To be pissed off about mortgages rates being so low and down to 1%

[feellikeahugefailure]

All in the headlines today about the 1% mortgage to last 10 years.

Oh great so landlords and those lucky enough to own will be paying even less than the have nots that cant afford to buy.

I doubt my rent will be going down, but the tiny savings I have towards a deposit and emergencys will be earning less interest than inflation :(

Lurked I do think you would make an excellent chancellor of the exchequer.

Nah, I know what people at the treasury call him!

The US .25 was done at the wrong point tbh, the Chinese market plunge and the fact that growth in the US was slowing after the ending of QE meant that they should have probably waited until things had calmed down a little. It wasn't the magnitude of the change but the timing.

It was the wrong time, but that's because it has run out of time. the fed has lost all credibility.

Out of curiousity, do you not think we have asset bubbles all over the place?

I think the stock market has been artificially boosted by QE yes. The housing market? I think it hasn't really gone back to 08 prices in most of the country.

The problem with the London housing market is that there is way more demand, even at current prices, London prices tend to rise over time anyway, they may go down short term but the growing population will mean that they appreciate long term.

Sadly breaking the bubble would have such a detrimental effect on the economy that all the effort is going into keeping it up.

Sadly breaking the bubble would have such a detrimental effect on the economy that all the effort is going into keeping it up.

is it wise to keep a bubble inflated? Doesn't that make the eventual pop much worse?

London demand has fallen off a cliff. Prime has been crashing for 18 months now. Supply has been increasing too.

London isn't immune to crashes and it isn't supply and demand.

they may go down short term but the growing population will mean that they appreciate long term

Again with the certainties. London has crashed before and will again.

Propping up bubbles just leads to a bigger crash.

Um, not sure where you got the data for that particular little post feeling, London house prices went at an average 4.5 % raise during 2015. Demand has not fallen off a cliff.

www.theguardian.com/business/2015/dec/30/uk-house-price-rise-2015
www.ft.com/cms/s/0/c5071070-7d62-11e5-98fb-5a6d4728f74e.html#axzz42bAWilij

House prices rises "slowing" as recently acknowledged is not the same as stopping growing.

Prime central location property in the millions may have fallen, but not the kind of property most people buy.

The major force driving prices is supply and demand, in 2015 we reached and surpassed the pre war high of 8.5 million people in the city. Now, with the changing way of how we live since 1939 (more single people, less families living in two rooms etc etc) demand for housing is at a peak that it has not reached previously.

Propping up the bubble is an issue, bu"oht as I said I don't think London house prices are propped up, I think even a change in interest rates would just see values either stagnate or rise more slowly.

Problem is that just raising interest rates and letting the bubble pop is not an economic policy on its own. There's got to be far more done, which neither the government nor firms (who want government subsidy) are willing to do.

London is a very mixed market. The very expensive end now that stamp duty is 12 - 15% has indeed hugely suffered by the high tax interventionist policies of this very wet Tory administration. The lower end out here in zone 5 where I am we still have virtually nothing to buy and open days for houses and things selling before they are even built at the cheapest end (what people can afford). I suspect a lot of those buyers are people who might have bought in szones 2 or 3 but have had to go further out due to price increases. I am waiting to see what effect the April tax changes have on the local market. Eg zoopla says my house has gone up just about 12% in the last 12 months and my daughter's place in WC1 7%. That reflects what I see too.