Property market falling into a coma

DervProf

RenovationMan wrote: »

Surely its because of 1/2% base rates that the property market is 'dying'?
We have 0.5% rates for a reason (I'm sure I dont need to point these reasons out) and its when we see rate rises we will see a recovery in the housing market, simply because the underlying reasons for 0.5% interest rates to exist will have lessened/gone and the economy (and the banks financial accounts) will be well and truly on the way to recovery.

I could be wrong though.... I'm happy to debate the point.

So, was it 0.5% base rates that are causing the property market to die (as you state) ?

I`d say that the rates are so low to try and prevent the property market from popping it`s clogs. Doesn`t look like it worked, either.

ukcarper

RenovationMan wrote: »

No, the banking crisis that caused us to have 0.5% rates has caused the mortgage market to die, naturally having a knock on effect on house prices.



It hasnt worked because that wasnt why rates were dropped. Please see my reply above as to why interest rates are historically low.

He does seem to have completely missed your point.

RenovationMan

ukcarper wrote: »

He does seem to have completely missed your point.

Perhaps it was my initial sentence, which was constructed to mirror the one in Macaque's original post. He may have not read on further before replying and so missed my point.

StevieJ

DervProf wrote: »

Fair enough.

Is the report that the LR figures show the average house price fell by 0.8% in October out of context ?

"Property market falling into a coma" is the thread title, I`d have thought that data from the LR, relating to property prices last month is in context.

Yes considering it is referring to sales from four months ago, no problem if you can understand that.

DervProf

StevieJ wrote: »

Yes considering it is referring to sales from four months ago, no problem if you can understand that.

Prices falling by 0.8% four months ago does kind of point to the property market falling into a coma. That, along with lower numbers of mortgage approvals. I wonder what the LR figures will be for house prices this month ? I suspect it will be negative again, in which case I`d say that the property market is in a coma. Now, the big question is when will it wake up ?

Conrad

There's a new reason why mortgages are falling; Accountants have been advised the Inaland Revenue is checking figures given in mortgage apps at random. In the past a lot of Accountants were fairly flexible when it came to confirming income levels (for example backdating to remove temporarily certain business expenses so as to inflate income).

I keep saying this and soon some of you might actualy listen - regulation is the main killer of the mortgage market lately.

brit1234

Conrad wrote: »

I keep saying this and soon some of you might actualy listen - regulation is the main killer of the mortgage market lately.

What do you mean? Could it by regulation you mean cutting fraudulent lending practices and returning to traditional lending multiples.

If that regulation I welcome it.

The property market will pick up when prices are lower.

Graham_Devon

Conrad wrote: »

There's a new reason why mortgages are falling; Accountants have been advised the Inaland Revenue is checking figures given in mortgage apps at random. In the past a lot of Accountants were fairly flexible when it came to confirming income levels (for example backdating to remove temporarily certain business expenses so as to inflate income).

I keep saying this and soon some of you might actualy listen - regulation is the main killer of the mortgage market lately.

Oh noes. Bad regulation means people have to actually be honest when taking out loans.

What WILL we do?!!? _pale_

Nasty FSA!!

AD9898_2

Conrad wrote: »

There's a new reason why mortgages are falling; Accountants have been advised the Inaland Revenue is checking figures given in mortgage apps at random. In the past a lot of Accountants were fairly flexible when it came to confirming income levels (for example backdating to remove temporarily certain business expenses so as to inflate income).

I keep saying this and soon some of you might actualy listen - regulation is the main killer of the mortgage market lately.

So are you happy that income is verified and liar loans are trying to be stopped or not ?

Reading between the lines what you are saying is unregulated lending is what caused the property bubble, yet you stop short of saying that stopping this is a good thing.

I wonder why ?

Generali

Conrad wrote: »

There's a new reason why mortgages are falling; Accountants have been advised the Inaland Revenue is checking figures given in mortgage apps at random. In the past a lot of Accountants were fairly flexible when it came to confirming income levels (for example backdating to remove temporarily certain business expenses so as to inflate income).

I keep saying this and soon some of you might actualy listen - regulation is the main killer of the mortgage market lately.

So do you think that mortgage fraud is something that should be allowed to continue unhindered or stopped?

What about other forms of fraud. Should I be allowed to forge your signature to withdraw money from your bank account as long as I use the money to buy a house for example?

I did a poll:

https://forums.moneysavingexpert.com/discussion/2894448

PS Nice one Tottenham, just watched the replay vs the Scousers