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House prices to SURGE beyond peak thanks to Help to Buy
Turnbull2000
Posts: 1,807 Forumite
http://www.dailymail.co.uk/news/article-2302056/House-prices-overtake-pre-crisis-peak-year-thanks-governments-new-help-buy-scheme.html#ixzz2P9i6I5Yg
The positive news just keeps on rolling in.The Centre for Economics and Business Research said house prices will pass their pre-recession peak next year and will go on to hit record highs at a time
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 ForumTeam
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Just wanted to finish off paragraph at the point you abruptly stopped quoting.when millions cannot afford to buy their own home.
The CEBR appear to be another I can add to my ever growing list of those giving warning about this lastest prop.0 -
Turnbull2000 wrote: »http://www.dailymail.co.uk/news/article-2302056/House-prices-overtake-pre-crisis-peak-year-thanks-governments-new-help-buy-scheme.html#ixzz2P9i6I5Yg
The positive news just keeps on rolling in.Last week, Steve Nickell, from the Office for Budget Responsibility, told MPs on the Treasury Select Committee: ‘Is it just going to drive up house prices? By and large in the short run, the answer to that is yes.
So an opportunity for slightly above average earner to relive the last property boom during the election period, followed by another crash as they soon realise the rise in interest rates makes the mortgages unaffordable?Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0 -
Graham_Devon wrote: »Just wanted to finish off paragraph at the point you abruptly stopped quoting.
The CEBR appear to be another I can add to my ever growing list of those giving warning about this lastest prop.
That's what Help to Buy is for. Lots more people will be able to enter the market.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 -
So an opportunity for slightly above average earner to relive the last property boom during the election period, followed by another crash as they soon realise the rise in interest rates makes the mortgages unaffordable?
Interest rates won't rise above 1% for a very long time. It would hurt mortgage borrowers and house prices way too much to even consider it.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 -
Government has artificialy proped up banks (even taken over). Property prices have therefore held out artificially, but there will be a "correction" eventually and this is why the so called triple dip recession hasn't ended. Property prices will have to drop like a stone to make this correction and the markets know no other way.Warning: any unnecessary disclaimers appearing under my posts do not bear any connection with reality, either intended, accidental or otherwise. Your statutory rights are not affected.0
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Economist Daniel Solomon, who wrote the report, said: ‘By 2018, we expect the typical UK home will cost £267,000, over 20 per cent more than this year.
‘Gradual wage and population increases will be the fundamental drivers of this medium-term trend.
‘We expect the Chancellor’s new Help to Buy scheme will push up house prices before it raises housing supply.’
As expected, first prices rise moderately, then supply increases to give us the additional new homes we need.
Because as we've seen you can't fix a housing shortage by rationing mortgages or artificially crashing prices.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »As expected, first prices rise moderately, then supply increases to give us the additional new homes we need.
Because as we've seen you can't fix a housing shortage by rationing mortgages or artificially crashing prices.
So why have the previous schemes hailed to do the same thing.....erm, not done such?0 -
Graham_Devon wrote: »So why have the previous schemes hailed to do the same thing.....erm, not done such?
Because they've been tiny by comparison.
As you keep pointing out, those schemes have only helped tiny numbers of people. Wasn't it just 1500 for New Buy?
This one is supposed to be 500,000 to 750,000 mortgages over 3 years.
If the government don't screw it up (and I'm never surprised by this government's incompetence, so can't rule that out) it will be a significant step in the right direction.
Still not enough of course, but getting closer.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Because they've been tiny by comparison.
As you keep pointing out, those schemes have only helped tiny numbers of people. Wasn't it just 1500 for New Buy?
This one is supposed to be 500,000 to 750,000 mortgages over 3 years..
The other was supposed to be 100,000 over 2 years.
What makes you think this will be different and achieve its aims?
You were saying the same stuff around newbuy. We'll be here in a years time saying the same stuff again and you praising the next scheme.0 -
Graham_Devon wrote: »We'll be here in a years time saying the same stuff again and you praising the next scheme.
There are only 2 options Graham.
Either the government will meet their responsibility as regulator to fix the broken and dysfunctional lending markets in this country, or they won't.
If they do, the wider economy will recover, unemployment will fall, people will be able to buy and sell houses normally again, labour mobility will increase, and they have a chance at re-election.
If they don't, they'll be out of power for a generation and their opponents will fix the problem, having learned from this government's incompetence and not wanting to meet the same sorry fate.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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