We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

House market final props could soon collapse

1…1011121315

Comments

  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    HAMISH_MCTAVISH wrote: »
    And the even higher up economists on the MPC disagreed, and it turns out they were right.:)

    Right in what way?

    They have done nothing. If they had reduced rates, they may have been right. But the fact is, even the BOE got every prediction they made wrong. So much so they even had to expand their predcition fan graph for inflation.
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    Graham_Devon wrote: »
    Right in what way?

    They ignored the armchair economists calling for interest rate rises irrespective of economic data.
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    wotsthat wrote: »
    They ignored the armchair economists calling for interest rate rises irrespective of economic data.

    Was that because the BoE had a vested interest in helping an ailing economy, instead of a vested interest in punishing people who (in their opinion) have over-borrowed or a vested interest in helping lower paid people get a 4 bed detached (as is their right)?
  • The-Joker
    The-Joker Posts: 718 Forumite
    The BOE are not exactly encouraging people to save cash in the bank by keeping rates so low for so long. Merv said a few yrs back get out there and spend it, to get things moving. The trouble is the way the crisis is going people are just paying down debts and not borrowing more. This is making the outstanding revolving credit supply collapse and sending us into deflation. There will come a time when they can no longer refuse to put off rising the base rate to more normal levels in the last 300 yrs. Yes there will be a lot of repossessions and hard time are to come.
    The thing about chaos is, it's fair.
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    The-Joker wrote: »
    The BOE are not exactly encouraging people to save cash in the bank by keeping rates so low for so long. Merv said a few yrs back get out there and spend it, to get things moving. The trouble is the way the crisis is going people are just paying down debts and not borrowing more. This is making the outstanding revolving credit supply collapse and sending us into deflation. There will come a time when they can no longer refuse to put off rising the base rate to more normal levels in the last 300 yrs. Yes there will be a lot of repossessions and hard time are to come.

    I took merv at his word and went out and bought a dream house with a £300k mortgage. I've done my bit. Merv is now paying me back by keeping rates low for years so that hwne base rates return to 'normal' levels, my mortgage will be lower than the average first time buyer. :)

    Good old Merv. :)
  • The-Joker
    The-Joker Posts: 718 Forumite
    RenovationMan wrote: »
    I took merv at his word and went out and bought a dream house with a £300k mortgage. I've done my bit. Merv is now paying me back by keeping rates low for years so that hwne base rates return to 'normal' levels, my mortgage will be lower than the average first time buyer. :)

    Good old Merv. :)


    Lets hope you can keep up with the repayments when interest rates are back up to normal and you are in neg equity !
    The thing about chaos is, it's fair.
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    The-Joker wrote: »
    Lets hope you can keep up with the repayments when interest rates are back up to normal and you are in neg equity !

    We can only hope. I'm sure that you have your fingers firmly crossed for me. :)
  • The-Joker
    The-Joker Posts: 718 Forumite
    RenovationMan wrote: »
    We can only hope. I'm sure that you have your fingers firmly crossed for me. :)

    Its all the FTB who will be repossessed in the next few yrs you have to worry about.
    The thing about chaos is, it's fair.
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    The-Joker wrote: »
    Its all the FTB who will be repossessed in the next few yrs you have to worry about.

    I'm more worried about those saving all of £20/ month into silver and expecting it'll buy a house in five years.
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    The-Joker wrote: »
    Its all the FTB who will be repossessed in the next few yrs you have to worry about.

    Why do I have to worry about them?
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.9K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture