Halifax April 2014 - 0.2% MoM + 8.5% YoY

Generali

MrRee wrote: »

There is no way on earth that Interest Rates will ever get above 2% Base within 20 years.

We don't know what will happen in future but the chances of you being right without the economy being FUBAR'd are vanishingly small.

Mike4DebtFreeMoney

Bantex wrote: »

Why is it a problem? If you own at least two properties then HPI is very good, free money that requires no effort. Wonderful.

Well it does depend upon your view of the society you want to live in.
1) When new money goes mostly into property, HPI is just a wealth re-distribution. All money gets deflated: your savings, salary, pensions. If you happen to own property the effect is less drastic, but you are still renting that money from a bank via a mortgage. Those houses cost you more than you paid for them even if the value is higher now. The real winner was the bank.
2) If Parliament got to decide where new money went, we could have flood defenses, schools, hospitals, infrastructure projects, not have to cash in the Royal Mail and have HS2 thrown in for £375bn QE. When the banks decide, we get unaffordable housing, high rents, boom and bust bubbles in property along with excessive bonuses in the financial sector.
3) There's a lot of negative correlations to unequal societies such as increased crime.