Affordable Housing - Can it be done?

CB1979_2

dannyboycey wrote: »

I guess it's debatable as to whether they will suffer unjustly, as there are clear indicators that the market has peaked. It's not inside information and they didn't HAVE to buy, despite many having a mindset that they do.

yet all these non-homeowners HAVE to own?

VERY hypocrtical!

A_Fool_&_His_Borrowed_Mon

Gorgeous_George wrote: »

Mmmm, can we do the same with Mercedes cars?

Dropping prices would not necessarily make homes more affordable. For example, lower prices coupled with lower wages or higher ineterest rates would nor impact affordability. The equation is more complex than 1 + 1 = 2.

Supply and demand. Prices are driven by demand. there is too much demand for too few houses. Reduce demand by killing off a significant proportion of the popuation (bird flu/war?) or by encouraging people to share homes (marriage tax breaks/lodger schemes/zero Stamp Duty when downsizing?) or by limiting immigration/encouraging emigration. Increase supply by making best use of current housing stock, redeploying large businesses more evenly or building more houses.

Whatever else, interest rates are not the answer. They will produce cheaper houses but they are not likely to be significantly more affordable.

Increase wages. Whatever happens to wages will not increase affordability for the masses. If we all were awarded a 50% rise tomorrow, house prices would rise accordingly and there would still be those who could not afford to live where they wish.

Build more houses is the obvious answer. Make them council owned and protected from right to buy. But don't mix the estates with private homes as this rarely pleases either tenants or owners. Affordable rents rather than affordable homes is the way ahead.



GG

That old chestnut again = shortage of supply.

Shortage of supply is a red herring /wild goose chase as to the cause of hpi. Explain why prices World-wide have risen, using the "shortage of supply" red herring statement.

As for if prices were lower, they wont be affordable.
Tell me how it was affordable towards the end of the 90's with higher rates, & now they're not affordable today with lower rates.


The crux of it is: Money supply, debt expansion & Low rates.

Take any of the above away and the market is fooked.

CYBERCIDERSAVER

For me there are 2 main reasons for high house prices.

The rich londoners with their multiple homes that are left idle for long periods. Forcing FTBs out of their local area. It gauks me to think that in some areas they get reduced council tax due to them being a second home. They should pay the same as everyone else for every home they own. They don't turn the street light outside ther 2nd home while they're off in London.

But the biggest issue is Buy to let. I heard yesterday that they get tax breaks for BTLs!! A lot of the flats and BTB house are marketed as FTB/investment. no sooner do you go and look at a property than it's been snapped up by someone who can make a profit by buying so can afford to pay the asking price!!

The reality is house prices aren't going to fall any time soon.(in my opinion)
How about poeople who want to invest in property (The government can't start doing things to undermine the capitalist economy. Forcing people out of business) invest in shared ownership schemes. Give them loads of tax breaks and sting the ones who insist on private teneants.


Put a legal limit on how much people can borrow. Someone said this and it is a good idea.:beer:

As for Guy_montag. He doesn't want people "breeding" Okay But who's gonna wipe his bum when he is sat gibbering in an old peoples home???:p

Guy_Montag

CYBERCIDERSAVER wrote: »

For me there are 2 main reasons for high house prices.

The rich londoners with their multiple homes that are left idle for long periods. Forcing FTBs out of their local area. It gauks me to think that in some areas they get reduced council tax due to them being a second home. They should pay the same as everyone else for every home they own. They don't turn the street light outside ther 2nd home while they're off in London.

But the biggest issue is Buy to let. I heard yesterday that they get tax breaks for BTLs!! A lot of the flats and BTB house are marketed as FTB/investment. no sooner do you go and look at a property than it's been snapped up by someone who can make a profit by buying so can afford to pay the asking price!!

The reality is house prices aren't going to fall any time soon.(in my opinion)
How about poeople who want to invest in property (The government can't start doing things to undermine the capitalist economy. Forcing people out of business) invest in shared ownership schemes. Give them loads of tax breaks and sting the ones who insist on private teneants.


Put a legal limit on how much people can borrow. Someone said this and it is a good idea.:beer:

As for Guy_montag. He doesn't want people "breeding" Okay But who's gonna wipe his bum when he is sat gibbering in an old peoples home???:p

I hope to be euthanased around that time - montag flavoured Soylent green anyone?