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Capital Appreciation still in double figures but growth rate slows

Annual house price growth slowed slightly last month, dipping to 10.7 in June from 11.2 per cent in May, according to the Nationwide.

The slowdown in growth was seen across most regions during the second quarter of the year, which ended yesterday, and also saw the South West overtake Wales as the strongest performing region, while London remained the weakest.

Nationwide chief economist Robert Gardner says: “Prices rose by 0.3 per cent month-on-month, after taking into account of seasonal effects, the 11th consecutive monthly increase. There are tentative signs of a slowdown, with the number of mortgages approved for house purchases falling back towards pre-pandemic levels in April and surveyors reporting some softening in new buyer enquiries. 

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“Nevertheless, the housing market has retained a surprising amount of momentum given the mounting pressure on household budgets from high inflation, which has already driven consumer confidence to a record low.

“Part of the resilience is likely to reflect the current strength of the labour market, where the number of job vacancies has exceeded the number of unemployed people in recent months. Furthermore, the unemployment rate remains close to 50-year lows. At the same time, the stock of homes on the market has remained low, which has helped to keep upward pressure on house prices.

“The market is expected to slow further as pressure on household finances intensifies in the coming quarters, with inflation expected to reach double digits towards the end of the year. Moreover, the Bank of England is widely expected to raise interest rates further, which will also exert a cooling impact on the market if this feeds through to mortgage rates.”

The Nationwide’s regional house price indices saw the South West overtake Wales as the strongest performing region in Q2, with house prices up 14.7 per cent year-on-year, a slight increase from the previous quarter. This was closely followed by East Anglia, where growth was 14.2 per cent.

Wales - the previous strongest region - slowed its annual price growth to 13.4 per cent. Scotland is up 9.5 per cent year-on-year. 

London remains the weakest performing UK region, with annual price growth slowing to 6.0 from 7.4 per cent in Q1 2022.

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    My Property: Beer price index doesn't show any increase in beer affordability - and that's before giving 28% of the beer to Boris and Rishi ( presumably not for parties as there never were any).

    A house costing £5000 or 40,000 pints in the late sixties still costs around 40,000 pints but on selling it, after the roughly 3000 tax free pints, 28% of the remaining 37,000 pints, around 11,000, would go to Boris and Rishi, leaving me only able to afford 29,000 pints instead of the 40,000 foregone when the property was originally bought.

    In my book, and any reputable bar, that's a loss of over 25%. I can't find the section on the HMRC self assessment form to claim this loss against other taxable income.

    Anyone point me to the right place (or failing that, the nearest bar)?

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    Interesting analogy, a quick reckoner shows that my properties have matched beer inflation. Cheers!

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    Andy

    Remember you will have to give Boris and Rishi 28% of the beer if you sell up, and since they never have parties it's really no use to them!

     
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    Not Capital Appreciation more like Currency Devaluation so you need more pounds to buy the same thing, same goes for food and cost of living generally.
    Banks are the biggest cause of homelessness by bringing down Base Rates too low Abolishing Savers. People with savings were getting zero returns, at end of year probably lost 8/10%, so they were all forced into Properly trying to hold their own, all bidding against each other driving prices through the roof, making property unaffordable for people on low wages and no opportunity or incentive to save as it had been abolished by the Banking system .

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