Why a UK housing boom is both possible and not understood by the government and Bank of England

George Osborne recently tried to assure us. "I don't think in the current environment a house price bubble is going to emerge in 18 months or three years," or so he told parliament this week. The Bank of England governor promises us he won’t let it happen – no bubble...Read More

Construction versus bubble

George is blowing a bubble, and no this is not a reference to the royal baby, rather to the right royal mess George Osborne may be creating with his Help to Buy scheme. The list of those accusing our chancellor of creating a new housing bubble is getting longer. But...Read More

Posted Aug 08, 2013

Property bubble: is this a yarn that can only ever have an unhappy ending?

It is a little odd. The UK enters its worst downturn ever recorded; average wages increase at a rate that is much slower than inflation meaning that for some time average households have been getting worse off, but what do house prices do? Sure they crashed in the US; they...Read More

Posted Jul 29, 2013

More evidence that house prices are turning

It’s a quad trick, or whatever they call the thing that comes after a hat trick. No less than four reports on the UK housing market in May point to prices rising. The latest of these readings from the Royal Institution of Chartered Surveyors (RICS) is perhaps the most encouraging....Read More

Posted Jun 11, 2013

Is the government stoking a housing boom? What are the chances it will burst?

It used to be a magic formula. Never mind what is happening in the real world; in industry, in business. Never mind what is happening with wages and productivity. If house prices were rising, households felt as if they were better off, and went out and spent more as a...Read More

Posted May 07, 2013

Sales of one million pound houses hit six year high. Is this a sign of growing rich poor divide, or just the early stage of recovery?

According to data from Lloyds TSB, the sales of homes worth over one million pounds hit 7,397 in 2012, which was the highest level since 2007. Is this a sign of a recovering economy or is it a case of economics for the one per cent?

Nobel Laureate Paul...Read More

Posted Apr 29, 2013

Rental Inflation drops by a half in Prime London

Overall rents have crept up in London's prime micro-markets, breaching an average of £1.00 per square foot a week. This headline result came despite a 50 per cent slow down in rental inflation over the past 12 months, or so says

London Central Portfolio.

Its research shows that, on average,...Read More

Posted Apr 02, 2013

Are house prices set for 2013 recovery?

The data comes courtesy of the Royal Institution of Chartered Surveyors (RICS), but other data from the Halifax adds to the mood of optimism.

The RICS housing market survey is a good one.  Each month RICS asks estate agents: did house prices go up or down in your...Read More

Posted Dec 11, 2012

House prices: Mortgage possession orders hit 14 year high

There’s a phrase that is often used to justify prices reaching unprecedented levels: “It’s a new paradigm now.” It was a phrase that was used in the late’ 90s to justify extraordinary pe ratios, and it’s a phrase that gets carted out of the dusty clich cupboard every time any...Read More

Posted Nov 06, 2006

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