Price increases is it wise?

[Chris34]

Oh my god, this is unreal, no sooner have I just written that this just popped up on my news feed. It's unreal, the lengths they'll go to to keep the prices high. Well it's only going to end in another so called crunch where they say 'oh we'll have to learn lessons and it will never happen again...' makes my blood boil.

UK mortgage lenders told they can scrap affordability rule for buyers

Bank of England feels other measures will play stronger role in guarding against household debt

www.theguardian.com

 

[Jaygti]

Oh my god, this is unreal, no sooner have I just written that this just popped up on my news feed. It's unreal, the lengths they'll go to to keep the prices high. Well it's only going to end in another so called crunch where they say 'oh we'll have to learn lessons and it will never happen again...' makes my blood boil.

UK mortgage lenders told they can scrap affordability rule for buyers

Bank of England feels other measures will play stronger role in guarding against household debt

www.theguardian.com

Bit of a non story really. The income multiple is still in place, so it’s not going to make much difference.
Might help a few at the margins perhaps.

 

[Iron Giant]

Bit of a non story really. The income multiple is still in place, so it’s not going to make much difference.
Might help a few at the margins perhaps.

I agree, no bank these days is going to let someone completely overstretch themselves as they all want their money that they've loaned out they won't want to go down the repossession route not like years ago,

it's the first time buyers that didn't have much of a deposit and are maybe a tad overstretched that will most likely be hit the hardest more so maybe when their houses drop into negative equity when the prices drop but that's just numbers on a screen and things fluctuate anyway as they have done since the 2008 recession well apart from interest rates which have just continued to drop all these years

 

[scottish cleaning service]

I agree, no bank these days is going to let someone completely overstretch themselves as they all want their money that they've loaned out they won't want to go down the repossession route not like years ago,

it's the first time buyers that didn't have much of a deposit and are maybe a tad overstretched that will most likely be hit the hardest more so maybe when their houses drop into negative equity when the prices drop but that's just numbers on a screen and things fluctuate anyway as they have done since the 2008 recession well apart from interest rates which have just continued to drop all these years

We might not enter a recession but could be a depression if the BOE keeps raising rates. Every public sector job is wanting to strike for at least 7.8% pay rise, anything less is a pay cut. We are due a depression which I reckon will come in a few years.

 

[Chris34]

They are way behind with inflation, the horse bolted a long time ago and they need to bite the bullet and put interest rates straight up to 5% to try and curb it. Peoples wages will start rocketing and once that happens it will be like a snowball effect. Higher wages, higher prices, higher wages higher prices.

I'm glad I'm not employed, being self employed means you can adjust your rate at a moments notice. My mums a nurse, they're lucky if they get a 2% rise over a year.

 

[Cghwindowcleaning]

I struggled for years to get a mortgage with having a ltd co, finally got one last year i pay £575 per month, 130k mortgage with 20k deposit... Luckily houses are cheaper up north.

You don't realise how lucky you have it up north your prices for window cleaning aren't hugely different but the property is ridiculously cheap.

would that be for a house?

You wouldn't get a one bed flat for that here.

 

[scottish cleaning service]

They are way behind with inflation, the horse bolted a long time ago and they need to bite the bullet and put interest rates straight up to 5% to try and curb it. Peoples wages will start rocketing and once that happens it will be like a snowball effect. Higher wages, higher prices, higher wages higher prices.

I'm glad I'm not employed, being self employed means you can adjust your rate at a moments notice. My mums a nurse, they're lucky if they get a 2% rise over a year.

They could remove 50p a litre from fuel duty but unlikely. Everything moves from diesel so everything must go up to pay for it. Even bricks are made in a gas furnace so bricks have shot up, soon new homes will be unaffordable and our economy will enter a stall.

 

[Chris34]

They could remove 50p a litre from fuel duty but unlikely. Everything moves from diesel so everything must go up to pay for it. Even bricks are made in a gas furnace so bricks have shot up, soon new homes will be unaffordable and our economy will enter a stall.

You see that's the one thing I don't think they should do, the tax collected from fuel is a good way to tax, even people who aren't registered self employed can't avoid paying high fuel taxes. If they reduced it then the oil companies would just charge more anyway, like that 5p reduction... nobody noticed where that went did they and we're now well on the way to £2+ per litre. The higher the tax is on it prevents it going up too much as people can't afford it.

The biggest problem will be the rise in gas and electric, that will affect manufacturing costs putting prices up all around the world. We have no way of controlling that, it's a global problem.

Personally I'd incentivise everyone to get solar panels on their roofs, it's a win win, it's green energy, it solves much of the problem of future energy requirements and it cuts everyones energy bills allowing them to spend their money on things that actually have asset value. It's quick to install (takes a day) and means we will be much more independent of the global energy crisis. For the amount of money governments borrow to build say nuclear facilities, they could pay everyone money for solar panels and have battery storage systems.

 

[scottish cleaning service]

You see that's the one thing I don't think they should do, the tax collected from fuel is a good way to tax, even people who aren't registered self employed can't avoid paying high fuel taxes. If they reduced it then the oil companies would just charge more anyway, like that 5p reduction... nobody noticed where that went did they and we're now well on the way to £2+ per litre. The higher the tax is on it prevents it going up too much as people can't afford it.

The biggest problem will be the rise in gas and electric, that will affect manufacturing costs putting prices up all around the world. We have no way of controlling that, it's a global problem.

Personally I'd incentivise everyone to get solar panels on their roofs, it's a win win, it's green energy, it solves much of the problem of future energy requirements and it cuts everyones energy bills allowing them to spend their money on things that actually have asset value. It's quick to install (takes a day) and means we will be much more independent of the global energy crisis. For the amount of money governments borrow to build say nuclear facilities, they could pay everyone money for solar panels and have battery storage systems.

In life we reach a tipping point, once reached we sit on our hands even if we can afford it. It then becomes a principle thing. £2 a litre I would say is the tipping point, over that and old folk use their free bus pass. Well that's what happened in 2013 when some of my OAP customers refused to take the car and used the bus. I was asking them why and the answer was something like 'daylight robbery' strange because they had plenty of spare cash.

 

[Part Timer]

In life we reach a tipping point, once reached we sit on our hands even if we can afford it. It then becomes a principle thing. £2 a litre I would say is the tipping point, over that and old folk use their free bus pass. Well that's what happened in 2013 when some of my OAP customers refused to take the car and used the bus. I was asking them why and the answer was something like 'daylight robbery' strange because they had plenty of spare cash.

Rubbish, I was going to pack smoking in when cigarettes got to £2 a packet, think they were £4 when I quit on medical grounds.
Everyone quotes rubbish sitting on their high horse but when push comes to shove they back down

 

[Chris34]

In life we reach a tipping point, once reached we sit on our hands even if we can afford it. It then becomes a principle thing. £2 a litre I would say is the tipping point, over that and old folk use their free bus pass. Well that's what happened in 2013 when some of my OAP customers refused to take the car and used the bus. I was asking them why and the answer was something like 'daylight robbery' strange because they had plenty of spare cash.

Even though the price is higher than ever, the roads seem as busy as I've ever seen them. I'm preparing for £3 per litre. It's not actually that much more when you think it through. If you were putting in £50 per week in the tank at £2 per litre, well it would work out at £75 per week, an increase of just £25.

The energy prices are where it's going to be felt. Currently it's costing me £3 per day that's with the heating off and no major electric use other than the oven once every evening. Usually it's around £1 per day at this time of year. In October it's going up again by 40%, so that would mean around £4.30 per day at this time of year. In the peak of winter it used to be around £4 per day. Based on the above figures, this means it's going to cost around about £18 per day in winter, 7 days a week. So about £135 per week.

When you way it up, fuel costs are nothing in comparison.

 

[Iron Giant]

Every public sector job is wanting to strike for at least 7.8% pay rise, anything less is a pay cut.

I think you're wrong on this, currently, it's only the rail workers that are crying and striking personally they need to take a look around at what others are being paid in more demanding and skilled jobs, a rail assistant/ticket collector wage per annum is £33k according to the media I'm sure some will be on a bit less,
people working in social care and health are getting paid less than that, when you can get paid more to stack shelves in a supermarket than to care for the most vulnerable people in our society something is really wrong and central and local government are getting away with far more than some realise they give with one hand but take away with the other,

around 14 years ago our local council was busted for mostly paying women a lower wage there was a big payout, in the following years they closed all the council run care homes and got away with ending the final salary pension scheme and bringing in a new pension which is far less beneficial to the employees, the council still have their heads up their arses giving better salaries to some employees whilst not to others doing a similar job.

 

[scottish cleaning service]

I think you're wrong on this, currently, it's only the rail workers that are crying and striking personally they need to take a look around at what others are being paid in more demanding and skilled jobs, a rail assistant/ticket collector wage per annum is £33k according to the media I'm sure some will be on a bit less,
people working in social care and health are getting paid less than that, when you can get paid more to stack shelves in a supermarket than to care for the most vulnerable people in our society something is really wrong and central and local government are getting away with far more than some realise they give with one hand but take away with the other,

around 14 years ago our local council was busted for mostly paying women a lower wage there was a big payout, in the following years they closed all the council run care homes and got away with ending the final salary pension scheme and bringing in a new pension which is far less beneficial to the employees, the council still have their heads up their arses giving better salaries to some employees whilst not to others doing a similar job.

I am wrong about inflation because its just hit 9.1% this morning. I'm relating to up here where everyone is fed up with the nats and the greens. They just offered the police £565 rise this year and now the police are talking of going on the sick because they are not allowed to strike. We are really getting fed up with this mob telling us to ride everywhere on bikes and they get driven about with a chauffer.

 

[Chris34]

I've had a couple of cancellations over the last few weeks, one was one of my first customers and overdue a price increase. I was umming and arrrring about how much to put it up (it was £20 for a 1950's 3 bed semi) and then got a message to ask to switch to once every three months. I declined that as it doesn't suit my business but I did offer once every 8 weeks for £25 and they said it was unjustifiable.

I think there will be a lot more of this because people who don't understand how economics work will panic when they see higher prices and then cut back. What they are not taking into account is increases in their own pay, so whilst the cost of everything goes up, there own pay goes up. There will be some who are in the public sector that don't have the luxury of instant pay rises and that's understandable, but those in the private sector should see rises and some are well looked after by their employers.

Pensioners are going to be wadded, don't listen to the poor old me sob stories they might be giving out. They're in a triple lock guarantee and that means they're getting around about an 11% rise possibly higher in their pensions. Some pensioners are fine and are totally reasonable and are honest about how they can't see how the younger generation cope, but some really do give it the sob story whilst having a brand new car on the drive, work done on their houses and holidays abroad.

 

[scottish cleaning service]

I've had a couple of cancellations over the last few weeks, one was one of my first customers and overdue a price increase. I was umming and arrrring about how much to put it up (it was £20 for a 1950's 3 bed semi) and then got a message to ask to switch to once every three months. I declined that as it doesn't suit my business but I did offer once every 8 weeks for £25 and they said it was unjustifiable.

I think there will be a lot more of this because people who don't understand how economics work will panic when they see higher prices and then cut back. What they are not taking into account is increases in their own pay, so whilst the cost of everything goes up, there own pay goes up. There will be some who are in the public sector that don't have the luxury of instant pay rises and that's understandable, but those in the private sector should see rises and some are well looked after by their employers.

Pensioners are going to be wadded, don't listen to the poor old me sob stories they might be giving out. They're in a triple lock guarantee and that means they're getting around about an 11% rise possibly higher in their pensions. Some pensioners are fine and are totally reasonable and are honest about how they can't see how the younger generation cope, but some really do give it the sob story whilst having a brand new car on the drive, work done on their houses and holidays abroad.

Oaps in council houses are my best customers and even give me tips. I get totally messed about by one and the next door pay when they feel like it. I'm waiting for next door to pay me and then they won't see me for dust. Picked up a few big payers down the road a bit and they even say I do a good job. So with them in the other two will be out and then I usually block them on my phone and remove them from my memory. Looking for customers who appreciate me and my work now. ?

 

[Iron Giant]

I think there will be a lot more of this because people who don't understand how economics work will panic when they see higher prices and then cut back. What they are not taking into account is increases in their own pay, so whilst the cost of everything goes up, there own pay goes up. There will be some who are in the public sector that don't have the luxury of instant pay rises and that's understandable, but those in the private sector should see rises and some are well looked after by their employers.

An economist on radio 2 today said what needs to happen to curb the rising inflation is for people to curb their spending people spending and spending is driving inflation up, he also said that we are in a unique situation as no economist could have ever had predicted the war in Ukraine and the effect that is having plus the hangover of a pandemic.

 

[Iron Giant]

I am wrong about inflation because its just hit 9.1% this morning. I'm relating to up here where everyone is fed up with the nats and the greens. They just offered the police £565 rise this year and now the police are talking of going on the sick because they are not allowed to strike. We are really getting fed up with this mob telling us to ride everywhere on bikes and they get driven about with a chauffer.

It's no different south of the border it's the same old same old, dictating to the masses and doing the opposite, how do they expect people to get on bikes when people are having to travel further for well paid jobs and the houses they can afford are usually getting further away from where they live as well.

 

[Chris34]

An economist on radio 2 today said what needs to happen to curb the rising inflation is for people to curb their spending people spending and spending is driving inflation up, he also said that we are in a unique situation as no economist could have ever had predicted the war in Ukraine and the effect that is having plus the hangover of a pandemic.

That economist sounds like a right idiot. The world is set up to encourage growth and demand, that economists advice if people listened to it, it would result in everybody being like my grandad. My grandad refused to buy a cup of tea from a cafe because the way he looked at it, to him it was a 2p tea bag with some hot water and a splash of milk. He was super tight with his money. If we all were like him then the world wouldn't be anything like it is today, no money would be passed around... we probably would never have left the caves.

One thing that grates on me, they always blame some event that was unpredictable, unprecedented, 1 in a million... etc... the reality is that these so called 'unpredictable events' happen all the time. We had 2 planes take down the major economy in America, followed by various terrorist attacks and wars, we've had volcano's bringing all planes to a standstill because of the ash in the airspace, we've had brexit (remember that one, that was supposed to crash everything), we've had the big Tsunami in Japan and it's neighbouring Islands, the Greek debt crises, the 2008 credit crunch... they were all unpredictable events that affected global supplies and had effects on the finance systems resulting in economic effects.

That war in Ukraine has minimalist affect. The truer reality is that every country in the world has been borrowing billions for years and they have been printing more and more money. Inflation is the result of the borrowing and printing of money but nobody wants to admit the truth, far easier to blame 'unforeseen events' than to stand up and say 'we've made a mistake'...

I've had the day off today, whilst out I bumped into an ex customer of mine who sold their house 2 months ago and are looking for a new one. He said it's mental out there, for every house they go to view they've got about 15 other people viewing it on the same day. He said their house sold for £20k over the asking price due to buyers outbidding each other.

Right now, the BOE should be whacking them interest rates straight up to 5%, the longer they leave it the worse it's going to be. The warning signs are there, everyone out there with half a brain can see what's happening, it's actually very irresponsible of them to keep the rates so low, it's the only thing they can do to try and get a grip on inflation, if they don't do it now then the resulting crash will be classed as one of them 'unforeseen once in a lifetime events' and then we will be met with mass deflation.

 

[Part Timer]

An economist on radio 2 today said what needs to happen to curb the rising inflation is for people to curb their spending people spending and spending is driving inflation up, he also said that we are in a unique situation as no economist could have ever had predicted the war in Ukraine and the effect that is having plus the hangover of a pandemic.

I had a business meeting with my biggest client, September gone, discussing this years pricing. I said it was going to be very hard for me as I thought inflation would hit 10% this year and they couldn't up the prices by 10% as the residents would kick off.
The pair of them frowned and said they'd only ever seen 4.5% and they didn't think it would be that high so we agreed to just over 3%. The pricing is very very good so can stand a bad year.
I'm looking forward to this Septenbers meeting, they might listen to my input a little more this time.

 

[Iron Giant]

That economist sounds like a right idiot. The world is set up to encourage growth and demand, that economists advice if people listened to it, it would result in everybody being like my grandad. My grandad refused to buy a cup of tea from a cafe because the way he looked at it, to him it was a 2p tea bag with some hot water and a splash of milk. He was super tight with his money. If we all were like him then the world wouldn't be anything like it is today, no money would be passed around... we probably would never have left the caves.

One thing that grates on me, they always blame some event that was unpredictable, unprecedented, 1 in a million... etc... the reality is that these so called 'unpredictable events' happen all the time. We had 2 planes take down the major economy in America, followed by various terrorist attacks and wars, we've had volcano's bringing all planes to a standstill because of the ash in the airspace, we've had brexit (remember that one, that was supposed to crash everything), we've had the big Tsunami in Japan and it's neighbouring Islands, the Greek debt crises, the 2008 credit crunch... they were all unpredictable events that affected global supplies and had effects on the finance systems resulting in economic effects.

That war in Ukraine has minimalist affect. The truer reality is that every country in the world has been borrowing billions for years and they have been printing more and more money. Inflation is the result of the borrowing and printing of money but nobody wants to admit the truth, far easier to blame 'unforeseen events' than to stand up and say 'we've made a mistake'...

I've had the day off today, whilst out I bumped into an ex customer of mine who sold their house 2 months ago and are looking for a new one. He said it's mental out there, for every house they go to view they've got about 15 other people viewing it on the same day. He said their house sold for £20k over the asking price due to buyers outbidding each other.

Right now, the BOE should be whacking them interest rates straight up to 5%, the longer they leave it the worse it's going to be. The warning signs are there, everyone out there with half a brain can see what's happening, it's actually very irresponsible of them to keep the rates so low, it's the only thing they can do to try and get a grip on inflation, if they don't do it now then the resulting crash will be classed as one of them 'unforeseen once in a lifetime events' and then we will be met with mass deflation.

He wasn't blaming certain events he was simply outlining the basics of why we are seeing rising prices and explaining the causes of high inflation he also mentioned that demand for certain things like fuel wasn't been met,
now you are talking about one time events that happened in the past most likely we have never had a situation like we have been in for the last 2 years+ first off covid and the negative effect that had on the economy but also that massive surge in demand for everything when people were spending like mad then the idiot who blocked the Suez canal effecting supplies of goods I don't belive both in the UK and worldwide countries have been so effected in the same way plus the energy and fuel prices cost of living crisis we are in a historically unique situation.

Your ex customer sold their old house for 20k more than it was actually worth and no doubt the people who bought it knew that and will have most likely been told that the house wasn't worth what they were paying for it this has been going on for over 2 years, we sold our last home a small 2 bed bungalow within 3 days and still had people wanting to come and view it after, the house we now live in we were the first to view the day it came on the market and no one else had a look in after, despite a saga, I won't go into and the mortgage adviser at the bank told us the valuation was 15k less than we were buying the house for, house prices aren't been sold at their true value demand is outstripping supply and the bubble will burst at some point, your ex-customer will be very lucky to find another house the fact that the estate agent is allowing 15 viewings on one house says it all

I agree every government is screwed financially, Boris gave over 200 million to Rolls Royce in the hope that their hydrogen engine will work it might or might not pure madness, yes the BOE should increase interest rates but no doubt they are doing it softly softly so you don't have people unable to pay their mortgages and potentially handing in house keys at the bank as they did back in the 80's I think it was

 

[scottish cleaning service]

He wasn't blaming certain events he was simply outlining the basics of why we are seeing rising prices and explaining the causes of high inflation he also mentioned that demand for certain things like fuel wasn't been met,
now you are talking about one time events that happened in the past most likely we have never had a situation like we have been in for the last 2 years+ first off covid and the negative effect that had on the economy but also that massive surge in demand for everything when people were spending like mad then the idiot you blocked the Suez canal effecting supplies of goods I don't belive both in the UK and worldwide countries have been so effected in the same way plus the energy and fuel prices cost of living crisis we are in a historical unique situation.

Your ex customer sold there old house for 20k more than it was actually worth and no doubt the people who bought it knew that and will have most likely been told that the house wasn't worth what they were paying for it this has been going on for over 2 years, we sold our last home a small 2 bed bungalow within 3 days and still had people wanting to come and view it after, the house we now live in we were the first to view the day it came on the market and no one else had a look in after, despite a saga I won't go into and the mortgage adviser at the bank told us the valuation was 15k less than we were buying the house for, house prices are aren't been sold at their true value supply is outstripping demand and the bubble will burst at some point, your ex-customer will be very lucky to find another house the fact that the estate agent is allowing 15 viewings on one house says it all

I agree every government is screwed financially, Boris gave over 200 million to Rolls Royce in the hope that their hydrogen engine will work it might or might not pure madness, yes the BOE should increase interest rates but no doubt they are doing it softly softly so you don't have people unable to pay their mortgages and potentially handing in house keys at the bank like they did back in the 80's I think it was

I think you will find Rolls Royce and BA are bankrupt and will be nationalised again. Most of the airlines are bankrupt and getting held up with Governments. Airports might be next to go under, nothing is safe now, even my old make up company went under, Revlon. ?