Ernst And Young Recommend Lower Interest Rates

EchoLocation

Pimperne1 wrote: »

I think prices are already below the Nationwide Real House Price Trend over nearly 30 years though so the correction has already happened.

Were it not for the stupidly low interest rate for the last few years it would be a lot further along, and perhaps the housing market would now be closer to getting back to some kind of volume normaility.

howee wrote: »

Agreed, I do feel sorry for the renters though who have let websites like PPC brainwash them into thinking prices are going to half. That prediction started in 2003 we then have the biggest recession for 80yrs and houses remain stable.

That's because the Government an BOE have interfered to delay it.

howee wrote: »

Prices will remain stable to as there is a national shortage of houses, a city the size of Birmingham needs to be built every 2yrs to keep up with demand. How can prices crash 50% when this is the case and houses are not being built.

There is no shortage of housing, there is a shortage of affordable housing. Prices will not remain stable, they have fallen and they will continue to fall. I'm firmly in the HPC camp, for my sake, my childrens sake and the the countries sake; though I insist the C is for Correction rather than Crash. If there's any brainwashing happening it's from the Sibley's out there.

Pimperne1

wymondham wrote: »

If rates went to 0.25% I'd get out all my savings and blow the lot on foreign made goods and then go unemployed, cap in hand......

The prudent have already been punished enough for the excesses of others......

I'm not sure too many of us are in the "prudent" category. If you have a British manufactured car, television, white goods, clothing, foodstuffs where available and do not go on foreign holidays then you might come within that category. If not then you may be in danger of accusing others of something of which you yourself are guilty.

The country has been running a deficit for a very long time, its convenient to pin the problems on home owners but there is a bigger picture to be seen.

sheffield_lad

EchoLocation wrote: »

There is no shortage of housing, there is a shortage of affordable housing. Prices will not remain stable, they have fallen and they will continue to fall. I'm firmly in the HPC camp, for my sake, my childrens sake and the the countries sake; though I insist the C is for Correction rather than Crash. If there's any brainwashing happening it's from the Sibley's out there.

No there is a shortage of housing full stop. Not only have social housing programms been frozen but with an increasing population we need more stock this is particullay needed in 3/4bed housing stock. If houses were built rents would come down as renters would have a choice. Walk into a letting agent during the day and see how busy they are if anyones looking for an admin job they are the places to look.

ukcarper

Never been on HPC but it seems to me they all think that the prices at the bottom of the last crash are normal not the long term average.

EchoLocation

howee wrote: »

No there is a shortage of housing full stop. Not only have social housing programms been frozen but with an increasing population we need more stock this is particullay needed in 3/4bed housing stock. If houses were built rents would come down as renters would have a choice. Walk into a letting agent during the day and see how busy they are if anyones looking for an admin job they are the places to look.

I'm certainly not saying that we don't need to continue building houses, but the idea that there is some chronic shortage of housing is false. It sits nicely alongside the false view that our island is completely overcrowded and there's few places left to build.

ILW

Is our whole economy based on nothing more than buying and selling the same houses to each other?
If so we truly are bvggered.

Graham_Devon

ukcarper wrote: »

Never been on HPC but it seems to me they all think that the prices at the bottom of the last crash are normal not the long term average.

If you have never been on HPC, how on earth would you know what they all think?!?!

ukcarper

Graham_Devon wrote: »

If you have never been on HPC, how on earth would you know what they all think?!?!

There seems to be enough people on here from there.

molerat

ILW wrote: »

Is our whole economy based on nothing more than buying and selling the same houses to each other?
If so we truly are bvggered.

In a nutshell yes, combined with wages that are too high driving each other.

Graham_Devon

ukcarper wrote: »

There seems to be enough people on here from there.

Because they have been banned from there, and look what many are doing here!