Reply to: House prices to rise dramatically

[Mordac]

There you go Milan - last post on page 3059. House prices, wouldn't you just know it. Crack on you lot.

[Diver]

[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.

[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.

[DimPrawn]

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

keep

[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!!

[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.

[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 ...

[Diver]

Rent increases

[Bagpuss]

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

[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]

and so do the banks hence Nationwide's new 7% bond

[sasguru]

That will not happen because New Lie only have 18 months to turn things around. Expect interest rate cuts very soon!!

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.

[BrilloPad]

That will not happen because New Lie only have 18 months to turn things around. Expect interest rate cuts very soon!!

That is what Gordon would like - but I am struggling to see how he can Engineer it.

Get the rate setting committee to target house price inflation?

[bobhope]

You don't have to be an expert to know that property prices are closely linked to economic principles of supply and demand. The UK has undersupply due to lack of building and overdemand caused by 'crazy' levels of immigration.

According to Paragon figures released last week, rents are already rising throughout the country, excluding London, which proves that demand is there.

Time will tell, but I see the market much improved within 2 years or so as interest rates fall, availability of funding improves and New Lie bite the dust.

Paragon BTL mortgages? - now they just have to be unbiased.