House prices rise 0.5% in May, says Halifax, but property market goes back into hibernation after stamp duty rush

June 7th, 2012

FAKE NEWS for the Zionist agenda

By
Simon Lambert

PUBLISHED:

04:31 EST, 7 June 2012

|

UPDATED:

05:24 EST, 7 June 2012

Stuck in a rut: House prices have been drifting sideways for more than a year as the property market stagnates

The property market has gone back into hibernation following the brief rush delivered by the end of the first-time buyer stamp duty break, figures from Halifax revealed today.

Property values have been drifting sideways for more than a year, with the average home down 0.1 per cent annually at £160,941.

House prices rose 0.5 per cent in May, according to the index from Britain’s biggest mortgage lender, continuing the pattern of mixed monthly rises and falls that saw prices drop 2.3 per cent the month before.

Recent property market reports have been heavily distorted by the removal of the stamp duty break on properties below £250,000 for first-time buyers at the end of March.

This triggered an 18 per cent drop in property sales in April after a rush by buyers to get house purchases completed before the deadline, and Halifax said that in the absence of any further assistance the property market was likely to continue to stagnate.

Halifax chief economist Martin Ellis said: ‘Whilst there has been a modest improvement in the trend for house prices recently, the current average UK price is very similar to the levels both a year ago and at the beginning of this year.

‘We expect this situation to continue with prices likely to still be around today’s levels at the end of 2012 as the ongoing tough economic environment constrains housing demand.

‘Recent monthly house sales figures have clearly been affected by the ending of the stamp duty holiday for first-time buyers in late March.

Overall, the trend for sales – like that for prices – appears to be one of broad stability.’

The Halifax report follows figures from Nationwide last week, which showed house prices rose modestly in May – their first monthly increase since February. It said house prices were 0.7 per cent lower than they were a year ago

Nationwide’s chief economist Robert Gardner said: ‘Demand for homes remains subdued on the back of weak labour market conditions, but the lack of homes coming on the market is providing support for prices.

‘This is in part a reflection of the low rate of building in recent years which has failed to keep pace with household formation.’

A further dent to the property market’s performance this year could come from the upward move in mortgage rates.

The best homeloans have seen rates rise by between 0.5 and 1 per cent in recent months, as banks look to squeeze more money out of borrowers remortgaging off rising standard variable rates and ration lending in the face of their own funding issues caused by the ongoing financial crisis.

The shift upwards in rates comes despite the Bank of England continuing to keep base rate at its record low 0.5 per cent, with money markets not predicting a rise until late 2016.

Property watchers forecast little improvement for those hoping to sell their home this year. Ashley Alexander, managing director, estate agent review website MeetMyAgent.co.uk, said: ‘

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There
are simply too many factors preventing a purchase. A lack of stock generally,
intransigent sellers, tougher lending criteria and consumer caution are keeping
transaction levels low.’

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

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– Rigsby, Rugby, 07/6/2012 20:22 I think its important to be aware of how the media report this. I believe buyers and sellers read these media reports and their behaviour can be influenced by them. I doubt very many (like me) would read the full Halifax report but would read and listen to how these figures are reported. I go on what is going on around me as I am fortunate in having a lot of local knowledge and it certainly does not match with stable and rising house prices but you would never know that from the ever rising asking prices. I also have the email updates from sites like Zoopla and Mouseprice and they match with my view that prices are falling.

– Heather,, Middle England, 07/6/2012 21:36

Since January 2008 the Land Registry reports that the average sale price in the West Midlands has fallen from £137,818 down to £114,285. 17% drop
In Kent, in the same time period, the Land Registry reports that the average sale price has fallen from £204,545 down to £179,752 12% drop
In Devon: from £210,386 down to £188,325. 10.5% drop
In Greater London, again in the same time period, we see the average house sale price has risen from £351,437 to 360,721. (As of last month it had fallen slightly to £343,183). Roughly 2.5% increase (I think)
In Westminster we see the predictable, extreme upswing; from £595,587 to £713,748 during the same period. Over 16% increase
Outside of London, it really has not been stagnation, (without even considering inflation) and to suggest otherwise is disingenuous in the extreme. London, and particularly central London are skewing national figures significantly.

– Patrick, London, 07/6/2012 21:23

How are your flats in spain Joe ? Down and not up as in essex ! And when will the spring bounce show ? -18% transactions in april alone says it all !

– Honest john, , uk, 07/6/2012 20:47

Like the weather, the doomies are rained on once again. Tip – get a good raincoat (ie. buy a flat) or a decent umbrella (ie. buy a house) to prevent future inevitable drenchings. Denial is not going to get you anywhere.

– Joe, Essex, 07/6/2012 20:35

Heather,, Middle England, 07/6/2012 19:26 – Heather, why not just look up the Halifax report and have a look at the figures. That way, you’ll know what stats the Halifax figures (or Nationwide or Land reg) are based on, what the reports show in May, April, the last quarter, half year, year-on-year, etc. If you pardon me saying so, you’ll probably gain more factual and useful information than you’ll find in different newspapers ‘takes’ and opinions on such stats. I’m not saying you’ll like what you see, but it beats this cherry picking of the bits we want to believe whilst ignoring the bits we don’t

– Rigsby, Rugby, 07/6/2012 20:22

The Halifax report is covered in an article in another upmarket Daily Newspaper very differently. They refer to the fact that house prices fell by more than £3,000 in April – more than most owners earned that month and that The Halifax were doing their best to report this in a positive manner by referring to the 0.5% increase, which is actually an increase on the figure from 3 months ago!

– Heather,, Middle England, 07/6/2012 19:26

Basically it comes down to two choices, get busy living or busy dying

– Andy dufresne, Mexico, 07/6/2012 18:57

“Why keep on about stamp duty, it only amounts to a couple of thousand pounds, it’s the £200,000 asking price of rabbit hutch sized houses that’s putting people off.
– Peter, Northamptonshire, 07/6/2012 17:32” ————- Well if you buy a property in the south east where the average price is £270k, you’ll be shelling out over £8k in stamp duty for that average price home – that’s quite a bit of money, and it goes to someone who does naff all in relation to the purchase.

– John, Kent, 07/6/2012 18:51

No mention of sales volumes are these up or down, so you sell 10 houses at 0.5% higher than they were the previous mth but in 2007 at the height of the market for the same mth you managed to sell 100 houses at 0.3% higher than the previous mth!
Halifax should disclose the sales volumes for a fairer comparison and a breakdown by relevant property price banding. Either way the keywords in Halifax’s statement are ‘stagnation’ and FTB stamp duty break ending’ coupled with ‘tough economic climate’ which at least shows a bit more realism to their post.
Hilarious

– Paul, Planet Earth, 07/6/2012 18:42

Halifax, the company that gives a little extra tells us that house prices have gone up. Not according to THEIR OWN surveyors valuations they haven’t. Certainly not in the south-east they haven’t.
Two houses that I know of have have been valued by the Halifax at less than the purchase price of 10 years ago! They are not lending money for mortgages, which is a bit sad for first time buyers, particularly as when I went to complain I discovered that The HALIFAX is part of the LLoyds Banking group and therefore owes the British public big time! They will also not allow complaints on line by email, Facebook, Twitter or Telephone. Only by letter which takes time to arrive and has not been responded to.
Shame on you Halifax for giving out false information to suit your own needs!

– Yvonned, Basildon UK, 07/6/2012 17:47

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