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House Price Crash Forum

Inflation As Collateral Damage?

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On the Newsblog the thought has been raised that the government might simply raise their target inflation rate rather than see interest rates rise. This could be attractive to the masses, rather than see their homes fall in value. The main pointer that I see to HPC is the house price:earnings graph, suggesting that prices will fall in real terms by about 50% in due course. But the same effect could be achieved by holding rates steady, allowing prices to hold their nominal levels and inflation to double earnings until the same result is achieved.

Any suggestions as to why this couldn’t happen? :unsure:

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  • 302 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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