It was always going to happen eventually. The house price crash, it cometh. If you give more “handouts” to the rich than the poor, you create inflationary pressure as the wealthy scrabble to buy assets, not create jobs (lol). That has a knock on effect throughout the entire economy. You either have the wealth to make that work for you, or you become poorer. Albert Einstein said, ‘The definition of insanity is doing the same thing over and over and expecting different results’. Yet this is exactly what former Prime Minster and pound shop Thatcher impersonator, Liz Truss and for former Chancellor and right-wing think tank mouthpiece Kwasi Kwarteng did, when they tried to repeat the failed experiment and fairy tale spoon-fed to working class tories known as ‘trickle down economics’.
How is this wheeze going to decimate the price of your little piece of mortgaged-to-the-hilt tory Britain? This is how it works. As the cost of greed living crisis intensifies, people have less money to buy things, especially big things… like mortgages for example. The Bank of England has this week announced it is going to raise interest rates by 0.75% to 3%, the largest raise in the base rate since 1989 (hmmm who was in power then?) to try and tackle inflation. This in turn makes mortgages more expensive. Martin Lewis, The Money Saving (h)expert said some people with £100,000 left on their tracker mortgage, will see their costs rise by at least £480 per year. It’s obvious that if the government keeps on this economic track (putting the brakes on very slightly will have a negligible effect, we are looking at you Hunt) large numbers of home owners will be pushed into repossession.
With this being the case, some estate agents are predicting that house prices could fall up to 10% in the next year. This is music to the ears of the 1%. They are licking their lips at the prospect of buying up your home for a bargain price. They aren’t troubled by mortgage rates, they’ll buy outright, then let it back to you when you can’t afford a mortgage. Trickle down economics in action, yellow and steaming on to your head.
The question is should you sell now before the SHTF? If you are being pushed to the brink today, the answer is obviously yes. When the Governor of the Bank of England warns that the UK is heading for a “prolonged” recession, things aren’t going to get any better in the short to medium term. However, if with some extreme belt tightening you think you can weather the storm, hang on to your asset at all cost. Don’t be part of this obvious political policy to transfer wealth from working people to the investment class. You could on the other hand, wait for that magical trickle down that’s coming, any day now, just you wait, a bit longer, any time soon, honest…
