Wednesday, May 7, 2014
The problem is that housing is reacting more to a view on sterling rather than anything else, and the credit policies such as mandatory deposits won't affect people who borrow in other countries. They only affect UK originated loans. We are in the EU as well so we can borrow anywhere. Plus, if there is ever a correction to the extent that prices fall in nominal terms, all building will stop, nobody will develop on falling prices. So this would seem to be the corner the powers that be have painted themselves in. There is no way that rates will go up so it looks like race day is getting closer and closer. Would they devalue sterling again?!?