Housing market gathers pace in March

wotsthat

Saltywater wrote: »

So 40 year or even lifetime mortgages, can anyone else think of ways that the FTB will be able to enter the market other than HTB or the bank of mum and dad?

A surge in the number of first-time buyers, up by 23pc in 2013, was an "especially important factor" in driving house prices higher, the Council of Mortgage Lenders (CML) has said.

http://www.telegraph.co.uk/finance/personalfinance/houseprices/10633386/Demand-for-20pc-mortgage-deposit-fails-to-put-off-first-time-buyers.html

Saltywater

wotsthat wrote: »

http://www.telegraph.co.uk/finance/personalfinance/houseprices/10633386/Demand-for-20pc-mortgage-deposit-fails-to-put-off-first-time-buyers.html

But looking forward 5,10,15 years with the predicted rises most won't be able to save at the current rate of HPI and will effectively be locked out.

chucky

Saltywater wrote: »

But looking forward 5,10,15 years with the predicted rises most won't be able to save at the current rate of HPI and will effectively be locked out.

Buying property has never been for everyone, only those that can afford to buy property will buy property.

wotsthat

Saltywater wrote: »

But looking forward 5,10,15 years with the predicted rises most won't be able to save at the current rate of HPI and will effectively be locked out.

Then house ownership will become ever more concentrated among the rich and poor people will have to rent off them. Occupancy rates will rise.

I'd suggest that the predicted rate of increase being extrapolated over these time-frames is nonsense and so is the assumption that such HPI rates won't lead to significant changes in policy.

Jason74

wotsthat wrote: »

Then house ownership will become ever more concentrated among the rich and poor people will have to rent off them. Occupancy rates will rise.

Which is of course exactly the outcome that from a social perspective, we should be looking to avoid. Having more and more wealth concentrated in fewer and fewer hands will is a very unhealthy thing for society as a whole. We need to belooking at how this trend can be reversed, rather than simply shrugging our shoulders and accepting it.

Saltywater

Jason74 wrote: »

Which is of course exactly the outcome that from a social perspective, we should be looking to avoid. Having more and more wealth concentrated in fewer and fewer hands will is a very unhealthy thing for society as a whole. We need to belooking at how this trend can be reversed, rather than simply shrugging our shoulders and accepting it.

And what would your suggestions be?

CLAPTON

except for unique special places, the solution to the housing issue is simple

build more houses

we just need to remove the un-necessary government imposed constraints and build more houses

wotsthat

Jason74 wrote: »

Which is of course exactly the outcome that from a social perspective, we should be looking to avoid. Having more and more wealth concentrated in fewer and fewer hands will is a very unhealthy thing for society as a whole. We need to belooking at how this trend can be reversed, rather than simply shrugging our shoulders and accepting it.

Yes it should be avoided. Owner occupiers make better neighbours.

We need more houses. Restricting BTL, HTB, etc etc will reduce price pressure but won't deal with the fundamental problem that's staring us in the face.

Jason74

wotsthat wrote: »

Yes it should be avoided. Owner occupiers make better neighbours.

We need more houses. Restricting BTL, HTB, etc etc will reduce price pressure but won't deal with the fundamental problem that's staring us in the face.

Absolutely. The problem is, that "the market" has never provided the number of homes that are requred, so direct public sector intervention is required in the form of a large scale house building programme.

I am however also very much of the view that restricting BTL must be part of the solution. You are right in that we need to build more properties, but given that we do have a shortage, making the best possible use of existing stock is also important.

Making sure people don'thoard property for investent purposes is therefore an important part of the mix. Use of property for purely investment purposes adds to price pressure (as you yourself state), which is clearly a bad thing from a social perspective. It also means that less property is owner occupied. We both agree that this is a bad outcome socially, so the extent to which it happens is something that we should look to reduce.

P.S - in terms of Slatywaters fair question as to what the solution should be, the abovs is effectively it. More building (with the public sector getting directly involved in delivering homes if need be), and much less BTL.

wotsthat

Jason74 wrote: »

Absolutely. The problem is, that "the market" has never provided the number of homes that are requred, so direct public sector intervention is required in the form of a large scale house building programme.

I am however also very much of the view that restricting BTL must be part of the solution. You are right in that we need to build more properties, but given that we do have a shortage, making the best possible use of existing stock is also important.

Making sure people don'thoard property for investent purposes is therefore an important part of the mix. Use of property for purely investment purposes adds to price pressure (as you yourself state), which is clearly a bad thing from a social perspective. It also means that less property is owner occupied. We both agree that this is a bad outcome socially, so the extent to which it happens is something that we should look to reduce.

P.S - in terms of Slatywaters fair question as to what the solution should be, the abovs is effectively it. More building (with the public sector getting directly involved in delivering homes if need be), and much less BTL.

I'd massively extend Help to Buy. Say gift 20% of the building cost to FTB's on the proviso that the homes could only ever be occupied by the owners. Combine that with easing of planning restrictions and banning of bribes being accepted by councils.

You wouldn't need to worry about BTL - it would become less attractive by itself.