House prices

[Groovyelms]

So how much is your house worth then John??? used to be a mantra very closely allied to the fictional character "loads of money" way back... since then the property bubble has come and gone, with the massive associated borrowing has put the uk firmly in the s..t. I hope that house prices keep some sort of stability and money flows into the ecomony not just into bricks and mortar where it does little good. this is probabely a slightly utopian view... as we all know the elusive "feel good factor" appears to be directly related to "so how much is your house worth then John"
groovy

[Iron]

BoE turns dovish as Dale, Weale drop calls for rate rise - http://www.telegraph.co.uk/finance/econ ... -rise.html

[Iron]

The housing market has 'roared back to life' apparently!

http://www.express.co.uk/posts/view/267480

Jeff

[andyfuller]

The housing market has 'roared back to life' apparently!

http://www.express.co.uk/posts/view/267480

Jeff

That was quick - only took a day to go from "House prices in the North East of England fell by 8.8% in the year to July, as figures show that every region of England and Wales, except London, experienced an annual drop."

http://www.bbc.co.uk/news/business-14678794

[Iron]

I think what the Express is reporting isn't so much a lion roaring into life as a dead cat bounce!

Jeff

[superfrank]

Call for action on homes 'crisis'
http://www.bbc.co.uk/news/business-14708841

According to Ms Davison of the NHF, the number of new homes built last year was the lowest in peacetime since 1923.

She blamed much of the problem on the higher deposits required by mortgage lenders, saying this had cut first-time buyers out of the market.

"House prices are 25% higher than they were five years ago, 117% higher than they were a decade ago, and eleven times average earnings," she told the BBC.

What Ms Davison fails to appreciate is that banks, belatedly but quite rightly, don't want to lend when the price/earnings ratio is so stretched (especially when the prospects for real earnings growth are so limited).

The problems can be summarised simply as population too high; supply too low; prices too high.

Therefore the only rational solution can be to cut the population (or at least stabilise it) by ending immigration and increasing home building - prices will then adjust naturally to where it makes sense for banks to lend and people to buy.

But the solution of the vested interests in property is always the same... increase lending regardless of the fundamental problems. I wouldn't be surprised if Ms Davison is a buy-to-let landlord.

The Daily Express, true to form, reports the fanciful HPI prediction!



Even if they did rise 21% over the next 5 years, that would still be a fall in real terms with inflation at 5%pa.

[Iron]

If the government were determined to crack the immigration problem, they could make massive inroads in no time IMHO.

But a robust approach (like leaving the EU) would be unacceptable to the Lib Dems, so it won't happen this side of the next election (if ever)...

Jeff

Therefore the only rationale solution can be to cut the population (or at least stabilise it)

[superfrank]

Architects say new houses are 'shameful shoebox homes'
http://www.bbc.co.uk/news/uk-14909066

classic modern British short-termism.

Riba chief executive Harry Rich said new houses were causing some people to endure a lower quality of life.

"Our homes should be places that enhance our lives and well-being," he said.

"However, as our new research confirms, thousands of cramped houses - shameful shoe box homes - are being churned out all over the country, depriving households of the space they need to live comfortably and cohesively."

that's what happens when property becomes an investment vehicle and too big to fail.

[Iron]

But at least there is some good news on the housing front!

House prices are rising by 100 quid a week apparently, defying all economic logic: http://www.express.co.uk/posts/view/272 ... nds-a-week



Jeff

[superfrank]

stop reading the bl00dy express!!

their fantasy headline would be "Diana was murdered, but house prices double".

joke 'news'paper.

[Iron]

I don't actually read the Express!

I was just in the shop this evening, and noticed yet another 'house prices are soaring' type headline, and I couldn't resist the temptation to post it!

I want some of whatever the person who writes their stories about house prices has been smoking!

Jeff

[Groovyelms]

Hi All,

I just have have to say thank god for the freedom of the press...

groovy

[LeTiss]

How many other people watch 'Homes Under the Hammer' in the mornings?

I don't see too many people losing money on their deals. I think bricks and mortar are still about the safest investment you can make. As long as you buy the right place at the right price of course.

btw, my cousin appeared on HUTH - he got paid £500 by the BBC with no repeat fees!

[superfrank]

I think bricks and mortar are still about the safest investment you can make.

Don't be too sure about that. Property prices in Britain are still massively overvalued (relative to incomes) and it's only ultra-low rates that have prevented a real crash.

In Greece they've just introduced a new property tax (property/land taxes make a lot of sense for govts because you can't hide them away from the taxman!).

Pity the Greeks
http://www.bbc.co.uk/news/world-europe-14972539

If the sh1t really hits the fan here then we'd probably see the same kind of thing.

[Iron]

The Express's lead story this morning is that this winter will be cold and there'll be snow.

http://www.express.co.uk/posts/view/272457

Fascinating stuff...

Jeff

stop reading the bl00dy express!!