'HPI should be capped at 5%' - RICS

chucky

Graham_Devon wrote: »

Good thing no one is suggesting that it's done on a postcode basis then.

Different parts of the country have always lost out / benefited on national policy, so I don't see why such a fuss is now being made on a local basis over this.

Other than we have to find a reason it won't work to protect our precious HPI....

Don't see you complaining that help to buy gives you the same percentage in the North East as it does Central London. But then that just helps increase HPI, so I guess theres little concern over the very same issue.

This post just proves you don't have the remotest clue about very much. It's full of waffle and muddle.

Keep up the good fight. Never say die.

Graham_Devon

chucknorris wrote: »

I agree that they should try and 'dampen' house price increases by encouraging lenders to be harsher with their lending policies when house prices are increasing significantly. But as you say regional differences make that difficult to deploy, what would happen is that prices would be flying in regions like London but more modest rises occurring in some other areas. But I think rather than have a boom/bust it would be better to move towards a softer landing by introducing tighter lending policies to stem the upward pressure on prices when they are in full flow (that's not yet though, we are only just starting to recover).

A salary multiplier cap would work pretty much everywhere.

Let's say for instance we go back to "how it used to be". 3.5x cap on the first salary, 1x on the second.

Local wage levels will sort out local house prices. If no boom in that area, the multiplier cap won't hurt, as most people earn their wages in the area they buy in.

Simple really.

chucky

chucknorris wrote: »

I agree that they should try and 'dampen' house price increases by encouraging lenders to be harsher with their lending policies when house prices are increasing significantly. But as you say regional differences make that difficult to deploy, what would happen is that prices would be flying in regions like London but more modest rises occurring in some other areas. But I think rather than have a boom/bust it would be better to move towards a softer landing by introducing tighter lending policies to stem the upward pressure on prices when they are in full flow (that's not yet though, we are only just starting to recover).

Exactly right.

The problem with the frothers on this forum is that they don't understand the difference between cause and causation.

chucky

Graham_Devon wrote: »

A salary multiplier cap would work pretty much everywhere.

Let's say for instance we go back to "how it used to be". 3.5x cap on the first salary, 1x on the second.

Local wage levels will sort out local house prices. If no boom in that area, the multiplier cap won't hurt, as most people earn their wages in the area they buy in.

Simple really.

The UK has bigger economic problems than house prices. The fundamental problems need to be resolved first.

Stop being selfish and thinking about yourself just because you have missed the boat.

Carl31

chucky wrote: »

Nice articles but how do they implement this across regions?! would you stop Hamish's HPI in Aberdeen at 6% while in Wigan Percy's house has lost 3% of it's value.

The Bank of England don't have the power to be so accurate in their policy or management of house prices.

Well they can't, it would have to be a blanket approach

But what the article is showing as that this is now being regarded a problem, with a nunber of high profile parties speaking out against HPI

This could lead to action against the market to put the brakes on in he future, which may affect decisions to invest in the market. Surely media attention such as this adds to risk levels for potential investors?

chucknorris

chucky wrote: »

Exactly right.

The problem with the frothers on this forum is that they don't understand the difference between cause and causation.

It needs to be done from a position of strength (when prices are at a healthy level and rising) rather than from a position of partial weakness (when some regions have not yet reached recovery). So timing is everything.

Graham_Devon

chucky wrote: »

The UK has bigger economic problems than house prices. The fundamental problems need to be resolved first.

Stop being selfish and thinking about yourself just because you have missed the boat.

Based on your response, it seems my proposal would work and you can't find issue with it, therefore have defaulted back to a simple insult.

So there you go, local issues sorted.

The best thing about all this is HPI at the current level is being described as a problem everywhere at the moment. Sure, the government still love it, but it's no longer the winner the government appear to think it is.

mystic_trev

Nothing will happen. We'll have the second round of Help to Buy next year, and rampant HPI will probably follow. The Government will do the same as the last lot, and say 'we're keeping an eye on the situation' Why rock the boat when they've got an Election to win?

princeofpounds

It would be nice if, instead of worrying so much about the demand, they might allow a supply response.

You know, the traditional way that high prices normally get controlled.

One command economy price control (low rates and QE) does not get fixed by another price control.

chucky

Carl31 wrote: »

Well they can't, it would have to be a blanket approach

But what the article is showing as that this is now being regarded a problem, with a nunber of high profile parties speaking out against HPI

This could lead to action against the market to put the brakes on in he future, which may affect decisions to invest in the market. Surely media attention such as this adds to risk levels for potential investors?

It could but it won't, it's preparing themselves to win votes in the next general election.

It could lead to action against the market, don't hold your breath it won't be happening any time soon.

chucky wrote: »

Not sure if anyone will say it's a bad thing but if anyone thinks it can be implemented across the country they must live in Lala Land or they don't understand how averages work.