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Debate House Prices
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Nationwide Feb:+9.4% YoY
Comments
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It all feels a bit too much like 2006 / 2007 to me.
I have no doubt that we will see a sustained rally in prices up until the general election, as this has been intentionally engineered.
However, I'd be surprised to see this trend continue long term ;- We already have a record low base rate
- We have a government underwriting low deposit mortgages
- We have minimal wage inflation
- Most house purchases are made on a dual income basis
What more can be added to allow for people to borrow more to pay for houses?
As house prices follow their upward trajectory, it won't just be deposits that are an issue for people joining the housing market, but wage multiples also.
Population growing by 300,000 people per year?0 -
ruggedtoast wrote: »Population growing by 300,000 people per year?
we can add 30, 40, 50+ year mortgages.
Maybe even intergenerational mortgages like in Japan.
100%+ Northern rock style mortgages.
Interest only to come back in vogue.
More tax incentives for BTL
There's lot more they can do, long may it continue !!!0 -
we can add 30, 40, 50+ year mortgages.
There's lot more they can do, long may it continue !!!
I presume that last statement was a joke? Why would you want to make the lives of future generations more difficult by inflating their housing costs? Would you be happy having to take out a 50 year mortgage and spend your entire working life paying it?
One thing which you've neglected to consider is the fact that eventually high house prices will impoverish more people than they actually benefit. When we reach that tipping point, government policy will change in order to win the most votes.0 -
100%+ Northern rock style mortgages.
Interest only to come back in vogue.
More tax incentives for BTL
There's lot more they can do, long may it continue !!!
We have tried that, didn't end to well - suprised you didn't add sub-prime lending in as well.
What additional BLl incentives were you thinking of, zero CGT, zero IHT, VAT refunds on refurbishment, fitments and personal holidays?"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 -
House prices must drop for the greater good.0
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grizzly1911 wrote: »We have tried that, didn't end to well - suprised you didn't add sub-prime lending in as well.
What additional BLl incentives were you thinking of, zero CGT, zero IHT, VAT refunds on refurbishment, fitments and personal holidays?
all of them except personal holidays.
Other things is to encourage "higher density living", i.e. families living in one bed flats rather than expecting to living in a house. This is quite common in eastern Europe. For larger properties we should encourage different families to share together.
If we don't have enough housing to around, then we need to use the existing stock more efficiently.0 -
all of them except personal holidays.
Other things is to encourage "higher density living", i.e. families living in one bed flats rather than expecting to living in a house. This is quite common in eastern Europe. For larger properties we should encourage different families to share together.
If we don't have enough housing to around, then we need to use the existing stock more efficiently.
So in order to fulfill your desire to maintain/stoke higher property prices, future generations should have to accept a lower quality of life and live in cramped conditions? Would you be willing to accept such a compromise in order to allow other people to enjoy capital gains on the property they managed to buy?
How about overhauling the planning system so that enough houses can be built to cater for current and projected population growth? This would help stabilize prices, allow living standards to be maintained, and in the longer term make housing more affordable0 -
The buyers problem is that there is a lot of price elasticity in housing. You want you, your partner and 2 kids to live in a spacious 4 bed house in a nice neighbourhood. But you can all fit into a cramped 3 bed (or even 2 bed) in a bad one.
If you think that you may not even be able to afford the 2 bed and your next stop on the line is going to be Boxing and Coxing in a 1 bedroom apartment (like many people around the world consider normal) then those 2 beds are going to shoot up in price.
If it's food for example, most of us can come up with £10,000 for a loaf of bread, but then most of us will have died before we have saved up enough to buy another one.
I fear that housing isnt going to get cheaper any time soon.
Even the forum hpc.co.uk is waving the white flag now.0 -
ruggedtoast wrote: »The buyers problem is that there is a lot of price elasticity in housing. You want you, your partner and 2 kids to live in a spacious 4 bed house in a nice neighbourhood. But you can all fit into a cramped 3 bed (or even 2 bed) in a bad one.
If you think that you may not even be able to afford the 2 bed and your next stop on the line is going to be Boxing and Coxing in a 1 bedroom apartment (like many people around the world consider normal) then those 2 beds are going to shoot up in price.
If it's food for example, most of us can come up with £10,000 for a loaf of bread, but then most of us will have died before we have saved up enough to buy another one.
I fear that housing isnt going to get cheaper any time soon.
Even the forum hpc.co.uk is waving the white flag now.
Yep. No chance of meaningful price falls, or even stabilisation, any time soon imho. Very bad news indeed for society imho, but we're still some way from the tipping point where demand for change becomes a key political issue. When that comes (and I think it's when rather than if, albeit a long while off yet), things might change for the better.0 -
Other things is to encourage "higher density living", i.e. families living in one bed flats rather than expecting to living in a house. This is quite common in eastern Europe. For larger properties we should encourage different families to share together.
Presumably you would welcome a strange family to live in your home and share the place then?
Or are you talking of this applying to others?0
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