Interest Rate Rise - But Will it Cool the Housing Market?
Will rates rise tomorrow. I think so.
Will they cool the housing market. No, because the driver for house price growth is caused by social factors like an ageing population leading to more and smaller households, increased divorce - causing the same thing... but most of all the impact shock of net inward migation and the resulting increased population.
This is of course all coupled with a shortage of housing and distrust of the stock market. Mix in the Equitable Life, Maxwell / Pensions and the endowment scandal and there you have it!
It is these factors that are the real factors behind house price growth. So, a quarter per cent on the base rate won't do much to curb house price inflation.
Not just yet, at least.
Go to main site www.lettingfocus.com
Will they cool the housing market. No, because the driver for house price growth is caused by social factors like an ageing population leading to more and smaller households, increased divorce - causing the same thing... but most of all the impact shock of net inward migation and the resulting increased population.
This is of course all coupled with a shortage of housing and distrust of the stock market. Mix in the Equitable Life, Maxwell / Pensions and the endowment scandal and there you have it!
It is these factors that are the real factors behind house price growth. So, a quarter per cent on the base rate won't do much to curb house price inflation.
Not just yet, at least.
Go to main site www.lettingfocus.com
This entry was posted by lettingfocus, on
Wednesday, November 08, 2006.
