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Guest KingCharles1st

Interest Rate Vs House Price Inflation?

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Guest KingCharles1st

It seems we will "hide behind" anything the US decides to do, so lets say we have a 2% increase over the next 6 months. If this will drastically affect ones personal finances, or business position, that would say to me that one is sailing far too close to the edge...? I would expect that cumulative arrears will be what kills the individual financially, not month on month.

To keep the rate low is to deny reality, to raise it is akin to sticking in the knife and twisting it.

I know that for a long time Japan had a rate of 0%- what happend with regard to houseprices there- had they already crashed- did they change and go up through the roof because it was so low- ?

I see house prices having to drop 40% at the bottom end of the market in my area before single people on a decent (but average- say 25K) salary can afford to think about buying. Maybe the BTL crew will always move in vulture like before the prices have dropped far enough for FTB's? But lets say house prices drop a nominal 10% over 12 months, but interest rates increase to something like 8%, would the BTL's unload in droves?

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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