Bank of England Base rate & other news

[AtW]

From zero to 3.5% and nothung crashed yet proper - yet these feckers kept printing money for the last 10 years claiming that increase in rates would fook everythjng up

If rates were back to 4-5% a decade ago then housing would be far more affordable

[jamesbrown]

From zero to 3.5% and nothung crashed yet proper

Give it time on housing - there's no magic, it's at multi-decade lows on affordability, rates are normalising, prices are set at the margins and marginal prices depend on credit availability more than housing supply or demand, so the outcome is totally predictable, absent some insanely expensive gov't intervention

[hugebrain]

Give it time on housing - there's no magic, it's at multi-decade lows on affordability, rates are normalising, prices are set at the margins and marginal prices depend on credit availability more than housing supply or demand, so the outcome is totally predictable, absent some insanely expensive gov't intervention

Rates at -6% are the insanely expensive intervention.

[vetran]

Give it time on housing - there's no magic, it's at multi-decade lows on affordability, rates are normalising, prices are set at the margins and marginal prices depend on credit availability more than housing supply or demand, so the outcome is totally predictable, absent some insanely expensive gov't intervention

we need decades of house building to go with decades of population growth.

[Martin@AS Financial]

UK inflation edges down to 10.5% in December


According to Bloomberg, Andrew Bailey (The Bank of England Governor) has said that 2 months of declines in the UK headline rate is a signal that the UK economy be getting past the worst in the cost of living squeeze.

Full report here from Reuters:

https://www.reuters.com/markets/euro...ns-2023-01-18/

[d000hg]

we need decades of house building to go with decades of population growth.

Please no. Let's keep our green and pleasant land please.

[vetran]

Please no. Let's keep our green and pleasant land please.

ah well then we need to reduce population growth as suggested by those "horrible racists" who suggested this option 30+ years ago.

If you aren't going to slow population growth then you need to build somewhere for the new people to live. The other option is overcrowding and expensive housing.

Population growth need services & housing growth which needs money from mainly higher rate tax payers but population growth stops wage growth its a lose/lose.

[d000hg]

ah well then we need to reduce population growth as suggested by those "horrible racists" who suggested this option 30+ years ago.

The racists don't want to reduce immigration for housing concerns, they just hate coloured people and are looking for reasons to justify it.

We can fit loads more people in cities if we build up. That was how you won big in SimCity 2000 after all...

[Protagoras]

Population growth need services & housing growth which needs money from mainly higher rate tax payers but population growth stops wage growth its a lose/lose.

It's the services that so often seems to be overlooked, or simply not delivered. The village in which I grew up has expanded beyond recognition with former farm land and a hospital site now developed for housing (all of it expensive!). Yet there is still no supermarket, no GP surgery, no additional schools. The old local greengrocer, baker and post office shops are now estate agents.
Add the absence of public transport and most household have multiple cars too.

[d000hg]

It's the services that so often seems to be overlooked, or simply not delivered. The village in which I grew up has expanded beyond recognition with former farm land and a hospital site now developed for housing (all of it expensive!). Yet there is still no supermarket, no GP surgery, no additional schools. The old local greengrocer, baker and post office shops are now estate agents.
Add the absence of public transport and most household have multiple cars too.

Isn't this where the argument of market forces comes to play? If there is a big enough population to support shops, restaurants, etc then people will start them. "You can't build houses there aren't enough shops" means there will never be more houses.
Different for public services but to an extent it's still the same situation, services grow/shrink in response to population unless you are planning a New Town. More tricky for infrastructure but even then, additional houses means more council tax income to spend on roads, police, etc.