Carney talks a big talk about UK house prices

There’s been lots of media coverage following the Bank Of England’s views on the housing bubble.

According to Mark Carney, the new governor at the bank of England, the current bubble in house prices is something of a problem. A surprising announcement I thought as this is probably the only man in the country who actually has the ability to do something about it. If the housing market is getting out of hand and a bubble is forming, then all Carney has to do is to put up base rates. That’s how it’s always worked. Or he could tell the banks to stiffen the criteria on house lending to make it more difficult to get a mortgage.

Of course neither of these things will happen. Carney may talk the talk but he won’t walk the walk – not for now.

Carney was given the job to make sure the government have a good chance of winning the next election, not to upset the apple cart. No matter what happens to house prices I think it highly unlikely that Carney will upset his employer before the election. On that basis I’m not expecting a rise in base rates before April next year. He may surprise us all with a quarter per cent rise just to save face but that would be as brave as he would get.

Once that election is out of the way – that will be a different matter altogether. My view is when rates do start to rise quite a few people will be surprised at the speed at which it takes place. This is what central banks do best and what governments want most. Money printing is the only way governments can finance their spending programmes.

Inflation is coming and that can already be seen in the rise in the stock market over the last 12 months. Stocks and shares always benefit more money is slopping around looking for the same number of goods.

Property owners have been warned – plan accordingly.

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6 Comments

  • At £100 to double-you’re not really competing with large scale seasoned professionals.

    Once you go down the doubling numbers you begin to compete in effect with institutions and or Goverment policy etc(as that kind of continual doubling becomes an Intrest to the other 7 billion people and stated Goverment)

    As a result-after a handful of these ‘doubling’ moves…the ability and time and competing positions from other investors and said governments etc just make the ability a compounded hardness.

    Hopefully as we become more sophisticated we can enjoy these posts but realise they are like any other headline….attention seeking!

    • I’m afraid that none of that is even remotely true, Gerry. Remember, DYWTAM was written by not one, but two, multi-millionaires using these very techniques. I suspect that you’ve been ripped off in the past by the many “get rich quick schemes” that are out there. That’s a real shame. Having done all of the fourteen levels myself, (and I watch others do the same every week), I feel highly qualified to disagree with every single one of your comments. If you’re not rich now then you have to change your thinking if you want to make serious money. Here’s the thing; “If you keep doing what you’ve always done – you’ll keep getting what you’ve always got”. Stop and think about that for a minute. I don’t know if you live in a two million pound house but if you don’t, here you are telling someone who does that this won’t work. Really? The DYWTAM Programme is a genuine no-nonsense guide on how to become a millionaire – and absolutely anyone can do it.

  • Barry, is it only 10 issues of Double your way to a Million? A friend of mine who is interested wants to know, thanks.

  • hi barry i am interested in your horse racing course and your recommendation of using isiris,i understand kevin booth has resigned from isiris do you still recommend we use this company still thank you,and also i notice on your websitethat it is still dated 2017 .

    • Good question. I have not used the Isiris service recently. I had a brilliant 11 year run but eventually I got closed down by all the bookmakers. I guess that’s a real sign of success but it was fun to do and I actually miss it. I did not know that Kevin had actually retired but I understand that the results this year have been extremely good. Maybe regular readers who still use Isiris can update me on that one and let me know how they are doing.

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