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Debate House Prices
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Time for a new generation to enjoy same opportunities as their parents...
Comments
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The same could have been said for most 10 year periods, house prices increase...
That's how inflation works, prices go up. People pay what they feel the price is they should pay for a house. It really is quite simple logic
Inflation in general makes both prices and salaries go up. HPI massively in excess of wage inflation is not just "how things work". Most things that 23-year-olds might want to buy are cheaper now than 10 years ago, relative to the earnings of 23-year-olds in similar jobs. Houses are not.
[X-posted with shortchanged]Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.
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shortchanged wrote: »Yes but come on chuckles. There is HPI and there is ridiculous HPI..
And there is also comparing the absolute bottom of a crash, with the cheapest price to earnings ratio in history, with the absolute peak of a boom.
Which you're doing there.
The prices of 1995/7 were not "normal".
They were "once in a lifetime cheap".“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: »And there is also comparing the absolute bottom of a crash, with the cheapest price to earnings ratio in history, with the absolute peak of a boom.
Which you're doing there.
The prices of 1995/7 were not "normal".
They were "once in a lifetime cheap".
I never referred to them as normal Hamish.
But the rises that took place in the 10 years after were certainly ridiculous aided by huge increases in IO mortgages etc.
Honest question now Hamish. How do you think the large numbers of the post 2004 house buyers would cope with mortgage interest rates at say 10%?0 -
shortchanged wrote: »the rises that took place in the 10 years after were certainly ridiculous aided by huge increases in IO mortgages et
Supply and demand.
Nothing else.
Note prices are soaring back towards previous peak again now, even with strict income verification/affordability tests, and with self-cert, I/O, etc, being effectively banned.“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: »Supply and demand.
Nothing else.
Note prices are soaring back towards previous peak again now, even with strict income verification/affordability tests, and with self-cert, I/O, etc, being effectively banned.
Demand fuelled by what?
The banks had the opportunity to keep a lid on things back then but unfortunately they got carried away with the house prices only go up mentality.0 -
HAMISH_MCTAVISH wrote: »
Note prices are soaring back towards previous peak again now, even with strict income verification/affordability tests, and with self-cert, I/O, etc, being effectively banned.
Very low historical transaction levels.
Foreign investors. Already equity rich homeowners who bought pre boom. Can all cope with these current prices.
Why do we need these schemes to 'help' people buy houses.
In a normal functioning market people shouldn't need help.0 -
Where have I ever said I thought the taxpayer should provide 100% of the rent? ....
No, I know you didn't say that, but there's £20 billion of Housing Benefit each year that makes it pretty obvious that a lot of these people are renting privately.
Not having a go at you, but I just think that longer tenancy agreements are impractical in a lot of cases. I once rented my main home out while abroad. I could very well have needed the house back at 3 months notice - which potentially would have caused a minor problem had I just signed up a new 6 month tenancy.
If tenancy was forced to be, say, 12 months notice, then I don't know if many tenants would like that idea. 3 month for tenant, and 12 for landlord seems more than mildly unfair to me.0 -
shortchanged wrote: »Why do we need these schemes to 'help' people buy houses.
Because the mortgage markets are still dysfunctional.In a normal functioning market people shouldn't need help.
Totally agree.
And when we have a normally functioning mortgage market, they won't.“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 -
shortchanged wrote: »But the rises that took place in the 10 years after were certainly ridiculous aided by huge increases in IO mortgages
He's squeezing every last drop out of his single issue before he moves onto a different bandwagon. It's now the priced out generation, even though he's just acknowledged that he's disingenuously comparing the bottom of a deep crash with the top of a high boom.
This is going to be interesting to watch. 0 -
You've answered your own problem.Inflation in general makes both prices and salaries go up. HPI massively in excess of wage inflation is not just "how things work". Most things that 23-year-olds might want to buy are cheaper now than 10 years ago, relative to the earnings of 23-year-olds in similar jobs. Houses are not.
[X-posted with shortchanged]
It's the wage increases that didn't happen in line with house prices. If anything why don't you and shortchanged complain that wage increases didn't happen high enough instead of house prices rising.0
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