Extend the uncertainty?

MobileSaver

The-Joker wrote: »

This is going to be very very bad for the economy and for property prices long term

Bad for the economy yes but probably won't affect property prices that much in the long term.

The-Joker

MobileSaver wrote: »

Bad for the economy yes but probably won't affect property prices that much in the long term.

Depends what you mean by long term....

Sure property will always keep up with everything else long term but some things get overvalued and then head down to undervalued before going to overvalued again

Property is overvalued right now meaning it’s gone up fast than inflation but with the uncertainty I think there will be a correction and property will go up far less than inflation for several years now due to the uncertainty

phillw

The-Joker wrote: »

Property is overvalued right now meaning it’s gone up fast than inflation

Inflation is a made up metric, it's not directly comparable to house price increases.

Inflation is sometimes used during annual reviews, but only as a way of capping raises. When inflation is high then commercial decisions usually mean they can't give you such a high pay rise either.

As affordability checks are much more stringent now, it's actually hard to argue that house prices can possibly be overvalued.

Crashy_Time

phillw wrote: »

Inflation is a made up metric, it's not directly comparable to house price increases.

Inflation is sometimes used during annual reviews, but only as a way of capping raises. When inflation is high then commercial decisions usually mean they can't give you such a high pay rise either.

As affordability checks are much more stringent now, it's actually hard to argue that house prices can possibly be overvalued.

It`s actually quite easy when you look at how transactions are falling.

lvader

House prices have essentially been falling, it's the devaluation of the pound that has been masking it.

phillw

Crashy_Time wrote: »

It`s actually quite easy when you look at how transactions are falling.

I think you misunderstand the difference between the value of something when it was bought and the value of something after a change in circumstances.

Another change in circumstances and they go up again.

That doesn't mean they were under valued when the price was lower.

Malthusian

lvader wrote: »

House prices have essentially been falling, it's the devaluation of the pound that has been masking it.

True in a sense because a house priced in Sterling has fallen in value in global terms due to the fall in Sterling.

However as most houses are bought with Sterling-denominated earnings, it's fairly irrelevant, and isn't going to help an HPinCel waiting for a house price crash so he can buy a 3-bed semi in the city centre with his £25k-in-Sterling insurance clerk salary. It is somewhat relevant to London property being bought by overseas investors.

DannyGold

What are the odds that come Xmas, the uncertainty will be extended yet again?

smipsy

considering everyone who's been saying "I/we definitely won't do XYZ" then proceeded to do XYZ, the logic is simple.

just wait until they start saying "We're definitely not going to extend again" then you'll know that they will do so

DannyGold

Call it off or get it done, but just do something

The worst thing ever is more uncertainty