x
By using this website, you agree to our
use of cookies
to enhance your experience.
SEARCH
Search
STAY
CONNECTED!
Sign in
Sign in
New here? Sign up
Feedback
My Account
Feedback
Sign out
×
Make Today's Website as home page
Menu
Estate agent today
News
Features
Guides & Tips
NEW
Trade Directory
Archive
Advertise with us
Letting agent today
News
Features
Guides & Tips
NEW
Trade Directory
Archive
Advertise with us
Landlord today
News
Features
Guides & Tips
NEW
Trade Directory
Archive
Advertise with us
Property Investor today
News
Guides & Tips
NEW
Trade Directory
Archive
Advertise with us
Introducer today
News
Guides & Tips
NEW
Trade Directory
Archive
Advertise with us
Property Jobs Today
Home
Find a Job
Search Recruiters
Recruiters
New
Robin's
Personal Profile
View my company profile
Robin Grant
193
Profile Views
About Me
Send message
View company profile
Follow all comments made
my expertise in the industry
Robin 's wall
Robin 's
Recent Activity
The basic premise of interest rate hikes as a method to curb inflation is a one dimensional approach to financial control. Fundamentally it has a major flaw if its the only method used (which unfortunately it seems to be) as it’s based on the assumption that consumers excessive spending as opposed to being attracted to save, is what is driving prices up. I don’t think anyone believes that the average consumer is on a spending spree that is forcing prices up due to excessive demand effects. Ironically raising interest rates which therefore increases mortgage payments compounds real inflation to the consumer. This isn’t reflected though with the banks calculation of inflation as they use CPI to measure it and not RPI (RPI includes mortgage interest payments, CPI doesn’t). So logically how does an interest rate increase help? It actually compounds the issue further. In this situation the causes of inflation are multiple but not remotely linked to excessive consumer spending. Interest rate rises will do nothing more than force further hardship on the economy. Landlords and home owners and then ultimately renters will all feel the effects further as landlords mortgage payments will reach levels where if they don’t adjust rents upwards, will be forced to sell up or lose money every month until they themselves cannot pay their own bills. High interest rates curb investment too. All property development becomes further less viable than before. In fact all businesses that require financing to invest and expand will find things tougher. Definition of madness is doing what you’ve always done before and expecting a different result. ‘Nuff said’.
From:
Robin Grant
11 May 2023 10:28 AM
Lorem Ipsum dolor sit amet
Viewed From: Breaking News
Today 14:58
Lorem Ipsum dolor sit amet
Viewed From: Video Archieve
Today 14:58
Portal Discussions
Joined Group From: Your Community
Today 14:58
Lorem Ipsum dolor sit amet
Viewed From: Industry View
Today 14:58
Lorem Ipsum dolor sit amet
Viewed From: Industry View
Today 14:58
Lorem Ipsum dolor sit amet
Conversation Comment in: Interior Design
Today 14:58
×
Send a message
Message
×
Write on Wall
Message
×
Send a message
Reply to:
Message
Breaking News
It’s War! Activist groups in conflict over Labour report and rent controls
Are EPCs Accurate? Energy experts say recent criticism is unfair
Energy efficiency retrofit course ahead of Labour EPC rule changes
Mortgage lending caps now well below average house price
Councils waste millions fighting planning appeals - claim
Official - Labour will NOT introduce rent controls if it wins election
Loophole means Section 21 Ban Delay “is not what it seems” - claim
Here We Go Again: Renters Reform Bill back in Parliament this week
Bad news for landlords as lender increases rates on BTL mortgages
University Challenge - students chose places based on rent costs
Robin 's Recent Activity
From: Robin Grant
11 May 2023 10:28 AM