Nick Thorne

Property investors look away now.

Do not read this article “Why house prices have further to fall”.

“There is one simple reason why house prices need to drop: for decades, they have risen many times faster than wages.”

and then there is this table:

25 years of house prices and wages

Year
House

price
Yearly

wage
Price/wage

ratio

1983
31,636
8,564
3.69

1984
34,308
9,298
3.69

1985
37,286
10,005
3.73

1986
42,302
10,790
3.92

1987
48,875
11,648
4.20

1988
65,504
12,782
5.12

1989
68,831
14,014
4.91

1990
68,858
15,371
4.48

1991
67,198
16,583
4.05

1992
61,594
17,696
3.48

1993
62,564
18,403
3.40

1994
62,066
18,829
3.30

1995
61,127
19,568
3.12

1996
65,674
20,353
3.23

1997
69,220
21,679
3.19

1998
73,010
22,875
3.19

1999
81,386
23,670
3.44

2000
85,999
24,627
3.49

2001
96,076
26,042
3.69

2002
121,426
27,342
4.44

2003
140,130
28,174
4.97

2004
161,288
28,626
5.63

2005
169,445
29,645
5.72

2006
186,242
30,800
6.05

2007
196,002
31,616
6.20

2008
164,225
32,978
4.98

Increase
419%
285%
-

Sources: Halifax House Price Index; Office for National Statistics . . . → Read More: House price to earnings ratio means prices have further to go

Here is how the various news generators reported the inflation figures last week:

Sky News: Shock rise in UK inflation
CityWire: Consumer inflation shows surprise increase
Telegraph: The return of inflation
Independent: What fall? Inflation shows a surprise increase
Financial Times: Inflation surprises and jumps to 3.2%

and the BBC …
BBC ‘News’: Key inflation measure falls to zero

Ever since the “dodgy dossier” . . . → Read More: BBC biased towards the government

We have a customer developing a new way of harnessing power from the ocean.

Great to meet them and see what they are up to. Energy is an important area to throw R&D cash at. The debate about nuclear rumbles on. But we mustn’t forget energy efficiency as well.

My visit to the National Grid control centre last . . . → Read More: Power from the ocean

One month in. I have learnt a tremendous amount.

I have found some world class nuggets. Starting points for great things. I have had some great coaching from buddies (even on a walk along to Durdle Door – ta Noel).

Anyway, 21 days is enough learning time. So let’s see what can be achieved in the . . . → Read More: Tiger by the tail