Twenty years on – the winners and losers of Britain’s property boom

mystic_trev

It is two decades since the great British property boom began. Since 1996, average house prices have risen by an extraordinary 281% across the UK, while in London the figure is 501%, according to the Nationwide house price index. Buy-to-let landlords have benefited the most, typically earning returns of £14,987 for each £1,000 they invested 20 years ago.

But few of the people buying or selling in 1996 could have predicted the huge financial impact their decisions would have on the rest of their lives. We spoke to those who purchased their property that year, but also people who got off the ladder and started renting instead. It is a tale of two Britains, where buyers have made millions and renters have shelled out tens of thousands of pounds and live a fragile existence.

http://www.theguardian.com/money/2016/jan/23/britain-property-boom-losers-winners-housing-market-renting

mayonnaise

Dagmar Noble:

I’ve no regrets. I prefer renting to owning. Having experienced repossession I don’t feel there’s any security in buying.

...followed by:

I’d presumed that as a pensioner I’d finally be financially secure. But I’m not.

You couldn't make it up.

chucknorris

mayonnaise wrote: »

Dagmar Noble:

...followed by:
You couldn't make it up.

Yes, that is very sad reading. With the demise of the final/career salary pensions, it is even more important for everyone to carefully plan ahead for their retirement, sadly many don't seem to be doing it though.

anchovypizza

chucknorris wrote: »

Yes, that is very sad reading. With the demise of the final/career salary pensions, it is even more important for everyone to carefully plan ahead for their retirement, sadly many don't seem to be doing it though.

That is why we need to destroy the terrible self serving BTL industry as it stands and redistribute that wealth back to the people who are being ripped off by it, will solve loads of problems.

And you guys crack me constantly with how you keep finding these profound comments you claim to find hidden in the posts whose message you do not like

wotsthat

The Guardian are selling a story that you must be a winner if your house goes up in price and used a bit of success bias to prove it.

I think the real story is more interesting. Whilst the winners were making a success of life their housing wealth happened to increase.

wotsthat

anchovypizza wrote: »

That is why we need to destroy the terrible self serving BTL industry as it stands and redistribute that wealth back to the people who are being ripped off by it, will solve loads of problems.

The losers will keep on losing and winners will keep on winning irrespective of whether BTL is destroyed.

antrobus

mayonnaise wrote: »

Dagmar Noble:

You missed this

I’ve no regrets. I prefer renting to owning.

...preceeded by:

...most of my rent has been paid for by housing benefit.

A lot of people might 'prefer to rent' if someone else was paying for it.:)

mystic_trev

anchovypizza wrote: »

That is why we need to destroy the terrible self serving BTL industry as it stands and redistribute that wealth back to the people who are being ripped off by it, will solve loads of problems.

It depends how you look at it. When I bought my first Investment property in 1996, the phrase BTL didn't even exist. Some friends thought I was mad even thinking of Investing in Property, after the Property crash of the late 80's early 90's many thought it was going to keep on tanking. I took the risk and it worked out. Another flat in that block has just gone on the Market for five times what I paid.

There's no point in getting bitter and twisted just because you've missed out on the last 20 year Property party. Your only solution seems to be changing to Communist policies.

It's all about Risk and reward.

Do keep posting, you make me smile on an otherwise dull day.

mwpt

wotsthat wrote: »

The Guardian are selling a story that you must be a winner if your house goes up in price and used a bit of success bias to prove it.

I think the real story is more interesting. Whilst the winners were making a success of life their housing wealth happened to increase.

What a lot of crap. It is pretty much the summary of some of the views here ie. renters are losers.

chucknorris

mwpt wrote: »

What a lot of crap. It is pretty much the summary of some of the views here ie. renters are losers.

I don't think she was a loser because she rented, renting doesn't necessarily mean that you would not be comfortable. I wouldn’t even use the term loser, I would prefer ‘unfortunate’. But she said:

'I’d presumed that as a pensioner, I’d finally be financially secure. But I’m not'

It doesn’t give much in the way of details, but financial security needs to be planned, not assumed, so in fairness, she probably did sleepwalk into pension poverty, without much planning of her pension finances, which I fear many more are going to do so.

SailorSam

All hail the wonderful Maggie for selling off the Council houses.
When was that about 40yrs ago. ?
At the time my Mum wanted to stay living as tenant. It was what everyone had always done. But i managed to persuade her that £7k was a good buy, and with my help she could afford it, Sold about 8yrs later for £22k but without that she'd never have got on the housing ladder.
I thought Maggie had it right at the time to get everyone involved in being more responsible for their own homes. But looking back now and seeing people looking for somewhere to live and not having access to a Council house, it was probably a bad idea.