Halifax +2.6 % MoM

the_ash_and_the_oak

rents have stayed the same (at least in houseshares in London) for at least 6 years imo

chucky

the_ash_and_the_oak wrote: »

rents have stayed the same (at least in houseshares in London) for at least 6 years imo

from renting a few of my flats they've increased for me.
from £250-£300 a week from around 2002 to £350-£400+ a week in early 2008, one bedroom flats.

lostinrates

chucky wrote: »

i don't think that there is that many people that can't afford to rent otherwise rents would have dropped in the past few years but they increased, they've only dropped due to the economic crisis.

due to how easy it is to commute and how good transport links are you can live quite a distance and keep your same job so there is a varied budget of rental accommodation.

With oil prics rising nd incresed green presure I'm not sure if commuting will stack up well in the long term. I don't know.

I think part of the answer is tht HBs will have had to hve risen, nd possibly uptake increased.

Rents have increased in my area in my post-university adult life. They have in the area of London in which my father lives for sure.

I'm sorry, I can't put my finger on the issue here. I was hoping that discussing it with chucky, while we were both amenable and up for it, would help me be able to pin point it and ask the right question, but we're drifting further away again...

its ruddy annoying. There are answers to untold number of problems, or at lest the questions that might lead to the answers, in our heads, and sometimes u think you miht just be there.....and then the moment passes and you relise its just not going to happen. Tonight.

Thank you for indulging me chucky. Maybe you can help me find an answer another evening.:o

Really2

Surely the answer to any inflation is to lower demand.

Two ways build more houses or lower the population.

Killer of all this is the crash as slowed house building and in turn social housing projects.

The answer would be to know how many houses we need for the current population.

Hit that, then try to keep housing in check with population.

As with all things stability is achieved if you keep supply and demand equal.

nearlynew

chucky wrote: »

in a word yes

I'm not sure how many people would be in this position though.

Using myself as an example........... I bought my present house in 1997 for 37k when I was earning below average wage. an income multiple of about 3.

Today, although I earn above average wage, on present prices I would need an income multiple of about 6.

Now, my argument is this..............In a fair society with an economy run prudently and sustainably for the benefit of all citizens young and old, somebody earning the same as me now should still be able to buy my house with an income multiple of 3.

This would value my house at about 90k. but far from be unhappy, I would welcome this.

Rampant HPI was, is and always will be a curse on society and if we are to have stable society we need to arrive at a situation where sensible lending and affordable housing are considered the norm and not just the fantasy of some internet nutters like myself.

the_ash_and_the_oak

chucky wrote: »

from renting a few of my flats they've increased for me.
from £250-£300 a week from around 2002 to £350-£400+ a week in early 2008, one bedroom flats.

dunno about flats. In that time frame didn't really see house rents changing (moved 3 times during this period and looked at quite a few each time). sale prices went up a touch extravagantly during same period imo

chucky

nearlynew wrote: »

I'm not sure how many people would be in this position though.

Using myself as an example........... I bought my present house in 1997 for 37k when I was earning below average wage. an income multiple of about 3.

Today, although I earn above average wage, on present prices I would need an income multiple of about 6.

Now, my argument is this..............In a fair society with an economy run prudently and sustainably for the benefit of all citizens young and old, somebody earning the same as me now should still be able to buy my house with an income multiple of 3.

This would value my house at about 90k. but far from be unhappy, I would welcome this.

Rampant HPI was, is and always will be a curse on society and if we are to have stable society we need to arrive at a situation where sensible lending and affordable housing are considered the norm and not just the fantasy of some internet nutters like myself.

that's only because i've bought it recently

without sounding that i'm trying to be funny - what you say in a perfect world.

the value of your house is driven by numerous factors that none of us can control.
transport links, increased number of jobs in the region, local schools, the garden being north or south facing, local amenities and of course what people want to pay for your house and loads more.

some areas develop these, some already have them and the area becomes more popular - unfortunately these kind of things drive house prices.

nearlynew

chucky wrote: »

the value of your house is driven by numerous factors that none of us can control.
transport links, increased number of jobs in the region, local schools, the garden being north or south facing, local amenities and of course what people want to pay for your house and loads more.

some areas develop these, some already have them and the area becomes more popular - unfortunately these kind of things drive house prices.

I am fully aware of these things.

But what I am saying is the money for paying the increased prices should come from increased earnings not from increasing lending multiples.
Or from unsustainable finacial wizardry like 125% mortgages.

As I have said before, high house prices are a curse and are at the root of many social as well as financial problems.

StevieJ

nearlynew wrote: »

I am fully aware of these things.

But what I am saying is the money for paying the increased prices should come from increased earnings not from increasing lending multiples.
Or from unsustainable finacial wizardry like 125% mortgages.

As I have said before, high house prices are a curse and are at the root of many social as well as financial problems.

Or lower interest rates ( 15% down to around 5%)

nearlynew

StevieJ wrote: »

Or lower interest rates ( 15% down to around 5%)

Even using the large spread of interest rates in your reply and punching them into a mortgage calculator for mortgages of 100k and 200k respectively produces a difference of only a couple of quid in monthly payments.
(for a proper repayment mortgage of course and not an interest only/renting from the bank mortgage)

Using 15% for a 100k house and a more realistic long term average of 8% for a 200k house produces a difference of several hundred pounds per month .

As an aside, when people talk of 15% interest rates causing the last housing crash of the early 90s they are talking out of their a*se. Without going into the nitty-gritty of what did cause it, rates were at 15 % for one day only. Or even just overnight if I remember correctly. (can't be bothered to look)