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Panorama tonight: The Great House Price Bubble?
Comments
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The thing the 90s were a very good time to buy property in fact in relation to earnings they were the lowest they have been since the 40s maybe longer. That's not to say prices aren't high now but there hasn't been many times in the past when in has been easy to rent with children and save a deposit.
I don`t agree. How about a 3 bedroom house in Reading, semi detached. My first buy. Got a grand together through 3 jobs. one from my wife and 2 from me. The 70`s.
I was gobsmacked that a one bed tiny place in Reading now is £130 k. They are not great areas. In the early 80`s it was easy to get a three bed house in the same area on one wage. Plenty of my friends did it. Running about £25 thousand a go.
The housing market is both on a life support machine and steroids. I cannot see this continuing taking lots of other financial problems in to context.
I don`t have to be that bright to say this.0 -
I don`t agree. How about a 3 bedroom house in Reading, semi detached. My first buy. Got a grand together through 3 jobs. one from my wife and 2 from me. The 70`s.
I was gobsmacked that a one bed tiny place in Reading now is £130 k. They are not great areas. In the early 80`s it was easy to get a three bed house in the same area on one wage. Plenty of my friends did it. Running about £25 thousand a go.
The housing market is both on a life support machine and steroids. I cannot see this continuing taking lots of other financial problems in to context.
I don`t have to be that bright to say this.
In the mid 70s average house price was just under 5x average earnings compared to about 5.3x now.
Did you do that living in a 3 bed with 2 kids.
I'm not disputing prices are high but compared to when I first bought not that much higher.0 -
The hard truth is that house prices are not made up by sellers or estate agents - they are the prices that buyers are paying, and they are the prices (more or less) that lenders are willing to lend on.
The pool of houses is too small for the demand - there is estimated to be excess demand of c. 300k, or 10 years worth of new builds at the current rate. That is the source of house price rises.
The Moneyweek editor was allowed to contribute a completely pointless piece of rhetoric to the Panorama programme - she suggested there was a choice between rising and falling house prices - there isn't. She also suggested that falling house prices would be a good thing (not for anyone who has just bought).
The housing pool that we do have is not generally standing idle. In most cases it is being lived in - either by the owner, or by the owner's tenants. Either way, the idea that any financial trick is going to magic up new physical houses is nonsense. All that happens is the ratio between BTL/owner occupier will change. The underlying shortage remains. In the short term, prices may stabilise if BTL LLs sell-up, but it is a temporary respite whilst the number of properties lags so far behind demand.
As far as land banking is concerned, I think that it needs to be addressed, but also other schemes need to be created where planning permission is conditional on immediate build, and where planning permission is conditional on self-build. These measures done in sufficient quantity should help reduce the price of land and increase build rate - both of which are price-stabilising factors.0 -
To be honest I believe you but why do the media go on about the pressure on 'water resources' in the SE and all that 'turn the tap off when brushing your teeth', 'put a brick in the toilet cistern' stuff?
It is purely because some water authorities (Thames for one) are complete charlatons and increase profits by minimising storage amounts. They would say 'optimising'. Despite knowing that consumption rises dramatically over the years (population rises, more dishwashers, more jaccuzzis and swimming pools, higher propensity to wear and wash more clothes....) they try to keep the amount of storage done to what they want to afford.
It only takes, I believe, about 3 months of little or no rain, and reservoirs are virthually empty. Aquifers are starting to dry up. Hence summer hosepipe bans are the rule rather than the exception.
I just hate all the "weasel words" they use. "We need to put up prices to 'invest' for the future" is the worst. They don't mean "invest". They mean do a little bit more to mend the old leaking cracked pipes.
Water company chiefs are incompetent, profiteering, overpaid relics of Nationalised industries (but with 'Commercial' salaries and pensions) and should all be sacked. Apart from that they are 'diamond geezers'.0 -
Why do the same things need to be explained to the same people so often? Why don't they understand what's explained to them the first time?leveller2911 wrote: »Given the fact that they have the land , they have the labour and they have the demand why don't they build on a national scale and don't say because people can't get mortgages now that we have the HTB schemes running over the past couple of years, foreign investors etc.
It's worrying for society that they are unable to grasp simple concepts due to them being so hard coded due to the chip on their shoulder.0 -
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People usually do it on two incomes, are you now advocating that a couple should have 3 jobs between them?
People often did it on one relatively small wage. Just shows how we have progressed - not."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Loughton_Monkey wrote: »It is purely because some water authorities (Thames for one) are complete charlatons and increase profits by minimising storage amounts. They would say 'optimising'. Despite knowing that consumption rises dramatically over the years (population rises, more dishwashers, more jaccuzzis and swimming pools, higher propensity to wear and wash more clothes....) they try to keep the amount of storage done to what they want to afford.
It only takes, I believe, about 3 months of little or no rain, and reservoirs are virthually empty. Aquifers are starting to dry up. Hence summer hosepipe bans are the rule rather than the exception.
I just hate all the "weasel words" they use. "We need to put up prices to 'invest' for the future" is the worst. They don't mean "invest". They mean do a little bit more to mend the old leaking cracked pipes.
Water company chiefs are incompetent, profiteering, overpaid relics of Nationalised industries (but with 'Commercial' salaries and pensions) and should all be sacked. Apart from that they are 'diamond geezers'.
Aren't many foreign owned these days? Would they have left old school in place?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »People often did it on one relatively small wage. Just shows how we have progressed - not.
And only 50% of the second wage was counted when applying for a mortgage.
x3 main wage and 50% of second wage - does that still happen or are both wages considered equally?0 -
Cornucopia wrote: »As far as land banking is concerned, I think that it needs to be addressed, but also other schemes need to be created where planning permission is conditional on immediate build,QUOTE]
Or we address the real problem. Unfettered mass immigration.
We have more people than jobs available, we have more people than housing available, schools, NHS and other organisations are struggling to cope.
And come January 1st next year, we'll welcome another 500,000 Roma and Bulgarians.
We will eventually run out of land to build things on.0
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