Prince Charles wades in

Graham_Devon

And Lord Turner is at it too...

Britain's property obsession has left the country at risk of another major financial shock, the former head of the City watchdog has warned.

Lord Adair Turner, the ex-chairman of the Financial Services Authority (FSA), said mortgage and commercial property lending in advanced economies had played a "central role" in almost all financial crises and post-crisis recessions.

Much of the investment in the advanced world was now focused on real estate, he added. While he said this was an inevitable part of a modern economy, it also increased the risk of another boom and bust.

"We have made it incredibly favourable to buy houses," Lord Turner told The Telegraph. "The supply issue is very important and we've got to increase the supply of housing because otherwise we are just piling up very strong incentives to buy housing, very strong incentives to borrow money to buy housing but against a fixed supply.

"If you do that the only thing that can give is the price."

Dunno why they are all coming out today to get their 2p in!

http://www.telegraph.co.uk/finance/economics/10725523/Lord-Turner-Housing-boom-could-drag-UK-back-into-crisis.html

System

BillJones wrote: »

It's almost as though tall residential towers are great places to live as long as the residents are the right sort of people...

That's the nub of the whole question. Almost anywhere is a great place to live if you are surrounded, not too closely, by the right sort of people.

The easiest way of sorting people is by price.

Graham_Devon

And even more!!

The financial policy committee have now stated that the amount of new mortgages granted at over 4x income was at record levels in Q3 2013.

In a continuation of a longer-term trend, mortgages at loan to income ratios above four times accounted for a higher share of new mortgages in Q3 than at any time since the data series began in 2005. New mortgage lending at high loan to value ratios remained low by historical standards, though the number of mortgage products offering higher loan to value ratios had doubled over the previous six months.

They will do....well...nothing. But they will remain vigilant.

AndyGuil

Based on real salaries rather than whatever you wanted which was the practice before 2008. Also what is the consideration to couples. A £200k flat could be around 3x earnings for a young couple on £30k each in London. They also pay less tax than a single earner on £60k so their affordability is greater. I see lots of young people buying in London without issue so whilst many may not be able to buy immediately the current supply is being consumed by the demand easily. Owning is still a lot cheaper than renting, especially in London.

dotdash79

Graham_Devon wrote: »

I think this links to the OBR report which includes a piece on First Time Buyers.

The average price a FTB now pays is £190,000.

Which is at all time records. This average has shot up nearly 8% since HTB was launched.

How much of that is being pushed up as FTB are buying new builds as for of HTB1? A normal FTB used to be a 2 up 2down in a part of town that wasn't that nice.

CLAPTON

Bantex wrote: »

Try telling that to the local council or BTL landlords.

I assumed the conversation was about significantly sized developments.

Many councils and HAs already provide key assess to property and CCTV and a callout service.

Bantex_2

CLAPTON wrote: »

I assumed the conversation was about significantly sized developments.

Many councils and HAs already provide key assess to property and CCTV and a callout service.

The private blocks in Canary Wharf etc will have 24 hour concierge service.

Nelson Mandela House which is now a mix of social housing and BTL will have bare minimum security.
The tenants or landlords would not be prepared to pay for it.

IveSeenTheLight

Graham_Devon wrote: »

Even he appears to get it!


http://www.theguardian.com/money/2014/mar/26/prince-charles-warns-rise-london-house-prices-young-talent

I believe MSW also got it and moved from London to Edinburgh

Graham_Devon

IveSeenTheLight wrote: »

I believe MSW also got it and moved from London to Edinburgh

Sorry? MSW?

princeofpounds

6 storey isn't a high rise, but he does tend to recommend that the blocks are built with a mix of houses too. The average is really not dense. What will happen in London is everything within the greenbelt will fill up and then building will have to move out to the otherside of the greenbelt. Central London prices have risen a lot. The suburbs are rising a lot. Anything within the greenbelt is going to rise greatly and the shortage of housing will be unavoidable. Space is at a great shortage and other countries with this issue have opted for 30+ storey buildings.

Vast areas of London, a majority, are exceptionally low-rise. If planning policy changed you could do a lot on existing land. And I say that as someone who is not obssessive about preserving the green belt.