Straw that broke the camels back?

Graham_Devon

ukcarper wrote: »

Nice soundbite explain what would happen if prices suddenly fell my 20%.

The programme explained what would happen.

People would simply be able to afford house again, without risking taxpayers cash. As they said, you'd have a real recovery.

ukcarper

Graham_Devon wrote: »

The programme explained what would happen.

People would simply be able to afford house again, without risking taxpayers cash. As they said, you'd have a real recovery.

As simple as that I don't think so.

Carl31

Realising, talking, speculating is all fine, but unless anything is actually done about it, nothing is going to change

Starting point is probably interest rates, start adjusting those and everything will gradually fall into place

ess0two

Graham_Devon wrote: »

The programme explained what would happen.

People would simply be able to afford house again, without risking taxpayers cash. As they said, you'd have a real recovery.

So thats it,make houses affordable and its all over:cool:

CLAPTON

I'm struggling to see why an overall 20% fall in house prices means that more houses will be built?

Now I can see why geting rid of the communities infrastructure levies and 'affordable housing' levies will help more houses being built

and I can see why the government changing the 'responsible lending ' rules will help

and I can see why abolishing stamp duty will lead to more property being built
but an overall drop of 20% in house prices?

ukcarper

Carl31 wrote: »

Realising, talking, speculating is all fine, but unless anything is actually done about it, nothing is going to change

Starting point is probably interest rates, start adjusting those and everything will gradually fall into place

Do we just increase interest rates for mortages or in general.

I know a lot of you people want to see people thrown out of their homes so you can pick up a bargain but I'm not sure that would be good for the economy.

dryhat

ukcarper wrote: »

Do we just increase interest rates for mortages or in general.

I know a lot of you people want to see people thrown out of their homes so you can pick up a bargain but I'm not sure that would be good for the economy.

Do you think interest rates are low to keep people in their homes?

Graham_Devon

CLAPTON wrote: »

I'm struggling to see why an overall 20% fall in house prices means that more houses will be built?

Now I can see why geting rid of the communities infrastructure levies and 'affordable housing' levies will help more houses being built

and I can see why the government changing the 'responsible lending ' rules will help

and I can see why abolishing stamp duty will lead to more property being built
but an overall drop of 20% in house prices?

Once the fall has happened and a plateau appears..

- The cost of trading up won't be as high. That means the cost of change and also the monthly cost on the mortgage. Therefore more may be able to actually move and buy, meaning builders can sell more houses.

- People would actually be able to afford mortgages, meaning builders can sell more houses (remember, it's the builders, Hamish, wotsthat etc that keep moaning that it's mortgages stopping houses being built)....therefore if more people can truly afford them....more houses will get built.

- People currently stuck, say all those young people living with mum and dad may now be able to afford a place of their own, increasing the demand that housebuilders could tap into and build more houses.

....and so on.

Carl31

ukcarper wrote: »

Do we just increase interest rates for mortages or in general.

I know a lot of you people want to see people thrown out of their homes so you can pick up a bargain but I'm not sure that would be good for the economy.

Interest rates impact the economy much more than mortgages, low rates mean mortgage holders gain, while other investors lose out

Anyway, why would raising interest rates a couple of % leave people homeless?

Im not in the market for buying property, i just want to see some balance and sense in the economy, after all the current strategy doesnt seem to be working very well does it?

ukcarper

dryhat wrote: »

Do you think interest rates are low to keep people in their homes?

Not directly but people are calling for an interest rate rise so perhaps they can explain how it would help the country.