Halifax May +3.9% MOM, +8.7% YOY

wotsthat

Graham_Devon wrote: »

I did say that.

But I also said people were moving out and selling their homes with "foreign investors moving in".

As in "moving in" and buying it up as an investment, not physcially immigrating to the Uk and moving their family in.

Fair enough. I assume the numbers are insignificant either way?

System

Someone is going to have to draw another crayon diagram in a minute.

Graham_Devon

Joeskeppi wrote: »

Someone is going to have to draw another crayon diagram in a minute.

Happy to oblige if you are struggling.

mobfant

Generali wrote: »

Gotta be honest mate, I don't get this bit.

If houses are too expensive to live in, either via renting or owning, then they will stay empty and the price will fall.

Not if there is a panic to buy, and people overstretch themselves or buy in the expectation of getting high returns from increasing prices.

Prices would be going up because of a shortage of supply, but they are going up far faster than that because of fear and invesment - both of which are much more susceptible to a crash if it looks like prices won't keep on rising.

Bantex_2

Wonder what would happen if Carney just made an announcement that he would do whatever it takes to stop house prices rising any further?

CLAPTON

Graham_Devon wrote: »

I didn't say all.

I said newly built properties are being bought by investors. Which they are. If I had meant all, I would have said "all new houses".

I also didn't say building wasn't essential. I simply said it doesn't solve the issue on it's own.

clearly building sufficient new houses will solve a housing problem.

mobfant

Bantex wrote: »

Wonder what would happen if Carney just made an announcement that he would do whatever it takes to stop house prices rising any further?

He's already said it's the biggest threat to the recovery so people will judge him by actions (e.g. what the FPC do or not do when they meet later this month) and the impact that has rather than further rhetoric.

Bantex_2

CLAPTON wrote: »

clearly building sufficient new houses will solve a housing problem.

Is there enough room in London where the demand is strongest though?

CLAPTON

Bantex wrote: »

Is there enough room in London where the demand is strongest though?

yes there is ................................

Blacklight

Generali wrote: »

The solution remains simple. Build more houses.

I fully understand this argument, but who's going to build them and then sell them for anything less than the absolute maximum achievable?

If you can't realise your maximum profit then you will just restrict the supply and build slightly less until you do.

It's like trying for force Ferrari to build more cars so we can all afford a cheap one. They will just say 'nope', end of story.