BOE: "Not our job to regulate house prices"

theEnd

Generali wrote: »

The money supply (household M4) is up 0.1% over the year.

http://www.bankofengland.co.uk/statistics/Documents/bankstats/current/taba4.1.xls

Almost all of that rise can be accounted for by increased saving

http://www.bankofengland.co.uk/statistics/Documents/bankstats/current/taba2.2.1.xls

There is no massive increase in the money supply.

As to 'further currency collapse'. What currency collapse? There hasn't been one.

Do you have M4 figures going back further? I'd imagine the inflation in M4 and house prices are closely linked.

All western currencies have been devalued through printing. GBP more than most.

Conrad

theEnd wrote: »

All western currencies have been devalued through printing. GBP more than most

Silver? Bitcoins? Tin hats?

Hooloovoo

shortchanged wrote: »

So who would fill all the voids if all these lower paid workers all become doctors, dentists, investment bankers, managers etc?

Generally, it would be the young, unskilled, people.

Working in a shop on the till, working as a cleaner, all part time to earn a bit of money while they work on their qualifications. Before then getting onto the bottom rung of a career, making way for the next round of young unskilled people to take over the low paid jobs.

Whenever I see a middle aged person working on a till, or cleaning the corridor on the way to my office in the morning, I can't help but feel a little saddened and depressed that they are older than me and yet I've already become more successful.

Am I lucky? Or did they just make bad decisions or lack the desire to make something more of themselves? As far as I'm concerned I haven't been particularly lucky or done anything they couldn't have done. So if I could do it, why didn't they?

shortchanged_2

Hooloovoo wrote: »

Generally, it would be the young, unskilled, people.

OK fine but how does increasing living costs help this group of people?

Does that mean an ever increasing number of man and woman babies staying at home with their mammies (as someone on here so eloquently puts it).

Unless the housing shortage is sorted out in this country soon there are going to be major problems ahead for the future generations.

HAMISH_MCTAVISH

shortchanged wrote: »

Unless the housing shortage is sorted out in this country soon there are going to be major problems ahead for the future generations.

Well, after several years of posting, at least you now seem to accept that there's a housing shortage.

It's a start....:)

shortchanged_2

HAMISH_MCTAVISH wrote: »

Well, after several years of posting, at least you now seem to accept that there's a housing shortage.

It's a start....:)

So why aren't we doing anything about it?

If there is a shortage and we know there is a demand, unless house building is being rationed to maintain high prices, what other reason is there?

grizzly1911

Hooloovoo wrote: »

Whenever I see a middle aged person working on a till, or cleaning the corridor on the way to my office in the morning, I can't help but feel a little saddened and depressed that they are older than me and yet I've already become more successful.

Am I lucky? Or did they just make bad decisions or lack the desire to make something more of themselves? As far as I'm concerned I haven't been particularly lucky or done anything they couldn't have done. So if I could do it, why didn't they?

Perhaps they have already done it and come out the other side. Some may have collapsed into that position others may have chosen to take route because they can afford to - over the debt/kids hump etc..

Many may be happy doing those roles and have limited expectations and wants. It may fit their commitments.

Who knows you may even end up their through no fault of your own in the future?

HAMISH_MCTAVISH

shortchanged wrote: »

So why aren't we doing anything about it?

Supply is rising.

Demand is rising faster, but supply is rising.

Although I agree we should build more, the shortage is now dramatically worse than it would have been had we not been daft enough to ration mortgages.

If there is a shortage and we know there is a demand, unless house building is being rationed to maintain high prices, what other reason is there?

House building fell off a cliff thanks to the very mortgage rationing YOU supported, before you believed in the shortage, and when you thought preventing a million people from buying would work in your favour.

"Be careful what you wish for" springs to mind.....:)

shortchanged_2

Well I suppose I never guessed to what lengths the government would go to prop up house prices which meant people were priced out.

The house market is now totally rigged and is not a free market at all. Builders, speculators now know that governments will prop prices up at any cost, this in turn reduces the risk of housing as an investment and thus makes it more attractive for investment reasons which is totally wrong in my eyes.

wotsthat

shortchanged wrote: »

So why aren't we doing anything about it?

If there is a shortage and we know there is a demand, unless house building is being rationed to maintain high prices, what other reason is there?

What you wanted to happen happened.

Credit was severely restricted and house prices fell. What you hadn't counted on was the entirely predictable consequence that transactions, and thus new housebuilding, fell too.

The Help To Buy scheme, which I assume you disapprove of, attempts to rectify some of the damage (that you wished for) albeit a few years too late.