Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Wednesday, 29 January 2014

UK houses prices +0.7% m/m (+8.8%) y/y

Nationwide reported UK house prices as being up by 0.7% in January, so 2014 is picking up where 2013 left off.

Over the last 12 months, UK house prices were reported as being up by 8.8%, as a result of low interest rates, rising employment and steadily increasing confidence returning to the UK economy.

The average price of a home increased to £176,491 as housing market activity picked up sharply towards the back end of 2013. 

Meanwhile, in Q3 2013 the number of first-time buyers increased by 32% on the corresponding prior year figure. 

With a sharp increase in mortgage activity, more than 1 million homes were sold in the year.

Only 12,875 of these properties were bought under the Help to Buy equity loan scheme in the the first 9 months of its operation.

The scheme is aimed at potential buyers with a steady income but who have been unable to raise a deposit. 

Under the scheme, which started in April, the British government offered a 20% equity loan to buyers of new properties. The buyers were required to offer a 5% deposit.

Interestingly, more than half of new mortgages (52%) were for a duration of more than 25 years, up from just 40% in 2007, as buyers seek new ways to reduce costs. Very few interest only loans were issued to first homebuyers (2%). 

Borrowers should expect interest rates to rise some time in the near future as the economy at last begins to grow and unemployment looks set to fall below 7%.