House prices 2017/18

Generali

cells wrote: »

niet

Local house prices tend to move with local GDP

This is an important difference as the regions or even sub regions can diverge in GDP and that is one of the big reasons London powered ahead on house prices v rEngland as London GVA powered ahead and is still expected to do so in the short and medium term

If local house prices move with local GDP UK house prices will move with the sum of local GDPs, ie UK GDP!

CLAPTON

economic wrote: »

Poor immigrants wouldn't make much difference apart from driving rents higher which means btl makes it more worthwhile. People with money drive prices up in London (good areas at least)

do more people competing for space not drive up rents ?
do not higher rents attract landlords
do more and richer landlords not drive up houses prices?


do not 'poor' immigrants ever become richer and aspire to have families and to live in their own houses?

economic

CLAPTON wrote: »

do more people competing for space not drive up rents ?
do not higher rents attract landlords
do more and richer landlords not drive up houses prices?


do not 'poor' immigrants ever become richer and aspire to have families and to live in their own houses?

Wel that's what I said. Drive up rents and so btl becomes more attractive. Keep in mind though that if you are taking about the poor kind of immigrant (no job or min wage), it would help the poor areas more so however the over riding factor for the London house price growth has certainly been owner occupier so these poor immigrants wouldn't be the main reason at all for the prices.

cells

kilby_007 wrote: »

Ineritance? What is that? I don't know anyone who has inherited that kind of money. My parents inherited a 1/3rd share of a 70K property from my dad's side, and nothing at all from my mum's side.

You never know kilby, the good part of marriage/kids/death is that wealth is spread around. I know of multiple people who like you expected nothing as they were themselves from modest backgrounds but married into (often without realizing the extent) wealth and will get lots (or in many cases it will be their kids rather than themselves)

Most of my friends will be lucky to inherit a 25% - 50% share of their parents property, if they pay their mortgage off. You must move in some high circles! I can definitely see inheritance playing a part in house price inflation but not to the exaggerated extent that you have witnessesed.

It is not exaggerated

there is something like £15 TRILLION in wealth in the UK about 2/3rds of that is not residential property related. Clearly that wealth is not uniformly spread as there are some who die with £billion pound fortunes and some who die with nothing. But a significant portion of people get large gifts/inheritances.

If you think of it logically, if the median family has 2 children, then only 1 generation needs to buy/pay for a home and subsequent generations will either inherit that or inherit wealth of the equivalent.

cells

CLAPTON wrote: »

truly awesome how one midlands family can move London house prices but 3 million immigrants make no different at all.

always jumping onto your pet topic of immigration can you please try to contain it onto your brexit topic


you also missed that I was talking about expensive solid nice desirable limited terrace homes in inner London and not 'London house prices'.

cells

economic wrote: »

You don't get it. It doesn't even matter if the average person has little to no inheritance or have just the average wage. All that matters is there are enough that do that can drive prices up. Welcome to a country with increasing inequality my friend. Where you thought you were doing ok isn't actually so.

I dont like that you try to frame it as a negative. Sure some people get inheritances and it looks unfair to those who do not but why should someone who has saved not be able to pass it onto whoever they like? See it as a positive that we live in a country with lots of wealth which gets pass down and mostly spread across the nation due to marriage/kids/death/divorce. Much much better that than living in a nation where we are all poor and no one gets and nothing is spread across as there is nothing to spread

CLAPTON

economic wrote: »

Wel that's what I said. Drive up rents and so btl becomes more attractive. Keep in mind though that if you are taking about the poor kind of immigrant (no job or min wage), it would help the poor areas more so however the over riding factor for the London house price growth has certainly been owner occupier so these poor immigrants wouldn't be the main reason at all for the prices.

I'm talking about the over 3 million immigrants to London i.e. over 40% of the population of London.


owner occupation is dropping in London and renting becoming the normal


who are you talking about?

economic

cells wrote: »

I dont like that you try to frame it as a negative. Sure some people get inheritances and it looks unfair to those who do not but why should someone who has saved not be able to pass it onto whoever they like? See it as a positive that we live in a country with lots of wealth which gets pass down and mostly spread across the nation due to marriage/kids/death/divorce. Much much better that than living in a nation where we are all poor and no one gets and nothing is spread across as there is nothing to spread

I never meant to come across as negative. I totally agree with you. Inheritances should be passed down as otherwise everyone would only work enough for their own living and there would be no scope to build businesses/innovation/wealth etc.

Rising Inequality of course is not a good thing but it's of course far better then everyone being equally poor of course.

economic

CLAPTON wrote: »

I'm talking about the over 3 million immigrants to London i.e. over 40% of the population of London.


owner occupation is dropping in London and renting becoming the normal


who are you talking about?

Who honestly cares if there are immigrants or not. Fact is people can afford to buy whether some of these people are immigrants or not. Not even sure what we are been debating about anymore

cells

economic wrote: »

Who honestly cares if there are immigrants or not. Fact is people can afford to buy whether some of these people are immigrants or not. Not even sure what we are been debating about anymore

you have to breath you have no choice in the matter. Clapton has to talk non stop about immigrants he has no choice in the matter