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crash 2005

Rics Welcomes Boe Rate Verdict; Says Rate Cut Now Will Inflate House Prices

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http://www.iii.co.uk/news/?type=afxnews&ar...&action=article

Think they are trying to say we had better not be seen to be ramping up the market anymore, in case we get the blame for the crash..

Anyone agree?

RICS are slightly more intelligent than their EA counterparts. Affordability has already gone beyhond the breaking point with FTBs priced out. A little more HPI and "Pop!" RICs know we on at the edge of the meltdown and they are probably relieved that one of the triggers has been postponed--for now. This time should be taken by over-leveraged house owners and BTLers to unload and go to cash.

Edited by Realistbear

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Guest The_Oldie

It's what I'd expect them to say. In effect they are saying two things:

1, House prices are on the way up.

2, There is no way that interest rates would go up, the choice being between a hold or a reduction.

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http://www.iii.co.uk/news/?type=afxnews&ar...&action=article

Think they are trying to say we had better not be seen to be ramping up the market anymore, in case we get the blame for the crash..

Anyone agree?

Besides, what on earth made them think that rates will be cut now or anytime in the future!

Maybe it is a tactic to pin the blame of looming HPC on the coming interest rate rises

What spin!

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RICS are slightly more intelligent than their EA counterparts. Affordability has already gone beyhond the breaking point with FTBs priced out. A little more HPI and "Pop!" RICs know we on at the edge of the meltdown and they are probably relieved that one of the triggers has been postponed--for now. This time should be taken by over-leveraged house owners and BTLers to unload and go to cash.

If over-leveraged house owners and BTLers are to unload and go to cash then who is buying their property and for how much?

Billy Shears

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If over-leveraged house owners and BTLers are to unload and go to cash then who is buying their property and for how much?

Billy Shears

There are enough buyers out there who believe "its different this time." Especially with Halifax giving them reassurance. IMHO this will be the last window of opportunity for sellers to get out near the top of the market (maybe 10% down from the top if you are in my area) before there is too much momentum to the downside. Remember, its impossible to time the market perfectly. Better to get out 6 months too early than to wait too long.

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There are enough buyers out there who believe "its different this time." Especially with Halifax giving them reassurance. IMHO this will be the last window of opportunity for sellers to get out near the top of the market (maybe 10% down from the top if you are in my area) before there is too much momentum to the downside. Remember, its impossible to time the market perfectly. Better to get out 6 months too early than to wait too long.

True, but unless a whole lot of very rich people buy the houses, then the current over-levereged BTLers and FTBs will be replaced by other BTLers and FTBs. So the status quo would remain. If the balance has tipped in favour of BTLers then there could I suppose be fewer over-leveraged people in the market in total.

Billy Shears

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  • 301 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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