What does brexit mean for UK property?

Crashy_Time

mwpt wrote: »

http://www.theweek.co.uk/house-prices/61987/house-prices-bank-of-england-urges-prudence-not-panic

Mark Carney:


A fantastically meaningless statement. Where are interest rates going Mark? Where are wages going Mark? You expect people to use judgement but how would you expect anyone to know where interest rates or wages are going?

Sounds like the BoE are worried that their pet economy stimulator, the housing market, is in danger too now.

Don`t you think Mark has a good idea of where interest rates are going to be forced to go?

padington

mwpt wrote: »

http://www.theweek.co.uk/house-prices/61987/house-prices-bank-of-england-urges-prudence-not-panic

Mark Carney:


A fantastically meaningless statement. Where are interest rates going Mark? Where are wages going Mark? You expect people to use judgement but how would you expect anyone to know where interest rates or wages are going?

Sounds like the BoE are worried that their pet economy stimulator, the housing market, is in danger too now.

It's more of the same, really low rates tempered by stearn advice that that low rates won't be around for much longer, which most probably is untrue but supports the pound from falling futher.

padington

Crashy_Time wrote: »

Don`t you think Mark has a good idea of where interest rates are going to be forced to go?

Yes, very low / negative for a long long time. Same as the USA.

economic

dont you just love a crisis about to erupt in the global economy?

mwpt

From my original post I predicted government (via their proxy, the BOE) would again use house prices to attempt to prop up the economy.

Here is a quote from Carney today:

Prospect of major monetary policy stimulus has had a major impact on UK asset prices, Carney tells the Treasury Select Committee.

He says the Bank of England stimulus "is helping to stabilise residential real estate prices".

He adds: "We are seeing pass-through of our policy action."

I don't like it (at all), but I can't beat the system, so I just have to play along. Crash cheerleaders should take note. Shorting the housing market is a bet against the government on the opposite side of that