comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 7 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
----------------------------------------------------------------------
Who has announced what?
comment by Striketeam7 - the smartest person you know - After 40 years Maf lost his trophy virginity to Florence (U18109)
posted 11 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
---------------------------------------------------------------------
Unfortunately the private landlords who own one property as a pension fund are the ones backing out of the market because of the endless rules and restrictions against them so it’s just companies and people with property portfolios left.
Yet more poorly thought out legislation
comment by Devonshirespur (U6316)
posted 0 seconds ago
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 7 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
----------------------------------------------------------------------
Who has announced what?
----------------------------------------------------------------------
sorry, meant to respond to Weekendoffender.
You're actually talking sense
My house has gone up 30% in value since I bought it 5 years ago. Living in the SE it’s not going down more than 5%. No way.
comment by WeekendOffender (U22920)
posted 12 minutes ago
No surprise that they announce this 6 months after bringing back "no deposit mortgages"
Can you spell "Bank bale out?"
----------------------------------------------------------------------
You can’t, it would be “Bank bail out”
comment by Devonshirespur (U6316)
posted 9 minutes ago
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 7 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
----------------------------------------------------------------------
Who has announced what?
----------------------------------------------------------------------
It’s an opinion not an announcement
comment by Devonshirespur (U6316)
posted 8 minutes ago
comment by Devonshirespur (U6316)
posted 0 seconds ago
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 7 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
----------------------------------------------------------------------
Who has announced what?
----------------------------------------------------------------------
sorry, meant to respond to Weekendoffender.
You're actually talking sense
----------------------------------------------------------------------
Just caught up
comment by Striketeam7 - the smartest person you know - After 40 years Maf lost his trophy virginity to Florence (U18109)
posted 1 second ago
comment by Devonshirespur (U6316)
posted 9 minutes ago
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 7 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
----------------------------------------------------------------------
Who has announced what?
----------------------------------------------------------------------
It’s an opinion not an announcement
----------------------------------------------------------------------
its the opinion of the Conservative Party
comment by Devonshirespur (U6316)
posted 14 minutes ago
comment by Two Balls, One Saka (U19684)
posted 22 minutes ago
comment by Devonshirespur (U6316)
posted 16 minutes ago
comment by Two Balls, One Saka (U19684)
posted 1 minute ago
Needs to be a massive correction, will be painful for a lot of people but the bubble is dangerous both short and long term.
If / when a proper crash happens very strict rules need to be applied to stop the cash rich simply hoovering up the stock and starting the bubble cycle all over again.
I doubt either party in the UK will do anything but make the situation worse though
----------------------------------------------------------------------
I do not believe this is a bubble in the traditional sense.
----------------------------------------------------------------------
Fair enough, I think it's definitely a bubble and it's also a bubble by design. Those with the most control over it have made it that way from bad government policies to land banking by developers and the extremely wealthy.
Sadly while ordinary mortgage holders face potentially crippling costs, those same wealthy people or organisations will hoover up any cut price stock as soon as it becomes available.
It needs massive government intervention to stop it ever happening again which obviously we won't get
----------------------------------------------------------------------
Why is it a bubble by design?
Many of the influences have been out of our control and a wider global / european issue.
Compounded by our decision to Brexit, which wasnt a decision made with the housing market in mind.
% rates are high as they are everywhere.
The growth in the market has been fuelled by an undersupply (which has been the case for decades) and low rates which have been necessary given the post-2008 crash and state of the economy, as well as high population growth fuelled by migration.
Measures to underpin the market and house building sector, such as help to buy and other schemes have contributed but only really as more of a rescue package, not an attempt to inflate the market. Many of those have now ceased. increased SDLT has also looked to hit second home owners as have lowered CGT thresholds.
I think a 25% adjustment is very unlikley.
If you take the 2008 crash which was a far more seismic hit on the whole economy then the av. house price went down from about £195K in UK to no lower than 160K. an 18% drop when unemployment was hitting 8.5% and GDP fell by 6%.
----------------------------------------------------------------------
Land banking and drip feeding development in order to maximise profits is, in my opinion, increasing prices by design. Then you have the lack of government legislation to stop it, or to stop multi home ownership, or to stop wealthy investors using London as their own personal property bank, or to allowing virtually unlimited lending to increase the bubble.
The by design part is by the land owners and developers, the failure to do anything useful to stop it is by the government, the eagerness to lend and lend and lend to drive up a maximum return on interest is by the banks.
I have to agree with StrikeMug Muppet7 the most stupid person I know here, any decline will be temporary before the next inexorable leg up in the inflation mega trend.
All fiat currencies are destined to fail, what we are witnessing is the beginning of the end.
comment by Two Balls, One Saka (U19684)
posted 7 minutes ago
comment by Devonshirespur (U6316)
posted 14 minutes ago
comment by Two Balls, One Saka (U19684)
posted 22 minutes ago
comment by Devonshirespur (U6316)
posted 16 minutes ago
comment by Two Balls, One Saka (U19684)
posted 1 minute ago
Needs to be a massive correction, will be painful for a lot of people but the bubble is dangerous both short and long term.
If / when a proper crash happens very strict rules need to be applied to stop the cash rich simply hoovering up the stock and starting the bubble cycle all over again.
I doubt either party in the UK will do anything but make the situation worse though
----------------------------------------------------------------------
I do not believe this is a bubble in the traditional sense.
----------------------------------------------------------------------
Fair enough, I think it's definitely a bubble and it's also a bubble by design. Those with the most control over it have made it that way from bad government policies to land banking by developers and the extremely wealthy.
Sadly while ordinary mortgage holders face potentially crippling costs, those same wealthy people or organisations will hoover up any cut price stock as soon as it becomes available.
It needs massive government intervention to stop it ever happening again which obviously we won't get
----------------------------------------------------------------------
Why is it a bubble by design?
Many of the influences have been out of our control and a wider global / european issue.
Compounded by our decision to Brexit, which wasnt a decision made with the housing market in mind.
% rates are high as they are everywhere.
The growth in the market has been fuelled by an undersupply (which has been the case for decades) and low rates which have been necessary given the post-2008 crash and state of the economy, as well as high population growth fuelled by migration.
Measures to underpin the market and house building sector, such as help to buy and other schemes have contributed but only really as more of a rescue package, not an attempt to inflate the market. Many of those have now ceased. increased SDLT has also looked to hit second home owners as have lowered CGT thresholds.
I think a 25% adjustment is very unlikley.
If you take the 2008 crash which was a far more seismic hit on the whole economy then the av. house price went down from about £195K in UK to no lower than 160K. an 18% drop when unemployment was hitting 8.5% and GDP fell by 6%.
----------------------------------------------------------------------
Land banking and drip feeding development in order to maximise profits is, in my opinion, increasing prices by design. Then you have the lack of government legislation to stop it, or to stop multi home ownership, or to stop wealthy investors using London as their own personal property bank, or to allowing virtually unlimited lending to increase the bubble.
The by design part is by the land owners and developers, the failure to do anything useful to stop it is by the government, the eagerness to lend and lend and lend to drive up a maximum return on interest is by the banks.
----------------------------------------------------------------------
I work in this sector and although land banking occurs it is an essential part of strategic development . Housebuilders have to have land in the pipeline and actually many deal a lot with options and promotion agreements with a long term view. Yes, they sit on land until it suits them and of course there is benefit in controlling supply to keep prices up BUT there are also significant hurdles to delivering houses not least the planning system. In 2000 ish there was a big change where previously developed land (PDL) became the focus and minimal housing density was introduced at national level to ensure the best use of land and avoiding greenfield development where possible. Since then the availability of PLD and brownfield sites has dwindled leaving only the harder to develop sites, and this just pushes the focus on more sensitive & difficult areas where factors like contamination or nimbies make delivery of housing even harder.
I have been involved in bringing a large site forward which is just selling now which we have been promoting since the mid 00s. It is crazy how long planning takes and if you put a large application in today, you'll be lucky to get a decision inside 6 months and if it is refused, the Appeal process is taking 9-12 months.
comment by Two Balls, One Saka (U19684)
posted 4 minutes ago
comment by Devonshirespur (U6316)
posted 14 minutes ago
comment by Two Balls, One Saka (U19684)
posted 22 minutes ago
comment by Devonshirespur (U6316)
posted 16 minutes ago
comment by Two Balls, One Saka (U19684)
posted 1 minute ago
Needs to be a massive correction, will be painful for a lot of people but the bubble is dangerous both short and long term.
If / when a proper crash happens very strict rules need to be applied to stop the cash rich simply hoovering up the stock and starting the bubble cycle all over again.
I doubt either party in the UK will do anything but make the situation worse though
----------------------------------------------------------------------
I do not believe this is a bubble in the traditional sense.
----------------------------------------------------------------------
Fair enough, I think it's definitely a bubble and it's also a bubble by design. Those with the most control over it have made it that way from bad government policies to land banking by developers and the extremely wealthy.
Sadly while ordinary mortgage holders face potentially crippling costs, those same wealthy people or organisations will hoover up any cut price stock as soon as it becomes available.
It needs massive government intervention to stop it ever happening again which obviously we won't get
----------------------------------------------------------------------
Why is it a bubble by design?
Many of the influences have been out of our control and a wider global / european issue.
Compounded by our decision to Brexit, which wasnt a decision made with the housing market in mind.
% rates are high as they are everywhere.
The growth in the market has been fuelled by an undersupply (which has been the case for decades) and low rates which have been necessary given the post-2008 crash and state of the economy, as well as high population growth fuelled by migration.
Measures to underpin the market and house building sector, such as help to buy and other schemes have contributed but only really as more of a rescue package, not an attempt to inflate the market. Many of those have now ceased. increased SDLT has also looked to hit second home owners as have lowered CGT thresholds.
I think a 25% adjustment is very unlikley.
If you take the 2008 crash which was a far more seismic hit on the whole economy then the av. house price went down from about £195K in UK to no lower than 160K. an 18% drop when unemployment was hitting 8.5% and GDP fell by 6%.
----------------------------------------------------------------------
Land banking and drip feeding development in order to maximise profits is, in my opinion, increasing prices by design. Then you have the lack of government legislation to stop it, or to stop multi home ownership, or to stop wealthy investors using London as their own personal property bank, or to allowing virtually unlimited lending to increase the bubble.
The by design part is by the land owners and developers, the failure to do anything useful to stop it is by the government, the eagerness to lend and lend and lend to drive up a maximum return on interest is by the banks.
----------------------------------------------------------------------
Land banking has been going on for decades, it’s a joke and should be stopped - a change in legislation that said land left undeveloped after 5 years will Be confiscated from developers would soon sharpen the minds of those companies.
I think the wider issue though is wages, 40 years ago a postman in the south east could afford to buy a 3 bed semi and raise a family on that 1 income - that same postman today would be renting a 2 bed flat if he is lucky. Wages don’t keep up with inflation, let alone house prices.
I spent a decade renting between 20 and 30 and it was miserable, moving every 12 months, never going on holiday, no sky. Eventually had enough money to buy - suddenly everything changes, my monthly outgoing reduced massively, no longer a need to save as much. Then i moved again 4 years later and saw a ridiculous mark up in price on my property - all I had done was slap a bit of paint and wallpaper on.
But other than not voting Tory (which I don’t) how else can I help youngsters today? I’m just a guy who owns a house so his family can live in it, zero desire to be a landlord, will look to downsize when I can and give my kids money to get on the ladder themselves.
Talk about a property crash, you can now buy White Elephant Lane for less than a hundred quid!!
https://victoriaplum.com/browse/all-toilets/type_Back-to-wall-toilets?csi=CUB01PBTW&gclid=Cj0KCQjwzdOlBhCNARIsAPMwjbx3PQ8KQWIF0h6ObGrjt3Ilneo_POzraJ9Lj-LsPnQ2owKxtIGpGsMaAnt6EALw_wcB
comment by Devonshirespur (U6316)
posted 2 minutes ago
comment by Two Balls, One Saka (U19684)
posted 7 minutes ago
comment by Devonshirespur (U6316)
posted 14 minutes ago
comment by Two Balls, One Saka (U19684)
posted 22 minutes ago
comment by Devonshirespur (U6316)
posted 16 minutes ago
comment by Two Balls, One Saka (U19684)
posted 1 minute ago
Needs to be a massive correction, will be painful for a lot of people but the bubble is dangerous both short and long term.
If / when a proper crash happens very strict rules need to be applied to stop the cash rich simply hoovering up the stock and starting the bubble cycle all over again.
I doubt either party in the UK will do anything but make the situation worse though
----------------------------------------------------------------------
I do not believe this is a bubble in the traditional sense.
----------------------------------------------------------------------
Fair enough, I think it's definitely a bubble and it's also a bubble by design. Those with the most control over it have made it that way from bad government policies to land banking by developers and the extremely wealthy.
Sadly while ordinary mortgage holders face potentially crippling costs, those same wealthy people or organisations will hoover up any cut price stock as soon as it becomes available.
It needs massive government intervention to stop it ever happening again which obviously we won't get
----------------------------------------------------------------------
Why is it a bubble by design?
Many of the influences have been out of our control and a wider global / european issue.
Compounded by our decision to Brexit, which wasnt a decision made with the housing market in mind.
% rates are high as they are everywhere.
The growth in the market has been fuelled by an undersupply (which has been the case for decades) and low rates which have been necessary given the post-2008 crash and state of the economy, as well as high population growth fuelled by migration.
Measures to underpin the market and house building sector, such as help to buy and other schemes have contributed but only really as more of a rescue package, not an attempt to inflate the market. Many of those have now ceased. increased SDLT has also looked to hit second home owners as have lowered CGT thresholds.
I think a 25% adjustment is very unlikley.
If you take the 2008 crash which was a far more seismic hit on the whole economy then the av. house price went down from about £195K in UK to no lower than 160K. an 18% drop when unemployment was hitting 8.5% and GDP fell by 6%.
----------------------------------------------------------------------
Land banking and drip feeding development in order to maximise profits is, in my opinion, increasing prices by design. Then you have the lack of government legislation to stop it, or to stop multi home ownership, or to stop wealthy investors using London as their own personal property bank, or to allowing virtually unlimited lending to increase the bubble.
The by design part is by the land owners and developers, the failure to do anything useful to stop it is by the government, the eagerness to lend and lend and lend to drive up a maximum return on interest is by the banks.
----------------------------------------------------------------------
I work in this sector and although land banking occurs it is an essential part of strategic development . Housebuilders have to have land in the pipeline and actually many deal a lot with options and promotion agreements with a long term view. Yes, they sit on land until it suits them and of course there is benefit in controlling supply to keep prices up BUT there are also significant hurdles to delivering houses not least the planning system. In 2000 ish there was a big change where previously developed land (PDL) became the focus and minimal housing density was introduced at national level to ensure the best use of land and avoiding greenfield development where possible. Since then the availability of PLD and brownfield sites has dwindled leaving only the harder to develop sites, and this just pushes the focus on more sensitive & difficult areas where factors like contamination or nimbies make delivery of housing even harder.
I have been involved in bringing a large site forward which is just selling now which we have been promoting since the mid 00s. It is crazy how long planning takes and if you put a large application in today, you'll be lucky to get a decision inside 6 months and if it is refused, the Appeal process is taking 9-12 months.
----------------------------------------------------------------------
The other issue with this of course is how it affects local services - it’s all very well building a 5000 new homes on a site, but that’s probably 15-20,000 new people in an area - Hospital wait times go up, school places become more scarce, etc - that’s why it takes applications so long.
What I don’t agree with is some of these companies sitting on land for a decade + because economically it makes more sense to do so. Part of the contract should involve hard deadlines on proposal dates
comment by WeekendOffender (U22920)
posted 2 minutes ago
Talk about a property crash, you can now buy White Elephant Lane for less than a hundred quid!!
https://victoriaplum.com/browse/all-toilets/type_Back-to-wall-toilets?csi=CUB01PBTW&gclid=Cj0KCQjwzdOlBhCNARIsAPMwjbx3PQ8KQWIF0h6ObGrjt3Ilneo_POzraJ9Lj-LsPnQ2owKxtIGpGsMaAnt6EALw_wcB
----------------------------------------------------------------------
You would have to sell Molineux 5 times over to afford that
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 4 minutes ago
comment by Devonshirespur (U6316)
posted 2 minutes ago
comment by Two Balls, One Saka (U19684)
posted 7 minutes ago
comment by Devonshirespur (U6316)
posted 14 minutes ago
comment by Two Balls, One Saka (U19684)
posted 22 minutes ago
comment by Devonshirespur (U6316)
posted 16 minutes ago
comment by Two Balls, One Saka (U19684)
posted 1 minute ago
Needs to be a massive correction, will be painful for a lot of people but the bubble is dangerous both short and long term.
If / when a proper crash happens very strict rules need to be applied to stop the cash rich simply hoovering up the stock and starting the bubble cycle all over again.
I doubt either party in the UK will do anything but make the situation worse though
----------------------------------------------------------------------
I do not believe this is a bubble in the traditional sense.
----------------------------------------------------------------------
Fair enough, I think it's definitely a bubble and it's also a bubble by design. Those with the most control over it have made it that way from bad government policies to land banking by developers and the extremely wealthy.
Sadly while ordinary mortgage holders face potentially crippling costs, those same wealthy people or organisations will hoover up any cut price stock as soon as it becomes available.
It needs massive government intervention to stop it ever happening again which obviously we won't get
----------------------------------------------------------------------
Why is it a bubble by design?
Many of the influences have been out of our control and a wider global / european issue.
Compounded by our decision to Brexit, which wasnt a decision made with the housing market in mind.
% rates are high as they are everywhere.
The growth in the market has been fuelled by an undersupply (which has been the case for decades) and low rates which have been necessary given the post-2008 crash and state of the economy, as well as high population growth fuelled by migration.
Measures to underpin the market and house building sector, such as help to buy and other schemes have contributed but only really as more of a rescue package, not an attempt to inflate the market. Many of those have now ceased. increased SDLT has also looked to hit second home owners as have lowered CGT thresholds.
I think a 25% adjustment is very unlikley.
If you take the 2008 crash which was a far more seismic hit on the whole economy then the av. house price went down from about £195K in UK to no lower than 160K. an 18% drop when unemployment was hitting 8.5% and GDP fell by 6%.
----------------------------------------------------------------------
Land banking and drip feeding development in order to maximise profits is, in my opinion, increasing prices by design. Then you have the lack of government legislation to stop it, or to stop multi home ownership, or to stop wealthy investors using London as their own personal property bank, or to allowing virtually unlimited lending to increase the bubble.
The by design part is by the land owners and developers, the failure to do anything useful to stop it is by the government, the eagerness to lend and lend and lend to drive up a maximum return on interest is by the banks.
----------------------------------------------------------------------
I work in this sector and although land banking occurs it is an essential part of strategic development . Housebuilders have to have land in the pipeline and actually many deal a lot with options and promotion agreements with a long term view. Yes, they sit on land until it suits them and of course there is benefit in controlling supply to keep prices up BUT there are also significant hurdles to delivering houses not least the planning system. In 2000 ish there was a big change where previously developed land (PDL) became the focus and minimal housing density was introduced at national level to ensure the best use of land and avoiding greenfield development where possible. Since then the availability of PLD and brownfield sites has dwindled leaving only the harder to develop sites, and this just pushes the focus on more sensitive & difficult areas where factors like contamination or nimbies make delivery of housing even harder.
I have been involved in bringing a large site forward which is just selling now which we have been promoting since the mid 00s. It is crazy how long planning takes and if you put a large application in today, you'll be lucky to get a decision inside 6 months and if it is refused, the Appeal process is taking 9-12 months.
----------------------------------------------------------------------
The other issue with this of course is how it affects local services - it’s all very well building a 5000 new homes on a site, but that’s probably 15-20,000 new people in an area - Hospital wait times go up, school places become more scarce, etc - that’s why it takes applications so long.
What I don’t agree with is some of these companies sitting on land for a decade + because economically it makes more sense to do so. Part of the contract should involve hard deadlines on proposal dates
----------------------------------------------------------------------
All development attracts Planning Obligations and/or Community Infrastructure Levy's (CIL) which will generate huge sums to go towards public services to support the scale of development .
In my local Borough, CIL in the good areas is about £250/sqm. When you consider that building has typically been about £1500-2000 psqm its quite a massive chunk to add on top. All of these levies are based on Infrastructure delivery plans which look in great detail at the infrastructure needs of the area from highway to schools to open space to health.
In this respect, building is getting more and more expensive and when you add that to inflation which as been way worse in the building sector than the general economy, and increasing environmental demands on development, the reason for house prices out stripping wages is not purely down to greed or supply or planning or land banking & share holders. Its a complex mix of all of these factors.
comment by Jonathan Moore (U11781)
posted 2 hours, 3 minutes ago
Which idiot would buy a property with interest rates at over 6%?
----------------------------------------------------------------------
Eh, most of the boomers on here did!
It isn’t good news for anybody, if interest rates are high as they are.
The only way house prices fall 25% is people going into financial free fall and there being no demand for housing.
Mortgage renewals will be even more expensive because people will have less equity with the higher rates.
New buyers will still be paying loads more than 3 years ago due to the higher rates.
The only people who win, surprisingly (not) are the banks.
"The only people who win, surprisingly (not) are the banks"
This.
“Give me control of a nation’s money supply, and I care not who makes its laws.” Mayer Amschel Rothschild
OP is disingenuous The Telegraph don't believe anything. They are merely reporting what some 'think tank' say COULD happen but, as others have pointed out, is highly unlikely.
Frankly, this was all highly predictable anyway. I know it is tough for many 'ordinary people' (WTF that means) to react appropriately but higher rates were inevitable after the pandemic with all the extra borrowing needing inflated away.
The sensible money at that time would have been to secure a long term rate. Easy get 3% for 10-30yrs whatever suited. It was telegraphed (small t) by commentators but as ever greedy Joe Public was scrambling to save a few short-term shekels on another 2yr fix now blaming gov for their stupidity forgetting how the gov likely baled their employer out during lockdown.
The 'think tank' are also pointing out the positives on pension outlook which will save Joe Public assuming good ol' Joe is even thinking about retirement.
comment by Busby (U19985)
posted 10 minutes ago
It isn’t good news for anybody, if interest rates are high as they are.
----------------------------------------------------------------------
Nonsense, there are people with large cash savings getting interest for the first time in years.
36% of houses (2020, England data) have no mortgage. Now, most of these will be retired people and inflation will be somewhat hurting that population more than Joe Public but good ol' Joe still has a job, income and large wage increases coming his way.
comment by Silver (U6112)
posted 52 seconds ago
comment by Busby (U19985)
posted 10 minutes ago
It isn’t good news for anybody, if interest rates are high as they are.
----------------------------------------------------------------------
Nonsense, there are people with large cash savings getting interest for the first time in years.
36% of houses (2020, England data) have no mortgage. Now, most of these will be retired people and inflation will be somewhat hurting that population more than Joe Public but good ol' Joe still has a job, income and large wage increases coming his way.
----------------------------------------------------------------------
And unless you fix with no easy release, savings accounts interest rates are nowhere near base rate.
And yes, there will be a lot of people over 60 making a bit of profit this way.
I don't think there are a huge amount of people on an average salary sitting on £100k plus to really benefit from this.
5% and above interest rate was actually pretty normal, its just past 10 years or so where interest rate was almost 0%, its partially BoE fault for leaving it so low for this long. And this is what caused even more issues with increased house prices past decade and greed from landlords who charge crazy rent making more money and buying up more houses and sellers who overprice their houses way above market value but they still sell. Now with house prices so high and interest rate where it is, its become seriously difficult for a first time buyer to buy a property.
The demand is still so high due to the population and lack of houses so I can't see how much the property prices are going to drop, as someone pointed out, greedy investors with cash are going to hoover up properties and keep overcharging. Speaking from experience as I was in the process of buying a property that was affordable, but an investor come along and offered cash and way above what the house was valued at, seller ended up accepting his offer (obviously), its so frustrating, but what can you do really.
Yep, BoE have a lot to answer for. Can’t believe Bailey is still in a job.
Banks need to be reigned in too, current average 2 year rate is 2% above the base rate, when rates were close to 0% they were only adding 1%-1.5%. Crooks.
Absolutely brilliant news, looking forward to my 25% loss on my flat bought during the pandemic.
In all seriousness though, I doubt the kind of flat I have will see a decrease in price, this type is in high demand.
Sign in if you want to comment
A glimmer of hope
Page 2 of 4
posted on 17/7/23
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 7 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
----------------------------------------------------------------------
Who has announced what?
posted on 17/7/23
comment by Striketeam7 - the smartest person you know - After 40 years Maf lost his trophy virginity to Florence (U18109)
posted 11 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
---------------------------------------------------------------------
Unfortunately the private landlords who own one property as a pension fund are the ones backing out of the market because of the endless rules and restrictions against them so it’s just companies and people with property portfolios left.
Yet more poorly thought out legislation
posted on 17/7/23
comment by Devonshirespur (U6316)
posted 0 seconds ago
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 7 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
----------------------------------------------------------------------
Who has announced what?
----------------------------------------------------------------------
sorry, meant to respond to Weekendoffender.
You're actually talking sense
posted on 17/7/23
My house has gone up 30% in value since I bought it 5 years ago. Living in the SE it’s not going down more than 5%. No way.
posted on 17/7/23
comment by WeekendOffender (U22920)
posted 12 minutes ago
No surprise that they announce this 6 months after bringing back "no deposit mortgages"
Can you spell "Bank bale out?"
----------------------------------------------------------------------
You can’t, it would be “Bank bail out”
posted on 17/7/23
comment by Devonshirespur (U6316)
posted 9 minutes ago
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 7 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
----------------------------------------------------------------------
Who has announced what?
----------------------------------------------------------------------
It’s an opinion not an announcement
posted on 17/7/23
comment by Devonshirespur (U6316)
posted 8 minutes ago
comment by Devonshirespur (U6316)
posted 0 seconds ago
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 7 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
----------------------------------------------------------------------
Who has announced what?
----------------------------------------------------------------------
sorry, meant to respond to Weekendoffender.
You're actually talking sense
----------------------------------------------------------------------
Just caught up
posted on 17/7/23
comment by Striketeam7 - the smartest person you know - After 40 years Maf lost his trophy virginity to Florence (U18109)
posted 1 second ago
comment by Devonshirespur (U6316)
posted 9 minutes ago
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 7 minutes ago
South east England might see a fall of about 10% tops, more likely 5%. Location location location.
The worry is it will be enticing for a whole new generation to become landlords
----------------------------------------------------------------------
Who has announced what?
----------------------------------------------------------------------
It’s an opinion not an announcement
----------------------------------------------------------------------
its the opinion of the Conservative Party
posted on 17/7/23
comment by Devonshirespur (U6316)
posted 14 minutes ago
comment by Two Balls, One Saka (U19684)
posted 22 minutes ago
comment by Devonshirespur (U6316)
posted 16 minutes ago
comment by Two Balls, One Saka (U19684)
posted 1 minute ago
Needs to be a massive correction, will be painful for a lot of people but the bubble is dangerous both short and long term.
If / when a proper crash happens very strict rules need to be applied to stop the cash rich simply hoovering up the stock and starting the bubble cycle all over again.
I doubt either party in the UK will do anything but make the situation worse though
----------------------------------------------------------------------
I do not believe this is a bubble in the traditional sense.
----------------------------------------------------------------------
Fair enough, I think it's definitely a bubble and it's also a bubble by design. Those with the most control over it have made it that way from bad government policies to land banking by developers and the extremely wealthy.
Sadly while ordinary mortgage holders face potentially crippling costs, those same wealthy people or organisations will hoover up any cut price stock as soon as it becomes available.
It needs massive government intervention to stop it ever happening again which obviously we won't get
----------------------------------------------------------------------
Why is it a bubble by design?
Many of the influences have been out of our control and a wider global / european issue.
Compounded by our decision to Brexit, which wasnt a decision made with the housing market in mind.
% rates are high as they are everywhere.
The growth in the market has been fuelled by an undersupply (which has been the case for decades) and low rates which have been necessary given the post-2008 crash and state of the economy, as well as high population growth fuelled by migration.
Measures to underpin the market and house building sector, such as help to buy and other schemes have contributed but only really as more of a rescue package, not an attempt to inflate the market. Many of those have now ceased. increased SDLT has also looked to hit second home owners as have lowered CGT thresholds.
I think a 25% adjustment is very unlikley.
If you take the 2008 crash which was a far more seismic hit on the whole economy then the av. house price went down from about £195K in UK to no lower than 160K. an 18% drop when unemployment was hitting 8.5% and GDP fell by 6%.
----------------------------------------------------------------------
Land banking and drip feeding development in order to maximise profits is, in my opinion, increasing prices by design. Then you have the lack of government legislation to stop it, or to stop multi home ownership, or to stop wealthy investors using London as their own personal property bank, or to allowing virtually unlimited lending to increase the bubble.
The by design part is by the land owners and developers, the failure to do anything useful to stop it is by the government, the eagerness to lend and lend and lend to drive up a maximum return on interest is by the banks.
posted on 17/7/23
I have to agree with StrikeMug Muppet7 the most stupid person I know here, any decline will be temporary before the next inexorable leg up in the inflation mega trend.
All fiat currencies are destined to fail, what we are witnessing is the beginning of the end.
posted on 17/7/23
comment by Two Balls, One Saka (U19684)
posted 7 minutes ago
comment by Devonshirespur (U6316)
posted 14 minutes ago
comment by Two Balls, One Saka (U19684)
posted 22 minutes ago
comment by Devonshirespur (U6316)
posted 16 minutes ago
comment by Two Balls, One Saka (U19684)
posted 1 minute ago
Needs to be a massive correction, will be painful for a lot of people but the bubble is dangerous both short and long term.
If / when a proper crash happens very strict rules need to be applied to stop the cash rich simply hoovering up the stock and starting the bubble cycle all over again.
I doubt either party in the UK will do anything but make the situation worse though
----------------------------------------------------------------------
I do not believe this is a bubble in the traditional sense.
----------------------------------------------------------------------
Fair enough, I think it's definitely a bubble and it's also a bubble by design. Those with the most control over it have made it that way from bad government policies to land banking by developers and the extremely wealthy.
Sadly while ordinary mortgage holders face potentially crippling costs, those same wealthy people or organisations will hoover up any cut price stock as soon as it becomes available.
It needs massive government intervention to stop it ever happening again which obviously we won't get
----------------------------------------------------------------------
Why is it a bubble by design?
Many of the influences have been out of our control and a wider global / european issue.
Compounded by our decision to Brexit, which wasnt a decision made with the housing market in mind.
% rates are high as they are everywhere.
The growth in the market has been fuelled by an undersupply (which has been the case for decades) and low rates which have been necessary given the post-2008 crash and state of the economy, as well as high population growth fuelled by migration.
Measures to underpin the market and house building sector, such as help to buy and other schemes have contributed but only really as more of a rescue package, not an attempt to inflate the market. Many of those have now ceased. increased SDLT has also looked to hit second home owners as have lowered CGT thresholds.
I think a 25% adjustment is very unlikley.
If you take the 2008 crash which was a far more seismic hit on the whole economy then the av. house price went down from about £195K in UK to no lower than 160K. an 18% drop when unemployment was hitting 8.5% and GDP fell by 6%.
----------------------------------------------------------------------
Land banking and drip feeding development in order to maximise profits is, in my opinion, increasing prices by design. Then you have the lack of government legislation to stop it, or to stop multi home ownership, or to stop wealthy investors using London as their own personal property bank, or to allowing virtually unlimited lending to increase the bubble.
The by design part is by the land owners and developers, the failure to do anything useful to stop it is by the government, the eagerness to lend and lend and lend to drive up a maximum return on interest is by the banks.
----------------------------------------------------------------------
I work in this sector and although land banking occurs it is an essential part of strategic development . Housebuilders have to have land in the pipeline and actually many deal a lot with options and promotion agreements with a long term view. Yes, they sit on land until it suits them and of course there is benefit in controlling supply to keep prices up BUT there are also significant hurdles to delivering houses not least the planning system. In 2000 ish there was a big change where previously developed land (PDL) became the focus and minimal housing density was introduced at national level to ensure the best use of land and avoiding greenfield development where possible. Since then the availability of PLD and brownfield sites has dwindled leaving only the harder to develop sites, and this just pushes the focus on more sensitive & difficult areas where factors like contamination or nimbies make delivery of housing even harder.
I have been involved in bringing a large site forward which is just selling now which we have been promoting since the mid 00s. It is crazy how long planning takes and if you put a large application in today, you'll be lucky to get a decision inside 6 months and if it is refused, the Appeal process is taking 9-12 months.
posted on 17/7/23
comment by Two Balls, One Saka (U19684)
posted 4 minutes ago
comment by Devonshirespur (U6316)
posted 14 minutes ago
comment by Two Balls, One Saka (U19684)
posted 22 minutes ago
comment by Devonshirespur (U6316)
posted 16 minutes ago
comment by Two Balls, One Saka (U19684)
posted 1 minute ago
Needs to be a massive correction, will be painful for a lot of people but the bubble is dangerous both short and long term.
If / when a proper crash happens very strict rules need to be applied to stop the cash rich simply hoovering up the stock and starting the bubble cycle all over again.
I doubt either party in the UK will do anything but make the situation worse though
----------------------------------------------------------------------
I do not believe this is a bubble in the traditional sense.
----------------------------------------------------------------------
Fair enough, I think it's definitely a bubble and it's also a bubble by design. Those with the most control over it have made it that way from bad government policies to land banking by developers and the extremely wealthy.
Sadly while ordinary mortgage holders face potentially crippling costs, those same wealthy people or organisations will hoover up any cut price stock as soon as it becomes available.
It needs massive government intervention to stop it ever happening again which obviously we won't get
----------------------------------------------------------------------
Why is it a bubble by design?
Many of the influences have been out of our control and a wider global / european issue.
Compounded by our decision to Brexit, which wasnt a decision made with the housing market in mind.
% rates are high as they are everywhere.
The growth in the market has been fuelled by an undersupply (which has been the case for decades) and low rates which have been necessary given the post-2008 crash and state of the economy, as well as high population growth fuelled by migration.
Measures to underpin the market and house building sector, such as help to buy and other schemes have contributed but only really as more of a rescue package, not an attempt to inflate the market. Many of those have now ceased. increased SDLT has also looked to hit second home owners as have lowered CGT thresholds.
I think a 25% adjustment is very unlikley.
If you take the 2008 crash which was a far more seismic hit on the whole economy then the av. house price went down from about £195K in UK to no lower than 160K. an 18% drop when unemployment was hitting 8.5% and GDP fell by 6%.
----------------------------------------------------------------------
Land banking and drip feeding development in order to maximise profits is, in my opinion, increasing prices by design. Then you have the lack of government legislation to stop it, or to stop multi home ownership, or to stop wealthy investors using London as their own personal property bank, or to allowing virtually unlimited lending to increase the bubble.
The by design part is by the land owners and developers, the failure to do anything useful to stop it is by the government, the eagerness to lend and lend and lend to drive up a maximum return on interest is by the banks.
----------------------------------------------------------------------
Land banking has been going on for decades, it’s a joke and should be stopped - a change in legislation that said land left undeveloped after 5 years will Be confiscated from developers would soon sharpen the minds of those companies.
I think the wider issue though is wages, 40 years ago a postman in the south east could afford to buy a 3 bed semi and raise a family on that 1 income - that same postman today would be renting a 2 bed flat if he is lucky. Wages don’t keep up with inflation, let alone house prices.
I spent a decade renting between 20 and 30 and it was miserable, moving every 12 months, never going on holiday, no sky. Eventually had enough money to buy - suddenly everything changes, my monthly outgoing reduced massively, no longer a need to save as much. Then i moved again 4 years later and saw a ridiculous mark up in price on my property - all I had done was slap a bit of paint and wallpaper on.
But other than not voting Tory (which I don’t) how else can I help youngsters today? I’m just a guy who owns a house so his family can live in it, zero desire to be a landlord, will look to downsize when I can and give my kids money to get on the ladder themselves.
posted on 17/7/23
Talk about a property crash, you can now buy White Elephant Lane for less than a hundred quid!!
https://victoriaplum.com/browse/all-toilets/type_Back-to-wall-toilets?csi=CUB01PBTW&gclid=Cj0KCQjwzdOlBhCNARIsAPMwjbx3PQ8KQWIF0h6ObGrjt3Ilneo_POzraJ9Lj-LsPnQ2owKxtIGpGsMaAnt6EALw_wcB
posted on 17/7/23
comment by Devonshirespur (U6316)
posted 2 minutes ago
comment by Two Balls, One Saka (U19684)
posted 7 minutes ago
comment by Devonshirespur (U6316)
posted 14 minutes ago
comment by Two Balls, One Saka (U19684)
posted 22 minutes ago
comment by Devonshirespur (U6316)
posted 16 minutes ago
comment by Two Balls, One Saka (U19684)
posted 1 minute ago
Needs to be a massive correction, will be painful for a lot of people but the bubble is dangerous both short and long term.
If / when a proper crash happens very strict rules need to be applied to stop the cash rich simply hoovering up the stock and starting the bubble cycle all over again.
I doubt either party in the UK will do anything but make the situation worse though
----------------------------------------------------------------------
I do not believe this is a bubble in the traditional sense.
----------------------------------------------------------------------
Fair enough, I think it's definitely a bubble and it's also a bubble by design. Those with the most control over it have made it that way from bad government policies to land banking by developers and the extremely wealthy.
Sadly while ordinary mortgage holders face potentially crippling costs, those same wealthy people or organisations will hoover up any cut price stock as soon as it becomes available.
It needs massive government intervention to stop it ever happening again which obviously we won't get
----------------------------------------------------------------------
Why is it a bubble by design?
Many of the influences have been out of our control and a wider global / european issue.
Compounded by our decision to Brexit, which wasnt a decision made with the housing market in mind.
% rates are high as they are everywhere.
The growth in the market has been fuelled by an undersupply (which has been the case for decades) and low rates which have been necessary given the post-2008 crash and state of the economy, as well as high population growth fuelled by migration.
Measures to underpin the market and house building sector, such as help to buy and other schemes have contributed but only really as more of a rescue package, not an attempt to inflate the market. Many of those have now ceased. increased SDLT has also looked to hit second home owners as have lowered CGT thresholds.
I think a 25% adjustment is very unlikley.
If you take the 2008 crash which was a far more seismic hit on the whole economy then the av. house price went down from about £195K in UK to no lower than 160K. an 18% drop when unemployment was hitting 8.5% and GDP fell by 6%.
----------------------------------------------------------------------
Land banking and drip feeding development in order to maximise profits is, in my opinion, increasing prices by design. Then you have the lack of government legislation to stop it, or to stop multi home ownership, or to stop wealthy investors using London as their own personal property bank, or to allowing virtually unlimited lending to increase the bubble.
The by design part is by the land owners and developers, the failure to do anything useful to stop it is by the government, the eagerness to lend and lend and lend to drive up a maximum return on interest is by the banks.
----------------------------------------------------------------------
I work in this sector and although land banking occurs it is an essential part of strategic development . Housebuilders have to have land in the pipeline and actually many deal a lot with options and promotion agreements with a long term view. Yes, they sit on land until it suits them and of course there is benefit in controlling supply to keep prices up BUT there are also significant hurdles to delivering houses not least the planning system. In 2000 ish there was a big change where previously developed land (PDL) became the focus and minimal housing density was introduced at national level to ensure the best use of land and avoiding greenfield development where possible. Since then the availability of PLD and brownfield sites has dwindled leaving only the harder to develop sites, and this just pushes the focus on more sensitive & difficult areas where factors like contamination or nimbies make delivery of housing even harder.
I have been involved in bringing a large site forward which is just selling now which we have been promoting since the mid 00s. It is crazy how long planning takes and if you put a large application in today, you'll be lucky to get a decision inside 6 months and if it is refused, the Appeal process is taking 9-12 months.
----------------------------------------------------------------------
The other issue with this of course is how it affects local services - it’s all very well building a 5000 new homes on a site, but that’s probably 15-20,000 new people in an area - Hospital wait times go up, school places become more scarce, etc - that’s why it takes applications so long.
What I don’t agree with is some of these companies sitting on land for a decade + because economically it makes more sense to do so. Part of the contract should involve hard deadlines on proposal dates
posted on 17/7/23
comment by WeekendOffender (U22920)
posted 2 minutes ago
Talk about a property crash, you can now buy White Elephant Lane for less than a hundred quid!!
https://victoriaplum.com/browse/all-toilets/type_Back-to-wall-toilets?csi=CUB01PBTW&gclid=Cj0KCQjwzdOlBhCNARIsAPMwjbx3PQ8KQWIF0h6ObGrjt3Ilneo_POzraJ9Lj-LsPnQ2owKxtIGpGsMaAnt6EALw_wcB
----------------------------------------------------------------------
You would have to sell Molineux 5 times over to afford that
posted on 17/7/23
comment by Striketeam7 - the smartest person you know - A... (U18109)
posted 4 minutes ago
comment by Devonshirespur (U6316)
posted 2 minutes ago
comment by Two Balls, One Saka (U19684)
posted 7 minutes ago
comment by Devonshirespur (U6316)
posted 14 minutes ago
comment by Two Balls, One Saka (U19684)
posted 22 minutes ago
comment by Devonshirespur (U6316)
posted 16 minutes ago
comment by Two Balls, One Saka (U19684)
posted 1 minute ago
Needs to be a massive correction, will be painful for a lot of people but the bubble is dangerous both short and long term.
If / when a proper crash happens very strict rules need to be applied to stop the cash rich simply hoovering up the stock and starting the bubble cycle all over again.
I doubt either party in the UK will do anything but make the situation worse though
----------------------------------------------------------------------
I do not believe this is a bubble in the traditional sense.
----------------------------------------------------------------------
Fair enough, I think it's definitely a bubble and it's also a bubble by design. Those with the most control over it have made it that way from bad government policies to land banking by developers and the extremely wealthy.
Sadly while ordinary mortgage holders face potentially crippling costs, those same wealthy people or organisations will hoover up any cut price stock as soon as it becomes available.
It needs massive government intervention to stop it ever happening again which obviously we won't get
----------------------------------------------------------------------
Why is it a bubble by design?
Many of the influences have been out of our control and a wider global / european issue.
Compounded by our decision to Brexit, which wasnt a decision made with the housing market in mind.
% rates are high as they are everywhere.
The growth in the market has been fuelled by an undersupply (which has been the case for decades) and low rates which have been necessary given the post-2008 crash and state of the economy, as well as high population growth fuelled by migration.
Measures to underpin the market and house building sector, such as help to buy and other schemes have contributed but only really as more of a rescue package, not an attempt to inflate the market. Many of those have now ceased. increased SDLT has also looked to hit second home owners as have lowered CGT thresholds.
I think a 25% adjustment is very unlikley.
If you take the 2008 crash which was a far more seismic hit on the whole economy then the av. house price went down from about £195K in UK to no lower than 160K. an 18% drop when unemployment was hitting 8.5% and GDP fell by 6%.
----------------------------------------------------------------------
Land banking and drip feeding development in order to maximise profits is, in my opinion, increasing prices by design. Then you have the lack of government legislation to stop it, or to stop multi home ownership, or to stop wealthy investors using London as their own personal property bank, or to allowing virtually unlimited lending to increase the bubble.
The by design part is by the land owners and developers, the failure to do anything useful to stop it is by the government, the eagerness to lend and lend and lend to drive up a maximum return on interest is by the banks.
----------------------------------------------------------------------
I work in this sector and although land banking occurs it is an essential part of strategic development . Housebuilders have to have land in the pipeline and actually many deal a lot with options and promotion agreements with a long term view. Yes, they sit on land until it suits them and of course there is benefit in controlling supply to keep prices up BUT there are also significant hurdles to delivering houses not least the planning system. In 2000 ish there was a big change where previously developed land (PDL) became the focus and minimal housing density was introduced at national level to ensure the best use of land and avoiding greenfield development where possible. Since then the availability of PLD and brownfield sites has dwindled leaving only the harder to develop sites, and this just pushes the focus on more sensitive & difficult areas where factors like contamination or nimbies make delivery of housing even harder.
I have been involved in bringing a large site forward which is just selling now which we have been promoting since the mid 00s. It is crazy how long planning takes and if you put a large application in today, you'll be lucky to get a decision inside 6 months and if it is refused, the Appeal process is taking 9-12 months.
----------------------------------------------------------------------
The other issue with this of course is how it affects local services - it’s all very well building a 5000 new homes on a site, but that’s probably 15-20,000 new people in an area - Hospital wait times go up, school places become more scarce, etc - that’s why it takes applications so long.
What I don’t agree with is some of these companies sitting on land for a decade + because economically it makes more sense to do so. Part of the contract should involve hard deadlines on proposal dates
----------------------------------------------------------------------
All development attracts Planning Obligations and/or Community Infrastructure Levy's (CIL) which will generate huge sums to go towards public services to support the scale of development .
In my local Borough, CIL in the good areas is about £250/sqm. When you consider that building has typically been about £1500-2000 psqm its quite a massive chunk to add on top. All of these levies are based on Infrastructure delivery plans which look in great detail at the infrastructure needs of the area from highway to schools to open space to health.
In this respect, building is getting more and more expensive and when you add that to inflation which as been way worse in the building sector than the general economy, and increasing environmental demands on development, the reason for house prices out stripping wages is not purely down to greed or supply or planning or land banking & share holders. Its a complex mix of all of these factors.
posted on 17/7/23
comment by Jonathan Moore (U11781)
posted 2 hours, 3 minutes ago
Which idiot would buy a property with interest rates at over 6%?
----------------------------------------------------------------------
Eh, most of the boomers on here did!
posted on 17/7/23
It isn’t good news for anybody, if interest rates are high as they are.
The only way house prices fall 25% is people going into financial free fall and there being no demand for housing.
Mortgage renewals will be even more expensive because people will have less equity with the higher rates.
New buyers will still be paying loads more than 3 years ago due to the higher rates.
The only people who win, surprisingly (not) are the banks.
posted on 17/7/23
"The only people who win, surprisingly (not) are the banks"
This.
“Give me control of a nation’s money supply, and I care not who makes its laws.” Mayer Amschel Rothschild
posted on 17/7/23
OP is disingenuous The Telegraph don't believe anything. They are merely reporting what some 'think tank' say COULD happen but, as others have pointed out, is highly unlikely.
Frankly, this was all highly predictable anyway. I know it is tough for many 'ordinary people' (WTF that means) to react appropriately but higher rates were inevitable after the pandemic with all the extra borrowing needing inflated away.
The sensible money at that time would have been to secure a long term rate. Easy get 3% for 10-30yrs whatever suited. It was telegraphed (small t) by commentators but as ever greedy Joe Public was scrambling to save a few short-term shekels on another 2yr fix now blaming gov for their stupidity forgetting how the gov likely baled their employer out during lockdown.
The 'think tank' are also pointing out the positives on pension outlook which will save Joe Public assuming good ol' Joe is even thinking about retirement.
posted on 17/7/23
comment by Busby (U19985)
posted 10 minutes ago
It isn’t good news for anybody, if interest rates are high as they are.
----------------------------------------------------------------------
Nonsense, there are people with large cash savings getting interest for the first time in years.
36% of houses (2020, England data) have no mortgage. Now, most of these will be retired people and inflation will be somewhat hurting that population more than Joe Public but good ol' Joe still has a job, income and large wage increases coming his way.
posted on 17/7/23
comment by Silver (U6112)
posted 52 seconds ago
comment by Busby (U19985)
posted 10 minutes ago
It isn’t good news for anybody, if interest rates are high as they are.
----------------------------------------------------------------------
Nonsense, there are people with large cash savings getting interest for the first time in years.
36% of houses (2020, England data) have no mortgage. Now, most of these will be retired people and inflation will be somewhat hurting that population more than Joe Public but good ol' Joe still has a job, income and large wage increases coming his way.
----------------------------------------------------------------------
And unless you fix with no easy release, savings accounts interest rates are nowhere near base rate.
And yes, there will be a lot of people over 60 making a bit of profit this way.
I don't think there are a huge amount of people on an average salary sitting on £100k plus to really benefit from this.
posted on 17/7/23
5% and above interest rate was actually pretty normal, its just past 10 years or so where interest rate was almost 0%, its partially BoE fault for leaving it so low for this long. And this is what caused even more issues with increased house prices past decade and greed from landlords who charge crazy rent making more money and buying up more houses and sellers who overprice their houses way above market value but they still sell. Now with house prices so high and interest rate where it is, its become seriously difficult for a first time buyer to buy a property.
The demand is still so high due to the population and lack of houses so I can't see how much the property prices are going to drop, as someone pointed out, greedy investors with cash are going to hoover up properties and keep overcharging. Speaking from experience as I was in the process of buying a property that was affordable, but an investor come along and offered cash and way above what the house was valued at, seller ended up accepting his offer (obviously), its so frustrating, but what can you do really.
posted on 17/7/23
Yep, BoE have a lot to answer for. Can’t believe Bailey is still in a job.
Banks need to be reigned in too, current average 2 year rate is 2% above the base rate, when rates were close to 0% they were only adding 1%-1.5%. Crooks.
posted on 17/7/23
Absolutely brilliant news, looking forward to my 25% loss on my flat bought during the pandemic.
In all seriousness though, I doubt the kind of flat I have will see a decrease in price, this type is in high demand.
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