Artificial House Price Inflation in the UK

We all know our government thinks we are stupid - that almost goes without saying, but the recent quietly released and not-talked-about figures from the Land Registry bear closer inspection than the government press release farms (newspapers) have given.  Quite honestly - how any one makes an informed decision based on the misinformation and garbage being spouted is beyond me.

But one figure does not lie - the Land Registry sales volumes. Now - while house prices in the UK may have eked up slightly - this is based on dismal sales volumes of just 34,000 units in January. Admittedly - not quite as bad as last year, but well below average and a staggering drop of  40,000 units from December and no where near enough data to compile a valuation.

But the recent headlines are confusing to say the least.

UK Housing market sees Spring Bounce! says RTT

The U.K housing market has been buoyed by spring optimism, with survey data showing both housing prices and sales levels rising during April. Meanwhile, an indicator of sales in the highstreet declined during April mainly due to technical factors. RTT

Housing market worst in UK as prices slump, says the Belfast Telegraph

House prices in Northern Ireland remain the worst performing in the UK, according to new data out today. The latest research from the Royal Institution of Chartered Surveyors (RICS) also shows that almost a third of respondents reported a slump in prices in the last three months. Belfast Telegraph

Here is the Land Registry chart for the last few years, and the obvious drop in sales volumes means what exactly? Who knows? The ECB has just agreed to create a trillion Euros out of thin air, the BoE continues to create pounds from the same place and I suspect everyone has lost count of how many new dollars the Fed has majicked up for the American taxpayer to produce. The only thing certain is - it is a good time to buy if you have cash in your pocket and this cannot go on indefinitely. Place your bets!