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Debate House Prices


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Young unable to buy as rents soar

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Comments

  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    DaveTheMus wrote: »
    I own my own home.

    As do I....
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
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    edited 24 July 2014 at 10:04AM
    Graham_Devon wrote: »
    Rents have risen 11% in the last 5 years. .

    The average rent in June 2009 was £643. (LSL rent index)

    The average rent in June 2014 is £747. (LSL rent index)

    That's an increase of 16.1%.....

    In a time when we've had high unemployment, recession, the worst financial crisis in a century, cuts to housing benefits, etc, rents have risen by 16% in just 5 years.

    Given that rents are not funded by mortgage lending to renters, and benefits have been cut, how do you explain that one Graham if not through supply and demand?
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • mayonnaise
    mayonnaise Posts: 3,690 Forumite
    Graham_Devon wrote: »
    Rents have risen 11% in the last 5 years.

    This is below inflation, but above wage inflation.

    I wouldn't call 11% "soaring". Especially when viewed next to how much house prices have increased in that same timeframe.

    House prices have risen 14% in the last 5 years.
    (LR May 2009 = £150,731 May 2014 = £172,035)

    If you wouldn't call 11% 'soaring', what do you call 14%?
    Don't blame me, I voted Remain.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mayonnaise wrote: »
    House prices have risen 14% in the last 5 years.
    (LR May 2009 = £150,731 May 2014 = £172,035)

    If you wouldn't call 11% 'soaring', what do you call 14%?

    So rents up 16% and house prices up 14%.

    Oh dearie me. You almost feel sorry for him.....
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    HAMISH_MCTAVISH wrote: »
    So rents up 16% and house prices up 14%.

    Oh dearie me. You almost feel sorry for him.....

    Indeed.

    You carry on feeling sorry for me.

    At least I can see the difference 16% makes on £643 and 14% makes on £151,000.

    House prices increase by £20,500

    Rents increase by £1,224

    And theres you making our it's rents have risen more. In percentage terms yes, but we don't earn percentages. We earn money.
  • N1AK
    N1AK Posts: 2,903 Forumite
    Part of the Furniture 1,000 Posts
    Graham_Devon wrote: »
    House prices increase by £20,500

    Rents increase by £1,224

    And theres you making our it's rents have risen more. In percentage terms yes, but we don't earn percentages. We earn money.

    Pretty weak argument here Graham, which is a shame because you made a valid point earlier: House prices have increased at basically the same rate as rents (14% vs 16%) which means rents aren't soaring unless it is also accepted that house prices are soaring as well.

    However to pretend that house prices being £20k higher is somehow important, but £1,224 per annum on rents isn't, is pretty nonsensical. £20k on a house is an extra ~£5k upfront and maybe ~£700pa for the period of a mortgage vs £1,250 in real terms each year for life.
    Having a signature removed for mentioning the removal of a previous signature. Blackwhite bellyfeel double plus good...
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    N1AK wrote: »
    However to pretend that house prices being £20k higher is somehow important, but £1,224 per annum on rents isn't, is pretty nonsensical. £20k on a house is an extra ~£5k upfront and maybe ~£700pa for the period of a mortgage vs £1,250 in real terms each year for life.

    And that's a nonsensical argument in itself, assuming that if you rent, you will rent for life, and if you buy, you buy once.

    You mention that house prices rising 20k means finding an extra 5k upfront.

    That's the issue here. Finding an extra 5k vs finding an extra 1.2k for rent.

    The monetary demands on house prices rising 14% are much higher than the demands from rents rising 16%.
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    kitty_kins wrote: »
    We've just bought (23 and 24). The mortgage on our home is only £25 a month more than our rent was. We have moved from a "2" bedroom coach house (really more of a 1 bed as the 2nd bed is downstairs so we used it as a lounge) to a 3 bedroom 3 storey newbuild town house, which we love!

    That being said, we've been saving for years, despite our age, so that we were able to get a deposit together!

    Congratulations and may I say how refreshing to hear rather than the negative anecdotes portrayed about the "yoof" of today being unable to buy
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If you buy one day you will be free of paying mortgages. If you rent and don't buy you will always pay rent. An additional difference is that once you buy the increases in price also add to your own property/equity.
  • IronWolf
    IronWolf Posts: 6,445 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    AndyGuil wrote: »
    Mortgage repayments are less than rents in London. I gained a bedroom and still paid less on the mortgage repayment than the rent.

    Easy to make assertions without any evidence...
    Faith, hope, charity, these three; but the greatest of these is charity.
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