news & politics:discussion

[Ryan1984]

1 hour ago, Crazyfool01 said:

if only 

Get set for the Boris’s Big Bounceback.

[mattiloy]

3 hours ago, steviewevie said:

they can start with building some on all the fucking golf courses.

And getting rid of sheep.

[Guest]

8 minutes ago, mattiloy said:

And getting rid of sheep.

Looks like a strange Crusader Kings mod.

[Guest]

https://www.theguardian.com/politics/2022/sep/22/labour-considering-abolishing-house-of-lords-if-it-wins-next-election-leaked-report-reveals?CMP=Share_iOSApp_Other
 

Labour considering abolishing the House of Lords if they win the next election!

[steviewevie]

41 minutes ago, mattiloy said:

And getting rid of sheep.

is that the nationalist or unionist side of NI that are Pigs?

[steviewevie]

7 minutes ago, Ozanne said:

https://www.theguardian.com/politics/2022/sep/22/labour-considering-abolishing-house-of-lords-if-it-wins-next-election-leaked-report-reveals?CMP=Share_iOSApp_Other
 

Labour considering abolishing the House of Lords if they win the next election!

Gordon Brown, texture like sun.

[Neil]

10 minutes ago, Ozanne said:

https://www.theguardian.com/politics/2022/sep/22/labour-considering-abolishing-house-of-lords-if-it-wins-next-election-leaked-report-reveals?CMP=Share_iOSApp_Other
 

Labour considering abolishing the House of Lords if they win the next election!

who knew?? it's only been labour policy since before b;lair.

[Neil]

3 minutes ago, steviewevie said:

Gordon Brown, texture like sun.

my wife's favourite joke.

[blutarsky]

4 hours ago, Skip997 said:

Doesn't the mortgage depend on the current value of the house? Therefore mortgages would go down.

Google Negative equity 

[fraybentos1]

1 hour ago, mattiloy said:

Yeah so basically between the cost of living crisis and private debt levels, and the fact that you lot are at the top of a bubble, partially stimulated by everybody ploughing what they couldn’t spend during covid into property, the uk is well primed for a big downwards spiral in the property market.

Simply put, mortgages become unaffordable, more people look to sell, so supply outstrips demand, then less people want to buy as there is less confidence in the market, so demand goes down further and so on. Then you get your buy to letters with their heavily geared portfolios of shitty properties who are charging 700 quid a month for a 2 bed terrace in longsight, suddenly their loan costs go up, their tenants can’t pay the rent, they go under and that releases a load more supply. Likewise, interest rate hikes reduce already weakened demand, some businesses can go under, commercial property tenants leave, commercial property landlords go under. Knock on effects can be big!

As others have mentioned, all this ain’t so good if you go into negative equity, it’s also not good if you’re employed by a building company as with no demand for new properties, or unsold completed properties, these risk going under, ditto a supplier to a building company, or a cafe near a building site etc etc.

All this happened in 2008. Now i think the banks are stronger, but the economy seems weaker. So I’m not sure what happens next and don’t mean to overegg the doommonger spel, but I’d guess that you’re looking at all the growth in the uk property market from the last few years (20%?) falling away in the next year. It’s already started in other countries. Not sure why there is a lag in the uk 

In theory but is it not also likely that landlords just push up rents and people make do to cover it. Also, you can't discount the fact that the Tories will do anything they can to artificially keep house prices high to appeal to their base. Stamp duty holiday during covid showed this and Truss is likely gonna do something equally bonkers tomorrow too.

[Guest]

 

[Skip997]

1 hour ago, mattiloy said:

 

Thanks for that

[Neil]

30 minutes ago, fraybentos1 said:

In theory but is it not also likely that landlords just push up rents and people make do to cover it. Also, you can't discount the fact that the Tories will do anything they can to artificially keep house prices high to appeal to their base. Stamp duty holiday during covid showed this and Truss is likely gonna do something equally bonkers tomorrow too.

in all situations the govt controls the price of houses, via how much new land they release for housebuilding.

[Neil]

16 minutes ago, Ozanne said:

 

i remember when my mortgage rate went up to 16%, just after black Wednesday. that cause a proper house price crash, and major negative equity, and loads of repossessions.

[Rufus Gwertigan]

As a side note I noticed Rees Smog stating that people think the Richter scale is not numeric but that it is logarithmic. That's true but when you think a logarithmic scale is a ten point increase from the previous point. I think the previous quakes started at 0.5 but ended at 2.9 and off the top of my head that is over a 200 fold increase. 

Sorry for the rant.

[Rufus Gwertigan]

3 hours ago, mattiloy said:

hen you get your buy to letters with their heavily geared portfolios of shitty properties who are charging 700 quid a month for a 2 bed terrace in longsight, 

Wish I could find a house to that cheap. We are on the process of been evicted on a Section 21 i.e. they want the house back. 

[Guest]

24 minutes ago, Rufus Gwertigan said:

Wish I could find a house to that cheap. We are on the process of been evicted on a Section 21 i.e. they want the house back. 

I’m sorry to hear that, I’ve been in that position before and it’s grim. I hope something works out for you. 

[Guest]

Happy budget day everyone. 

[steviewevie]

10 minutes ago, Ozanne said:

Happy budget day everyone. 

Mini Budget.

Or Fiscal Event.

[steviewevie]

Kwasi Kwarteng

 

[Neil]

i'm looking forwards to getting employers NI refuded.

[squirrelarmy]

Had a little chuckle over this headline. Surely Ree Smog would enjoy a good whipping. 
 

https://www.huffingtonpost.co.uk/entry/jacob-rees-mogg-flogged-by-tory-mps-over-fracking-u-turn_uk_632c3b88e4b0572027afc05f

[gary1979666]

16 hours ago, Skip997 said:

Doesn't the mortgage depend on the current value of the house? Therefore mortgages would go down.

Didn't see a proper reply to this one, so thought best explain to Skip...

A mortgage is a loan - so the amount owed doesn't change.  Only the interest rate on the loan can change, so if rates are going up now, then the repayments go up.  This is independent to the value of the house.

If house prices drop, then there is a risk that you owe more than the value of the house....so if you sell, then the proceeds won't cover the debt.  This is negative equity.  It's also why there was a move away from 100% mortgages, as even the slightest drop puts you in negative equity.

 

[Guest]

I’m looking forward to hearing how Truss will fund her Corporate Profit Protection Scheme. 

[Neil]

15 minutes ago, gary1979666 said:

A mortgage is a loan - so the amount owed doesn't change.  Only the interest rate on the loan can change, so if rates are going up now, then the repayments go up.  This is independent to the value of the house.

at that point, lots of people hand the house keys back to the mortgage company and give up on the house and mortgage.