keef Posted September 12, 2013 Share Posted September 12, 2013 Eh? How do RICS suppose the 'independent' BoE could deliver this request then? http://www.bbc.co.uk/news/business-24066371 "The Bank of England should use its powers to limit house price increases to 5% a year to "take the froth out" of price booms, a surveyors' group says. The Royal Institution of Chartered Surveyors (Rics) said that a 5% annual rise should trigger caps on how much people could borrow relative to their incomes or the value of the property." Quote Link to comment Share on other sites More sharing options...
XswampyX Posted September 12, 2013 Share Posted September 12, 2013 Well a £200,000 house will be worth £677,270 over 25 years @ 5%. So that's £200,000 for the present owner, £200,000 for the new buyer and £200,000 for the banks. Yay! We're all rich! The house will 'only' earn about £20,000 per year.... every year, for just sitting there.... Quote Link to comment Share on other sites More sharing options...
bristolhunter Posted September 13, 2013 Share Posted September 13, 2013 Eh? How do RICS suppose the 'independent' BoE could deliver this request then? http://www.bbc.co.uk/news/business-24066371 "The Bank of England should use its powers to limit house price increases to 5% a year to "take the froth out" of price booms, a surveyors' group says. The Royal Institution of Chartered Surveyors (Rics) said that a 5% annual rise should trigger caps on how much people could borrow relative to their incomes or the value of the property." Yah, even if it did that, it would still mean prices growing at about 5x faster than incomes... Quote Link to comment Share on other sites More sharing options...
betterToDo Posted September 13, 2013 Share Posted September 13, 2013 Well and truly down the rabbit hole. This really is the ******ing limit. We need a military intervention from another country, and regime change. It is the only way we are going to get back towards democracy, and certainly the only way we can hope for monetary reform. Can citizens apply personally to the UN security council requesting action? Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted September 13, 2013 Share Posted September 13, 2013 (edited) I am not sure what RICS are worried about? My 5.30am guess is this is about transaction volumes. Weak real earnings growth and mortgages realistically as cheap as they going to get. Maybe they see a future where there are few buyers and no real need for estate agents? The other side maybe they want a minimum price growth with associated policies to target money supply? Mortgage market subsidy Edited September 13, 2013 by Ash4781 Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted September 13, 2013 Share Posted September 13, 2013 I am not sure what RICS are worried about? My 5.30am guess is this is about transaction volumes. Weak real earnings growth and mortgages realistically as cheap as they going to get. Maybe they see a future where there are few buyers and no real need for estate agents? The other side maybe they want a minimum price growth with associated policies to target money supply? Mortgage market subsidy I really do not know what to make of this. Is it a cry for sanity or just wanting 5% per annum price rises? I am seeing asking prices ramped by 20% to 30% in Swanses now - totally out of control and very depressing. Yesterday I saw a house come on for 320K asking close to a house that has been on the market for about 4 years at 250K. Nuts but just one example. Worse, the number of properties going SSTC is just depressing and worrying. I honestly have no idea where this sudden influx of money has come from. I really despair. Quote Link to comment Share on other sites More sharing options...
spyguy Posted September 13, 2013 Share Posted September 13, 2013 Eh? How do RICS suppose the 'independent' BoE could deliver this request then? http://www.bbc.co.uk/news/business-24066371 "The Bank of England should use its powers to limit house price increases to 5% a year to "take the froth out" of price booms, a surveyors' group says. The Royal Institution of Chartered Surveyors (Rics) said that a 5% annual rise should trigger caps on how much people could borrow relative to their incomes or the value of the property." 5% a year! With real wages rises of -3-4%. Dream on. Not sure why theu made the statement. I'd guess volumes must be cr.p. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted September 13, 2013 Share Posted September 13, 2013 I really do not know what to make of this. Is it a cry for sanity or just wanting 5% per annum price rises? I am seeing asking prices ramped by 20% to 30% in Swanses now - totally out of control and very depressing. Yesterday I saw a house come on for 320K asking close to a house that has been on the market for about 4 years at 250K. Nuts but just one example. Worse, the number of properties going SSTC is just depressing and worrying. I honestly have no idea where this sudden influx of money has come from. I really despair. Asking prices near me (Rightmove) have jumped by about the same. However, alot of properties never touch the Rightmove so the overpriced properties imo do buildup there. On the classics there is a listing of a place that's been re-listed from 2007. Quote Link to comment Share on other sites More sharing options...
supersonic Posted September 13, 2013 Share Posted September 13, 2013 blatant attempt at pitching a price inflation target that is over double the BoE's CPI remit. pathetic. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted September 13, 2013 Share Posted September 13, 2013 blatant attempt at pitching a price inflation target that is over double the BoE's CPI remit. pathetic. Agreed, but what do you expect from estate agents. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted September 13, 2013 Share Posted September 13, 2013 Here's a graph of 5% yoy rises.....anyone notice anything about it ? These people should be locked up for what the fraud they have been a part of. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted September 13, 2013 Share Posted September 13, 2013 5% p.a has pretty much brought us to where we are today, from the last trough. Pure finger waving and plucking a figure out of thin air without any understanding whatsoever. 5%pa would see an average house gain something like £650/month initially. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted September 13, 2013 Share Posted September 13, 2013 Well a £200,000 house will be worth £677,270 over 25 years @ 5%. So that's £200,000 for the present owner, £200,000 for the new buyer and £200,000 for the banks. Yay! We're all rich! The house will 'only' earn about £20,000 per year.... every year, for just sitting there.... Why stop at just 25 years? After a 100 it's worth £26,300,251.57. Although I doubt RICS will put that into their analysis. Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted September 13, 2013 Share Posted September 13, 2013 Hehe! Saw this on a regional BBC channel this morning. Presenter said: "But do we risk another housing bubble?" The answer was No. But nobody added: "We're still in the bubble." Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted September 13, 2013 Share Posted September 13, 2013 Although it was interesting listening to the chief economist from RICS this morning highlighting that raising interest rates to curb house prices will damage the whole economy. He suggest if prices get out of hand the BoE should shorten mortgage terms to cap borrowing. This is dangerously close to suggesting interest rates aren't the only tools to control the economy. It's close to economic heresy. Quote Link to comment Share on other sites More sharing options...
SleepyHead Posted September 13, 2013 Share Posted September 13, 2013 Translation = 'We only want to steal from the young a little bit. So it won't be noticed too much.' Quote Link to comment Share on other sites More sharing options...
campervanman Posted September 13, 2013 Share Posted September 13, 2013 Eh? How do RICS suppose the 'independent' BoE could deliver this request then? http://www.bbc.co.uk/news/business-24066371 "The Bank of England should use its powers to limit house price increases to 5% a year to "take the froth out" of price booms, a surveyors' group says. The Royal Institution of Chartered Surveyors (Rics) said that a 5% annual rise should trigger caps on how much people could borrow relative to their incomes or the value of the property." The 5% figure is too high but it is a sign of changing sentiment towards rising house prices. BBC carrying the headline 'Bank must limit house price booms'. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted September 13, 2013 Share Posted September 13, 2013 (edited) I think they missed a minus off the 5 !!!! No matter what rubbish they come out with. With interest rates at 0 and the whole pyramid scheme underpinned by insane government schemes house prices aint going anywhere but down either quickly or over a long period of time. I've started a thread on Mr Carney and the media...it seems to me like since he got his job the media attention of a house price boom has been intense,, a coincidence ? For me ithis media nonsense just beings the debate on how unaffordable and manipulated the housing pyramid currently is especially with low interest rates and deposit schemes. You can still rent a house for at least half what it costs to buy it ( round our way ) so you can live and save/invest for the future with none of the worries or costs of home ownership....buying is still dead money. Edited September 13, 2013 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted September 13, 2013 Share Posted September 13, 2013 (edited) 5% a year! With real wages rises of -3-4%. Dream on. Not sure why theu made the statement. I'd guess volumes must be cr.p. Well it could work if the lenders just gave out mortgages to anyone without any checks. It would be ok to a point but eventually the whole deck of cards would collapse. Oh wait a minute I vaguely remember something happening like this a few years back! Virtuous circle? Edited September 13, 2013 by Ash4781 Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted September 13, 2013 Share Posted September 13, 2013 VIs on media all over the place this morning saying it is not a bubble. Chap on Fivelive now saying that rest of country needs to catch up with London. Yesterday I had 3 friends tell me that house prices are soaring and one couple told me their daugher's property had just been valued by an EA for 440K having bought it for 100K in 2000. What I mean is - in a matter of months the hosuing market mentality has gone from plodding to boom, boom, boom in the public mindset and non stop ramping. I do despair. Quote Link to comment Share on other sites More sharing options...
campervanman Posted September 13, 2013 Share Posted September 13, 2013 Well and truly down the rabbit hole. This really is the ******ing limit. We need a military intervention from another country, and regime change. It is the only way we are going to get back towards democracy, and certainly the only way we can hope for monetary reform. Can citizens apply personally to the UN security council requesting action? If you had the ECB and not the BoE you would get regime change. Quote Link to comment Share on other sites More sharing options...
winkie Posted September 13, 2013 Share Posted September 13, 2013 House bubble = Debt bubble. Higher the prices the more debt that can be taken up.......the fundamental component of our entire economy is now reliant on the take up of continuing amounts of debt......failure to do so will now see our ultimate demise. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted September 13, 2013 Share Posted September 13, 2013 House bubble = Debt bubble. Higher the prices the more debt that can be taken up.......the fundamental component of our entire economy is now reliant on the take up of continuing amounts of debt......failure to do so will now see our ultimate demise. I am beginning to question my own sanity. The UK has massive debt levels but rather than to try and reduce the debt the plan seems to be to create even more. It defies economic commonsense. I begin to wonder whether those leaving the country are the wise ones. Quote Link to comment Share on other sites More sharing options...
“Nasty Piece of work” Posted September 13, 2013 Share Posted September 13, 2013 Scum. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted September 13, 2013 Share Posted September 13, 2013 VIs on media all over the place this morning saying it is not a bubble. Chap on Fivelive now saying that rest of country needs to catch up with London. Yesterday I had 3 friends tell me that house prices are soaring and one couple told me their daugher's property had just been valued by an EA for 440K having bought it for 100K in 2000. What I mean is - in a matter of months the hosuing market mentality has gone from plodding to boom, boom, boom in the public mindset and non stop ramping. I do despair. Maybe they are looking for an excuse for an immediate interest rate rise..... I dare say most of the people who will now try and cash in on this BOOM will be disappointed. I am seeing pages of properties being listed at right move around the £700K+ mark....the pensioners want to retire !!! Who's going to buy them though. Quote Link to comment Share on other sites More sharing options...
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