How Much Did BTL Raise House Prices?

HAMISH_MCTAVISH

brit1234 wrote: »

Actually I think you will find the main reason was far to low interest rates, securitisation over using savings, mass fraud and iressesponsible lending.

Yes there was a shortage of supply with buy to letters outcompeting ftbs with their tax addvantages esculating up prices higher through all types.

End result is we have a mass unsustainable housing bubble which is starting to collapse with all interest rates going up and government buying of dodgy bank debt ending this year.

Remeber the key factor on house prices is lending criteria and all this genral supply and demand stuff is just a smoke screen by vested interest to try and keep prices high.

Actually Brit, these are just discredited bear memes....

The reality is that if you doubled the number of houses in the UK tomorrow, prices would fall off a cliff no matter how much lending was available.

House prices are ALWAYS all about supply and demand. There is nothing else.

Which is why a 3 bed victorian terrace in Preston costs 60K, and a similar 3 bed victorian terrace in parts of London costs 600K.

92203

HAMISH_MCTAVISH wrote: »

Obviously worth bumping this thread given the anount of BTL bashing going on today.

They did have an impact, but 7% is paltry.....

The main factor is simply a lack of housing for the increasing numbers of people and households.

How is it possible for them to determine this? They can theorise all they like, but they do not have proof!

Out of interest Hamish, why do you take so much glee in other people's misery. Surely as a human being you should find it sad that young people who want to settle down and do things the proper way are being denied the opportunity to do so.

Everytime I log onto this forum, I see a smug post from you, rejoicing that house prices are going up and becoming less affordable.

While you may have gained through no personal endeavour of your own, other than being born into the right era, spare a thought for those of us who are young, relatively successful and hard working, but are completely priced out of owning a decent home.

HAMISH_MCTAVISH

92203 wrote: »

How is it possible for them to determine this? They can theorise all they like, but they do not have proof!

Out of interest Hamish, why do you take so much glee in other people's misery. Surely as a human being you should find it sad that young people who want to settle down and do things the proper way are being denied the opportunity to do so.

Everytime I log onto this forum, I see a smug post from you, rejoicing that house prices are going up and becoming less affordable.

While you may have gained through no personal endeavour of your own, other than being born into the right era, spare a thought for those of us who are young, relatively successful and hard working, but are completely priced out of owning a decent home.

What a load of utter drivel.

Houses are an asset, like any other asset. Sure, they have utility value, as do things like classic cars, precious metals, fine wines, but fundamentally they are an asset class.

House prices have risen because we don't build enough of them, and for no other reason. And yet even with that, Houses are more affordable to mortgage buyers today than they were 20 years ago.

Everything else is just whining from the "instant gratification generation" who don't realise how hard buying a house has always been.

silvercar

Next question.

Divorce has increased the demand for houses. How much has this effected house prices? What responsibility are the divorced taking for the increase in house prices?

HAMISH_MCTAVISH

92203 wrote: »

How is it possible for them to determine this? They can theorise all they like, but they do not have proof!
.

Nor do you, with your theorising, which is completely without any research or evidence to back it up.

I have made an assertion, provided a linked source, and a DCLG study to back it up.

You may want to try a similar level of research if you expect anyone to take your assertions about BTL seriously.

Because as it is, you just sound like a whiner engaging in the politics of envy.

The-mouth-of-the-south

The key point here Hamish is - Everything else is just whining from the "instant gratification generation" who don't realise how hard buying a house has always been.

For a lot of young people it’s not hard, it’s impossible.

92203

HAMISH_MCTAVISH wrote: »

What a load of utter drivel.

Houses are an asset, like any other asset. Sure, they have utility value, as do things like classic cars, precious metals, fine wines, but fundamentally they are an asset class.

House prices have risen because we don't build enough of them, and for no other reason. And yet even with that, Houses are more affordable to mortgage buyers today than they were 20 years ago.

Everything else is just whining from the "instant gratification generation" who don't realise how hard buying a house has always been.

You still haven't answered my question - maybe you can't!!

In response to your assertion that houses have traditionally always this difficult to afford - is balderdash.

8 years ago when I was a student working at Morrisons, some of my colleagues who were a little older than me and worked there full time were buying their own houses. They were only earning min wage, but were nevertheless available to buy somewhere for under £35k. Admittedly these houses were old 2 up 2 down terraces in run down areas, however they now sell at prices in excess of £80k. Try saving up an 10 k deposit and servicing a 70k mortgage on minumum wage.

Your assertion that cheaper house prices have always been offset by high interest rates is flawed too. Back in 2002 the average house price was only £116k and the base rate was only 4%!

You clearly have a problem with the younger generation, your last statement is very telling and presumptious!

Maybe you should try being a young person. Having to pay £5-600 per month rent for a shoebox flat while having to save for a huge deposit to buy a house, having little or no job security, and knowing full well, that despite contributing 6% of you wage to a private pension scheme, you will not be able to afford the comfortable retirement enjoyed by your parents and grandparents.

boomerangs

Hamish McTroll will defend buy to letters to the hilt out of self-interest because he himself is one of the leeches. If the government introduced proper controls on this vile trade poor old Hamish would be found begging on the miserable streets of Aberdeen. Oh how we'd all love to see that. :rotfl:

IveSeenTheLight

silvercar wrote: »

Next question.

Divorce has increased the demand for houses. How much has this effected house prices? What responsibility are the divorced taking for the increase in house prices?

How about single woman, having careers and not settling down.
Another vital difference between current and past social demographics

IveSeenTheLight

boomerangs wrote: »

Hamish McTroll will defend buy to letters to the hilt out of self-interest because he himself is one of the leeches. If the government introduced proper controls on this vile trade poor old Hamish would be found begging on the miserable streets of Aberdeen. Oh how we'd all love to see that. :rotfl:

................................,-~*`¯lllllll`*~,................................... .......... .....
...........................,-~*`lllllllllllllllllllllllllll¯`*-,..........................................
......................,-~*llllllllllllllllllllllllllllllllllllllllllll*-,......................................
..................,-*lllllllllllllllllllllllllllllllllllllllllllllllll lllll.\... ..................................
................;*`lllllllllllllllllllllllllll,-~*~-,llllllllllllllllllll\............................ ........
................\lllllllllllllllllllllllllll/...........\;;;;llllllllllll,-`~-,................................
.................\lllllllllllllllllllll,-*.............`~-~-,...(.(¯`*,`,...............................
...................\llllllllllll,-~*........................)_-\..*`*;..)..............................
.....................\,-*`¯,*`)............,-~*`~................../...............................
.....................|/.../.../~,......-~*,-~*`;.................../.\..............................
.................../.../..../..../..,-,..*~,.`*~*..................*...\................ .......... ...
...................|.../.../..../.*`...\................................)....)¯`~,. .......... .........
...................|./..../..../........).........)`*~-,............../.....|..)...`~-,..............
.................././.../....,*`-,.....`-,....*`....,---......\...../...../..|..........¯```*~-,,,,
.................(............)`*~-,.....`*`.,-~*.,-*.......|.../..../..../...............\..........
..................*-,.......`*-,...`~,..``.,,,-*.............|.,*...,*....|.................\.... .....
......................*,.........`-,....)-,..................,-*`...,-*.....(`-,..............\........
........................f`-,........`-,/...*-,___,,-~*.....,-*......|....`-,...............\......