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MSE News: House prices fell in July
Comments
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No one is going to be happy to make a loss, all buyers like spunko2010 want is an affordable place to buy and live and work. The house prices to be fair to Brit1234 have been maintained only by government manipulation of interest rates ( to prop up banks rather than help house buyers of course). Quantative easing which amounts to printing more bank notes but at the same time devalues the buying power. Add in inflation and savings interests that are less and it means your £250,000 semi isn't worth the same £250,000 as it was 4 years ago. Wages are lagging too so there is a question?:
Why don't they put up the interest rates?0 -
No one is going to be happy to make a loss, all buyers like spunko2010 want is an affordable place to buy and live and work. The house prices to be fair to Brit1234 have been maintained only by government manipulation of interest rates ( to prop up banks rather than help house buyers of course). Quantative easing which amounts to printing more bank notes but at the same time devalues the buying power. Add in inflation and savings interests that are less and it means your £250,000 semi isn't worth the same £250,000 as it was 4 years ago. Wages are lagging too so there is a question?:
Why don't they put up the interest rates?
Well you say that they lowered interest rates to prop up the banks, are you now saying that the banks are fine?
Is the economy booming enough to necesitate a rise in interest rates in order to 'calm' consumer frenzy?0 -
RenovationMan wrote: »Is the economy booming enough to necesitate a rise in interest rates in order to 'calm' consumer frenzy?
Its not the economy doing well that will see uk mortgage rates going up but the opposite. The cost for British banks borrowing will go up with the Euro crisis and later the UK crisis in the future. No one knows when this will be but it is coming despite countless sticking plasters being put on every month.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Its not the economy doing well that will see uk mortgage rates going up but the opposite. The cost for British banks borrowing will go up with the Euro crisis and later the UK crisis in the future. No one knows when this will be but it is coming despite countless sticking plasters being put on every month.
That's not happening though is it? Borrowing costs are going down.
Besides, we were talking about BoE rates, not Libor.0 -
RenovationMan wrote: »That's not happening though is it? Borrowing costs are going down.
Besides, we were talking about BoE rates, not Libor.
BOE rates are increasingly irrelevant, mortgage rates in general have all gone up in the last 6 months despite base rates being 0.5%.
This £80 billion for small businesses and mortgages coming out today is aimed countering these rising borrowing costs and the increased ones coming. Even then these better mortgage deals seem to be going to people with big deposits so won't really affect things.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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RenovationMan wrote: »Well you say that they lowered interest rates to prop up the banks, are you now saying that the banks are fine?
Is the economy booming enough to necesitate a rise in interest rates in order to 'calm' consumer frenzy?
No I'm not saying the banks are fine..
What I'm saying is for the last 4 years the bank of england base rate has been held low in order for the banking industry to make back as much capital as possible from mortgages and savings. And that's because they had way less in assets than liabilities.
Like other commentators have said the banks don't pass the low rates on to the public and savings rates are well below inflation.0 -
i think it is harder these days to come up with the deposit and wage to buy a first house, but it shouldn't be implied that it was a simple thing to do even 5 or 10 years ago (or ever , in fact)
My parents bought their first house 20 years ago. At the time my father was working as a bin man and my mother wasn't working.
These days I am 2 years older than my parents were when they bought their first place. I am earning almost 4 times what todays waste disposal technicians earn, yet it'll take me another 3-4 years to afford a 1 bedroom flat.
But the housing market is the same as it always was right?
Shared-ownership schemes alone should render any argument invalid, as I don't recall my parents, or grandparents ever talking about buying a % of a home, because it was so unaffordable for the normal run of the mill household.
The fact these schemes exist prove that Brit talks some sense and the housing bubble is over inflated.Current Debt: 0%.Current House Deposit: 7%.0 -
My parents bought their first house 20 years ago. At the time my father was working as a bin man and my mother wasn't working.
These days I am 2 years older than my parents were when they bought their first place. I am earning almost 4 times what todays waste disposal technicians earn, yet it'll take me another 3-4 years to afford a 1 bedroom flat.
But the housing market is the same as it always was right?
Shared-ownership schemes alone should render any argument invalid, as I don't recall my parents, or grandparents ever talking about buying a % of a home, because it was so unaffordable for the normal run of the mill household.
The fact these schemes exist prove that Brit talks some sense and the housing bubble is over inflated.
The fundamental difference between now and then is that two full-time incomes are the norm and mortgage interest rates are less than half of what they used to be. This has resulted in a one-off major adjustment in house prices to a new long-term norm. That’s why the old 3.5 times single income benchmark is completely obsolete. 4-6 times single income is where prices should now sit.
With regards to shared-ownership, yes it boosts new build prices, yes it supports land values and the wider market – and that’s exactly why it will remain in place. Like duel income and lower rates, shared-ownership is now an entrenched component of the market and establishing values.
Oh, and did I mention competition from investors and the emergence of BTL, population growth of 250,00 per year and ever lower house building levels? Didn't have those factors 30 years ago either did we.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
BOE rates are increasingly irrelevant, mortgage rates in general have all gone up in the last 6 months despite base rates being 0.5%.
This £80 billion for small businesses and mortgages coming out today is aimed countering these rising borrowing costs and the increased ones coming. Even then these better mortgage deals seem to be going to people with big deposits so won't really affect things.
Well, as I said, the person I was responding to was saying that the BoE should raise rates, so while BOE rates are increasingly irrelevent to you, they were the only thing we were talking about.0 -
No I'm not saying the banks are fine..
What I'm saying is for the last 4 years the bank of england base rate has been held low in order for the banking industry to make back as much capital as possible from mortgages and savings. And that's because they had way less in assets than liabilities.
Like other commentators have said the banks don't pass the low rates on to the public and savings rates are well below inflation.
Indeed, but getting back to your statement; why do you feel that BOE rates should rise?0
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