Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think the tories want a housing crash now

123 replies

Seagullsbythesea · 28/05/2023 08:34

All the rhetoric around interest rates has suddenly changed- lots of papers quoting Hunt saying he’ll risk a recession to get inflation under control- lots of papers saying we might see 6 percent by the end of the year.

Seems like they actually WANT a housing crash now- why now?

My friend’s mortgage has just gone up £500 a month.

OP posts:
DustyLee123 · 28/05/2023 08:35

Something needs to be done about the ridiculous cost of housing, and those stuck in renting.

5childrenand · 28/05/2023 08:36

Cos they’re leaving government next year so it won’t be their mess to sort out?

Cluborange666 · 28/05/2023 08:36

The Tories were the ones who artificially inflated the prices in the first place.

Christmascracker0 · 28/05/2023 08:37

A recession does not necessarily equal a housing crash.

Unfortunately inflation has to be brought under control and back to the govts aim of about 2%. Raising interest rates is one way to do that.

Anyotherdude · 28/05/2023 08:40

A housing crash, harsh though it would be for many, might get prices back to where they should be in relation to minimum wage. However, it would also potentially render so many families homeless, that the government would have to deal with the fallout and start providing housing again. Not sure which government would want to do that, TBH, as it could be the end of their party…

HeidiUpTheMountain · 28/05/2023 08:41

Christmascracker0 · 28/05/2023 08:37

A recession does not necessarily equal a housing crash.

Unfortunately inflation has to be brought under control and back to the govts aim of about 2%. Raising interest rates is one way to do that.

The reason that the rate rises aren’t working, though, is that they aren’t stopping people from spending, because the things that are going up the most aren’t discretionary, so people can’t choose to save instead of spending that money. I am spending more not on extras I could cut out, but on food, fuel, mortgage payments and energy - none of which I can stop doing. Interest rates in these circumstances are a blunt tool, and I appreciate they are all that the BoE has at its disposal, but I am surprised that they can’t see that it’s not going to achieve what it needs to.

Original poster
Seagullsbythesea · 28/05/2023 08:46

Even Starmer has said prices are too expensive in relation to wages- which is true. Something like 15X wages in some towns

OP posts:
MargaretThursday · 28/05/2023 09:08

A housing crash to approximately half the current value, whereas would be devastating to some, I suspect for the country as a whole would be a good thing.

Dodger101 · 28/05/2023 09:15

Houses are too expensive. It would be better if they fell.

PauliesWalnuts · 28/05/2023 09:15

I’ve got another two years of a fix before I have to think about this, but if interest rates went that far up, unless I could get a second job, I’d lose my home. I’m a single owner occupier, no family, no spouse, already work full time. My job kind of comes with its own glass ceiling, so no opportunity to progress, and retraining takes time and money, none of which I have. My monthly budget is worked out to the penny, so there just isn’t any flex.

happinessischocolate · 28/05/2023 09:30

The only reason Hunt is saying that is because it's going to happen anyway, he's just trying to make it look like he's in control.

The tories don't want a house price crash, if they could arrange a recession without affecting house prices they would, but after 13 years of the tories pushing the housing market up it does unfortunately need to happen.

Interest rates have been ridiculously low and will not be going that low again.

Thebestwaytoscareatory · 28/05/2023 09:37

The only thing a tory cares about is money.

So whether they want a housing market crash will depend completely on whether it makes them richer. I believe a lot of tories, and their backers, are heavily invested in property, so it's unfathomable that they'll do anything to deliberately crash that markert right now.

Once they manage to divest their funds from housing then of course will they'll try to crash the market.

ToBeOrNotToBee · 28/05/2023 09:42

Because they know they won't be elected back in so they're going to brash the economy and spend the next 4 years blaming labour.

ProudToBeANorthener · 28/05/2023 09:45

I have my tin hat on 😊 We need house prices to be based on only one salary and maybe even pay capital gains tax if the uplift is over a certain percentage. Houses should be somewhere to keep us safe and warm not a moneymaking scheme for estate agents and the lucky few. The media hype up pricing and people panic buy. When you’re buying, never offer more than the asking price, always haggle and if you’re selling stop trying to fleece your fellow human beings. You are not special and neither is your house.

Mincedpies · 28/05/2023 09:46

There won’t be a housing crash. There absolutely won’t. What might happen is property prices will no longer rise as much or as quickly as they have done previously but there won’t be a crash.

I’m in the fortunate position of being a homeowner, in our forever home, so what happens to property values/prices makes zero difference to me as we’re not going to be selling or buying again. Yes, increased interest rates might hurt mortgage payment wise but again we’re in the fortunate position that we can afford it.

What I find abhorrent though is that we might be the last generation to be in this comfortable position. It’s INSANE that young people have to stay living at home/pay exorbitant rent and cannot get on the property ladder. I see it time and time again on here about people genuinely stressed and frustrated about lack of options when it comes to buying and I wish there was an answer right now to allow those who want to buy to be able to do so.

A housing crash would certainly help those in a position where they currently cannot buy, but that’s balanced with the many, many others who would then be in negative equity. I honestly can’t see a way to square this circle.

Swrigh1234 · 28/05/2023 09:47

Cluborange666 · 28/05/2023 08:36

The Tories were the ones who artificially inflated the prices in the first place.

So you’ve only been following house prices since 2010, then?

HeddaGarbled · 28/05/2023 09:50

Housing prices would have crashed years ago if the Tories weren’t perpetually propping them up to keep their core voters happy.

LlynTegid · 28/05/2023 09:52

As long as there are still far too few houses being built, and houses in areas being used for short term lets or second homes, a general housing crash is not going to happen. They may fall in a few areas thought to be or where they are undesirable to live, but not generally.

Mortgage lenders have been a bit more cautious over recent years, especially about deposits, and employment levels are good, two other factors.

sashagabadon · 28/05/2023 09:53

Lots of Tory voters don’t have mortgages or have small mortgages and so interest rates don’t impact them much and it might even be good for their savings.

onefinemess · 28/05/2023 09:57

The moronic stupidity of renters (and it IS only renters) who beg for a "housing crash" amazes me.

So, young broke tenant who can't afford a to buy the buy the house they are renting from their mean, nasty, greedy, rich Landlord, would you rush out to but if it were half the price?

Of course you would!

And so would everyone else in your position. What do you have then? A house price bubble. Because 40k to you might be a long awaited bargain, but I can afford to pay 45k, still cheap though. The guy across the street can pay 55k, still cheap too, but hey, it's a good deal anyway.

And on, and on, and on . . .

House prices don't stay down long. You're all delusional if you think they would.

PucketyPuckPuck · 28/05/2023 09:58

I strongly believe there will be a really significant property crash in the UK - but that could begin next month or in 20 years. But I think it will happen at some point.

If the last few years have taught us anything, it's that not everything can be predicted, forecast and planned for and that things happen that are outside of even the wildest imaginings of the 'experts'.

Those who confidently sit back and declare there will 'never be a property crash' are just as ridiculous as the doommongers who scream that a 50% crash is coming right now.

sashagabadon · 28/05/2023 10:03

I’ve been hearing that for 30 years. Might be the case in another 30 years but anyone buying now will have long cleared their mortgage so won’t care.

RosaGallica · 28/05/2023 10:05

The moronic stupidity of renters (and it IS only renters) who beg for a "housing crash" amazes me.

The moronic stupidity who think it’s perfectly fine for working people to work all their lives and have nothing to show for it astonishes me. The moronic greed of the number of people who think it is their right to have someone else pay for their assets while having nothing for themselves has always sickened me beyond belief.

It is not sustainable. Prices should never have been allowed to rise like this, we should never have been locked into a globalised system for wealth movement. It’s fucked our economy and our own people, and is the same attitude that’s led to fucking our environment. Neo liberalism is liberalism re-run and it’s caused the same issues as it did then, as these same attitudes always do whatever they are labelled as. It needs to stop.

Sprinkles211 · 28/05/2023 10:08

If this happened we would lose everything. We are a vulnerable family, disabled children, minimum wage barely making ends meet and bad credit scores due to meeting the needs of our children (and we get full dla) we finally managed to get a home 2 years ago our best mortgage rate because we were high risk was 5.2% its now just under 12% we couldn't find a lender willing to do fixed rate at the time and we're about to be made homeless from our rental needing to be sold. It took us 10 whole years to save a deposit.

KitchenSinkLlama · 28/05/2023 10:19

A house price crash would send the banking system and the economy into free fall for many reasons. Negative equity or just lowering of house loan to value stifles spending and borrowing. Banks earn less so lend at higher rates to keep solvent. Businesses can't afford to keep staff as borrowing costs more and spending on their product is less. Jobs disappear. We enter a long period of recession.

Swipe left for the next trending thread