It is so obvious, high property prices and rents are preventing the recovery

homelessskilledworker

The recession we are now in along with the one we have had since 2007 and the depression I personally believe we are going to enter around 2013 if we are not carefull all stems around one thing(no not criminal bankers) PROPERTY.

I don't just mean residential, I also mean commercial, just look at the problems we are having in the pub sector along with the well publicised problems on the high street. The majority of the problems all revolve around crippling rent, and the sooner we let property prices all round find their natural level then the sooner we can begin getting some real growth in the UK.

Without a shadow of a doubt property is a good 30% to 50% over valued, and I mean that in so many ways. Pubs and shops might be able to to get through this rough patch and survive if rent was not so high. Mr & Mrs Average might just get through this recession if housing was not so expensive. The Government might have an easier time of it if they were not payinf £32 Billion a year alone on HB, how criminal is that when most of it goes into the pocket of the dodgy landlord.

This country has to stop doing a Euro and allow the inevitable to happen, stop proping up a failing housing market, force rents to go down in the commercial side, If rents/properties were to reduce in cost then I am certain millions would get through this difficult times

Cleaver

homelessskilledworker wrote: »

The recession we are now in along with the one we have had since 2007 and the depression I personally believe we are going to enter around 2013 if we are not carefull all stems around one thing(no not criminal bankers) PROPERTY.

I think that property, specifically the sub-prime fiasco in the US, can be seen as the trigger that started the crisis. But all this trigger did was reveal that our financial institutions were in trouble in a whole host of different ways, not just with regard to property. And in our interconnected world you can't have the US in trouble without everyone going down as well. In twenty or thirty years time when China and / or India are the economic superpowers we'll probably all either boom or bust in sync with them.

homelessskilledworker wrote: »

I don't just mean residential, I also mean commercial, just look at the problems we are having in the pub sector along with the well publicised problems on the high street. The majority of the problems all revolve around crippling rent, and the sooner we let property prices all round find their natural level then the sooner we can begin getting some real growth in the UK.

This is incorrect in my opinion. The reason pubs are closing is that we, as a society, are moving to a culture where we don't use pubs as much. It's that simple. In the old days a typical residential area could support a load of drinking houses as people all went out drinking after work. That simply doesn't happen anymore, so we're in a transition phase of pubs closing down so that supply matches demand. High rents may be the straw that breaks the camels back in some cases, but it's not the main reason.

homelessskilledworker wrote: »

This country has to stop doing a Euro and allow the inevitable to happen, stop proping up a failing housing market, force rents to go down in the commercial side, If rents/properties were to reduce in cost then I am certain millions would get through this difficult times

It really isn't that simple as economics is a complete balancing act. It's about how you grow sustainably in a measured, steady way. Property crashing 35% in 2012, for example, would be great news for a first time buyer if you looked at it from a very simple point of view that that FTBer can buy a house for less. In terms of the economy, a house price crash of 35% would obviously not be good for the overall economy, which may effect that very same FTBer in a different (and negative) way.

SecondLegDownIsTheBigOne

The parasite is killing the host.

Pobby

Yes, I agree with both sides of the debate regarding pubs. I for one find that approx. 3 quid a pint to be stupid. Glass of wine, £2 plus. Yet pub rents are also very high. A terrace style pub near me, also nearly falling down was carrying a rent of £500 per week. That is not the south east btw. A much larger came on the market for a freehold of £250,000 eventually being sold for £90k. No planning to be able to convert to flats. It is now a ghastly refurbed pub with a juke box and plasma TVs. not for me squire.

Daddy-Spendless

i know their is a lot of talk about high commercial rents and business rates, but whenever i read about a struggling business chain it seems to be debt that is killing them.