The UK housing market is an example of junkie style economics

Graham_Devon

cells wrote: »

its called confirmation bias, eyes ignore what the brain does not wish to see

I know, you have it bad.

Be it politicians, pressure groups, economists, builders themselves or the financers. Every single group states the UK housing market has current issues.

It's absolutely blindingly obvious.

Anyway, it's all rather pointless as I'm sure you can throw 2 and 2 together to make 35.

Thrugelmir

BOE appear to think now that the financial system is stable and the major banks well capitalised to withstand a down turn. So attention will be focussed more on the bubbles that have been created as a consequence of low interest rates and QE etc. The PRA has been mandated with looking at lending (such as BTL) in particular. This is in the context that interest rates may remain below a "normal level" for an extended period yet. With GO, the BOE and PRA all pulling different levers. There's bound to be an impact on the wider housing market in the medium term.

ukcarper

Graham_Devon wrote: »

I know, you have it bad.

Be it politicians, pressure groups, economists, builders themselves or the financers. Every single group states the UK housing market has current issues.

It's absolutely blindingly obvious.

Anyway, it's all rather pointless as I'm sure you can throw 2 and 2 together to make 35.

But it is still possible to buy a reasonably terraced house to many parts of the country for less than £125k. I know prices have become to high in London, the South East and a few other hotspots but it's not the whole country.

kabayiri

ukcarper wrote: »

But it is still possible to buy a reasonably terraced house to many parts of the country for less than £125k. I know prices have become to high in London, the South East and a few other hotspots but it's not the whole country.

This is true, but there is a problem with people using wealth they have accumulated from the hotspots like London to buy property in some of the villages deemed desirable.

There are places in the Peak District where prices bear no reflection to the income levels from surrounding industry. I daresay this is the case elsewhere.

The problem could be eased by allowing these places to expand, except people are against that because it could affect house prices!

It all seems a bit mad to me.

ukcarper

kabayiri wrote: »

This is true, but there is a problem with people using wealth they have accumulated from the hotspots like London to buy property in some of the villages deemed desirable.

There are places in the Peak District where prices bear no reflection to the income levels from surrounding industry. I daresay this is the case elsewhere.

The problem could be eased by allowing these places to expand, except people are against that because it could affect house prices!

It all seems a bit mad to me.

Those nice villages attract a premium whereever they are but because some villages are full of holiday homes it doesn't mean that there is a problem in the whole region and there are less desirable areas in the south east where you can get a 2 bed terrace for £125k.

Is turning nice villages in a national park is the way forward.

Graham_Devon

ukcarper wrote: »

But it is still possible to buy a reasonably terraced house to many parts of the country for less than £125k. I know prices have become to high in London, the South East and a few other hotspots but it's not the whole country.

And?

Is £125k a special number?

Or are we just saying as some houses are £125k (regardless of area, jobs or state of the house) there is no problem with the UK housing market?? As that's what you imply?

ukcarper

Graham_Devon wrote: »

And?

Is £125k a special number?

Or are we just saying as some houses are £125k (regardless of area, jobs or state of the house) there is no problem with the UK housing market?? As that's what you imply?

How affordable do you want property to be I'd say £125k was affordable to 2 people on reasonable salaries. There is definitely a problem in London and the south east but saying it's the whole country detracts from the real problem.

Graham_Devon

ukcarper wrote: »

How affordable do you want property to be I'd say £125k was affordable to 2 people on reasonable salaries. There is definitely a problem in London and the south east but saying it's the whole country detracts from the real problem.

The UK has a housing problem.

It's as simple as that.

ukcarper

Graham_Devon wrote: »

The UK has a housing problem.

It's as simple as that.

That doesn't make it true the truth is certain parts of UK have a housing problem. Feel like answering my question what price do you consider affordable.

cells

ukcarper wrote: »

How affordable do you want property to be I'd say £125k was affordable to 2 people on reasonable salaries. There is definitely a problem in London and the south east but saying it's the whole country detracts from the real problem.

I reckon he thinks the problem is not the price or the shortage/excess but that there are private landlords.

same number of homes same number of people but 60% owners 40% social 0% private rental and he would be happy

but to be fair on him just a few weeks ago I would have agreed that pretty much everywhere in England has a shortage of homes. Now its clear that a lot of places in England do not have a problem as the average terrace costs less than 3.5 x the average full time wage in many English towns and cities.