says Halifax
    • #1
    • 4th Jul 13, 10:06 AM
    MSE News: House prices continue to rise, says Halifax 4th Jul 13 at 10:06 AM
    "House prices rose at their fastest rate for almost three years in June, says Halifax..."

    Read the full story:

    House prices continue to rise, says Halifax




    This thread is not in the 'discuss house prices and economy board' as that is only open to those logged into the forum so anyone coming from the news story may not be able to see it.



    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • brit1234
    • By brit1234 4th Jul 13, 3:43 PM
    • 5,191 Posts
    • 11,968 Thanks
    brit1234
    • #2
    • 4th Jul 13, 3:43 PM
    • #2
    • 4th Jul 13, 3:43 PM
    Clearly not sustainable when people are stretching themselves with interest rates are 0.5%, QE, funding for lending an Help to buy. Wages are technically falling with high inflation and no pay rises, this is going to burn a lot of people who buy now.
    Scams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
    • gazzabboi
    • By gazzabboi 4th Jul 13, 4:30 PM
    • 207 Posts
    • 91 Thanks
    gazzabboi
    • #3
    • 4th Jul 13, 4:30 PM
    • #3
    • 4th Jul 13, 4:30 PM
    Same old boring argument from same people..........
    • ukcarper
    • By ukcarper 4th Jul 13, 7:24 PM
    • 14,525 Posts
    • 18,401 Thanks
    ukcarper
    • #4
    • 4th Jul 13, 7:24 PM
    • #4
    • 4th Jul 13, 7:24 PM
    Clearly not sustainable when people are stretching themselves with interest rates are 0.5%, QE, funding for lending an Help to buy. Wages are technically falling with high inflation and no pay rises, this is going to burn a lot of people who buy now.
    Originally posted by brit1234
    Are lending multiples higher now than when interest rates were higher as people coped then so why would they not be able to cope now.
    • brit1234
    • By brit1234 4th Jul 13, 8:33 PM
    • 5,191 Posts
    • 11,968 Thanks
    brit1234
    • #5
    • 4th Jul 13, 8:33 PM
    • #5
    • 4th Jul 13, 8:33 PM
    Are lending multiples higher now than when interest rates were higher as people coped then so why would they not be able to cope now.
    Originally posted by ukcarper
    Simple - 5 years of above target inflation, 5 years of wages freezes/ below inflation rises. Disposable income is falling year after year as well as living standards.
    Scams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
    • Ulfar
    • By Ulfar 4th Jul 13, 8:48 PM
    • 1,284 Posts
    • 1,323 Thanks
    Ulfar
    • #6
    • 4th Jul 13, 8:48 PM
    • #6
    • 4th Jul 13, 8:48 PM
    Are lending multiples higher now than when interest rates were higher as people coped then so why would they not be able to cope now.
    Originally posted by ukcarper
    Lending multiples are much higher than they were say 10 years or more ago.

    If you have a mortgage imagine what would happen if your interest rate went up by 2 to 5%. For a lot of people this would be a disaster.

    Now combine that with the universal credit replacing tax credits. This on top of inflation in prices squeezing incomes. Also any new graduates are going to have a massive millstone of student debt in the coming years.

    It is creating the conditions for a perfect storm when it comes to the economy and household expenditure.
    • HAMISH_MCTAVISH
    • By HAMISH_MCTAVISH 4th Jul 13, 8:48 PM
    • 26,157 Posts
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    HAMISH_MCTAVISH
    • #7
    • 4th Jul 13, 8:48 PM
    • #7
    • 4th Jul 13, 8:48 PM
    Hi Brit....

    -Why haven't you updated your signature in 9 months?

    -Why did you remove the $500 silver line from your sig when silver started crashing?

    -What happened to "50% off house prices by Xmas 2009"?
    “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”
    • HAMISH_MCTAVISH
    • By HAMISH_MCTAVISH 4th Jul 13, 8:50 PM
    • 26,157 Posts
    • 59,775 Thanks
    HAMISH_MCTAVISH
    • #8
    • 4th Jul 13, 8:50 PM
    • #8
    • 4th Jul 13, 8:50 PM
    From the report.....

    Key facts

    House prices in the second quarter of 2013 (April-June) were 2.1% higher than in the first quarter of the year (January-March). As a result, house price growth between the latest three months and the preceding three months edged above the 1-2% range that it had been in throughout the preceding five months. This was the biggest increase on this measure since January 2010 (2.9%).

    Prices in the three months to June were 3.7% higher than in the same three months a year earlier. This was the biggest increase in this annual measure since August 2010 (4.6%).

    House prices increased by 0.6% in June. This was the fifth consecutive monthly rise.

    Activity is also picking up. The number of mortgage approvals for house purchases – a leading indicator of completed house sales – increased by 7% between April and May to 58,200; the highest monthly level since December 2009.

    Approvals in the three months to May were 2% higher than in the previous three months. (Source: Bank of England, seasonally-adjusted figures).

    Home sales in May were the highest in any month since March 2012 when there was a rush to beat the end of the stamp duty holiday for first-time buyers on properties priced below £250,000. (Source: HMRC, seasonally adjusted figures)

    Supply conditions remain tight. The stock of unsold properties remains relatively low and was 5% lower on an annual basis in May 2013, according to the latest figures. (Source: RICS)
    Excellent news for the wider economy and great to see more people being able to buy now that mortgage rationing is easing.

    “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”
  • houseimprover
    • #9
    • 4th Jul 13, 9:16 PM
    • #9
    • 4th Jul 13, 9:16 PM
    Happy days!!!!
  • HarryBarry
    From the report.....



    Excellent news for the wider economy and great to see more people being able to buy now that mortgage rationing is easing.

    Originally posted by HAMISH_MCTAVISH
    As I pointed out in the other thread, this is pretty much no different to 2010, 2011 and 2012. Although last year they didnt quite reach the high of 2010 and 2011, but 2013 has hit that high - resulting in the "fastest rise bla bla bla etc".

    But I dont expect you to recognise that, as you only see what you want to see.

    So in conclusion, there is pretty much no change in the pattern. If house prices were reaching higher points than previously seen since the crash, or continue into the winter months... THEN come back and celebrate the change in the market. I suspect there will be a good few years yet until significant change though. With a good few years after that until there is plenty of new builds that you seem desperate for (builder by any chance?).
  • Excited13
    This isn't scientific or anything other than personal experience. If you don't agree fair enough but this is my experience...

    In the last 18 months credit has been thrown at me left right and centre despite selling a house (massive loss) and moving into rented accommodation. The companies I had already had credit with are constantly increasing my limits.

    I went to buy a house at the start of the year and was offered 4 times my income on a mortgage. Now I'm being offered 5+ times my income and the lack of checks by some lenders is scary.

    Back to the point of house prices there are two houses within the last couple of weeks I know of that have gone above asking prices. The housing market is moving very quickly in the area I currently live.

    In January this year it was easy to find a 4 bed detached for under £200k but now if you find one it isn't in a good area and the 4 beds are closer to the £250k mark.
  • HarryBarry
    This isn't scientific or anything other than personal experience. If you don't agree fair enough but this is my experience...

    In the last 18 months credit has been thrown at me left right and centre despite selling a house (massive loss) and moving into rented accommodation. The companies I had already had credit with are constantly increasing my limits.

    I went to buy a house at the start of the year and was offered 4 times my income on a mortgage. Now I'm being offered 5+ times my income and the lack of checks by some lenders is scary.

    Back to the point of house prices there are two houses within the last couple of weeks I know of that have gone above asking prices. The housing market is moving very quickly in the area I currently live.

    In January this year it was easy to find a 4 bed detached for under £200k but now if you find one it isn't in a good area and the 4 beds are closer to the £250k mark.
    Originally posted by Excited13
    I'm sure there will be many local stories like that, there has been ever since prices crashed, but generally speaking the stats are not much different at all. I've monitored my local areas for a good few years now and seen a bit of a rise this year where I live, but the same thing happened in 2010 and then was dead last year. An area quite near me (not bad at all) is seeing its lowest prices for years, so easy to see how it all evens out.

    Would be interested in knowing who will lend you 5+ times your wage. I have been monitoring this for a few years and all of the lenders with the best rates are still offering me the same amount. (Just to add I havent monitored it for years for fun, partner owns her house outright so have been monitoring it all with a view to buying a bigger house - but with the market stagnant and saving 20k+ a year there has been no rush).
  • Tancred
    In January this year it was easy to find a 4 bed detached for under £200k but now if you find one it isn't in a good area and the 4 beds are closer to the £250k mark.
    Originally posted by Excited13
    Where do you live?? Oop nooth?

    Come down to the Royal County and you won't find a decent 4 bed detached for less than £350k.
    • m0t
    • By m0t 5th Jul 13, 6:22 AM
    • 264 Posts
    • 145 Thanks
    m0t
    We have been looking to buy a house in SE London for a year and my unscientific observations are that prices are going up but availability is going down.

    We now hardly see any new properties appearing on the market so there is huge competition for anything thats available which keeps the prices high.
    • ndf9876
    • By ndf9876 5th Jul 13, 7:09 AM
    • 161 Posts
    • 86 Thanks
    ndf9876
    We have been looking to buy a house in SE London for a year and my unscientific observations are that prices are going up but availability is going down.

    We now hardly see any new properties appearing on the market so there is huge competition for anything thats available which keeps the prices high.
    Originally posted by m0t
    Also seeing this behaviour in Surrey. in our price bracket (£230-£250k) it's like sharks around blood when a 2-bed Victorian semi comes on. We went to an open day viewing and were 18th on the list....

    Houses that I personally feel are worth around £230k are regularly going for £250k; one place we looked at and offered the asking price went at least £5k above asking....it was nice but nothing special....!

    The figures may say one thing, and I am no expert, but certainly in the areas I'm looking, things are just going mad.
    • m0t
    • By m0t 5th Jul 13, 7:37 AM
    • 264 Posts
    • 145 Thanks
    m0t
    One thing that is interesting is that there are a lot of houses unsold in rubbish areas. The prices have been pushed into a bracket where the only people that can afford them wouldn't want to live there.
    • ukcarper
    • By ukcarper 5th Jul 13, 7:58 AM
    • 14,525 Posts
    • 18,401 Thanks
    ukcarper
    Lending multiples are much higher than they were say 10 years or more ago.

    If you have a mortgage imagine what would happen if your interest rate went up by 2 to 5%. For a lot of people this would be a disaster.

    Now combine that with the universal credit replacing tax credits. This on top of inflation in prices squeezing incomes. Also any new graduates are going to have a massive millstone of student debt in the coming years.

    It is creating the conditions for a perfect storm when it comes to the economy and household expenditure.
    Originally posted by Ulfar

    Are you really telling me lending affordability criteria are laxer now than during the boom.
    • HAMISH_MCTAVISH
    • By HAMISH_MCTAVISH 5th Jul 13, 8:27 AM
    • 26,157 Posts
    • 59,775 Thanks
    HAMISH_MCTAVISH
    We now hardly see any new properties appearing on the market so there is huge competition for anything thats available which keeps the prices high.
    Originally posted by m0t
    Supply and demand in action.
    “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”
  • Road_Hog
    We have been looking to buy a house in SE London for a year and my unscientific observations are that prices are going up but availability is going down.

    We now hardly see any new properties appearing on the market so there is huge competition for anything thats available which keeps the prices high.
    Originally posted by m0t
    Yep, I've just sold a house in London. The three estate agents all valued the house at £210K, the instructed agent did an open day a week later and I got the asking price (as long as it goes through okay). I'd been keeping an eye on the situation prior to selling and all the houses (lots of identical terraced houses in the area) that come up for sale have SSTC on Rightmove about a week after first appearing.
  • Turnbull2000
    Clearly not sustainable when people are stretching themselves with interest rates are 0.5%, QE, funding for lending an Help to buy. Wages are technically falling with high inflation and no pay rises, this is going to burn a lot of people who buy now.
    Originally posted by brit1234
    We're simply going through an adjustment in line with long-term interest rate expectations. In 2002-2007, prices adjusted upwards to mortgage rates of 5-6% with duel income borrowing as standard.

    With interest rates set to be suppressed until at least 2020 and state back mortgages likely to become entrenched into the market, we're now heading into an adjustment for 3% mortgage rates and higher multiples on the back of taxpayer guarantees.

    So using the standardised 'affordability' criteria, you can now borrow £245,000 for the same monthly outlay as £200,000 back in 2007.

    Prices are based on ability to borrow. And you can now borrow cheaper than ever before. Hence prices will adjust upwards. It's just common sense.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
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