porca misèria Posted March 22, 2011 Share Posted March 22, 2011 I keep hearing that one of the main reasons for the absence of an HPC in the UK is that interest rates continue at an all time low. But this is the same in America, and they have the mother and father of crashes. So whats really holding up the UK prices, and I dont want to hear the discredited supply and demand chestnut. 'merkins pay tax on their property, so interest rates aren't the only cost. My colleague in Illinois told me he pays about $5k/year on his $170k house, and considers it quite normal. Of course he pays less tax on his hard-earned than we do. Quote Link to comment Share on other sites More sharing options...
winkie Posted March 22, 2011 Share Posted March 22, 2011 SMI withdrawn, people repossessed, house prices crash, thjose priced out buy and those repossessed take the place renting from those who have bought. Bit of a mess in the short term, but there is no painless way out of this. ....what is stopping the lenders withholding the property, not releasing it onto the open market and becoming landlords themselves.......this is what is happening in parts of Europe....it is not in the lenders interest to have a sudden collapse in prices, their security for all the property underwritten with debt will fall, their value will fall....and what will stop those that can afford to buy from walking away when they realise their debt is far greater than the value of their house.? Quote Link to comment Share on other sites More sharing options...
Guest_flaps_* Posted March 22, 2011 Share Posted March 22, 2011 ....what is stopping the lenders withholding the property, not releasing it onto the open market and becoming landlords themselves.......this is what is happening in parts of Europe....it is not in the lenders interest to have a sudden collapse in prices, their security for all the property underwritten with debt will fall, their value will fall....and what will stop those that can afford to buy from walking away when they realise their debt is far greater than the value of their house.? In the above secnario, we all end up renting with the banks our landlords. It still doesn't reduce the number of properties in the market place and thus roofs to go over peoples heads. Quote Link to comment Share on other sites More sharing options...
winkie Posted March 22, 2011 Share Posted March 22, 2011 In the above secnario, we all end up renting with the banks our landlords. It still doesn't reduce the number of properties in the market place and thus roofs to go over peoples heads. ...the agents/landlords acting on behalf of the lenders will in effect be providing rented roofs over peoples head, so would you say that is better or worse than what we have today......the so-called owners that in effect own little but have security...the private renters that have little stability, protection or security....or the council housing that have protection, security, stability plus affordability. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted March 22, 2011 Share Posted March 22, 2011 At the end of the day, we're just worth it... Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted March 22, 2011 Share Posted March 22, 2011 I keep hearing that one of the main reasons for the absence of an HPC in the UK is that interest rates continue at an all time low. But this is the same in America, and they have the mother and father of crashes. So whats really holding up the UK prices, and I dont want to hear the discredited supply and demand chestnut. It's down to TV. Even at their peak only 6.33% of US TV was property porn but in the UK it's got to 47.35% Even a program like Countryfile is now property porn. A couple of weeks ago it was promoting shared ownership in rural areas and last weekend it was trying to sell an estate they said was valued at £11m. The result is that the gamma rays from watching all this property porn has destroyed so many brain cells that people in the UK now believe that debt is wealth. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted March 22, 2011 Share Posted March 22, 2011 Go to other places that suffered a massive housing market bubble, and you generally find a surplus of housing that came about in response to surging house prices. In Britain it is not like that. Here, you will still pay a lot more to rent a specific property than the monthly mortgage payments, regardless of what the interest rates are (providing they dont turn into anything silly). Specific as in one that bucks the normal trend? What are you schmoo-king? Quote Link to comment Share on other sites More sharing options...
Meat Puppet Posted March 22, 2011 Share Posted March 22, 2011 SMI withdrawn, people repossessed, house prices crash, thjose priced out buy and those repossessed take the place renting from those who have bought. Bit of a mess in the short term, but there is no painless way out of this. Repossessions are a government statistic and can end up being a headline. Those shafted by SMI aren't and won't so the people in power take no notice. Quote Link to comment Share on other sites More sharing options...
200p Posted March 22, 2011 Share Posted March 22, 2011 An Englishman's home is his castle. We are a home buying nation. It is in our blood. Quote Link to comment Share on other sites More sharing options...
Blue Nose Bear Posted March 22, 2011 Share Posted March 22, 2011 The thing is the people who bought with over extended borrowed money get their interest paid and get to keep a home they can't afford to live in....the ones who would like to buy are priced out and are unable to secure the finance.......so if SMI was withdrawn, where would people/families live? there is little or no council, local authority housing to put them, putting them into private rented could well cost more overall... Some people are having to consider living in static caravan park homes....is this the way of the future? Good Call Winkie! Stop SMI buy loads of http://www.sambeckcaravans.co.uk/usedcaravans/results.php?submit=Search&cat%5B0%5D=23 The repossed can live here, cheaper for everyone. You could probably fit 50+ on to the average village green. I'm NOT joking. Quote Link to comment Share on other sites More sharing options...
Hyperduck Quack Quack Posted March 22, 2011 Share Posted March 22, 2011 Is An Absence Of Hpc Really Due To Low Interest Rates?The low interest rates are the hidden HPC. Quote Link to comment Share on other sites More sharing options...
PopGun Posted March 23, 2011 Share Posted March 23, 2011 Repossessions are a government statistic and can end up being a headline. Those shafted by SMI aren't and won't so the people in power take no notice. Yep Besides, SMI will remain so long as it's still the cheaper option. Plus it also means less HB for the BTL DSS lanlord brigade, so smi is also the lesser of two evils imho. Quote Link to comment Share on other sites More sharing options...
silver surfer Posted March 23, 2011 Share Posted March 23, 2011 An Englishman's home is his castle. We are a home buying nation. It is in our blood. In 1900 home ownership was 11%. It's not been in our blood very long. Quote Link to comment Share on other sites More sharing options...
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