Estate Agents London say House prices on Collision course

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FURTHER SIGNS THAT THE MARKET IS GATHERING MOMENTUM

Bear with us during the following comparisons supplied by our friendly news hounds at The Telegraph. Apparently the optimistic London estate agents rally on the point that the prices are still in flux, Upwards no doubt and you have to read this in conjunction with the next tit bit that follows.
House prices are now 1.1pc higher than they were a year ago, marking the fastest annual increase seen since November 2011. Prices edged up 0.4pc month-on-month in May to reach £167,912 on average, the building society said (which one, we wonder?).
The study is the latest in a string of reports which have pointed to returning confidence in the housing market in 2013 as borrowers find it easier to access a mortgage.
The number of mortgages on the market has increased sharply since the Government launched a scheme called Funding for Lending last August, which has given lenders access to cheap finance to help borrowers. Lenders have been slashing their rates and they have also reported increased numbers of first-time buyers entering the market, including those hunting for houses for sale in Shoreditch.
Government schemes called New Buy and Help to Buy have also been introduced to specifically give people with smaller deposits a helping hand.
Robert Gardner, a chief economist, said: "A number of factors are likely to be contributing to the pick up in activity. "There has been an improvement in the availability and a reduction in the cost of credit, partly as a result of policy measures, such as the Funding for Lending Scheme. (How awkward, they fund the lenders, why not just fund the borrower and save a heck of a lot of middle person rake off on top. Sorry, that's Govt. for you.)
"Indeed, mortgage rates have fallen back towards all time lows in recent months.
"With the UK returning to growth in the first quarter of 2013, the improvement in wider economic conditions may also be playing a role in boosting sentiment."

THIS IS THE SECOND TIT BIT PROMISED

Mr Gardner said the ongoing low interest rates combined with Government policy provided reasons for "optimism" that activity would continue to gather pace in the coming months.
But he cautioned that progress was likely to be gradual, with a continued tough jobs market and pressure on household budgets.
"In real terms, average weekly wages have been falling for some time and are now back at the level prevailing in late 2003," he said.
That is bloody TEN YEARS ago, how do they manage to still speak of optimism? The wages fall back 10 years while the property prices have reached all time highs and not even slowing down!!

MORE PEOPLE RENTING RATHER THAN OWNING WILL BE BETTER FOR OUR ECONOMY

Flying in the face of this eminent good sense is the Government’s Help-to-Buy scheme, which “experts” are relying on to restore the insanity that has until recently constituted the British housing market, this mortgage lending on a Disneyland & Mickey Mouse scale which will prop up grossly inflated property prices, thus drawing millions of ordinary working people into unsustainable debt. (SEE what we meant above?)
As Janet Daley said in her article: “Let’s chant the following sentences all together, shall we? Property prices in this country are too high: they are completely out of sync with ordinary earnings. Many, many people – especially the young, and possibly the old – should not be pressured into owning their own homes: for them renting would be a far better option and furthermore just to compound the heresy, a reduction in home ownership might be better for the economy.”
Which will suit the estate agents in Islington who have a book full of houses to rent in Islington.