time to force private landlords to hand over a proportion of their portfolio to local councils
time to force private landlords to hand over a proportion of their portfolio to local councils
Views on price falls then. We’ve seen a 20% average increase since 2019, when things were far more stable and IR’s lower than now and in the anticipated future. I’d say back to 2019 levels (-20%) at a bare minimum, with steeper falls (-35%) in areas which have shot up over the past 2 years. Any other thoughts?
Prices will fall most where affordability is most impacted. That’s to say, in neighbourhoods where pay rises and the level of disposable income will not keep up with the new repayments.
Prices will fall most where affordability is most impacted. That’s to say, in neighbourhoods where pay rises and the level of disposable income will not keep up with the new repayments.
Businesses aren't some sort of magic money tree that can raise prices and then wages...I used to run one and thank god I don't now is all I can say.
A friend recently sold his business. Over the moon is an understatement. Unbelievable amounts of hassle and aggravation for (once you’ve paid everyone else and HMRC) not a lot considering what’s required in terms of capital and risk.
Half a century ago (where has that time gone) when interest rates averaged around 8% I was advised to take the largest mortgage I could find as over the period of repayment (25/30 years) inflation would erode the value of the original debt. And so it did.What I have noticed in the last decade or so is how unfearful of debt many people have become. You can hardly blame them in the ZIRP era but it's still worrying and looks like it's about to unravel. They always do, but this era is unusual even by historical standards
Half a century ago (where has that time gone) when interest rates averaged around 8% I was advised to take the largest mortgage I could find as over the period of repayment (25/30 years) inflation would erode the value of the original debt. And so it did.
No one has a xtal ball but during Covid lock down my gut feel was that the huge costs involved might be recovered/offset by letting inflation erode away the cost of the money borrowed thus reducing the countries debt.
DV
I'm guessing you didn't have a luxury car on finance and a load of others things too back then though?
Maybe you did.
Either way debt levels per capita are thru the roof.
All fine until interest rates change aggressively.
my gut feel was that the huge costs involved might be recovered/offset by letting inflation erode away the cost of the money borrowed thus reducing the country's debt.
At least with a car the PCP won't go up but expectations for many when replacement time comes around will have to go down!
Not only will finance be very expensive but discounting currently is minimal though that could change when sales fall off a cliff.
Any idea how big this PCP leasing model is outside the UK?Yes, the car market will certainly be an interesting one to watch.