Latest property price surveys suggest that property price growth is 'getting back to normal' rather than bubbling over.
Although double digit price rises in London are scary after six years of hardly any growth at all and falls of 15-25%, it's as if the media have forgotten prices rose for 10 years prior to the crash - pretty much every year!
The 'new phrase' for property price growth of a 'bubble' has been coined, and to be honest, is completely inaccurate and misleading. If prices growing were 'bubble like', they would be growing by 20-35% - and we are way off these increases and hopefully we will never go back to them.
So what's actually happening to property prices? READ MY SUMMARY OF ALL THE PROPERTY PRICE REPORTS
To summarise the summary!:-
A couple of things to bear in mind though. Help to Buy is being blamed by some for causing prices to rise - this isn't actually true because the volume of sales going through on Help to Buy is tiny compared to other sales, and we are talking about less than 10% of sales. However, what Help to Buy has done is build enough confidence in the market for people to go out and buy homes, so any effect on the market has been 'indirect'.
This is important to be aware of, because if Help to Buy isn't contributing to price increases, it also can't contribute to price decreases, so as a policy, it's still difficult to see how it can cause the 'bubble' it's constantly accused of.
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