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Bulls Get Stabbed In The Back

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The housing market has been talked up by lenders (because more debt = more profit for them) for more than 10 years with selective data, distorted statistics and half truths. As a result, naive buyers have been coerced into shouldering massive debts and the Buy To Let fraternity have suffered the worst.

It is pretty obvious that lenders are running out of ideas for spin. The 'houses are good value' theme became unsustainable 5 years ago and was replaced with 'the low interest rate/ low unemployment theme'. Unfortunately, unemployment has been rising for almost a year and last month 12,000 people in the private sector lost their jobs. The happy story of low interest rates is also being undermined by inflation in Europe and America.

Bulls have relished the spin and the lenders have been happy to dish it out. The bond of common interest however is unravelling rapidly. In the final analysis, lenders only only care about their own survival. Barclays have raised their credit card rates by 2% (so much for falling interest rates) as compensation for bad debts. Some lenders are becoming trigger happy about forclosing on properties early (for fear of a property crash). Worst of all, the Nationwide has now made a bolt for the door. They are no longer talking the market up but grooming hapless borrowers for bad news and difficult times. Having supported the bulls for 10 years they are now stabbing them in the back.

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  • 337 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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