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Debate House Prices


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BoE cuts rates to 3.0%!!!

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Comments

  • ginvzt
    ginvzt Posts: 4,878 Forumite
    1,000 Posts Combo Breaker
    Well, I was just looking at the house prices at time the interest rates were so low.

    The last time interest rates were that low was in 1955, according to all the clever people. Guess how much houses cost then? Q4 in 1995 - average house was £1853 (I didn't miss a zero). You could have bought a new build house for £2217, a modern house for £1939 or an old one for £1587, data from Nationwide.

    Well, I don't know how the categories were judged, but the variation is huge, don't you think? New build house 40% (!!!!) higher than old house, ~14% than a modern one. Eye opener...
    Spring into Spring 2015 - 0.7/12lb
  • Royal Worcester - Founded 1751 just gone into administration.

    Just an example of how bad this Recessions going to be, and why the BofE had to reduce by 1.50%

    Teltley's is set to close too
    http://bankruptcy.org.uk/bankruptcy-news/tetleys-yorkshire-brewery-set-to-close-guardiancouk/
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Royal Worcester - Founded 1751 just gone into administration.

    Just an example of how bad this Recessions going to be, and why the BofE had to reduce by 1.50%

    a company going into administration regardless if it was established in 1751 or 1982 doesn't have any bearing.

    if it's product is not longer selling or it's business is run badly probably has more bearing on a company going into administration than the date it was established.

    they've been struggling for years.
  • dopester
    dopester Posts: 4,890 Forumite
    Really2 wrote: »
    Sorry you can't have that one how many people buy tea services and figurines any more?

    They have been in trouble for the last 20 years at least.

    But Agree on the rate reduction.

    Yes, but despite this whacking great interest rate cut, how many lenders are going to want to lend to similar types of companies? It isn't going to change the banks attitude to risk.

    The credit/debt bubble has burst, and business and consumers are in retrenchment.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    ginvzt wrote: »
    Well, I was just looking at the house prices at time the interest rates were so low.

    The last time interest rates were that low was in 1955, according to all the clever people. Guess how much houses cost then? Q4 in 1995 - average house was £1853 (I didn't miss a zero). You could have bought a new build house for £2217, a modern house for £1939 or an old one for £1587, data from Nationwide.

    Well, I don't know how the categories were judged, but the variation is huge, don't you think? New build house 40% (!!!!) higher than old house, ~14% than a modern one. Eye opener...

    10% higher for new build usualy, it has narrowed from those figures.
    What was the average wage back then?
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    dopester wrote: »
    Yes, but despite this whacking great interest rate cut, how many lenders are going to want to lend to similar types of companies? It isn't going to change the banks attitude to risk.

    The credit/debt bubble is deflation, and business and consumers are in retrenchment.

    Totaly agree it will be risk based lending if you are not going to look a safe bet you won't get the money.
    Which is correct and why the credit crunch happened in the first place.

    "You have got no job, no propects, how would you like to buy a house and we will give you 30% more money than what it is worth.:eek: "
    Not you personaly obviously.:)
  • mr.broderick
    mr.broderick Posts: 3,778 Forumite
    1,000 Posts Combo Breaker


    Is this beer or tea?
    I think tea companies would be recession proof.
    I would always drink 10 cups of tea a day, recession or not :p
  • ginvzt wrote: »
    Well, I was just looking at the house prices at time the interest rates were so low.

    The last time interest rates were that low was in 1955, according to all the clever people. Guess how much houses cost then? Q4 in 1995 - average house was £1853 (I didn't miss a zero). You could have bought a new build house for £2217, a modern house for £1939 or an old one for £1587, data from Nationwide.

    Well, I don't know how the categories were judged, but the variation is huge, don't you think? New build house 40% (!!!!) higher than old house, ~14% than a modern one. Eye opener...

    My mother tells me that they bought their first house in September 1954 for £600. It was a 2 bed semi with an acre garden, in Kent.
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    carolt wrote: »
    I was thinking of those about to retire, already hammered by stockmarket falls. Are annuity rates not based on base rates?

    with the rate cut - returns on equities are going to look very attractive...
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    !!!!!!? wrote: »
    Jeez - I didn't realise things were that dire. The UK economy is screwed.

    Glad I've got half my savings not in Sterling...... feel sorry for the retired who have to live off of savings as prices are up at least 5% on the year in official (fiddled) figures yet their savings interest is about to fall away to next to nothing.

    Better put it in the stock market a get those tax free dividends.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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