David Cameron: Generation Rent will become Generation Buy

kabayiri

http://www.growyourownhome.org/new-vernacular-architecture.php

There

How can Nimbys object to that?

wymondham

chucknorris wrote: »

Won't their mortgages tend to be quite high? That's one factor some people tend to overlook when they look back at historic house prices. They sometimes don't check to see what the base rate was and how it might have made mortgages less affordable.

yep, mortgages unaffordable, house prices reduce as a result..

wymondham

Garethgrew wrote: »

There will have to be some government intervention to stop record numbers of repossessions.

Nope... Why should the Government intervene on someone's private purchase (made out of choice) ?

cells

wymondham wrote: »

yep, mortgages unaffordable, house prices reduce as a result..

the difference between now and 1990 is stark. roughly

1990-1995
+750,000 people
+1,000,0000 homes

2015-2020
+2,500,000 people
+700,000 homes

supply relative to population change was good in the early 1990s

wymondham

cells wrote: »

15% interest rates were not sustainable then and they crashed towards 5%

The most realistic case I can think of is bank rate at 4% resulting in mortgages at 5-6% which is enough to slow house price growth but it wont cause a crash in prices

yes and to think now just 5% would cause absolute meltdown.... interesting times!

wymondham

cells wrote: »

the difference between now and 1990 is stark. roughly

1990-1995
+750,000 people
+1,000,0000 homes

2015-2020
+2,500,000 people
+700,000 homes

supply relative to population change was good in the early 1990s

indeed but we don't have a problem as we are encouraging more to come to this country...... good job we don't have a shortage of housing isn't it!

Nikkster

Ooh... We're treated to a shiny party political broadcast about it too. Did I miss something? Is there an election coming up?!

cells

Too high an interest rate will cause bonds and shares to crash in value taking down the financial system with it. Therefore why would the setter of the rate of interest do that?

Interest rates will only move with what the economy would allow and can sustain

chucknorris

wymondham wrote: »

yep, mortgages unaffordable, house prices reduce as a result..

You are completely missing the point, the houses would still be unaffordable to those that couldn't previously afford them with a lower base rate, due to the newly introduced 15% base rate! Not to mention the harm that it would do to the economy, seriously affecting businesses and employment.

chucknorris

cells wrote: »

Too high an interest rate will cause bonds and shares to crash in value taking down the financial system with it. Therefore why would the setter of the rate of interest do that?

Interest rates will only move with what the economy would allow and can sustain

Some silly bears (not all) tend to think house prices can crash while the rest of the economy booms.