Sunak says no extra help with mortgages as fixed rates climb to 6%
Sunak says no extra help with mortgages as fixed rates climb to 6%
Prime minister says no new support available for households struggling to pay loans
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If they started offering help it would undermine the BoE's strategy and likely open up a can of worms. I say this as someone having bought a property in 2021 and remortgaging this year.
The BoE have one lever they can pull and it's labelled "interest rates go up".
Edit: tbh, I'm more concerned with the housing market crashing due to the high interest rates making ownership at the current prices unaffordable. I suspect when we remortgage again we'll be paying the same amount of interest or higher due to being moved an LTV banding, which will be depressing.
Inflation is helping house prices a lot at the moment. I think we will see a modest drop in prices around 10% in total but which will amount to 25-30% in real terms due to inflation. Hard to see drops much greater than that happening due to the supply constraints making rental costs also very high.
Inflating away the high house prices seems to be the least painful way for housing to become more affordable. People who've had to buy in at high prices don't get completely shafted, while housing can potentially become easier to obtain.
The inflating away of prices only works if salaries don’t inflate at the same rate, the problem with that is then still that you have a big hit on quality of life. It doesn’t really change affordability in any way. As non-housing spending will go up more out of the total salary leaving a smaller amount available for housing costs. Ultimately the only solution to the housing affordability problems is more housing in the places where more people want to live.
There's been a thousand predictions of house prices falling over the past decade for a hundred reasons, and every single one falls over the fact we have a drastic shortage of housing and no credible plan to increase the speed we build them.
25-30% in real terms is pure fantasy pulled from your arse and it'll never happen, not even close. Does Lemmy have a remindme bot so I can come back in 6/12 months and point this out?
They are already down 13% in real terms since March 2022.
I didn’t pick this number from nowhere in this opinion piece you have a couple of expert predictions in the 20-35% range.