Thursday, Apr 12, 2018

Rate rise doubts as property demand falls, says RICS

BBC News: News article

Buyers keeping away from the market has nothing to do with Interest rates. High house prices and not interest rates are keeping potential buyers away from the market.

Posted by magnifico @ 09:11 AM (2004 views) Add Comment


1. cyril said...

Does this mean that the government's policy of building more houses is actually working? They must be pleased that prices are falling anyway.

Thursday, April 12, 2018 12:55PM Report Comment

2. crash bandicoot said...

The national average deposit is £25k. You don't really need to say a lot more about why the market is flat do you? We've spent the last ten years stretching and squeezing every last pound out of potential FTB's. It was always going to come to an end eventually, even if it's not now.

A second thought from the piece - do interest rates now only exist to maintain house prices? Can we just set them at 0% and disband the MPC?

Thursday, April 12, 2018 01:19PM Report Comment

3. mombers said...

Forget about collateral damage caused to pension funds, moral hazard, capital misallocation, etc, just keep throwing money at housing...

Friday, April 13, 2018 09:29AM Report Comment

4. libertas said...

For rate rise, look at the price of Sterling. Its soaring to $1.42. If it remains here or higher, we are looking deflation down the barrel and rate cuts. Rates could revert to negative. The only alternative to this is to follow Trump and have massive tax cuts to the working and middle classes alongside huge attempts at trade reform towards really fair trade, which we can get post Brexit.

Friday, April 13, 2018 06:23PM Report Comment

5. icarus said...

@4 - Regarding trade Trump is making it all up as he goes along. He conflates the balance of payments with the balance of trade. If the trade is in balance and the US has a huge balance of payments surplus from all the debt service that countries owe in dollars – plus a huge remission of profits by American companies that have bought out foreign industry – then the dollar’s exchange rate would soar.His demand for trade balance would price almost all American industry and agriculture out of world markets.
As for massive tax cuts for workers that's laughable - the huge benefits to the top 1% (or 0.!%) far outweigh the nickels and dimes of the working class, who lose anyway through diminution of social services and regressive state taxes.

Friday, April 13, 2018 08:07PM Report Comment

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