- Jan 18, 2009
- 4,905
My mums dead chap, I would need to dig her out of woodvale first to get to her basement.You’re not paying attention Fergus. That’s on you, not us. Step out of your mum’s basement occasionally.
The City of London is showing a slow bleed, not an immediate collapse.
House prices are absolutely resilient (supply vs demand) right up until landlords realise that the rents they need to demand to be profitable are out of reach of prospective tenants. Then everyone wants their property to sell first, and needs someone to sell their property to.
There’s pent-up demand in terms of first time buyers, but not infinite pent-up demand. Once word of a trickle starts, there’s the possibility of a flood. That’s the scenario to fear. Prospective buyers sitting back and saying “if I hold off, the prices will be even lower next month.”
Corporate landlords can sell at portfolio level and walk away with nothing worse than a haircut. However, the people who were banking on the property they’re renting out for their pension, but still have to pay the mortgage on it now, could be in real trouble.
Let’s hope not too many have to remortgage in this period and we avoid this scenario that would cause disruption for thousands. It feels like we may have dodged the bullet if mortgage rates continue to fall, but that’s absolutely not a certainty if inflation proves sticky.
I’m glad you feel that everything’s rosy, I’m all for a bit of happiness in the world, but I’m not convinced that your single article from June 2022 captures the current state of the housing market. I’m afraid it also does nothing to suggest that Brexit has been a success for the United Kingdom.
The world wasn’t fair before Brexit it won’t be after it. The hard truth is predictions of an 18 % drop in house prices never happened, nor did the unemployment tsunami, nor has the city of London collapsed.
You need to stop digging.