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 better 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.

Sunday, 1 June 2014

London house prices rise at fastest pace on record

London property running wild

Extraordinary numbers from the UK Land Registry with London house prices soaring by another 4.2% in April, now being up by 17% over the past year.

This is important because the Land Registry data reports on actual sales prices, not asking prices or mortgage data, and as such is seen to be the most authoritative.

This is the fastest monthly rate of growth ever recorded by the house price index, while the annual rate of growth is the fastest in more than a decade (click chart):


UK Telegraph reports:

"Jeremy Duncombe, director at Legal & General, said: "These figures highlight the two speed housing market that we are currently experiencing in the UK. London and the South East are seeing dramatic house price growth, while other parts of the UK, such as the North East, lag behind."

"He added: "In all areas of the country there is a real need to build more houses. At the moment demand outstrips supply, which increases the pressure on house prices and makes it harder for people to own their own home."


Indeed. 

As we've always said, the places to own property in the UK are London, Cambridge and a few key areas in the south-east with easy transport access to London (and not the regional areas).

By way of an example, some towns in the north east such as Hartlepool, for example, have failed to even record 25% growth in the past two decades, while parts of Wales for example have also struggled, as you can track in the Land Registry's source data here


The London chart has recorded truly extraordinary returns since 1995, increasing from an index of 100 up to an unprecedented 472.7. 

I recall that it was widely opined in 1997 that house prices could not rise higher, yet the same index was only hovering around 110 at that time. 

The wider London index receded to 318.3 following the financial crisis in May 2009, but has come roaring back stronger than ever before due to the mix of a continuing chronic undersupply of stock and a growing population.