BOE's David Miles: House Prices will "Rise for Years"

shortchanged_2

Another bonkers idea by a clueless economist.

Why do they all suggest we all need these schemes and scams to be able to get people into the property market?

If you removed all props and the banks kept a sensible lid on lending then the market would eventually find it's natural place.

All these stupid ideas being put forward do, is highlight that property in the UK is overvalued.

Graham_Devon

Hell, why don't banks just give houses away for us to live in. We just pay a 10% deposit.

They can have all the HPI they like.

All affordability problems for the nation solved. HPI would simply surge in an upwards tragetory for ever and everer.

The economy would therefore be completely fixed, and we'd live happily ever after.

mumf

So house prices keep moving up. We sell the houses to whom? Kids who MAY be able to get a minimum wage job-full time if they are lucky?

What a load of old !!!!!.

Wookster

Why does anyone bother to engage with mctittish? It is clear he is trolling.

DervProf

mumf wrote: »

So house prices keep moving up. We sell the houses to whom? Kids who MAY be able to get a minimum wage job-full time if they are lucky?

Yes, but with a little imagination, and a "discreetly supplied" replacement wage slip, no problem.

Well, there could be a problem with the repayments, but nothing that an undeclared second income won't fix.

robmatic

shortchanged wrote: »

If you removed all props and the banks kept a sensible lid on lending then the market would eventually find it's natural place.

The market's natural place could well involve a much smaller proportion of the population being owner-occupiers.

RUN_RABBIT_RUN

i think its worth bearing in mind that its just one guy, david miles, suggesting this plan as a possible future scheme

i wouldn't have thought any bank is going to be too enthusiastic about a scheme that relies on hpi for returns in the current climate

nollag2006

Good for you Hamish - you seem to have really upset the doom-mongers with this piece of good news.

House prices can never ever rise - don't you know

HAMISH_MCTAVISH

nollag2006 wrote: »

Good for you Hamish - you seem to have really upset the doom-mongers with this piece of good news.

Well, to be fair, it's been a pretty terrible few months for them as the economy is clearly recovering and the housing market along with it.

This is just the icing on the cake.:D

the_flying_pig

Hamish

A thing about quotation marks, it's usually good form to put an actual quote in them.

As it is you've paraphrased the Telegraph who in turn have paraphrased David Miles.

All that DM actually seemed to say was that HPI will, "over the longer term" [my emphasis added, i.e. possibly not right away] outpace inflation, hardly shocking stuff given that wages generally do this.

Also rather naughty [if entirely typical] of you to overlook the fact that the key thing he's talking about seemed to be how to deal with lenders worried about [presumably short-term] " house price risk".

Not one of your finer efforts, this thread :spam::spam::spam: