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!
BOE: "Not our job to regulate house prices"
Comments
-
So instead of the government doing every thing to prop up prices with all its schemes, why doesn't it build thousands of houses to help with the supply issue?0
-
shortchanged wrote: »So instead of the government doing every thing to prop up prices with all its schemes, why doesn't it build thousands of houses to help with the supply issue?
The government isn't " doing every thing to prop up prices with all its schemes", it's restoring functionality to dysfunctional lending markets, which then enables increased transactions and building.“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 -
shortchanged wrote: »So instead of the government doing every thing to prop up prices with all its schemes, why doesn't it build thousands of houses to help with the supply issue?
They'd mess it up.
Better to get the people who want a house to pay for it themselves or at least get them to take on most of the risk. Why should the taxpayer build thousands of houses, rent them out at a lower than market rent, and then sell them off cheap when politics takes over?0 -
shortchanged wrote: »Well who should be responsible for maintaining sanity in the housing market?
Can anyone else do such things as rise interest rates etc?
Unless the BoE give responsibility of setting the IR back to the government then they do have a level of responsibility.
The only lever the BoE has is the interest rate.
All the other powers are in the hands of Government, eg:
1 Stamp duty
2 Encouraging/discouraging new builds & building flats vs houses vs mansions via the tax system
3 Council housing
4 Mortgage rationing
5 MIRAS reintroduction
6 Green belt expansion/contraction
7 Planning law
8 Compulsory birth control/euthanasia
etc etc
So I'd say its the governments job to do so or allow the market to find is natural point0 -
grizzly1911 wrote: »Who knows you may even end up their through no fault of your own in the future?
True, it could happen but given I'm "making hay while the sun shines" and trying to make my future as safe as possible - mortgage paid off, building up comfortable savings and pension pot, etc. - it would take a monumentally massive sequence of bad luck.
If they have "come out the other side" was it really bad luck, or did they just make bad/risky decisions? Who knows.0 -
If higher house prices are causing higher rents which feed into inflation figures, then BoE may have an interest.0
-
If higher house prices are causing higher rents which feed into inflation figures, then BoE may have an interest.
I don't believe that higher house prices "cause" higher rents.
The majority of houses for rent were not bought yesterday at higher prices. For those that were, the BTL owner would, of course, like to get his standard yield on what he paid, but he will only get what the rental market in his area allows.
There is a complex mixture of new renters coming onto the market, new owner occupier buyers, new BTL buyers, and renters now buying. Plus owners and renters dying all day every day. It's difficult to unravel what this means to demand in the country, let alone any specific area.0 -
If higher house prices are causing higher rents which feed into inflation figures, then BoE may have an interest.
There hasn't been much relation between house prices and rent over the last decade or more.
The ONS have a rental index which is used for inflation. This is well below wage inflation, which is well below CPI or RPI. I don't know how this is possible if there's a shortage of housing.
They have a separate figure for imputed rent which is used for GDP calculations. It's much higher. I'm not sure why they differ.0 -
“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 -
There hasn't been much relation between house prices and rent over the last decade or more. .
Rents are at a new record high, and have risen by more than both wage inflation and CPI since 2009.
House prices are not yet at new record highs in most areas, but are rising fast.
“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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.2K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards