Boom'n'Bust Posted November 9, 2004 Share Posted November 9, 2004 slightly older, but decent article ft.com Handle economy well or face market crash 4th November 2004 A CRASH in the housing market would mean “serious economic mismanagement†of the UK, an expert has said. Tim Martineau, director of Brooks Macdonald Financial Consulting, said interest rates were not the only influence on the housing market. He said: “Any more rises in the coming months could seriously damage consumer confidence and a potential crash would signify economic mismanagement, as interest rates are not the only factors influencing the housing market.†Mr Martineau’s comments come in the wake of research carried out by Moneyextra, which showed that while buyers returned from their summer holidays to give the housing market a boost in September, activity was still on a slowing trend. It found that the average loan-to-value sought by first-time buyers fell for the third month in a row in September. This was despite a 1.15 per cent increase in property values sought by first-time buyers. The average property value looked for by them rose to £130,403, up 1.15 per cent on the month. Mr Martineau said that while there had clearly been a tail-off over the summer, the key to the market now was whether there would be a rate rise in November. He said: “Since November, the Bank of England has increased interest rates to stabilise the spiralling housing market. Consecutive rate rises appear to have done their job and slowed it down.†Quote Link to comment Share on other sites More sharing options...
sneaky_snookems Posted November 9, 2004 Share Posted November 9, 2004 slightly older, but decent articleHe said: “Any more rises in the coming months could seriously damage consumer confidence and a potential crash would signify economic mismanagement, as interest rates are not the only factors influencing the housing market.†<{POST_SNAPBACK}> Please dont tell me that people are struggling to pay their mortgages at 4.75%. Five years ago they were at 7% I know cause I had a mortgage around that time. Blimey in the 1990's they got to 16%!!!!. Sorry but if cant pay your mortgage back say upto atleast 8% you must be in the deep poo and I think irresponsible. Quote Link to comment Share on other sites More sharing options...
George Mainwaring Posted November 9, 2004 Share Posted November 9, 2004 The industry has been in overdrive convincing people that interest rates will stay very low forever. It wasn't so long ago that anything less than 9% was considered "low" It's got to be comfy at 8% if you ask me - and possible at a lot more than that. Quote Link to comment Share on other sites More sharing options...
WontGetFooledAgain Posted November 9, 2004 Share Posted November 9, 2004 Please dont tell me that people are struggling to pay their mortgages at 4.75%. Five years ago they were at 7% I know cause I had a mortgage around that time. Blimey in the 1990's they got to 16%!!!!. Sorry but if cant pay your mortgage back say upto atleast 8% you must be in the deep poo and I think irresponsible.<{POST_SNAPBACK}> I had a fixed rate deal of 14.65% in 1991, and breathed a sigh of relief to cap it this cheap... I sat at work the day there was a run on the pound and watched peoples faces turn white with 2 rate increases in one day. Britain came out of the ERM that day and things steadily came back to earth. I never thought it could happen again... people seem to have short memories. Quote Link to comment Share on other sites More sharing options...
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