House Prices continue trend of stability.

eurows

King casts doubts on slowdown
By Chris Giles, Economics Editor
Published: October 11 2005 20:22 | Last updated: October 11 2005 20:22

Mervyn King clearly finds the smooth progress of the economy over the past 13 years rather uncomfortable: not because he enjoys a crisis, but because he fears the public now believes the Bank can walk on water.


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In his speech to business leaders on Tuesday night, Mr King said there were two reasons why the Bank could not control the economy in the short term: economic developments abroad, and changes in the economy’s ability to produce goods and services without inflation.

Both are likely to be seen as the Bank’s governor distancing himself from the rapid slowdown in the economy that has left economic growth in the year to the second quarter at 1.5 per cent, its lowest in 12 years.

It was his descriptions of the slowdown and his analysis of the prospects for the economy in the face of sustained high oil prices that will generate most attention. As far as any member of the monetary police committee can go in public, they were a clear signal of his view that economists and investors had got it wrong when they predicted more interest rate cuts in the near future.

eurows

I'm bored with house prices now.

I need another holiday I've only been to Rome for a week and Newyork and Washington for 2 weeks this year.
maybe a 10 day caribean cruise followed by a week in vegas on the 18 December oh hang on I've already booked that

Glad I didnt buy a house recently cos I wouldnt be able to afford to do any of the good stuff.

Congratulations. I have just bought a new freelander. CASH. All my mates with mortgages are watching their pennies (and their house prices go down).

No MEWing for me no living for the banks. Just a third of the mortgage to the landlord. (by the way the landlord subsidises my rent) He has a buy to let mortgage for £1075.00 I pay £700.00 rent and the house is going down in value. I have an option to buy the house in 2 years. It's on at £335.00. I reacon in 2 years time it will be worth £225.00.

ALL YOU CLOWNS LAUGH THEN

He drive an Astra van. I have just bought a new Freelander.

I go to Tenerife for xmas. He cannot afford to go to Blackpool.

Its tough being a tenant.

Sorry had to edit this thread to avoid being impartial.

He has got two houses........But they are BOTH going down in value. WHAT A LOSER

Mr_Proctalgia

Good for you Eurows - Take it back in 6 months and see what it is worth then? ........and I thought you were sensible Sheeeesh!

eurows

Good for you Eurows - Take it back in 6 months and see what it is worth then? ........and I thought you were sensible Sheeeesh!

I bought it from the Auction. £12,000. Cost £18,000 on the forecourt. GOD i'm too sensible for you lads. You don't go to a garage and pay cash. ARE YOU MAD

FaTB

NickMidgley wrote:

OK, you make your decision, let others make theirs. I bought at a time when the so-called "experts" were predicting a property slump and it never came. About 10 years later and I'll be mortgage free come November.

I think thats the whole point

When all the media, so called experts, and joe public are saying BUY, BUY, BUY, regardless of price, it's a sure thing !! -

Thats the time to SELL. (or not to get on the ladder)

When prices are low and everybody's lost interest and saying, property is a terrible investment, it'll never recover. -

Surely thats the time to BUY.

ManAtHome

Well, I don't think anyone was predicting a slump in 1995 - 1991/2 yes (which is why property was relatively cheap in 1995... Of course by the mid to late 90s we had moved into a 'low inflation economy' (ie prospect of lower pay rises) which made the later boom even crazier.

So at the moment we have the situation where FTBs are priced out of 95% of the UK, net pay rises likely to be around 2% (unless you believe GB, councils, power companies aren't going to put taxes/prices up), BoP defecit continues to rise (and will rise faster if the BoE reduces inetrest rates as the £ will fall against the $ Yen and Yuan), North Sea Oil and Gas now running at less than UK consumption (BoP problem), Tax-funded jobs and pensions still increasing faster than the private sector, demographics look like a fair lump of people will be looking to cash in and move offshore (pension out, no tax in..).

Still looking good..?

Sput2001

Well, I don't think anyone was predicting a slump in 1995 - 1991/2 yes (which is why property was relatively cheap in 1995... Of course by the mid to late 90s we had moved into a 'low inflation economy' (ie prospect of lower pay rises) which made the later boom even crazier.

I bought towards the end of 1996 and some analysts were predicting a house price slump, largely, I think, because Ken Clarke was desperately trying to stimulate the economy in an attempt to stave off the inevitable change of government the following year, and people were worried about him over-cooking it Nigel Lawson style.

Having said that. whatever the climate, if you look hard enough you'll find someone, somewhere who'll insist that a property price slump just around the corner, usually because it's in their interests to do so.

I'm in the process of selling and moving into rented accommodation for a few months pending relocation, so a collapse in house prices over the next few months would actually suit me down to the ground. I don't think it's going to happen, though...

Woby_Tide

crikey the discussion really is struggling, a nelly "I can afford holidays" reprise in the housing boards for the first time since August and some people affording new cars, what is the world coming too

it's like a Harry Enfield sketch

Bestthingsinlifearefree

eurows wrote:

Congratulations. I have just bought a new freelander. CASH. All my mates with mortgages are watching their pennies (and their house prices go down).

No MEWing for me no living for the banks. Just a third of the mortgage to the landlord. (by the way the landlord subsidises my rent) He has a buy to let mortgage for £1075.00 I pay £700.00 rent and the house is going down in value. I have an option to buy the house in 2 years. It's on at £335.00. I reacon in 2 years time it will be worth £225.00.

ALL YOU CLOWNS LAUGH THEN

He drive an Astra van. I have just bought a new Freelander.

I go to Tenerife for xmas. He cannot afford to go to Blackpool.

Its tough being a tenant.

Sorry had to edit this thread to avoid being impartial.

He has got two houses........But they are BOTH going down in value. WHAT A LOSER

Yep your landlord has 2 houses and you are renting and paying of his mortgage and you think he is a loser ?????

Personally I would not be bragging about wasting my money on a new freelander / going to Teneriffe, if I was renting I would be saving that cash towards a house deposit. And people wonder why they are stuck renting.

mmmm...strange.......how all these renters are always saying how great renting is and how cheap it is and how the landlord is subsiding their rent etc etc.

So why are they always complaining about house prices and wanting to get on the ladder and looking at https://www.rightmove in secret?

Woby_Tide

Homeowner


Renter