UK property crash

Crashy_Time

padington wrote: »

About rental - Sorry should have said amazingly reliable earner however yields are the next to rise, it couldn't go any other way. With so many people joining the party and such little building, in zone 3 inwards anyway. Supply and demand innit.

About buyers needing money - Watch the government announce more and more fractional ownership schemes. Then watch incomes rise. Then watch the powers at be remove borrowing restrictions. See the return of the 100% mortgage. Watch interest rates go lower. Then watch them make loop holes for more foreign money. Then watch the BTL brigade keep buying steadily. Then watch prices go up again.

http://www.ft.com/fastft/257032/demand-mortgage-lending-2008-lows-boe

antrobus

lalman wrote: »

....4. Probably most importantly... when interest rates are low, asset prices and income inequality is high. We are seeing that now. .....

Eh?

By definition, the payment of interest involves the transfer of money from people who don't have money to the people that do. I struggle therefore to see by what mechanism low interest rates would drive increasing income inequality.

In any event, incomes have become less inequal of late. According to the ONS income inequality is now at its lowest level since 1986.

princeofpounds

By definition, the payment of interest involves the transfer of money from people who don't have money to the people that do. I struggle therefore to see by what mechanism low interest rates would drive increasing income inequality

I suspect that lalman actually means that wealth inequality rises, not income.

And I also suspect that wealth inequality is near a high, whilst income inequality has fallen. Funny huh?

I do wish we taxed wealth more in this country, as opposed to income. Rich people don't have income, that's for ordinary workers and those involved in 'trade' like CEOs. oh well. ;-)

ChopperST

First time buyers now at 7 year high, points well to a crash, oh wait...

http://www.theguardian.com/money/2015/jan/06/first-time-home-buyers-property-uk

antrobus

princeofpounds wrote: »

I suspect that lalman actually means that wealth inequality rises, not income. ....

People often say things they don't actually mean here in MSE land. That's no reason not to point out that they're wrong.

princeofpounds wrote: »

...And I also suspect that wealth inequality is near a high, whilst income inequality has fallen. Funny huh?....

ONS statistics show wealth inequality is broadly the same as in 2006

However there has been a generational shift that has benefited older people. (But don't tell ruggedtoast otherwise he'll only start another boomer thread.)

http://www.ft.com/cms/s/0/cdbfe35c-dc11-11e3-a33d-00144feabdc0.html

princeofpounds wrote: »

....I do wish we taxed wealth more in this country, as opposed to income. Rich people don't have income, that's for ordinary workers and those involved in 'trade' like CEOs. oh well. ;-)

The wealth tax: a tax on the 'rich’ that cripples the poor
http://www.telegraph.co.uk/news/worldnews/europe/france/11187602/The-wealth-tax-a-tax-on-the-rich-that-cripples-the-poor.html

Blacklight

moneyweek lol

Bubble_and_Squeak

ChopperST wrote: »

First time buyers now at 7 year high, points well to a crash, oh wait...

http://www.theguardian.com/money/2015/jan/06/first-time-home-buyers-property-uk

given that mortgage approvals have been falling for 5 months on the bounce i suspect most of these bought during the earlier part of the year.
nothing to see here
move on

Wi88le

Bubble_and_Squeak wrote: »

given that mortgage approvals have been falling for 5 months on the bounce i suspect most of these bought during the earlier part of the year.
nothing to see here
move on

http://www.telegraph.co.uk/finance/economics/11327573/Mortgage-demand-in-crash-territory-will-subdue-house-prices-in-2015.html

Crashy_Time

Wi88le wrote: »

http://www.telegraph.co.uk/finance/economics/11327573/Mortgage-demand-in-crash-territory-will-subdue-house-prices-in-2015.html

The word CRASH seems to be cropping up more and more?

Wi88le

Crashy_Time wrote: »

The word CRASH seems to be cropping up more and more?

Don't know if the word crash has been appearing more but sentiment certainly seems to be slowly changing against house price rises and going for a drop in prices.

We may yet get to see how the Sibley-Mctavish house price guarantee works.