Housing Boom on the Way....

westernpromise

BobQ wrote: »

All true but why is Cameron planning to do something positive now? A year ago he could have built more and the disposal income for those without a house has been falling for some time.

Stimulating the construction industry could have happened before for the benefit of the wider economy. HTB was a start but what else has happened?

How could he have built more?

Since when did the state build houses so as to sell them to FTBs?

Crashy_Time

westernpromise wrote: »

UKIP are a corrupt and greedy children's crusade.

Should do alright in UK politics then.....

westernpromise

stator wrote: »

Step 1: Ban buy to let mortgages > 50% LTV. That would get rid off many have a go landlords and control house price inflation.

No, it would just mean that FTBs and mortgaged landlords were outbid by cash buyers, but at lower prices.

This is already happening post-MMR. A buyer who could service a mortgage at 4x salary isn't allowed to borrow that much, so his bid for a house is capped at 3.5x salary + deposit - SDLT. This means that, whereas an investor previously had to pay 4x that salary + deposit + £1 to get the house, he now gets it for 0.5 of a salary less. This measure therefore creates more landlords and fewer buyers.

Step 2: Introduce Right to Buy for private tenants. 1% discount from the current value of the property for every year you've lived in the house.

At which point all tenancies will become 11-month lets, at the end of which tenants will be evicted. Shares in letting agencies will be a good buy.

Step 3: Control rent increases

That worked so well with the Rent Act of 1965.

Step 4: Build, build, build more houses. Directly. Don't hope the private sector builds. Don't create stupid new buy schemes. Build houses, like the government did post war.

And the government post war rented those houses out. It didn't sell them, and it didn't give them away.

westernpromise

Crashy_Time wrote: »

BTL`s rushing for the exit should do it, no need for mass building. Government knows this and will never do a mass building programme in the UK.

As rented housing is more densely occupied than owner-occupied, any reduction in rented supply will make the supply of housing worse.

C_Mababejive

Landofwood wrote: »

This doesn't make any sense. I'm gonna walk away from crazy town now.

Well i ask again,,just for my own education...why around 2008/09 did houses as an asset class suddenly double or triple?

Crashy_Time

westernpromise wrote: »

As rented housing is more densely occupied than owner-occupied, any reduction in rented supply will make the supply of housing worse.

There are empty BTL`s round me, not just empty rooms, can`t see anything but oversupply of people who thought BTL was a great idea, a "pension".

Crashy_Time

C_Mababejive wrote: »

Well i ask again,,just for my own education...why around 2008/09 did houses as an asset class suddenly double or triple?

I thought they crashed then, they tripled in the run up to 2007/8? The reason was cheap credit, and a coordinated ramping exercise by the media to make people believe that housing was the best thing to borrow money for.

cells

Crashy_Time wrote: »

drushing for the exit should do it, no need for mass building. Government knows this and will never do a mass building programme in the UK.

Seeing as renters live more densely than owners where will the overspill go?

Eg 5 million rental homes with 3.5 persons each become 5 million owner homes with 2.5 persons each. You have just created five million homeless

Crashy_Time

cells wrote: »

Seeing as renters live more densely than owners where will the overspill go?

Eg 5 million rental homes with 3.5 persons each become 5 million owner homes with 2.5 persons each. You have just created five million homeless

This is the sort of thinking that has got many a would be BTL`er into deep doo doo I`m afraid. They won`t be making any more land either.

marathonic

Crashy_Time wrote: »

They won`t be making any more land either.

All the more reason for prices to rise!!!!