Help to bubble

AG47

http://www.propertyindustryeye.com/uk-housing-market-is-a-bubble-with-help-to-buy-pushing-up-prices-warns-bank-strategist/

wonder what the next phase will be in the help to bubble scheme of things.

Next they may try 50% interest free for 5 years with only. 2.5% deposit required and there may be schemes in place for the government to lend that deposit in the first place anyway.

They have to do some5ing quite extreme to help keep the bubble inflated so much....

thickasabrick

From this article in the Economist.
"In the long run, prices must bear some relation to incomes: people can only increase the share of their earnings they spend on lodging for so long before they run out of money"

Unfortunately only lists the major global cities. Wonder if there is one for the cities in the UK ?
e.g.

http://www.centreforcities.org/data-tool/#graph=map&city=show-all&indicator=housing-affordability-ratio\\single\\2017



Select "House Prices against": Income
House prices in London are 56% overvalued against income

https://www.economist.com/graphic-detail/2018/08/09/global-cities-house-price-index
Global cities house-price index
Our interactive guide to housing data in the world!!!8217;s most desirable cities

AG47 wrote: »

http://www.propertyindustryeye.com/uk-housing-market-is-a-bubble-with-help-to-buy-pushing-up-prices-warns-bank-strategist/

wonder what the next phase will be in the help to bubble scheme of things.

Next they may try 50% interest free for 5 years with only. 2.5% deposit required and there may be schemes in place for the government to lend that deposit in the first place anyway.

They have to do someing quite extreme to help keep the bubble inflated so much....

AG47

thickasabrick wrote: »

From this article in the Economist.
"In the long run, prices must bear some relation to incomes: people can only increase the share of their earnings they spend on lodging for so long before they run out of money"

Unfortunately only lists the major global cities. Wonder if there is one for the cities in the UK ?
e.g.

http://www.centreforcities.org/data-tool/#graph=map&city=show-all&indicator=housing-affordability-ratio\\single\\2017



Select "House Prices against": Income
House prices in London are 56% overvalued against income

https://www.economist.com/graphic-detail/2018/08/09/global-cities-house-price-index
Global cities house-price index
Our interactive guide to housing data in the world!!!8217;s most desirable cities

So either waged go up 56% or property needs to fall 56%.



I can’t see wages going up in this sorry state of affairs:money:

ukcarper

AG47 wrote: »

So either waged go up 56% or property needs to fall 56%.



I can’t see wages going up in this sorry state of affairs:money:

The value of a property depends on a lot more than average earnings.

Graham_Devon

ukcarper wrote: »

The value of a property depends on a lot more than average earnings.

Indeed.

And support such as HTB is just one of those things that defines the price of a home.

On a secondary note, I see that the Interest Only issue could now be sorted, with those coming to the end of an interest only period being offered lifetime interest only mortgages.

So those with interest only mortgages, who essentially can't afford the house they live in, will now continue living in a house they can't afford to live in.

No real huge beef with this - but all this stuff add's to the mix when it comes to house prices. If you stop all distressed sales and ensure people who can't afford the house, remain in the house for political reasons, of course it's going to effect those below them.

Earnings, in situations which completely ignore the earnings, such as the above, therefore become very irrelevant.

ukcarper

Graham_Devon wrote: »

Indeed.

And support such as HTB is just one of those things that defines the price of a home.

On a secondary note, I see that the Interest Only issue could now be sorted, with those coming to the end of an interest only period being offered lifetime interest only mortgages.

So those with interest only mortgages, who essentially can't afford the house they live in, will now continue living in a house they can't afford to live in.

No real huge beef with this - but all this stuff add's to the mix when it comes to house prices. If you stop all distressed sales and ensure people who can't afford the house, remain in the house for political reasons, of course it's going to effect those below them.

Earnings, in situations which completely ignore the earnings, such as the above, therefore become very irrelevant.

The biggest factor is supply and demand as can be see by the variation in prices across the country.

chucknorris

AG47 wrote: »

http://www.propertyindustryeye.com/uk-housing-market-is-a-bubble-with-help-to-buy-pushing-up-prices-warns-bank-strategist/

wonder what the next phase will be in the help to bubble scheme of things.

Next they may try 50% interest free for 5 years with only. 2.5% deposit required and there may be schemes in place for the government to lend that deposit in the first place anyway.

They have to do some5ing quite extreme to help keep the bubble inflated so much....

But haven't you invested in bitcoin? If you have, wouldn't it be a bit strange that you are going on and on about a housing bubble?

HPC_Ghuol_Hunter

What is help to bubble? It does not make sense to me. Please explain with citations to previous history.

AFF8879

chucknorris wrote: »

But haven't you invested in bitcoin? If you have, wouldn't it be a bit strange that you are going on and on about a housing bubble?

Of course, if Bitcoin is a bubble that he/she has bought into then of course they will do nothing but hype it up Of course, people do that with property too, but at least that has some intrinsic value.

If all the world’s assets became worthless, what would you rather have - a roof over your head or a randomly generated computer code?

chucknorris

AFF8879 wrote: »

Of course, if Bitcoin is a bubble that he/she has bought into then of course they will do nothing but hype it up Of course, people do that with property too, but at least that has some intrinsic value.

If all the world’s assets became worthless, what would you rather have - a roof over your head or a randomly generated computer code?

Exactly what I was thinking.

Thrugelmir

Graham_Devon wrote: »

On a secondary note, I see that the Interest Only issue could now be sorted, with those coming to the end of an interest only period being offered lifetime interest only mortgages.

No criteria at all as to who qualifies? As unlikely to provide the solution to the problem.