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!
British house prices are 31% too high
Graham_Devon
Posts: 58,560 Forumite
Say the OECD...
I like the OECD. Today, anyway.
They even go on to say that the UK market is propped up by government and BOE stimulus providing artificially cheap credit.A study by the OECD, which compared prices with local wages and rents, suggests Belgium, Norway and Canada are the most expensive markets compared with their own long-term averages, followed by New Zealand, France and Australia.
British house prices are 31pc too high compared to rents and 21pc over-priced against incomes.
For cheap property, the research points to Portugal, Ireland, Germany and Japan.
The former two saw huge price falls during the financial crisis. The excesses of the property bubble that burst in late 2007 largely passed over Germany, and Japan's market has been in an on-off slide since a banking crisis in Tokyo in 1990.
The OECD study echoes research published two weeks ago by The Economist. The news magazine produces its own study twice a year with the latest suggesting the most over-valued markets were Hong Kong - 81pc too high against rents - Canada and Singapore.
I like the OECD. Today, anyway.
http://www.telegraph.co.uk/finance/personalfinance/houseprices/10088467/OECD-British-house-prices-are-31-too-high.html
The UK market has been supported by an influx of foreign buyers into London, keen to find a perceived safe asset in the turmoil of recent years.
But the market has also been propped up by state intervention. The Bank of England's stimulus policy - keeping the Bank Rate low and electronically printing money through a programme of quantitative easing - has extended a steady flow of artificially cheap credit to homeowners and buyers with large deposits.
The Government has stepped up this intervention since last summer with the introduction of the Funding for Lending Scheme. Ultra-low rate loans, worth up to £80bn, have been offered to lenders to pass on, which has pushed down mortgage rates.
0
Comments
-
Graham_Devon wrote: »British House Prices Are 31% too high
Say the OED
Actually, they say they're 31% up against the historical average of rents to house prices.
Which could just as easily mean rents are 31% too cheap.They even go on to say
Those words were the journalist's, not the OECD.“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: »Which could just as easily mean rents are 31% too cheap.
Yes - because that's how everything is viewed in such reports!0 -
The report is just stating what everyone knows really.0
-
It's being skewed by the nutters in London0
-
HAMISH_MCTAVISH wrote: »Actually, they say they're 31% up against the historical average of rents to house prices.
Which could just as easily mean rents are 31% too cheap.
Those words were the journalist's, not the OECD.
You should be in politics with the kind of spin you try.
Next week black is white.Have my first business premises (+4th business) 01/11/2017
Quit day job to run 3 businesses 08/02/2017
Started third business 25/06/2016
Son born 13/09/2015
Started a second business 03/08/2013
Officially the owner of my own business since 13/01/20120 -
"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Great report and all that.....
Is anyone going to do anything about it?
No
bit of a pointless exercise then0 -
Belgium is one of the most expensive?
That genuinely astonishes me. I live in Belgium for a few years, and my apartment there was much cheaper than it would've been in the South East at the time- one of the big perks of moving out there, actually.
Maybe the market's moved on since then.0 -
Graham_Devon wrote: »Say the OECD...
They even go on to say that the UK market is propped up by government and BOE stimulus providing artificially cheap credit.
I like the OECD. Today, anyway.
http://www.telegraph.co.uk/finance/personalfinance/houseprices/10088467/OECD-British-house-prices-are-31-too-high.html
Could not agree more. Crises in the making or what???0 -
Surely the House Price Crash crowd think the problem is worse than 31%?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards