Are home owners happy that prices rise and price out young

zagfles

LydiaJ wrote: »

My brothers, who are all quite a lot older than me, all bought in the late 80s when I was still at school, whereas up until a few years ago, I had been in rented, in tied housing with my then-husband's job, and in rented again while separated from him. While I know that my parents have helped each of us out in different ways (not all connected with housing) while they've been alive - and I've no wish to know who's had how much help, or who's had more help than the others - I certainly would never have wanted them to change their wills to say anything other than they've said all along - an equal split between the four of us. Although I fiercely defend the fact that while either of them is still alive, it's their money to do with what they like, not our "future inheritance", and when they're dead it's their choice how to leave it.

Yes - I think opportunity comes into it too - it's not necessarily when you bought but when you had the opportunity to. My point wasn't really aimed at creating any difference between kids, but rather between kids and grandkids.

Since in the example I gave, HPI is likely to be fairly neutral for the kids, but very negative for the grandkids, so by giving them the benefit of recent HPI through your will you are neutralising at least some of that for them.

JencParker

floridaman wrote: »

Ooooo you make my blood boil I bet you sit in front of your screens laughing

I think you'll find that's exactly what they do, so you are just giving them the fuel

JencParker

CLAPTON wrote: »

CreditCrunchie wrote: »

basically the situation is that the greater the supply the cheaper the price.

so if we had a lot more BTL properties then rents would fall as there would be more competition to let.
lower rental income would mean it was less profitable to let out and so the landlords would only be willing to pay less.

in turn this would mean houses were cheaper and would mean more FTB would be able buy their first house.

More BTL properties mean fewer properties available to buy - how would that make them cheaper using your demand and supply model

Besides, I'm not convinced rents would fall by much anyway, there is a shortage of housing in this country, whether to buy or rent.

CLAPTON

JencParker wrote: »

CLAPTON wrote: »

More BTL properties mean fewer properties available to buy - how would that make them cheaper using your demand and supply model

Besides, I'm not convinced rents would fall by much anyway, there is a shortage of housing in this country, whether to buy or rent.

you miss read the dialogue

the context was additional new builds: if they were bought by landlords then one would expect to see rents fall

of course if demand was rising (e.g. population increase) then rents might still rise but at a slower rate than if there was no new builds


supply and demand determine the price : I don't see this as 'my supply and demand model': one would expect most people to agree that was the case


we need to build more properties

and amasingly there are no technical reasons why we can't, except government intervention

LydiaJ

ukcarper wrote: »

Lots of complaints about BTL but no one else seems willing to invest in rental property.

ukcarper wrote: »

What I mean is there is nothing stopping large organizations buying or building property and renting it out but none are and without BTL there would be very little new rental property.

chucknorris wrote: »

I think that they are a bit expensive now, the yields are a bit too low for my liking.

But those seem to me to be good things.

Posters on here talk about BTL as though there's a fixed pool of potential tenants, but that's not true. The pool of potential tenants would get smaller if some of those people could afford to buy instead of renting.

If anyone suggests anything that would decrease the current incentive for people to invest in BTL - changing the balance of rights between LLs and tenants, for example, or changing the way that BTL is taxed - they say this would be bad for tenants because the supply of rental properties would go down and so rents would rise. While I see where this is coming from, I also think they're missing something out of the argument.

Yes, this country has an undersupply of housing and we need to build more houses. But that's not the only problem. It's also a problem IMO that BTL and other forms of private rentals are such a large proportion of the housing stock, with so many households stuck renting who would prefer to buy. If the incentives to invest in BTL were less, there would still be the same number of houses, the same number of total households, the same number of homeless households etc. However, with fewer LLs competing to buy the existing houses, prices to buy houses would reach a point where more would-be owner-occupiers could buy them, thus decreasing the number of tenant households by the same amount as the number of LL-owned houses.

What we really need, IMO, is some way for ordinary people to get a decent return on their pensions, so that we don't have so many thousands of them thinking that the only viable way to provide for their retirement is to own more houses than they need to live in.

ABetterLife

I don't know but it makes me feel extremely sad.

I'm 20 years old. I really want to own a home within 5-10 years.

But, at the moment, I'm stuck in a horrible 1 bedroom council flat in a horrible area with horrible unstable, alcoholic, drug using/drug dealing, mentally ill, noisy neighbours.

There is absolutely no way I can afford to rent anything more than a room privately, and nobody will rent to someone with a baby on the way.

So I'm stuck here for what looks like quite a long time. The council housing route is a dark, dingy one I am loathe to have had to take, and I could be waiting years for even a 2 bedroom.

I dream of living in a nice area, in a nice house with a garden. Nothing special or extravagant. Just a nice, safe family home. A place where I can really feel I have a HOME, which is something I really don't feel where I am now.

Unfortunately, getting a mortgage and buying a nice house is a very distant goal for me right now. I don't know if I'll ever manage it. If I do, it will most likely have to be out of London, which upsets me because this is my home and 99% of my family is here.

Luckily, I am determined. Absolutely determined. I am saving up, I'm studying Nursing at a top university and I'm trying to fix my credit report up, as well as learning how to use my money more wisely.

But as a young person, I feel very little hope. Very little at all.

wymondham

ABetterLife wrote: »

I don't know but it makes me feel extremely sad.

I'm 20 years old. I really want to own a home within 5-10 years.

But, at the moment, I'm stuck in a horrible 1 bedroom flat in a horrible area with horrible unstable, alcoholic, drug using/drug dealing, mentally ill, noisy neighbours.

There is absolutely no way I can afford to rent anything more than a room privately, and nobody will rent to someone with a baby on the way.

So I'm stuck here for what looks like quite a long time. The council housing route is a dark, dingy one I am loathe to have had to take, and I could be waiting years for even a 2 bedroom.

I dream of living in a nice area, in a nice house with a garden. Nothing special or extravagant. Just a nice, safe family home. A place where I can really feel I have a HOME, which is something I really don't feel where I am now.

Unfortunately, getting a mortgage and buying a nice house is a very distant goal for me right now. I don't know if I'll ever manage it. If I do, it will most likely have to be out of London, which upsets me because this is my home and 99% of my family is here.

Luckily, I am determined. Absolutely determined. I am saving up, I'm studying Nursing at a top university and I'm trying to fix my credit report up, as well as learning how to use my money more wisely.

But as a young person, I feel very little hope. Very little at all.

Good post. Remember though that rising house prices is good for Britain and no bad can come of it - Government policy is to push them up even quicker. The faster they rise the richer we all are and the better shape the economy is in..... except all most people want is somewhere decent and affordable to live and these two ideals don't seem to mix when those in Government are often large property owners... guess which direction they prefer!

chucky

There are life choices and there are life choices.

Most people make the right life choices but there are many that don't make them for whatever reason. Those are the ones that usually complain that life isn't fair or that certain things are too expensive.

ABetterLife

wymondham wrote: »

Good post. Remember though that rising house prices is good for Britain and no bad can come of it - Government policy is to push them up even quicker. The faster they rise the richer we all are and the better shape the economy is in..... except all most people want is somewhere decent and affordable to live and these two ideals don't seem to mix when those in Government are often large property owners... guess which direction they prefer!

Thanks!

I must admit, I don't know much about these things to be honest. How are we richer with higher house prices? How does it benefit people like me?

mayonnaise

ABetterLife wrote: »

There is absolutely no way I can afford to rent anything more than a room privately, and nobody will rent to someone with a baby on the way.

And that's where I stopped reading.