House prices to rise dramatically

[original PM]

not sure house prices can rise again - unless salaries increase as houses are just to damn expensive for the average wage earner.

[Bagpuss]

Be careful, you'll be called a socialist in a minute.

[Diver]

Rent increases

[snaw]

Not the same, but Sydney market was mental for years - interest rates are up in the high nines now and the market flattened out. No one develops and now you have a situation where there is 99% occupancy - housing shortage but no one wants to develop cause prices are flat and interest rates high ...

[BrilloPad]

I suppose that was a tongue in cheek comment, but nevertheless we have gone beyond the point where interest rates matter, as the banks are not passing them on. Quite sensibly the BofE have decided that as there is going to be pain anyway, they may as well go for inflation.
Hence I expect interest rates to rise.

Interesting that Eurozone increased rates by 25 bips the other day.

You are quite right about interest rates - libor has become totally disconnected. Libor is now defined as the rate at which banks wont lend to each other!

Alot depends on where oil goes from here.

[Cyberman]

I suppose that was a tongue in cheek comment, but nevertheless we have gone beyond the point where interest rates matter, as the banks are not passing them on. Quite sensibly the BofE have decided that as there is going to be pain anyway, they may as well go for inflation.
Hence I expect interest rates to rise.

I've had a half point percentage cut, from 5.5% to 5% through First Direct this year based on the two rate cuts so what you are saying is not strictly true. Therefore, a cut may actually help quite a few people. Rate rises are a sure way to put us all into recession!!

[DimPrawn]

I Rate rises are a sure way to put us all into recession!!

keep

[Cyberman]

not sure house prices can rise again - unless salaries increase as houses are just to damn expensive for the average wage earner.

.. and this time last year most people were laughing at me for predicting that house prices would fall !!!

I am now predicting a soft landing followed by a recovery within two years or so. Incidentally, I have just had interest shown in my house today and I have not lowered my asking price over the past year.

[sasguru]

.. and this time last year most people were laughing at me for predicting that house prices would fall !!!

I am now predicting a soft landing followed by a recovery within two years or so. Incidentally, I have just had interest shown in my house today and I have not lowered my asking price over the past year.

[Diver]