Are we expecting BOE to remain at 4.75% on 8th February 2025?

BikingBud

The UK is addicted to credit, we are like crack addicts, everything was easy when interest was low as the never-never appeared to be never. But the never-never is now, now!

The piper needs to be paid and not only are we skint, we are massively overdrawn.

We have inflicted massive debt on future generations by artificially increasing house prices for the short term high of "look what my house is worth" all the while avoiding the reality that once the crack wears off and we come back to reality the cold turkey will be long and painful.

We get what we deserve! 

wheldcj

Sorry but that is nonsense.  Unless by fortune of birth you inherit a house or the proceeds of the home you have only one option to own your own property, that is a mortgage. 

I get the addiction to low interest for phones, cars etc but most had/have no option but to take a risk that rates would not increase to these levels so quickly.  

Until a government does two things the future of home ownership for the next generation will be dictated largely by family inheritance.  Meritocracy is out the window.

1) Significantly limit how much profit you can make on homes or at least how much you can pass down untaxed through inheritance i.e massively disincentivise holding onto property until you die is the key.

2) Offer a carrot to the older empty nester generation to downsize their family sized properties, by schools and other amenities.  Therefore properly utilising our housing stock & by increasing supply reducing house prices.

My kids have absolutely no chance regardless of their eventual job an income of buying property like previous generations which is hugely depressing as a developed nation.

weddingringman

wheldcj said:

Sorry but that is nonsense.  Unless by fortune of birth you inherit a house or the proceeds of the home you have only one option to own your own property, that is a mortgage. 

I get the addiction to low interest for phones, cars etc but most had/have no option but to take a risk that rates would not increase to these levels so quickly.  

Until a government does two things the future of home ownership for the next generation will be dictated largely by family inheritance.  Meritocracy is out the window.

1) Significantly limit how much profit you can make on homes or at least how much you can pass down untaxed through inheritance i.e massively disincentivise holding onto property until you die is the key.

2) Offer a carrot to the older empty nester generation to downsize their family sized properties, by schools and other amenities.  Therefore properly utilising our housing stock & by increasing supply reducing house prices.

My kids have absolutely no chance regardless of their eventual job an income of buying property like previous generations which is hugely depressing as a developed nation.

I disagree on the basis that over the last 4 or 5 years more and more people have began borrowing 5 or 6x incomes, and at rates that everyone knew were artificially low.

I heard on the radio that the average first time buyer borrows 250k. That’s reckless and totally unnecessary. What happened to working your way up the ladder?! There are places less than half that price, within a short drive or commute to probably 95% of jobs in the UK. It’s nonsensical for a first time buyer to be buying at enough the average house price for the UK. 

People just don’t seem to want to buy a modest place and spend a few years building equity. My first flat was well under 100k, and you can pretty much buy it for that same price all these years later. No one seems interested in them for some reason, but the extortionate 350-400k new builds were selling like hot cakes last year… strange huh…

Sea_Shell

wheldcj said:

Sorry but that is nonsense.  Unless by fortune of birth you inherit a house or the proceeds of the home you have only one option to own your own property, that is a mortgage. 

I get the addiction to low interest for phones, cars etc but most had/have no option but to take a risk that rates would not increase to these levels so quickly.  

Until a government does two things the future of home ownership for the next generation will be dictated largely by family inheritance.  Meritocracy is out the window.

1) Significantly limit how much profit you can make on homes or at least how much you can pass down untaxed through inheritance i.e massively disincentivise holding onto property until you die is the key.

2) Offer a carrot to the older empty nester generation to downsize their family sized properties, by schools and other amenities.  Therefore properly utilising our housing stock & by increasing supply reducing house prices.

My kids have absolutely no chance regardless of their eventual job an income of buying property like previous generations which is hugely depressing as a developed nation.

For many empty nesters, that 'carrot' would have to be detached!!!     IMO, that is the main reason many don't downsize.

wheldcj

Then we should look to build smaller detached properties then.  Design new neighbourhoods where people would be happy to downsize to.

We live in an area designed perfectly for families of the past.  Great schools and houses sizeable enough for families but 80% are lived in by empty nesters and retirees.  Subsequently house sales are rare and often unfortunately due to the passing of said resident,  making them far more expensive than they should be.

Sea_Shell

wheldcj said:

Then we should look to build smaller detached properties then.  Design new neighbourhoods where people would be happy to downsize to.

That would be great!!!

Smaller, but still Detached, decent size gardens, fewer other families next door, quiet area AND say £50k cheaper (to make it financially viable after costs)

Good luck to any government who tries to ask (force) developers to do all that!!

michaels

wheldcj said:

Sorry but that is nonsense.  Unless by fortune of birth you inherit a house or the proceeds of the home you have only one option to own your own property, that is a mortgage. 

I get the addiction to low interest for phones, cars etc but most had/have no option but to take a risk that rates would not increase to these levels so quickly.  

Until a government does two things the future of home ownership for the next generation will be dictated largely by family inheritance.  Meritocracy is out the window.

1) Significantly limit how much profit you can make on homes or at least how much you can pass down untaxed through inheritance i.e massively disincentivise holding onto property until you die is the key.

2) Offer a carrot to the older empty nester generation to downsize their family sized properties, by schools and other amenities.  Therefore properly utilising our housing stock & by increasing supply reducing house prices.

My kids have absolutely no chance regardless of their eventual job an income of buying property like previous generations which is hugely depressing as a developed nation.

If there were a shortage of smart phones leading to prices getting bid up well above the cost of production we wouldn't suggest those with phones where they weren't using all the features should switch to a basic phone so those who need all the features could have a smart phone - we would simply produce more.

Same should be the case for houses - build more.  So many live in houses that were originally built on fields in the least 100 years but absolutely object to new houses being built on fields - nimby hypocrisy at its worst.

michaels

BikingBud said:

The UK is addicted to credit, we are like crack addicts, everything was easy when interest was low as the never-never appeared to be never. But the never-never is now, now!

The piper needs to be paid and not only are we skint, we are massively overdrawn.

We have inflicted massive debt on future generations by artificially increasing house prices for the short term high of "look what my house is worth" all the while avoiding the reality that once the crack wears off and we come back to reality the cold turkey will be long and painful.

We get what we deserve! 

Off topic, but based on your signature, please stop paying down your mortgage and put the over payments in a savings account instead - you are literally throwing money away given your mortgage rate and the saving rates available.

wheldcj

michaels said:

wheldcj said:

Sorry but that is nonsense.  Unless by fortune of birth you inherit a house or the proceeds of the home you have only one option to own your own property, that is a mortgage. 

I get the addiction to low interest for phones, cars etc but most had/have no option but to take a risk that rates would not increase to these levels so quickly.  

Until a government does two things the future of home ownership for the next generation will be dictated largely by family inheritance.  Meritocracy is out the window.

1) Significantly limit how much profit you can make on homes or at least how much you can pass down untaxed through inheritance i.e massively disincentivise holding onto property until you die is the key.

2) Offer a carrot to the older empty nester generation to downsize their family sized properties, by schools and other amenities.  Therefore properly utilising our housing stock & by increasing supply reducing house prices.

My kids have absolutely no chance regardless of their eventual job an income of buying property like previous generations which is hugely depressing as a developed nation.

If there were a shortage of smart phones leading to prices getting bid up well above the cost of production we wouldn't suggest those with phones where they weren't using all the features should switch to a basic phone so those who need all the features could have a smart phone - we would simply produce more.

Same should be the case for houses - build more.  So many live in houses that were originally built on fields in the least 100 years but absolutely object to new houses being built on fields - nimby hypocrisy at its worst.

Owning smart phones is not really comparative though.

I agree part of the solution needs to be to increase supply by building more.   However, especially if you work and have a young family simply building 1000 houses in some random green or brown field site is not feasible.   Without nearby jobs, transport links and importantly schools they are not really viable & these infrastructure improvements are expensive.

Creating good housing for retirees and empty nesters moves them to areas where the above is not as bigger requirement (except transport links) and allows larger houses to be used for their original intention and utilises established schools etc..

Better supply reduces prices 

BikingBud

michaels said:

wheldcj said:

Sorry but that is nonsense.  Unless by fortune of birth you inherit a house or the proceeds of the home you have only one option to own your own property, that is a mortgage. 

I get the addiction to low interest for phones, cars etc but most had/have no option but to take a risk that rates would not increase to these levels so quickly.  

Until a government does two things the future of home ownership for the next generation will be dictated largely by family inheritance.  Meritocracy is out the window.

1) Significantly limit how much profit you can make on homes or at least how much you can pass down untaxed through inheritance i.e massively disincentivise holding onto property until you die is the key.

2) Offer a carrot to the older empty nester generation to downsize their family sized properties, by schools and other amenities.  Therefore properly utilising our housing stock & by increasing supply reducing house prices.

My kids have absolutely no chance regardless of their eventual job an income of buying property like previous generations which is hugely depressing as a developed nation.

If there were a shortage of smart phones leading to prices getting bid up well above the cost of production we wouldn't suggest those with phones where they weren't using all the features should switch to a basic phone so those who need all the features could have a smart phone - we would simply produce more.

Same should be the case for houses - build more.  So many live in houses that were originally built on fields in the least 100 years but absolutely object to new houses being built on fields - nimby hypocrisy at its worst.

But we don't need the latest smart phone to live or an overpriced "high" spec German car yet we continue to buy them and build the debt mountain. So just go without don't become part of the problems. 

michaels said:

BikingBud said:

The UK is addicted to credit, we are like crack addicts, everything was easy when interest was low as the never-never appeared to be never. But the never-never is now, now!

The piper needs to be paid and not only are we skint, we are massively overdrawn.

We have inflicted massive debt on future generations by artificially increasing house prices for the short term high of "look what my house is worth" all the while avoiding the reality that once the crack wears off and we come back to reality the cold turkey will be long and painful.

We get what we deserve! 

Off topic, but based on your signature, please stop paying down your mortgage and put the over payments in a savings account instead - you are literally throwing money away given your mortgage rate and the saving rates available.

Thanks, I have been so far this year, with the review due when the fix ends in 2026, hence the static "banked" saving.