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Debate House Prices
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More supply shortages building up....
HAMISH_MCTAVISH
Posts: 28,592 Forumite
Times: Social housing plans to be abandoned as Government cuts tenants’ rents
Plans to build thousands of new social homes will have to be abandoned because of the Government’s decision to cut the amount tenants will have to pay in rent next year, The Times has learnt.
Housing associations will warn today that their income will fall by at least £260 million next year if the Government continues to link social housing rent to inflation.
The retail prices index is expected to fall below minus 2 per cent in September, the month when rent is set for the next year, presenting the prospect of real cuts in social rental payments for the first time.
Oh dear.....
Millions of people on social housing waiting lists, and plans to build more being abandoned.
But of course house prices will soon be so cheap due to......
unemployment/rising rates/swine flu/japanese deflation/whatever
......it won't be a problem as they'll be giving them away with cereal boxes.
Won't they?
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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HAMISH_MCTAVISH wrote: »Oh dear.....
Millions of people on social housing waiting lists, and plans to build more being abandoned.
But of course house prices will soon be so cheap due to......
unemployment/rising rates/swine flu/japanese deflation/whatever
......it won't be a problem as they'll be giving them away with cereal boxes.
Won't they?
Yeah but, no but...
House price will be high 'cos of low supply and everyone wants to buy innit.
People wanting to buy equals high demand and house not being built equals low supply*.
* Neither of these things are really supply and demand, they're just commentators not understanding economics but writing about them anyway.0 -
Yeah but, no but...
House price will be high 'cos of low supply and everyone wants to buy innit.
People wanting to buy equals high demand and house not being built equals low supply*.
* Neither of these things are really supply and demand, they're just commentators not understanding economics but writing about them anyway.
Ah, good thing you cleared that up.:T
Perhaps I should invest in a foldaway bed company stock..... Or inflatable mattresses.....
As it seems there will be hundreds of thousands of them per year being sold in the UK shortly.;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Oh dear.....
Millions of people on social housing waiting lists, and plans to build more being abandoned.
But of course house prices will soon be so cheap due to......
unemployment/rising rates/swine flu/japanese deflation/whatever
......it won't be a problem as they'll be giving them away with cereal boxes.
Won't they?
The article says plans to build 4,000 will be abandoned.
So with millions on social housing lists. Cheaper house prices will mean more can be built in the longer term.
Housing Associations are buying up unsold private developements around here so isn't total doom and gloom.0 -
Thrugelmir wrote: »The article says plans to build 4,000 will be abandoned.
So with millions on social housing lists. Cheaper house prices will mean more can be built in the longer term.
Housing Associations are buying up unsold private developements around here so isn't total doom and gloom.
So lower supply and higher demand will actually equal cheaper prices....
OK.
Got it.
I think I'm really getting the hang of this bear thing now.:money:
Wait though, just to clarify, will the prices be cheaper because the additional 150,000 households per year being created above the number of houses being built all have to sleep on someones couch or floor?
Thus creating slums everywhere and lowering the neighbours property values?:T
(did I put the applause in the right place guys?)
Or have we bears discovered some new definition of supply and demand where 2.5 times as many people needing houses than are being built doesn't actually mean that only the top earning third need to be able to afford them for prices to rise?
(sorry for all the bear newbie questions, this stuff is really difficult LOL)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Ah, good thing you cleared that up.:T
Thanks. It's always good to clear up misunderstandings before getting into a conversation with someone who doesn't have a clue what they're on about.HAMISH_MCTAVISH wrote: »Perhaps I should invest in a foldaway bed company stock..... Or inflatable mattresses.....
Perhaps. DYOR first.HAMISH_MCTAVISH wrote: »So lower supply and higher demand will actually equal cheaper prices....
OK.
Got it.
I think I'm really getting the hang of this bear thing now.:money:
Wait though, just to clarify, will the prices be cheaper because the additional 150,000 households per year being created above the number of houses being built all have to sleep on someones couch or floor?
Thus creating slums everywhere and lowering the neighbours property values?:T
(did I put the applause in the right place guys?)
Or have we bears discovered some new definition of supply and demand where 2.5 times as many people needing houses than are being built doesn't actually mean that only the top earning third need to be able to afford them for prices to rise?
(sorry for all the bear newbie questions, this stuff is really difficult LOL)
You need to understand what supply and demand are before trying to do simplistic economic analysis.
PS Does this really make you laugh out loud?0 -
Reduced rents could mean some people will decide not to buy...?0
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Cannon_Fodder wrote: »Reduced rents could mean some people will decide not to buy...?
It would seem likely. You can buy or rent a house. If buying a house becomes cheaper, economic theory says that renting is less desirable. Similarly, if renting becomes cheaper, buying is less desirable.0 -
Cannon_Fodder wrote: »Reduced rents could mean some people will decide not to buy...?
Of course they will.
Surely everyone will see that paying 2% less rent on a council house is far better than owning a home.
Just think of all the shares they can buy with that 2% of a council house rent. It'll be paying their rent for them in no time.
And they can all avoid being "mortgage slaves" too.
Result!!!!!“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
PS Does this really make you laugh out loud?
Well, all sorts of strange things have been happening since I asked the Doc to lower my IQ by 50 points so I could be a bear too.:eek:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Of course they will.
Surely everyone will see that paying 2% less rent on a council house is far better than owning a home.
Just think of all the shares they can buy with that 2% of a council house rent. It'll be paying their rent for them in no time.
And they can all avoid being "mortgage slaves" too.
Result!!!!!
People in council houses are most likely to be the people (around 30 -40%) that will never be in a position to buy.
A large number of these people will be on Housing Benefit. Something all taxpayers contribute too.
This is the start of a whole raft of measures to reduce Government spending.0
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