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munimula

Moneyweek

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3-page article in this weeks MoneyWeek.

we are now, as a nation, spending more than 20% of disposable income servicing all our various debts, including mortgages and credit cards. This proportion was exceeded only once on record and that was - you guessed it - back in 1989-1990
as house prices have risen, people haven't bought fewer of them. Instead they've applied for more mortgages and chased house prices to new heights, letting their pension provision and other savings slide.
the UK economy/housing market certainly slowed sharply, but so far there's been no recession/crash - and the outstanding reason why not appears to be the big increase in public-sector employment
there has been virtually no growth in private-sector jobs for the last five years
the public sector is what has so far saved the UK from a 'normal' credit-fuelled housing crash/recession.
house prices have risen to levels where the debt-service burden is amost unbearable, at least based on the evidence of what the economy could bare from the past.
unfortunately, with zero growth in private-sector employment, this economy and its housing bubble is now being supported entirely by the public sector.
Edited by munimula

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I just got the email from Moneyweek about the new issue and when I saw "When will the housing bubble burst? No one can have failed to notice that UK house prices are still creeping up. But, says James Ferguson, the situation is increasingly perilous.." I very soon got interested but then I clicked on the link and..... nothing. Trying to get me to subscribe, what a disappointment!!! :angry:

So what was the final conclusion of the report? HPC or were they building up hopes only to say house prices will continue to rise?

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we are now, as a nation, spending more than 20% of disposable income servicing all our various debts, including mortgages and credit cards. This proportion was exceeded only once on record and that was - you guessed it - back in 1989-1990

I`m amazed that it is only 20%!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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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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