Suggestions for controlling house price rises

marlot

PasturesNew wrote: »

That's a tricky one as that's how all businesses work: income-expenses="your money". ...

Within reason, the model is fine, but excessive borrowing drives up asset prices and makes for bubbles.

eg. allowing interest to be deducted from income is the model used by venture capitalist firms. Instead of building the company in a controlled and sensible manner, they load it with debt. When rates rise, the company goes insolvent and everyone loses their jobs.

wotsthat

If there was a shortage of spuds most people would suggest this should be dealt with by growing more spuds.

For some reason the obvious seems to elude people when it comes to a housing shortage.

Cornucopia

People don't like the suggestion of more building because they are worried that they will find the new homes in their street, possibly bringing in new undesirable residents.

There needs to be substantial new building.

There needs to be substantial refurbishment and re-purposing of existing property.

New technology needs to be applied to home building.

Planning needs to be used to encourage not dissuade development.

And if none of that works, bring in some incentives...

- for Build to Rent
- for Affordable rents
- for quality/eco standards in Build and Rent

PasturesNew

wotsthat wrote: »

If there was a shortage of spuds most people would suggest this should be dealt with by growing more spuds.

There was in the 70s .... and prices went up. Chips cost 3x what they had cost some months before .... and once more spuds were available the prices never did go back to the pre-shortage prices.

People ate parsnips instead ...... not much choice of where to live if it's not a house/flat/whatever.... caravans? vans? cars? tents? sheds? Lots of that going on.

yertiz_2

marlot wrote: »

don't allow BTL landlords to offset mortgage interest against income for tax. Would deflate the market quite nicely.

Interestingly, came across this today...



https://uk.finance.yahoo.com/news/property-is-a-bubble-we-need-to-burst-this-is-how-153525355.html

CLAPTON

yertiz wrote: »

Interestingly, came across this today...



https://uk.finance.yahoo.com/news/property-is-a-bubble-we-need-to-burst-this-is-how-153525355.html

depends upon whether you think shortage of housing has anything to do with price

Bantex_2

yertiz wrote: »

Interestingly, came across this today...



https://uk.finance.yahoo.com/news/property-is-a-bubble-we-need-to-burst-this-is-how-153525355.html

The high level of CGT on non primary residence could be interesting. Could also be lucrative for the treasury.

CLAPTON

Bantex wrote: »

The high level of CGT on non primary residence could be interesting. Could also be lucrative for the treasury.

given the higher density of people in rented property compared to owner occupiers then discouraging rented will not have the intended effect.

Bantex_2

CLAPTON wrote: »

given the higher density of people in rented property compared to owner occupiers then discouraging rented will not have the intended effect.

I believe that for the vast majority that owning is better than renting and the more the market is slanted towards OO rather than investors the better things will be.

CLAPTON

Bantex wrote: »

I believe that for the vast majority that owning is better than renting and the more the market is slanted towards OO rather than investors the better things will be.

I agree that OO is better than renting
however if we don't have sufficient housing for everyone to own then artificially trying to slant things to OO won't work as the price of renting will rise and so being a landlord will become more profitable.

the solution is building more houses rather than increasing taxes.