Monday, 21 October 2013

London homes rise 10% in a month - "No Bubble"

As I described in a September post, London houses have undergone a sudden and significant price rise. Rightmove have now put a number on this - a 10% increase in September for London, 3% elsewhere. Despite this, Boy Osborne tells us this is not a bubble. 

Where is Ed Balls when you need him? Balls would no doubt describe the sudden rise as "a short-run anomaly correcting a fiscal frictional lag in the long-run housing supply curve" or some similar verbiage and not a bubble. No, no, definitely not a bubble at all.

And given that the average London home-owner has just made a tax-free £40,000 last month alone, who's complaining?


DeeDee99 said...

It might be tax-free now, but I doubt if it will be for long.

It surely can't be many years now until a government decides to extend Capital Gains Tax to 'first' homes.

FrankS said...

So where is this £40,000 "gain"? Very few home owners benefit from rise in the value of their house.

Demetrius said...

Re FrankS pertinent comment, the gain as money only occurs if you sell now and move to somewhere rather cheaper. But I don't really see mass migration from Hampstead to Huddersfield.

JW said...

Who's complaining?

Just those who couldn't afford to get on the property ladder even last month-80% of under 35s according to a recent survey wasn't it?

John M said...

Where is Ed Balls?

He's been to the Estate Agents again today and is currently filling out the forms again to flip his main residence back to London I suspect.

Michael said...

Shurely not the same Ed Balls who masterminded Grodon Bruin's economical destiny?

The silly man still ignores his legacy, and luckily, this will haunt him until he claims his pension...

But he doesn't deserve it.

G. Tingey said...

ONLY if you want to sell up & move

Having been here since 1948, the fact that my disentagrating house, that I can't afford to underpin is worth at least £700 000 is totally irrelevant.
I just want to live HERE