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Debate House Prices
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Ban BTL landlords from buying new builds
Comments
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houses are bought and sold by individuals like you and me
so one person puts their house on the market at a price they feel comfortable with
and another individual, having looked at lots of properties makes an offer
how exactly do the banks conspire to hold the prices high?
Conspire is probably the wrong world, enable, allow, contrive :-
by providing easy and cheap credit to fuel demand."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 -
Banks don't set the base rate, Government (BoE) does.
If anything, there has been obvious resistance from the Banks to low rates during the recession.0 -
Cornucopia wrote: »Banks don't set the base rate, Government (BoE) does.
If anything, there has been obvious resistance from the Banks to low rates during the recession.
Quite right the BoE isn't a Bank.
Arguably the government rate should have increased before the problem was created.
Arguably it is in the scope of banks to either increase the margin or cease to lend if their book is becoming unbalanced or the quality of debt is marginal."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 -
grizzly1911 wrote: »Conspire is probably the wrong world, enable, allow, contrive :-
by providing easy and cheap credit to fuel demand.
I fully accept that easy credit was a factor in the housing boom
however, this was in the context of easy credit for virtually anything.
I can't see this was the banks acting in concert (a conspiracy) to increase house prices but merely a totally misguided rush to lend lend lend.
During the last 5 years lending has been severely restricted but there has been only modest falls in house prices.
Our major problem is the lack of supply caused by misguided policies by government and local government.0 -
I fully accept that easy credit was a factor in the housing boom
however, this was in the context of easy credit for virtually anything.
I can't see this was the banks acting in concert (a conspiracy) to increase house prices but merely a totally misguided rush to lend lend lend.
During the last 5 years lending has been severely restricted but there has been only modest falls in house prices.
Our major problem is the lack of supply caused by misguided policies by government and local government.
Don't disagree although house price falls would no doubt have been greater without the support given directly or indirectly to the housing market and lenders."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 -
grizzly1911 wrote: »Don't disagree although house price falls would no doubt have been greater without the support given directly or indirectly to the housing market and lenders.
do you mean more lending or forebearance?0 -
do you mean more lending or forebearance?
Both - initial and continued forbearance and stimulus with supported and cheap lending now."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 -
grizzly1911 wrote: »Both - initial and continued forbearance and stimulus with supported and cheap lending now.
forbearance obviously reduces the need to sell if in financial difficulties
but one hasn't considered that mortgages were easy to acquire except with large deposits even if interest rates were low0 -
forbearance obviously reduces the need to sell if in financial difficulties
but one hasn't considered that mortgages were easy to acquire except with large deposits even if interest rates were low
I fully appreciate that cheap lending now requires suitable deposits but cheap and or guaranteed funds are still been made available to the lenders and eligible borrowers."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 -
grizzly1911 wrote: »I fully appreciate that cheap lending now requires suitable deposits but cheap and or guaranteed funds are still been made available to the lenders and eligible borrowers.
many understood that the reduced volume of sales since 2008 was due to the effective shortage of mortgage finance0
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