bartelbe

Too many people have the idea that banks are staffed by competent professionals, 2008 should have destroyed that idea. They are run and managed by morons. The morons thought that virtually 0% interest rates were here to stay and the recent rate rises were just blip. Hence their absurd under pricing of mortgages. It is now beginning to dawn on the morons that the world has changed and they better price mortgages properly, unless they fancy loosing money.

No, I have no idea what you're talking about.

Any numbers that doesn't reflect ripoff housing costs is not showing the true rate of inflation.

House prices aren't going down because there is an expectation that interest rates will return to virtually 0% very soon. So buyers aren't acting rationally, they are stretching themselves beyond their means based on only having to last a year of two till rates hit rock bottom. The situation isn't helped by 1 million net immigration, which now learn Labour wants to increase by 500K.

Exactly this, in the UK you're basically stuck buying a house, whether you need one or not. Unless you fancy being hit with ripoff service charges.

They can't name one benefit, the latest excuse for this is apparently some vast conspiracy by the "remainer" Conservative Party to sabotage their precious brexit. Leavers have turned into a bunch of paranoid loons.

So tell me, when are those brexit benefits going to appear? The brexit excuses have certainly being appearing at regular intervals. 350 million for the NHS, just a slogan. Immigration at record levels, brexit was never about immigration. Car industry imploding, brexit was about taking back control, not economic benefits. I mean when will see a single benefit from brexit? Are we going to have to wait a decade, a century?

Honestly I would have thought members of this forum, of all places, would be far less naïve. Sure it might be an honest operation but there are plenty of examples of tech companies who have gone tits up and had dodgy balance sheets, to make caution with this company warranted. After all if they want a banking licence, all they have to show their books meet the regulatory requirements. The fact they can't do that should ring alarm bells and for once the Bank of England should be commended for not getting swept up in the hype and looking at this situation in a hard headed way.

While at the same time he is allowing legal migration to run out of control. I don't care how liberal you are, 1 million net migration a year for a country the size of Britain, is simply insane.

What nobody is mentioning is this situation will reversed eventually, if rates stay high long enough. Millions will be forced onto new high interest fixed rate deals before rate begin to fall. This will mean that falling rates won't benefit the economy or the market.

It is a tricky question because all the fundamentals say 2019 prices were bubbles prices as well. Buy at those prices and you could end up in massive negative equity. The example of the Japanese market shows there is no rule that bubbles prices ever come back. Yet at the same time you have the entire economic, media and political establishment obsessed with maintaining the housing bubble. Doing everything in their power to maintain bubble prices. So basically the housing market is asking people with little means to take an enormous financial gamble.

No-one is willing to tackle the root of the problem, which is the massive asset bubble created by stupidly low interest rates and QE from central banks. if the housing crisis was down to supply and demand, why are there similar problems in other countries with more relaxed planning rules and more land? Alas politicians and the media don't want to face that because an end to bubble prices means millions of people suddenly finding the magic box that thought would shit cash forever, isn't so magic. It means telling millions facing their main asset dropping massively in value, including a vast army of home owning baby boomer voters. So it has become taboo to talk about the real problem. Hopefully inflation was force the establishment to blow up the bubble because they won't do it willingly.

double post

I don't buy the idea that planning reform is going to fix the problem. The planning system has already been liberalised, with development plans imposed on councils. Those councils who actually implemented those plans, instead of dragging their feet, have seen a large amount of new builds on greenfield sites. This is one of the things which has hurt the Tories in the polls. it hasn't led to a reduction in house prices, which is hardly a surprise. Developers have no incentive to reduce prices, they want to cash in on the bubble. They aren't interested in building affordable homes, there is not as much profit in that. I also doubt the wisdom of trying to build our way out of an asset bubble. The spike in house prices has been caused by stupidly low interest rates and QE. You can see that in the fact other countries with more land and more relaxed planning rules have had seen similar housing bubbles.

What they think frankly doesn't matter, there is nothing left to defend the housing bubble with. The crash is going to happen whatever they do.

So much for rate rises ending, let alone rates going down, as the anti-crashers claim. Wonder how long till the penny drops and people realise 0% rates aren't coming back?

You're treating buyers and sellers in the housing market as if they are rational actors making informed choices. They are not, most are ignorant and many of their actions are governed by emotion, not reason. It doesn't surprise me the market is taking time to crash.

Bent Tories doing what their bribers tell them to. Anyone hoping Labour will be different is in for a nasty shock. Like rats abandoning a sinking ship, the Tory bribers will soon be Labour's bribers and you will get exactly the same policies. You can't buy a British politicians but you can most certainly lease them.

For me the big problem with mass migration is the I'm not listening attitude from the pro-open borders crowd. They will deny they favour open borders, deny there are any problems and if that doesn't work, deploy the racism word to shutdown the debate. My point is, if you want to add 100's of thousands of people to the population every year you need a plan. At a very banal level councils and government need demographic projects to know what services they will need in five years time. From schools, to roads, to hospitals and sewage works. This information is impossible to get from the pro-open borders crowd, who get outraged when you use the term open borders. Yet when you ask for answers about how many people they think should come each year, what is their criteria for the migrant and refugees they would accept. What they would do with those they reject. Answers you get are none. So that is all I want, asking for details about how you think immigration should work and how many people you think should be allowed in each year is not racist. It is the very basis of how policy is made in democracy.

https://www.thisismoney.co.uk/money/mortgageshome/article-12051239/Whats-happening-UK-property-market.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html Article in the Daily Mail, basically propaganda for estate agents, so pretty worthless. What is interesting is the deluded comments from home owners:

A scheme that allowed people to borrow more than they could afford has problems? You're right, who could have seen that coming?

I think the best result would be a hung parliament because that situation prevents our inept and incompetent politicians form interfering the market.

Fancy a job working Liz Truss? That is how laughable your arguments are. 90% reduction in costs? Ridiculous.

Why are people with cars going to vote for that?

Yes, it is inevitable, history shows us that. There isn't a single asset bubble that hasn't imploded. Basic maths shows it will crash, neither mortgage costs nor rents can outrun wage growth forever. To believe a crash won't come is to think house prices can reach salary multiples of 18,30 or 40 times average earnings, which is crazy. The problem is predicting when it will happen. There are powerful vested interests who will do anything to avoid it crashing. The sheer important the housing market has assumed is distorting both economic and political policy. The Bank of England won't do what is needed to fight inflation because of fear of crashing the market. The government keeps bailing the market out. The media keeps talking the market up. However once again economic history shows us that fighting against market forces is futile, at least when it comes to an asset bubble. You can delay a crash but you can't prevent one and by delaying it the result is normally to make the crash bigger when it does happen.