[Ftb Action]

I appreciate this might have been discussed before (I'm relatively new to the site) but would it be helpful to give the current downward trend a bit of a shove by making negative noises on behalf of FTBs?

It seems to be that HPC.co.uk is well placed to put out a few frightening stories into the media to get people to focus on the almost complete exclusion of potential FTBs from the housing market.

For example, if it were to call for a buying strike from FTBs for a contained period (let's say from january - March 2006) I'm sure some of the hysterical media outlets would cover it and it might help change attitudes at this crucial point.

Maybe I'm being naive, but it seems that FTBs are the only group in this market who have no institutional or collective power. Maybe that's why they always get shafted.

Any other ideas to bring the FTB voice to the ears of the other parties?

[Rise In Mortgage Approvals Points To Housing Recovery]

While it is true that some members of the Monetary Policy Committee do seem determined to cut rates to stimulate general economic activity, there is no getting away from increasing inflation. The target for the MPC to aim for is 2%- inflation is currently at 2.3% with signs that it will continue to creep up. Whatever the short term response it seems likely that interest rates will have to increase in the medium term to bring inflation under tighter control.

As for economists, have you never heard the saying, "If you laid all the world's economists end to end, you still wouldn't reach a conclusion". I think common sense is called for - if housing is priced beyond the means of those who are expected to buy it, then clearly a correction will have to take place at some point. The only point of debate really is when and by how much. That I accept is anyone's guess!

Well its obvious that you know what you are talking about and all of the highly paid economists and analysts employed by the banks as well as the Bank of England members who are forecasting that rates are going to fall are wrong!!!! Sorry but unless you have credentials to back up what you think is right i am going to stick with the over-paid hacks who actually get these things right. It amazes me how people on this site think they know better than the highly paid analysts and actual BoE members about economics just because they have read a few posts and are desperate for house prices to crash.

The bank is very unlikely to raise rates again if growth is falling and unemployment is rising, and will only do so if inflation gets out of control, which so far it hasn't. Lower consumer spending alone will pressure inflation and keep it under control, so at the minimum they will leave rates where they are. The Bank of England is also acutely aware that raising rates could send us into recession as it could force the house price crash that you are all so desperate for, increase unemployment and cut growth.

And no the US does not set rates for the whole world, otherwise why have ECB rates been on hold for the last 2-years and why are our rates falling. They influence them but don't set them, otherwise our rates would be rising. They have a different cycle to us, and remember their rates are still .75 basis points below ours and are likely to peak at 4.5%.

Durch I would rather first time buyers were put off by facts rather than figures made up to support a viewpoint.

[Who Is Buying Now?]

Umm there are quite a few places around for less than half a million, they might even consider building thier own.

With a  joint income of 200K why dont they work hard for 3 years  while living economically and just buy a place outright.

All seems rather odd to me.

<{POST_SNAPBACK}>

Maybe working your hole off for years to achieve success puts you off buying a terraced house in a distant suburb. In London, a one bedroom flat would cost 250k, a family home 500k+. I think they're now considering moving abroad. Can't say I blame them

[Who Is Buying Now?]

I can just about get my head around all the figures/stats/trends of the current housing market, but despite asking everyone I know I cannot find anyone who has bought for the first time recently.

A guy I work with and his wife have a household income of nearly £200k, but gave up house-hunting because they couldn't find anything they could afford that they would want to live in. If the very wealthy are intimidated by current prices, who is buying?

Does anybody know of any recent First Time Buyers? How many rich, insane people can there be?