"Oversupply the cause of house price crashes"

purch

I would always find it hard to trust someone called "Tristan". :eek:

1984ReturnsForReal_2

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FATBALLZ

Looks like George Osbourne is a member of HPC then, since he is making planning laws far more pro-development.

macaque_2

HAMISH_MCTAVISH wrote: »

Immensely unsurprising.

I think most people already figured that out.

Here is a picture of Trisan Chapple.


Its funny how pyramid schemes always always have a Tristan or a Rupert somewhere in the background.

Loose credit combined low interest rates allow asset values to increase to many multiples of values that can be justified by the fundamentals. If interest rates are low enough and credit cheap enough, a person on £20k a year can take out a mortgage of £2m.

Three years ago we had loose money and low interest rates. House prices went through the roof. Now we have tight money and ultra low interest rates. Utra low interest rates however only apply to exisiting borrowers. Terms for new borrowers are far from cheap. The result is a dramatic reduction in property transactions.

Rising interest rates will have a dramatic impact on the ability of people to hoard homes (i.e. goodby accidental landlords).

Hoarding creates artificial shortages and these shortages in times of low interest rates give sellers the power to name their own price (whether they sell or not). Higher interest rates force people to make a decision between selling or making a loss. For this Tristan Box Hedge Chapple is talking out of his hat.

the_flying_pig

H - that's not an article. It's a reader's letter. You or Sibley could spew out just the same. Well, your spelling & grammar wouldn't be quite as good but you'd be no less likely to get published.

Here's another reader's letter you might like [altho it's a little too intellectual for Sibley and [especially] you in places] http://www.thisistamworth.co.uk/letters/Leave-house-prices/article-600425-detail/article.html].

Kohoutek

macaque wrote: »

Here is a picture of Trisan Chapple.

If you google "Tristan Chapple", the second result down is a Facebook profile.

On my google search results page, the preview of Tristan's friends reads:

Friends: Sedgley McTavish, Andreas Avril, Tristan Edward Chacksfield, Tim Sterry

:eek::eek:

HAMISH_MCTAVISH

1984returnsforreal wrote: »

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diable

HAMISH_MCTAVISH wrote: »

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Don't swear......

Degenerate

diable wrote: »

don't swear......

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HAMISH_MCTAVISH

Wookster wrote: »

Are you really daft enough to believe that some random's opinion that interest rates have no bearing on house prices is really important?

Are you really daft enough to to discount the reality that supply shortages have a far bigger impact?

The primacy of supply and demand can even be seen in parts of countries where at the national level there have been falls in average house prices. Take the US: house price falls in areas such as Las Vegas have exceeded 50 per cent and yet prices around Boston have fallen much less. It is no coincidence that the former experienced a supply glut and yet Boston’s stringent planning laws constrained housing supply. The interest rates available to finance properties in both those locations have been the same.