Suggestions for controlling house price rises

BobQ

Not sure that there is one solution.

I would start by capping the Help to Buy assistance to a level that meets the needs of those outside London and the SE.

Building more houses would help.

Having much tighter planning restrictions in areas where prices are higher.

Encouraging business to relocate outside of London and SE (reducing business rates and cost of employment)

Restricting Mortgage Interest Relief in some way (eg only being able to claim 75% of it, maybe even 50% or only allowing it to be claimed outside the M25 or a similar geographical area.

Voting UKIP might solve the problem as businesses relocate to EU countries

BobQ

PaulF81 wrote: »

yep.


http://www.telegraph.co.uk/finance/economics/10367229/OBR-UK-hurt-more-by-lack-of-investment-than-austerity.html

Does that say that business is short of funds to invest?

Or does it say that business is not investing the funds it has because they see limited returns from doing so?

TickersPlaysPop

CLAPTON wrote: »

is there any evidence that UK industry is short of funds for investment?

Have you not been reading news papers or watching the news for the past 5 yrs?

TickersPlaysPop

(Text removed by MSE Forum Team)

Maybe a sign off like this would help us understand the motivations of your posts?.....

1) Purveyor of questioning of those that do not comply with BTL'ism
2) Underminer of those that do not comply with BTL'ism
3) Protector of purely just building houses to 'fix' rapid HPI
4) against anything to regulate/ control landlords
5) preferer of one liners over comprehensive explanation

TickersPlaysPop

An idea for slowing HPI? One which I have been posting comprehensively for a while now...

Make either only new builds or all properties that become available on the housing market, for owner occupiers ONLY for 6mths before opening the property to buy to letters.

Also, have you all considered the fact that some of the people buying property will be those in rented accommodation? So shifting some people from rented into owner occupier property will ease the proposed problem of limiting rental availability..... Now.... I understand the fact rental property contains more people per £ property value, however, FTB property will be mostly 1 or 2 bed places.... and high density occupancy rental property will be 3-+ bedroom. So it's best to compare apples with apples.

CLAPTON

PaulF81 wrote: »

yep.


http://www.telegraph.co.uk/finance/economics/10367229/OBR-UK-hurt-more-by-lack-of-investment-than-austerity.html

it doesn't say there is a lack of FUNDS for investment by UK industry but that they don't actually choose to invest.

a very different thing

this has been noted many times, with cash rich companies choosing to pay high dividends but not finding profitable ways to invest.
Not totally surprising given the poor state of EU market and the depressed state of the UK.

Hopefully that will begin to change but the state of EU will hold progress back.

Of course the cuts in government investment have been a negative too.

antrobus

TickersPlaysPop wrote: »

Have you not been reading news papers or watching the news for the past 5 yrs?

Clearly your reading of newspapers has been somewhat selective.

The key hindrance to growth is not absent credit but simply that businesses are reluctant to invest.

Roll up for Britain's £750bn corporate cash mountain
http://www.telegraph.co.uk/finance/comment/jeremy-warner/9172381/Roll-up-for-Britains-750bn-corporate-cash-mountain.html

IveSeenTheLight

PasturesNew wrote: »

Only allow 1 BTL and only if you own your house outright already.... if you want more you have to BUILD them.

Those possessing outside of these rules have to get rid within 10 years.

What would be the impact of your proposition on the current and future rental market.

Would the severely restricted rental supply impinge more prominently than in the Owner Occupancy sector due to quantity of supply?

IveSeenTheLight

PasturesNew wrote: »

And increasing houses available to be bought - many would-be buyers are finding it hard to buy a house as BTLers are "snapping" them up, with EAs often seeing a BTL sale as a more assured sale (commission).

The number of houses does not change, so no less people go without a bed for the night.... only the balance of opportunity and ownership changes.... and HPI is built on more sane foundations.

That a short term view, but how about future generations who find there is significantly less opportunity to rent.

Consider that homes were 100% owned outright.

Where do people have the opportunity to rent?

Would this impact on the mobility of the workforce?

What would be the government policy to house those requiring to rent be if there were no properties

I recently built my own property.
To do so, the market dictated I had to sell my family home whilst the property was being built, so rented (at a significantly greater cost than my home cost).
I've actually supported resolving the root cause by building, yet where would I have gone if there was no rental homes available.

In my local area, EA's are actively advertising for properties to rent because there is a shortage.

Your proposal is effectively reducing that stock even further, which in turn would create a crisis in the Rental Market.

I believe you need to consider the impact of both markets, OO and Rental, in any proposed solution.

There's no point in helping one if it cripples the other

IveSeenTheLight

antrobus wrote: »

So building more houses isn't an option then?

Congratulations, this is considering the root cause.

You'd have thought some people might have mentioned this in this forum before now.