What's the verdict for home owners after today's budget

lisyloo

There was some stuff that makes renting appear less attractive

What was that please?

wotsthat

lisyloo wrote: »

What was that please?

Ask anyone on £30k who thought renting a social or council house was a good idea for the long term.

I hope they were saving the subsidy towards a deposit because saving is about to get a little more difficult and that renting vs buying calculation has shifted.

lisyloo

Right, so you're referring to social housing rent I think. Got it.

missyrichards

Generali wrote: »

There are people in genuine need who can't gain access to decent accommodation whilst people on six figure sums are living in subsidised housing. It's nuts.

I agree with this.

wotsthat

lisyloo wrote: »

Right, so you're referring to social housing rent I think. Got it.

Was there anything in the budget which made private renting suddenly more attractive?

The BTL changes have given those waiting for a crash a crumb of hope but I fear they'll remain disappointed.

lisyloo

Was there anything in the budget which made private renting suddenly more attractive?

Nothing that I am aware of.

I was just trying to work out what you were referring to to "make renting appear less attractive" and all I can find is social housing rents going up.

The BTL changes have given those waiting for a crash a crumb of hope but I fear they'll remain disappointed.

Yep I think so too.
I do think it makes BTL less attractive and we may see a higher ratio of owner occupiers in future.
Of course this is one factor amongst many others so downward pressure by one factor does not equal nominal falls. It could be cancelled by upward pressure from other factors say immigration.
From an investment perspective you have to look at what else is available as well. If BTL is not as good as it was but it's still better than everything else then it might not change people's minds, but the concensus on Motley Fool amongst seasoned investors was that this would be a game changer for some investors (or potential investors).
As always with the housing market we won't know for a while especially as these changes start April 2017, but I'm gald (like you) that the subsidy is being removed. I simply think that's right.

Thrugelmir

wotsthat wrote: »

Was there any

The BTL changes have given those waiting for a crash a crumb of hope but I fear they'll remain disappointed.

There'll be no crash. But there'll be huge disappointment amongst those who believe that the laws of gravity no longer apply. As the direction of policy yesterday is very clear. With more lever pulling to come.

floridaman

Sailerson - sorry I should have said my views - I am a proud to be part of the elite group known as home owners, like all homeowners I hope we are protected

mwpt

wotsthat wrote: »

If I wanted to be a home-owner I wouldn't take the risk and keep renting. It's an expensive gamble and losing it does terrible things to people.

I wish I'd realised this a long time ago. In the end, the risk of not owning turned out to be far greater than the risk of owning and seeing loss of equity.

Having said that, I saved a lot while house sharing, and made decent returns on my deposit while waiting to buy.

cells

thequant wrote: »

This Budget is going to cause an explosion in house prices.


With a min wage of £9 an hour, any person who has a Mcdegree from McUni, in an McSubject, With McClassification doing a McJob such as working in Starbucks is now guaranteed an wage of £18k a year.


For a couple at X5 Mortgage lending, this equates to a £180k Mortgage.


No matter where you are, there is no excuse that you can't buy a place. If you are in the North East you can now get a decent 3/4 bed detached house in a nice area for working in Poundland.


At the other extreme, you can get a small 1 bed flat In Londons outer regions.

probably a lot of people on min wage dont work 40h a week 50 weeks a year as their employer doesnt offer them that many hours

lots of shop workers are on a lot less than 40 hours