London new builds number?

NorthFin

1. popular mania? YES

Property prices are on everyone lips, in the news and everyone loves to talk about them.

2. excessive debt? Oh YES!

Very excessive debt compared to the long term norm of about 3.5x income.

3. greater fool theory? Most definitely.

People do not mind excessive debt, if they think there will be a greater fool who will value their property even high in the future.

4. high volumes at variance with intrinsic values? Yes by every metric you look at. Especially London.


5. misallocation of resources? HTB? Taxpayer money on a last ditch attempt to keep property prices sky high for a little longer.

6. spend more because they "feel" richer?

Rising property prices, use house as ATM? IT should say BORROW more because they feel richer.

Bubble_and_Squeak

NorthFin wrote: »

1. popular mania? YES

Property prices are on everyone lips, in the news and everyone loves to talk about them.

2. excessive debt? Oh YES!

Very excessive debt compared to the long term norm of about 3.5x income.

3. greater fool theory? Most definitely.

People do not mind excessive debt, if they think there will be a greater fool who will value their property even high in the future.

4. high volumes at variance with intrinsic values? Yes by every metric you look at. Especially London.


5. misallocation of resources? HTB? Taxpayer money on a last ditch attempt to keep property prices sky high for a little longer.
6. spend more because they "feel" richer

i feel this is the chink in the armor of the bubble. with the election only 6 months away there is not enough time to dream up and implement new schemes to keep it going. i fully expect some kind of interest free loan for people to buy houses with as a key election pledge but by the time the election is done and dusted the market forces may be unstoppable.

mayonnaise

It's good we have elections.

It gives the deluded housing bears an aim in life. A time in the future when everything will be better. After the next election. When houses will be cheap. Just wait until the next election....:rotfl:

Bubble_and_Squeak

mayonnaise wrote: »

It's good we have elections.

It gives the deluded housing bears an aim in life. A time in the future when everything will be better. After the next election. When houses will be cheap. Just wait until the next election....:rotfl:

just you wait, 'enry 'iggins

mayonnaise

Bubble_and_Squeak wrote: »

just you wait, 'enry 'iggins

I'll wait.

Another numpty on here was also eagerly awaiting elections as a turning point after which he would scoop up a cheap house.

https://forums.moneysavingexpert.com/discussion/comment/23808979#Comment_23808979

brit1234 wrote:

These low interest rates are just delaying the problem, I wonder if someone wants it delayed to after the next election. House prices will return to normal values, the number of cash buyers are running out no matter now much the vested interest groups talk the market up.

That was the 2010 election by the way... :rotfl:

Yes, I know...it's different now :rotfl:

Bubble_and_Squeak

mayonnaise wrote: »

I'll wait.

Another numpty on here was also eagerly awaiting elections as a turning point after which he would scoop up a cheap house.

https://forums.moneysavingexpert.com/discussion/comment/23808979#Comment_23808979



That was the 2010 election by the way... :rotfl:

Yes, I know...it's different now :rotfl:

i suppose that poster didn't know funding for lending and help to buy were coming. did the tories fight the election on those policies or did they sneak them in through the back door?

cells

London population is going up by 100,000 per year.

London needs 50,000+ homes built per year plus lots of other buildings (shops offices warehouses etc)

With the ten year average build rate closer to 30% of what is needed London will continue to get more and more expensive.

3 bed ex council homes in the worse bits of z2 now fetch £24k a year in rent.

Bubble_and_Squeak

cells wrote: »

London population is going up by 100,000 per year.

London needs 50,000+ homes built per year plus lots of other buildings (shops offices warehouses etc)

With the ten year average build rate closer to 30% of what is needed London will continue to get more and more expensive.

3 bed ex council homes in the worse bits of z2 now fetch £24k a year in rent.

your theory is based on an assumption

cells

Bubble_and_Squeak wrote: »

your theory is based on an assumption

Its worked well for me over the last ten years

Bubble_and_Squeak

cells wrote: »

Its worked well for me over the last ten years

just because something has happened in the past doesn't mean it will happen in the future