UK Politics
General Discussion for politics in the UK.
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If they started offering help it would undermine the BoE's strategy and likely open up a can of worms. I say this as someone having bought a property in 2021 and remortgaging this year.
The BoE have one lever they can pull and it's labelled "interest rates go up".
Edit: tbh, I'm more concerned with the housing market crashing due to the high interest rates making ownership at the current prices unaffordable. I suspect when we remortgage again we'll be paying the same amount of interest or higher due to being moved an LTV banding, which will be depressing.
Inflation is helping house prices a lot at the moment. I think we will see a modest drop in prices around 10% in total but which will amount to 25-30% in real terms due to inflation. Hard to see drops much greater than that happening due to the supply constraints making rental costs also very high.
Inflating away the high house prices seems to be the least painful way for housing to become more affordable. People who've had to buy in at high prices don't get completely shafted, while housing can potentially become easier to obtain.
The inflating away of prices only works if salaries don’t inflate at the same rate, the problem with that is then still that you have a big hit on quality of life. It doesn’t really change affordability in any way. As non-housing spending will go up more out of the total salary leaving a smaller amount available for housing costs. Ultimately the only solution to the housing affordability problems is more housing in the places where more people want to live.