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FTBvish

So Who Is To Blame?

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OK, so many of us on here spend quite a lot of time cursing various parties for their influence on HPI, but who is really to blame? (if anyone)

The Government?

The Banks?

The Estate Agents?

The Media?

The global western cheap supply of (fiat) money?

Greedy Joe Public (vendors, amateur BTL's etc..)

Dodgy professional Landlords?

Anyone else?

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low interest rates,

easy credit,

and the view of the majority that owning your own home, tells others you are successful in life.

yeah right :P

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The banks for the BTL mortgage changes and I/O (Endowment re-badged) mortgages

The governement for giving tax relief and benefits to speculators before the electorate

Estate Agents for being Greedy bastards

The media for scaremongering

Japan for cheap credit

FSA for not stopping this debt bubble getting out of control

TV for enstilling 'Property only goes up'

STUPID PEOPLE for paying f*cking ridiculous prices

The government for allowing immigration to be so lax, that LL's can buy housing with a queue of tennants.

BoE for not reacting to asset bubbles

but most of all .... GORDON BROWN for being a complete COCKHEAD!

This guy should fall hard.... DEBT IS NOT WEALTH!

TB

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Low interest rates combined with the relaxing of lending criteria.

How does relaxation of lending criteria work in terms of HPI? Surely a relaxation of lending criteria is a one-time only boost to prices as rising prices will bump into the same affordability constraints at a higher level, with a larger number of defaults then kicking in due to people being allowed to stretch themselves further.

So, what's going to happen next? Can the banks afford to relax lending criteria again? At the time of the "lie to buy" scandal it was noted that some people were taking on 6x salary mortgages by lying about their incomes as if this was ridiculous. Could this become normalised, so that high street mortgage lenders will lend those amounts openly? If the Halifax offer on the web page to lend 5x mortgage is for real, then we're not far from that position.

Billy Shears

Edited by BillyShears

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Guest Winners and Losers

I don't see a difference between amateur and pro here. They are all doing the same thing to the same end.

VP

TTRTR is a pro and I won't stand for otherwise. :angry:

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Alan Horatio Prendergast Greenspan and his protege, Gordon Hamish "Miracle Economy" Brown.

HPI and MEW was only made possible through accomodative (inflationary) IR and lax lending standards (irrational exhuberance.).

All things artificial fail in the end because the economic cycle has checks and balances. That is why house prices go up as well as down. They have been going up so we can expect the next phase very soon.

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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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