An end to property?

[TykeMerc]

The bubble can pop without an interest rate rise folks ;-)

True, but the Spanish property bubble (and the Northern Irish one come to that) were inflated and driven by massive building to the point of gross oversupply and a runaway gravy train which derailed spectacularly. Totally different situation from the UK which bears more similarities to the Netherlands in housing terms.

[PurpleGorilla]

True, but the Spanish property bubble (and the Northern Irish one come to that) were inflated and driven by massive building to the point of gross oversupply and a runaway gravy train which derailed spectacularly. Totally different situation from the UK which bears more similarities to the Netherlands in housing terms.

Our 2008-9 bust was halted through massive QE.

We should have popped like Uncle Sam.

[TykeMerc]

Our 2008-9 bust was halted through massive QE.

We should have popped like Uncle Sam.

It wasn't much of a bust and there have been similar blips in the past too so it was far from a novelty. QE may have reduced the depth of the blip a bit, but I don't believe it was responsible for terminating it.
Take a look at history rather than rhetoric.

[Zero Liability]

The Fed and some of the other central banks target a range rather than setting a specific given rate, and they do this through asset purchases. Also, as Bernanke realised and even taught, a lot of their work is based on manipulating expectations. If market expectations significantly diverge from what the central planners are pretending to be doing, they lose control over certain policy tools, like trying to get rates to go up without directly changing their targeted range.

The BoJ is a glorious case study in the futility and idiocy of modern central bankers and their valves and gauges view of the economy. Starting as far back as Greenspan they have done significant damage to the real economy by fomenting a massive bubble, which is now unwinding and which will introduce significant deflationary (credit contraction) pressures to the global economy as the artificial credit-driven demand collapses. Beginning with China and its real estate bubble.

[PurpleGorilla]

Take a look at history rather than rhetoric.

Did you not see the charts I put up? Where is your data?

[TykeMerc]

Did you not see the charts I put up? Where is your data?

Yes I've seen them, they don't show the habit of house price bubbles in the UK since Thatchers monumental change in the house ownership demographic, in fact they don't show much.
I've no idea how old you are, but I've lived through several bubble and bust scenarios, I remember a lot of people in the South East having negative equity in one of the bigger ones, early 90's I think.
The Spanish and Irish boom and busts were totally predictable and inevitable, they followed some of the classic con scheme behaviours.

[Zero Liability]

Well in the UK there are massive demand and supply side pressures keeping housing prices afloat, in addition to the effects of any credit expansion, which can exacerbate the former. London, in particular, is a popular market for foreigners seeking to park their wealth somewhere safe, and this is a cash rather than a borrower market. It does not mean there was not a bubble or its reflation, but whilst the BoE is giving with one hand (low rates) the MMR took with another. Meaning, it's not really clear that housing prices here will fall as precipitously as they might in the US, or China.

As for the US, its bubble has reflated, but the majority of cheap money has flown into stock buybacks and fracking, not to mention foreign jurisdictions like China, due to the global reach of the Fed. Different dynamics but it's not like they made any wise decisions with regards to property markets, either.

[PurpleGorilla]

Yes I've seen them, they don't show the habit of house price bubbles in the UK since Thatchers monumental change in the house ownership demographic, in fact they don't show much.
I've no idea how old you are, but I've lived through several bubble and bust scenarios, I remember a lot of people in the South East having negative equity in one of the bigger ones, early 90's I think.
The Spanish and Irish boom and busts were totally predictable and inevitable, they followed some of the classic con scheme behaviours.

Well I'm young enough to have a steady stream of boomers tell me how difficult it was for them to buy their 4 bed detached on 2.5x wage, whilst my generation struggles to save the £60k deposit for a tulipty flat whilst paying huge rent on your buy to let mortgage, on zero hours, with £25k of uni debt.

[PurpleGorilla]

Well in the UK there are massive demand and supply side pressures keeping housing prices afloat, in addition to the effects of any credit expansion, which can exacerbate the former. London, in particular, is a popular market for foreigners seeking to park their wealth somewhere safe, and this is a cash rather than a borrower market. It does not mean there was not a bubble or its reflation, but whilst the BoE is giving with one hand (low rates) the MMR took with another. Meaning, it's not really clear that housing prices here will fall as precipitously as they might in the US, or China.

As for the US, its bubble has reflated, but the majority of cheap money has flown into stock buybacks and fracking, not to mention foreign jurisdictions like China, due to the global reach of the Fed. Different dynamics but it's not like they made any wise decisions with regards to property markets, either.

Is there a point here?

[TykeMerc]

Well I'm young enough to have a steady stream of boomers tell me how difficult it was for them to buy their 4 bed detached on 2.5x wage, whilst my generation struggles to save the £60k deposit for a tulipty flat whilst paying huge rent on your buy to let mortgage, on zero hours, with £25k of uni debt.

My, my, don't we have a FOGB chip, yes it appears one on each shoulder, impressive.

Let's see, my eldest son and his wife who both graduated a whole 3 years ago are in the midst of buying their first house together, they've been renting up to now, they each have Uni debts way past the £25k you mention. Oh and he's just doing back to Uni to start his PhD, admittedly he's got industry funding for that, but he negotiated that off his own merits and work.
True I've helped them out with the deposit, but that's far from a situation new to their generation, many of my Uni friends had their parents help them with the same.

So your point again is? You're just whining for the sake of it.