In the end I think all the housing bubbles, Japan, Ireland and UK are down to the same thing, cheap and unsustainable debt. Take the easy credit away and the bubble bursts. The other factors are marginal. Who knows how bad it'll be but I think we are looking at a large UK correction. It's going to be 10%+ down in 12 months and that's without job losses kicking in yet.
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Hilarious.Originally posted by Bagpuss View Post
He can say what he likes I am not sure what influence he has on tory policy, is what I meant. Mr Fimee!Comment
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Cyberman doesn't think so.
Cyberman, I've got some dot com shares if you're interestedThe court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.
But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”Comment
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Originally posted by Bagpuss View Post
Steadily increasing house-prices do not constitute a boom, and at the moment we are in danger of anything but that. HIPS and stamp duty are two major factors in the current slump.
The boom that has just ended was unsustainable and instigated by government policy(ie: lack of regulation) and will not happen again because the same level of mortgages will not be available. Banks will be much more careful about lending levels in the future.
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HIPS and stamp duty have little or no effect compared to the banks reviewing their lending policy. Add to that house prices being so high first time buyers can't even enter the market AND inflation
and we can see the root of the problem.
House prices will return to the long term multiples of income, sooner or laterThe court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.
But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”Comment
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Is that what you think has happened over the last 7-8 years?Originally posted by Cyberman View Post"See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested."Comment
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Originally posted by rootsnall View Post
Well, that was a concise argument!! I read a very persuasive article yesterday on stamp duty. RICS has called for reductions because they believe it is exacerbating the slump, as buyers have to find almost 10,000 pounds when buying a reasonable sized house. In a falling market that is a tremendous amount of money to find and can be immediately lost by a fall in equity, whereas in a rising market increasing equity rapidly covers the outlay.
HIPS is distorting the market by reducing the availability of properties as people like myself wait for a change in government policy by the Tories which will correct the slump.
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Originally posted by Moscow Mule View Post
No.... I am referring to the FUTURE under the Tories, and a boom of the past 7-8 years simply cannot happen again !! Banks have all but stopped lending and we will not return to previous 'irresponsible' lending regardless of what the Tories do.Comment
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The Tories won't re-fuel the housing boom, they would be mad to do so, and they can't. The banks hold the Key with their LIBOR and lending policies (which have been ignoring BoE changes for some time. Moreover, interest rates will not come down if inflation carries on.Originally posted by Cyberman View PostWell, that was a concise argument!! I read a very persuasive article yesterday on stamp duty. RICS has called for reductions because they believe it is exacerbating the slump, as buyers have to find almost 10,000 pounds when buying a reasonable sized house. In a falling market that is a tremendous amount of money to find and can be immediately lost by a fall in equity, whereas in a rising market increasing equity rapidly covers the outlay.
HIPS is distorting the market by reducing the availability of properties as people like myself wait for a change in government policy by the Tories which will correct the slump.
HIPS can be got for a couple of hundred quid, a small cost given the price of houses. I don't agree with HIPS but the legislation hasn't had any significant impact.
Sitting in a position of wealth its easy to dismiss the grim reality which ordinary people now face. they are the people driving the market, and they are the reason it can't carry on.The court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.
But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”Comment
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