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.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. 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!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Major impact on houses

Interesting read on Bloomberg

http://www.bloomberg.com/apps/news?pid=20601039&sid=a6VK2CRqd7bo&refer=home

It says "When the Bank of England's Monetary Policy Committee begins its two-day meeting today, it should consider a shock half-point move straight to 6 percent. Meanwhile, the markets should be thinking about rates peaking closer to 7 percent. "

And "That means interest rates will have to go much higher, and the sooner the Bank of England gets there, the better"

I still believe interest rates will be much , much higher. If any of you follow food prices they are climbing all over the world. Things are different today compared with even just a year ago. Lots of product depend on wheat , barly etc especially animal feed and the prices are rocketing . Also oil prices are very high again

This will have a massive , massive effect on house prices:beer:
«1345

Comments

  • Melissa177
    Melissa177 Posts: 1,727 Forumite
    From a political standpoint, looking at the money supply, interest rates *should* be a lot higher than they actually are.

    But I'm not convinced the BoE are going to whack rates up. Too risky for them to do so.
    Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson
  • manhattan
    manhattan Posts: 1,461 Forumite
    Uniform Washer
    Yeah, i noticed tescos elcheapo beans have gone upto 17p a tin lol. Im sure they were 9p.

    Scandalous!
  • Melissa177
    Melissa177 Posts: 1,727 Forumite
    Milk prices are soaring too, especially in the US. I overheard one man grumbling in the supermarket that he didn't know which was more expensive, milk or petrol (they are about the same price in the US now).
    Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson
  • rainbowstar
    rainbowstar Posts: 32 Forumite
    Someone told me that house prices are going to crash next year - has anyone else heard this? I'm thinking of buying so don't know whether to wait or not now!
  • lypsey
    lypsey Posts: 201 Forumite
    A lot of people are going to suffer with interest rates at even 6% . I noticed that they predicted that 1 million people will have CCJ's put on them this year. When you sit down and think there are 60million in the uk, a lot of them would be under 18 and the over 60's ( I am assuming a lot) would not have too many problems. This is a lot of WORKING class people. Houses will be repossesed in there droves

    With BTL people exiting the market as well , as there is no money in it at all, it is looking like a full scale collapse on house prices.
    My guess is 40-50% falls
  • The longer they hold off, the worse it will be.

    Bring on the 6% now and get it over with.
  • Pobby
    Pobby Posts: 5,438 Forumite
    Just read Money Week.They also predict that it will be the buy to let people that will trigger the crash.I would imagine that most of the Johnny come lately landlords are lucky if the rental income covers their repayments.Also I think interest rates should be higher but that could and probally would create chaos!
  • thesaint
    thesaint Posts: 4,324 Forumite
    Part of the Furniture Combo Breaker
    lypsey wrote: »
    A lot of people are going to suffer with interest rates at even 6% . <snip>
    But yet you say this...
    lypsey wrote: »
    <snip>This will have a massive , massive effect on house prices:beer:
    Well life is harsh, hug me don't reject me.
  • Someone told me that house prices are going to crash next year - has anyone else heard this?

    Are you Jan Grzebski?
  • Melissa177
    Melissa177 Posts: 1,727 Forumite
    The British would definitely win the gold medal if there was a sport called "House Price Crash Discussions" at the Olympics.
    Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.1K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.1K Work, Benefits & Business
  • 603.7K Mortgages, Homes & Bills
  • 178.3K Life & Family
  • 261.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.