Property Perspective

If you listen to all the hot air coming from the mortgage and property market (you can throw in the Government as well), you would be forgiven for thinking that house prices have trebled in the past month and we are on the verge of another property boom.

 

Well, let’s just have a small slice of perspective for elevenses today shall we? 

 

Mortgages

Hard facts time. Total mortgage lending in 2012 was £143 billion and £157 billion for 2013……a modest rise of 10%. However, to put this into perspective……this is only half the level of total mortgage lending of 2007 (pre-banking collapse). Hardly ‘boom time’ statistics.

 

House Prices (A)

The graph below highlights that house prices have risen over the last year……but they are still well below the 2007 peak.

 

 

House Prices (B)

The region in which you live also impacts on the figures above, as they include a country within a country……namely London. The latest figures from the Office for National Statistics stated that the average property price in London increased by 12% in 2013 compared with 5.5% for the whole of the UK. Point made me thinks.

 

In summary, let’s be pleased that there is positive news in the property world as we have so much of our personal wealth tied up in it collectively. However, let’s not create a boom and bust bubble……we are still paying for the last one and lessons are still being learnt.

 

Reality check done.