Oh Dear: Slowdown hits house price growth

[Lucifer Box]

House price inflation in the UK is slowing, official government figures have shown.

The Department for Communities and Local Government (DCLG) - formerly the ODPM - said prices rose by 5.2% in the year to June, down from 5.6% in May.

Price inflation slowed sharply in London, with annual price inflation in the capital slipping from 7.0% in May to 5.8% in June.

According to the survey, the average property in the UK now costs £190,883.

But while house price growth slowed in England and Scotland, the robust Northern Ireland and Welsh markets posted increases.

Annual house price inflation in Northern Ireland rose from 18% to 18.5% between May and June.

In Wales, the jump in price inflation was more dramatic - rising from 4.8% to 8.5%.

We're doomed, doomed I tell you.

[Francko]

In Wales, the jump in price inflation was more dramatic - rising from 4.8% to 8.5%.

Llyrmpwllyyepp llymapblddd llpaymmm y dddylllmmmppp ( I assume it means "we are doomed, doomed")

[hyperD]

We're doomed, doomed I tell you.

LOL!

Doomed if you want to buy a house as a first time buyer!!

Down to 5.3%, up to 5.8%, down to 3.2%, up to 3.7%, down to 1.1%... etc

The problem is, the actual monetary worth of an average salary is shit because the government are reporting that inflation is 2%, when in actual fact it's riding around 6%, so since 1997 your salary may have gone up by 2-3% each year but offset that against real inflation and your salary now vs 1997 is worth ~30% less than you think it is.

Agreed: we're doomed.

[Lucifer Box]

Are you suggesting the government is cooking the inflation figures?

Surely it is only fair to exclude house prices, energy costs, council tax and other highly inflationary items, whilst including deflationary items such as DVD players and X-boxes?

[DimPrawn]

When measuring inflation it makes sense to include:

Last seasons football shirt
Last years flat screen technology
The outgoing model in any car range
The previous premium CPU


It makes no sense at all to include such flippant items as fuel, food or mortgage payments.

HTH

[GreenerGrass]

Are you suggesting the government is cooking the inflation figures?
Surely it is only fair to exclude house prices, energy costs, council tax and other highly inflationary items, whilst including deflationary items such as DVD players and X-boxes?

The good thing about them cooking the inflation figures is the data helps persuade the B of E not to put up interest rates, or at least it had done until now.

[Lucifer Box]

The good thing about them cooking the inflation figures is the data helps persuade the B of E not to put up interest rates, or at least it had done until now.

If you were a real contractor ( ), you would not see artificially pegging inflation rates low as a good thing.

[GreenerGrass]

If you were a real contractor ( ), you would not see artificially pegging inflation rates low as a good thing.

Good point...