House prices to keep rising and building more won't be enough

Mistermeaner

Building more will certainly help, plus redistributing the population a bit - move businesses and the jobs with them to northern hell holes.

You can pay people with pigs and chickens up here. Win win

wymondham

MPD wrote: »

Where I live you could buy a 4 bed detached for £220,000 5 years ago, now you can buy a 4 bed detached for £220,000. Stagnating EM.

On the other hand I bought a home, not an investment.

That's encouraging news. Its the same house as it was 5 years ago so no real reason for it to be worth 25x the amount....

princeofpounds

that's great news... high house prices is good for everyone! (oops, sorry thought I was a Tory for a minute!

Seriously?


That house price boom under the labour governments of three terms never happened?


I agree that failing to deal with housing costs is a problem for this government and the coalition. They have made some positive moves on liberalising planning, but it's not enough.


But to pretend it is a preoccupation of the Tories alone is a bit rich.

lisyloo

But to pretend it is a preoccupation of the Tories alone is a bit rich.

I don't think it's a direct pre-occupation of the Tories - more a consequence of other things.
We had a global financial crisis - QE, emergency low rates have created the situation as a consequence rather than a direct aim.
Now it's overheating a bit they need to take the heat out which the recent BTL tax changes and other measures are designed to do.

People on here have a mindset around personal finance which is understandable, but the government is concerned about business and the whole economy.
The Tories also failed on imigration policy which doesn't help the housing crisis.

GunJack

lisyloo wrote: »

I think we'd all like the equity in isolation, but thinking past the individual gain it's causing a lot of misery - both in terms of the people who have to live futher out and have awful commutes and those mortgaging themselves to the hilt.
I don't think I do want excessive personal gain at the expense of others misery TBH - in particular future generations.

I'm not sure what options you want but if you mean moving then it looks like you'll have to do it the old fashioned way and gain equity by paying down the mortgae each month. Exceptionally low interest rates should help.

the problem is that me and many others have probably got a lot higher LTV now than we did despite paying the large mortgage every month, which severely restricts access to decent (lower) re-mortgage deals.......at least if we were in the bubble my LTV would have been around 40% and we'd have options.....

cells

with some London councils charging in excess of £100,000 in various contributions and fees per property is it any wonder prices are expensive and build rates low?

lisyloo

that me and many others have probably got a lot higher LTV now than we did

Are you saying your house price has gone down in nominal terms?
If so then that's a consequence of owning isn't it?
On the one hand you are saying you'd love masive capital appreciation (which is understandable) but for that you have to be willing to take a risk with your capital which you are now complaining about.
Apologies if I've misunderstood, but you seem to be saying you want the upside but not the potential downside.

and we'd have options.....

Q. So who is ultimtely responsible for the reduction in your options because you chose to buy?

GunJack

lisyloo wrote: »

Are you saying your house price has gone down in nominal terms?
If so then that's a consequence of owning isn't it?
On the one hand you are saying you'd love masive capital appreciation (which is understandable) but for that you have to be willing to take a risk with your capital which you are now complaining about.
Apologies if I've misunderstood, but you seem to be saying you want the upside but not the potential downside.

Q. So who is ultimtely responsible for the reduction in your options because you chose to buy?

1. I'm saying around here real prices are still around 20% lower than 2007, and I'm sure we'll not be the only area like that

2. I'm not after massive capital growth, but just a recovery to where they were in 2007 I'd be more than happy with....it's a family home, not just an asset (both elements of this I appreciate in this section of the forum may make me seem a little odd )

3. LTV - e.g was 88% originally in 2007, currently still 87% despite repayment mtg, if prices recovered to 2007 levels would be 67% and access to better mortgage

3. yes I do think you've misunderstood my points.....

padington

GunJack wrote: »

1. I'm saying around here real prices are still around 20% lower than 2007, and I'm sure we'll not be the only area like that

2. I'm not after massive capital growth, but just a recovery to where they were in 2007 I'd be more than happy with....it's a family home, not just an asset (both elements of this I appreciate in this section of the forum may make me seem a little odd )

3. LTV - e.g was 88% originally in 2007, currently still 87% despite repayment mtg, if prices recovered to 2007 levels would be 67% and access to better mortgage

3. yes I do think you've misunderstood my points.....

The tech sector is a very important city fertiliser and the tech sector feel the need to be close to each other and have adopted just a few significant cities, from a guess I imagine these are ( London, Brighton, Cambridge, Oxford, Brighton, Bristol, and Manchester ). Anywhere else is effectively not playing a significant part in the UK digital revolution and won't ever enjoy HPI like it may have once done. Whilst over the long term the 'chosen' cities may develop HPI like they have never enjoyed before. Especially London ( and maybe her sister city, Brighton) as London becomes a key technological global hub.

lisyloo

I'm not after massive capital growth, but just a recovery to where they were in 2007 I'd be more than happy with

I'm sure you will get that long term.

it's a family home, not just an asset (both elements of this I appreciate in this section of the forum may make me seem a little odd)

Nothing wrong with that in my view as long as people realise you can't both have the cash AND live it. That may sound blindingly obvious but some people expect their home to be their pension when they downsize but at the same time don't want to give up their family home when they get to retirement. I'm stating the obvious but whilst you are using the asset for living then it's not available as an asset.

yes I do think you've misunderstood my points.....

Sorry then.
You appeared to be complaining about the lack of options, yet the root cause is your decision to buy an illiquid asset (as it happens in an area that isn't a hotspot).
On a human level I sympathise, but it's still a consequence of your actions.