Suggestions for controlling house price rises

antrobus

sheffield_lad wrote: »

Not if the decision is taken by the independent BOE.

The "independent BoE" has no powers to impose different mortgage rates on different individuals based on their exact geographic residence within the UK. That would require new legislation; the kind of thing that Parliament is responsible for.

CLAPTON wrote: »

what about if one party said it would reverse the policy upon it's election?

And that too.

CLAPTON

antrobus wrote: »

The "independent BoE" has no powers to impose different mortgage rates on different individuals based on their exact geographic residence within the UK. That would require new legislation; the kind of thing that Parliament is responsible for.



And that too.

indeed
does the BoE even have the power to set an mortgage rate?

Annie1960

I agree with the need to build more house, especially here down south.

HAMISH_MCTAVISH

If you want to reduce HPI sustainably then tackle the root cause, and build more houses.

If you want to temporarily suppress HPI, while preventing millions of people from buying houses, sending rents to all time record highs, enriching an army of landlords, and sending house building plummeting to the lowest levels in a century..... Then restrict credit through mortgage rationing.

As we've just seen from the last 7 years.

michaels

Annie1960 wrote: »

I agree with the need to build more house, especially here down south.

Will you join me in lobbying St Albans council?

Bantex_2

I live in London, it's already too crowded.

Thrugelmir

CLAPTON wrote: »

indeed
does the BoE even have the power to set an mortgage rate?

Base rate rises will have the impact of increasing lending rates. Irrespective of purpose.

antrobus

CLAPTON wrote: »

indeed
does the BoE even have the power to set an mortgage rate?

I believe that the BoE has the ability to set its own interest rate, and no more.

Thrugelmir wrote: »

Base rate rises will have the impact of increasing lending rates. Irrespective of purpose.

It does tend to have that result. But the point would be that it would tend to increase lending rates across the country as a whole. There is no mechanism for setting a separate base rate for the 'that area that falls within the M25' until such time as 'that area that falls within the M25' has its own separate currency.

Thrugelmir

antrobus wrote: »

It does tend to have that result. But the point would be that it would tend to increase lending rates across the country as a whole. There is no mechanism for setting a separate base rate for the 'that area that falls within the M25' until such time as 'that area that falls within the M25' has its own separate currency.

If the average mortgage is higher in the south east than the rest of the country. Then any rise in base rate will have a proportionate effect.

antrobus

Thrugelmir wrote: »

If the average mortgage is higher in the south east than the rest of the country. Then any rise in base rate will have a proportionate effect.

Well, I wouldn't be at all surprised if that was the case. However, these comments need to be read in the context of the suggestion :-

sheffield_lad wrote: »

How about having a different interest rate for properties within the M25? Higher within the m25 but leave rates as they are in the rest of the country for now.

To which the response would remain; the BoE has no powers to implement any such thing. Parliament would need to legislate. It would be political suicide as regards every constituency within the M25.