Interest rates: How will the Bank of England's decision to hold rates impact house building targets?
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- เผยแพร่เมื่อ 19 มิ.ย. 2024
- The Bank of England has held its main interest rate at 5.25%, spelling bad news for millions of mortgage payers and those hoping for some respite from high rates.
Housing affordability has been a key issue in the run up to the election and all of the main parties have made various pledges on housebuilding and planning.
As part of our Campaign Check series, our economics and data editor Ed Conway has been looking at how those targets stack up.
Read more: news.sky.com/story/general-el...
#interestrate #housing #politics
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So, now the Bank of England is jumping on the profiteering bandwagon.
Does anyone else remember when the public bailed these greed-ridden bankers out? This is the thanks we get.
do not forget that rishi cut bank tax rate from 5% to 2% just before inflation started going up. banks are making huge profits out of all this.
£70 billion directly.
£450 billion of QE.
£800 billion of guarantees.
They have always been able to profiteer on behalf of consumers. Interest may go up or down, they have policies to profiteer both ways.
Look at those ridiculous house building targets. All 3 parties tell the same lies.
Ridden with historical failures!
Not talking about how did they meet the target in previous terms?
Vote reform
House building at a similar/lower rate than 60 years ago is obviously absolutely ridiculous.
Well the bank of england can start paying my bills then! Sick of the incompetence of officials in this country! How the hell did they even get their jobs in the first place!
Rates should be kept at around 4% as a new normal but it’s a joke that they have not passed on the rates to savers!
No they should really deflate the situation to correct their mistakes they made. Hold rates until they fall deflationary but they won’t. 4% would collapse the country as it’s already doing
A cut now is too soon. Food and many other items are still seeing inflation. Once energy prices go up, inflation will soar again!
Food inflation is at 1.7%
Those stats miss something, what is the size of those properties.....they cab build flats of 2 small bedrooms and thats not the same as 2 detached houses or terraced with 3 or 4 bedrooms. A caravan park can count as lots of new houses 😂
So Starmer plans to build on green belts all over the UK rather than insisting on brownfield sites first, the Libs are completely unhinged with no funded method of getting to their numbers and the Tories are just wildly optimistic unless they make some changes. How reassuring.
House builders need to keep stock low to maximise profit building new ones. Basically government would need to pay local authorities to do it or create a new building company. British building co. Using taxation as carrot and stick is needed too here.
I was hoping they’d lower it. I want 2% man
North korea one party ruling...
UK two party ruling...
Not much difference...
Two party election is not democracy...
UK need more choice...
end two-party elections in UK...
New parties... New thoughts...
Enough this two parties ruling...
Good for us savers inflation 2% and rates 5% we’re making 3% on our savings at last.
The fact it can be held means the country is managing just fine with these rates, thats great news for savers. People are still borrowing and spending so where is the issue, lets go higher. Usually the first cut will precede a downturn as they believe the economy is flagging.
The issue is many are on fixed that are about to expire....so although it's been OK... This is only so far...
@@zaidahmed9527 I thought a good chunk are already through? Im sure Sascha covered it. Anyway nothings broken yet, people are still spending like crazy so I say leave em to it.
People are just building up credit card bills and transferring there and here when needed. Kicking the can down the road. The bubble will burst when it becomes unsustainable in a year or two
Ed has the best charts
No point building new homes if people can’t get mortgages.
I live in a new build site and the builders have stopped building because no one can get a mortgage.
Great coverage 🙌🏻
We need to stop spending. Why is this a controversial idea??? Stop borrowing!!
Sunak needs to Stop Pilfering.
bit hard for people locked into mortgages. cant even sell the houses at the moment.
@@kanedNunable When I bought my maisonette 23 years ago I didn’t think of selling it. I thought homes were for living in them. Speculation is risky.
Spending is what drives the economy.
Excellent analysis!! Interest rate cuts synchronous to housing markets would start the next bull run.
It absolutely boggles me how no party/politician is talking about the 2nd biggest cause of the housing crisis. Landlords. One person/entity owning several properties is choking the already available houses. The moment these properties are freed up, house prices will become affordable, and stay thier for a few years. Meanwhile, more house can be built.
revamping the leasehold system is literally in the labour manifesto
@@rayanrizwan9611 it needs to be abolished, not revamped. Nobody should own more than one house. Revamp is a fancy word for making cosmetic changes to the laws without actually doing anything. Labour will do what the Tories did a few weeks back - revamp the law around housing.
house price rise because Because there was a huge migration of people into UK.
change the record
Insider trading. Carry on as usual 😮
hi. I understand mortgage
We need less people, not more homes
oh dear, looks like the bad news will start dripping in now , rishi shud have chosen earier n least minimise his complete boo'ing out of office
New parties new thoughts New forgin policy
No more tax money for others wars
Enough old thoughts parties need New thought panties UK need more choice
I'm a mortgage advisor and it wasn't a shock at all that they steadfast on 5.25% today. It was absolutely the right call to leave it 1 more review before starting to drop.
The natural rate of interest is zero, mortgage rates should be credit spread only, not an arbitrary 5.25 plus credit spread... Its just nonsense
@@mk91-vz1ojsavings interest rate x% borrowing rate x% plus bank margin. Makes sense
@@mk91-vz1oj what is inflation?
New parties new thoughts New forgin policy
No more tax money for others wars
Enough old thoughts parties need New thought parties UK need more choice
Ferries bound for Britain are stopped...
When will UK money to Israel stop?
Islam fights both inflation and poverty
"Allah condemns exploitation, and He blesses charities. Allah does not love any disbelieving sinner."
Quran 2:276
Islam brings peace and mercy to society
Vote Conservative Party!!!!!
/s ?
Ya cuz they did such a good job over the past several years
Vote vote vote to crumble us more.
No thanks
Hahahaha well done ! That’s the funniest comment I’ve read in ages !😂😂😂
North korea one party ruling...
UK two party ruling...
Not much difference...
Two party election is not democracy...
UK need more choice...
end two-party elections in UK...
New parties... New thoughts...
Enough this two parties ruling...
Ferries bound for Britain are stopped...
When will UK money to Israel stop?