UK is the fall in mortgage approvals really such a bad thing for the economy?

Question

I can think of at least 3 potentially positive effects.

1/ First time buyers not being screwed by unscrupulous estate agents.

2/ Instead of panicking to buy over priced properties all buyers have a chance to save a deposit and reduce the total cost of buying a home.

3/ Just as in the past people can start to buy other things for the 'bottom drawer' in anticipation of the day when they can get a mortgage, this will have a beneficial effect on other parts of the economy.

4/ The reduction in housing demand wlll reduce the pressure on land and perhaps keep more land in our agricultural sectors and away from the speculators.

Answer 1

answered your own question

Answer 2

What have estate agents got to do with the price a vendor agrees to sell their property at?

Buyers lead the market, if first time buyers want to buy en masse, then they automatically make the market boyouant, and raise prices. So the buyers are the problem?

Housing demand is lead by the need for people to live somewhere, anything else is not reality. Investors will have to offload properties that are empty, simple.

You clearly have no understanding of mortgages, and the property economy so why not post a question, with answers, under the 'bob the builder' section.

Answer 3

It had to happen I suppose.

Answer 4

These things don't apply in a depression.

Answer 5

Are you Gordon Brown by any chance.

Answer 6

Agreed. House prices need to reduce to a sensible level. This will aid first time buyers and those wanting to trade up. Overpriced houses merely sucks up too much of the worlds savings into non productive assets (houses). It is also very unhealthy to have an economy based on house prices. As we have seen, it encourages irresponsible lending/borrowing and serious instability in the credit markets.

Houses are for living in, and not for investing in.