Pete Wargent blogspot

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

5 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's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete 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 & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Tuesday, 19 April 2016

Last huzza for UK house price boom

March surge

UK house prices experienced the expected surge in March according to Halifax in advance of a clampdown on buy-to-let, with annual price growth surging to double digit levels at more than +10 per cent.

The quarterly data isn't yet available for Q1 2016, but evidently the indexed figures to the end of 2015 show that dwelling price growth has continued to be driven by London and its immediately surrounding regions.

Since 2008 the price of flats (+57 per cent) has increased far ahead of the price of houses (+37 per cent), driven overwhelmingly by flat prices in the capital and housing affordability constraints, while supply levels remain very low.

Asking prices surge to record

Rightmove also released its asking prices index which boomed by +£3,843 or +1.3 per cent to set a record high of £307,033, while London asking prices have increased to a barnstorming £646,200.

The boom was driven by a predictable chain reaction as investors rushed to buy before the 1 April deadline.

Growth has now rippled outwards to the East (+10.8 per cent) and South East (+9.4 per cent), where price growth is now ahead of London (+8.7 per cent).

The wrap

Although incentives exist for first homebuyers, price growth momentum will undoubtedly now slow as investor buying drops off a cliff, although Rightmove did note that March had been its busiest ever month for website visits. 

Given that the supply of new dwellings has not even remotely kept pace with demand under successive governments, as sure as night follows day rents will now spike as 2016 unfolds, leading to reports of a rental crisis in the south east of England.