2022 mini-budget discussion
- Thread starter Harlequin
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Yeah it's all about affordability.
Rates of 15 percent back in past raised mortgage repayments to beyond affordable.
Today it only takes 5 percent due to the debt being so much higher.
And not just higher in absolute terms. The average house price is higher in terms of multiples of the average salary than it was back when rates were 15 percent.
If rates fix at 5+ percent for any length of time huge damage will be done. And many will lose their homes.
Rates of 15 percent back in past raised mortgage repayments to beyond affordable.
Today it only takes 5 percent due to the debt being so much higher.
And not just higher in absolute terms. The average house price is higher in terms of multiples of the average salary than it was back when rates were 15 percent.
If rates fix at 5+ percent for any length of time huge damage will be done. And many will lose their homes.
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You know people moaning about house prices, this is how it gets fixed.
Am I way off base in thinking that to have a sitting chancellor say he "doesn't watch the markets" is just profoundly, pants-on-head stupid?
It strikes me as being similar to a teacher saying "I don't look at the curriculum" - If that is indeed a comparable analogy, can you imagine the froth and rage that would be coming out of the very people who are defending this Party, this Chancellor and this "mini-budget" ?
Soldato
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Exactly right, although I would prefer your teacher analogy to be "I don't look at the grades"
Soldato
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Didn't the government come up with a range of schemes a few years ago (including a stamp duty holiday) to keep people buying expensive houses?
Unfortunately the government will step in if that happens. It will also just put houses into the hands of wealthy individuals who can clean up at a discount rate if the government does by some miracle let the housing market tank.
A party that has just raised the stamp duty threshold to inflate the market even more is unlikely to let it collapse.
Not off in the slightest. Don't acknowledge/deny and when he can't any more, it will shift to blaming someone else.
Yep, because people are ******* idiots and think that owning an expensive house is great. They think its great when their house has gone up 20% in a year. They think its great when they are £500k in debt rather than £200k because their asset is worth more. Despite them not actually owning it. People are ******* idiots when it comes to home ownership.
Its inevitable prices will fall. At a selfish personal level I just hope they don't fall enough to put me negative. I think I'm OK.
My poor sister is just moving from a flat to a house. She's a FTB though. It isn't ideal as they've probably bought at the peak.
Saving grace is I think they have a current mortgage offer that's still reasonable.
I have no problem with a fall. At I don't plan this house to be long term. But times ahead are certainly looking bleak for anyone with a year left and over extended.
I also think banks have been lending too much
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The cant support house prices and the currency though. One will have to fall and interest rate rises will dictate that it is house prices, unless the BoE now plan to let sterling slide into the abyss which given the recent track record is also a possibility.
Soldato
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Agreed. From a selfish perspective I would love prices to go back to 2012 levels despite me owning a house that on paper has doubled in value.
This is again one of the rare times we are in agreement of the issue, though I expect we will differ on the cause.
Society has been taught to be this way, just as it was taught to make do and mend in previous generations. And it's purely down to the capitalistic, profit driven motive funded by easy credit.
Soldato
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Might have missed this thread due to the thread title - is this thread about bankers bonuses or the budget in general?
Probably needs renaming
Oh I have less than zero faith. I think that the Tories know they are on the way out and don't give a single **** anymore. The utterly brazen changes that don't even masquerade as anything but a windfall to the richest of society should tell you that.
Just remember, privatise profits and socialise losses. There is always massive money to be made in turbulent times and when you create and control those currents you can make a killing.
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