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oh dear: House prices continue to go through the roof

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    oh dear: House prices continue to go through the roof

    House prices continue to go through the roof
    Last updated at 11:07am on 12th March 2007

    House price inflation picked up speed in January with the annual rate of increase recorded at 10.9 per cent, official figures showed today.

    An increase of 2.1 per cent in the cost of property purchased in the month pushed the average price of a UK house up to £205,286.

    Government statistics also revealed that for the three months to January, annual house price inflation was set at 9.9 per cent for the UK and 11.6 per cent for London.

    All four home countries registered an increase in house price inflation in January, figures showed. Northern Ireland continued to see the quickest pace, with year-on-year increases recorded at 42.5 per cent in the month.

    The highest inflation rate in England was recorded in London. Annual change in the capital rose to 13.2 per cent in January, up from 11.8 per cent in December.

    The typical cost of a home (AtW's comment: is that a dog's kennel?) in London is now £305,248, compared to an English average of £212,845.

    Northern Ireland saw the value of homes almost hit the £200,000 mark in January following recent high inflation.

    Average prices in Wales and Scotland were recorded at £162,610 and £150,509 respectively, figures showed.

    First-time buyers across the UK continue to be hit by rising property prices, the latest research found.

    Annual price inflation rate for maiden buyers rose from 9.4 per cent in December to 10.6 per cent.

    The value of homes being bought by first-time buyers increased by 1.9 per cent in January, putting the typical cost up to £158,097.

    This compares with the £225,415 average price paid by former owner occupiers.

    Commenting on the figures, Howard Archer, chief UK and European economist at Global Insight, said: "While higher interest rates and elevated house prices may be starting to increasingly weigh down on potential house buyers, an ongoing shortage of properties in many areas means that pricing power is still significantly in favour of the vendor.

    "This is particularly true in London and the South East, where prices are being fuelled by elevated City bonuses as well as a shortage of supply.

    "This means that any slowdown in house prices is likely to be only a gradual process."

    He added: "Nevertheless, we suspect that over time the growing affordability pressures resulting from higher interest rates, only moderate real disposable income growth and elevated house prices will increasingly feed through to squeeze buyers out of the market and curb house price rises."

    --------

    Don't they read CUK to know that house price crash is now imminent?

    #2
    Why are you surprised? I told you about the effect City bonuses would have last year. However I think that a there are a few economic shocks waiting in the wings this year.
    Hard Brexit now!
    #prayfornodeal

    Comment


      #3
      [QUOTE=AtW]House prices continue to go through the roof
      Last updated at 11:07am on 12th March 2007


      "This is particularly true in London and the South East, where prices are being fuelled by elevated City bonuses as well as a shortage of supply.

      [/QUOTE

      Shortage of supply or too much demand due to our open borders?!?

      Comment


        #4
        Originally posted by Hart-floot
        Shortage of supply or too much demand due to our open borders?!?
        By definition it is both - and with a quarter of a million coming in every year it's not surprising.

        Comment


          #5
          Originally posted by wendigo100
          with a quarter of a million coming in every year it's not surprising.
          You think those Polish immigrants that come here can just go and get £300k morgage to buy an that average house in London? For your information that kind of people are not exactly rich - they typically rent ROOM in a house with 3-6 other adult people in the same house (that's very efficient use of housing), and often they share room with another adult because it is so damn expensive to live in this country: their earnings are sh1t too, so stop spreading this rubbish about immigrants coming over and pushing house pricing higher - the reason for the bubble is inability of local population to think ahead a few years and just say NO to rip-off pricing.

          Comment


            #6
            The more they keep going up, the harder it will hit when they go down again.

            Comment


              #7
              Originally posted by pisces
              The more they keep going up, the harder it will hit when they go down again.
              Who said that house prices were going to go down. The most anyone ever says is that the rate of growth will slow - that still means the price is going up just not as fast.

              Comment


                #8
                They have in the past so will do again I think. With so many more people in more debt than ever before the tulip will hit the fan eventually.
                Last edited by pisces; 12 March 2007, 12:50.

                Comment


                  #9
                  about 2 more interest rate rises away from a correction
                  IMHO

                  Even the BTL market is starting to struggle, Yields won't even cover the mortgage in most cases.
                  The court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.

                  But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”

                  Comment


                    #10
                    So BP - What's your view of a 'correction'

                    Are you thinking full scale crash, house prices down by 30%?

                    or something akin to recent stock market corrections - only 5% real drop in prices with a bounce back in a relatively short space of time?
                    Si posse, recte, si non, quocumque modo rem

                    Comment

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