Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

'Huge fan of your work. Very impressive!' - Scott Pape, The Barefoot Investor, Australia's #1 bestseller.

'Must-read, must-follow, one of the finest analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Business Insider.

'I've been investing 40 years yet still learn new concepts from Pete; one of the finest young commentators' - Michael Yardney, Amazon #1 bestseller.

'The most knowledgeable person on Aussie real estate - loads of good data & charts...most comprehensive analyst I follow in Oz' - Jonathan Tepper, Variant Perception, 2 x NYT bestseller.

Wednesday, 31 August 2016

UK house prices accelerate

Record high

Pretty interesting looking at the UK property market headlines today, which include "caution", "worse on the way", "Brexit house price hit", "house prices defy uncertainty only because there are too few homes for sale", "cloudy outlook", and so on.

But then there was also "Another blow to Project FEAR as house prices rise again".

And indeed, so they did.

Nationwide reported that the average UK house price rose by +5.6 per cent year-on-year in August from a year earlier (increasing from +5.2 per cent in July).

The average price hit an all-time high of £206,145.

With the MPC cutting interest rates to 0.25 per cent after years of inaction, and the Bank of England electing to purchase another £60 billion of UK government bonds - applying further downward pressure to interest rates - the cost of fixed rate mortgages keeps on getting cheaper. 

Source: Nationwide

That said, the outlook for the UK economy is uncertain after Brexit, with several indicators suggesting a slowdown.