Why are house prices still so high?

GreatApe

the question should be rephrased as 'why dont more people move from higher priced locations to lower priced locations?' both domestically and internationally

When you figure out the answer to that you will know why house prices are 'high'

AG47

fatbeetle wrote: »

Why are house prices still increasing?

In real term they are falling. Property will be going up less than inflation for many years now, which will be a crash in real terms.

When you look at the artificial low interest rates, help to buy, purposely restricting new house building, ect ect, and still property's is falling compared to real inflation.

What happens when interest rates go back up to normal levels as they will have to at some point?

chucknorris

AG47 wrote: »

What happens when interest rates go back up to normal levels as they will have to at some point?

Our profits will return to merely a very good level, (assuming you mean a base rate of about 5%), but that is still some years away. In the meantime we have been earning super normal rental profits.

MobileSaver

AG47 wrote: »

In real term they are falling.

Sounds cool! Where can I buy one of these properties "in real terms"? I seem to be stuck in this pesky "real world" where prices are still rising.

AG47 wrote: »

Property will be going up less than inflation for many years now, which will be a crash in real terms.

Is this the last desperate throw of the dice for the HPC crowd to convince themselves they were right all along? Redefining a "crash" to mean "prices rising less than inflation?" :rotfl:

AG47 wrote: »

What happens when interest rates go back up to normal levels as they will have to at some point?

The sky won't fall in but Crashy Time's and AG47's rents will go up as they keep paying their landlord's mortgage month after month.

AG47

The government will keep making things harder for property owners and easier for renters, because renters are the majority of voters as the property owners get older nd need to liquidate to pay for their care homes.

Labour bringing in rent caps and tax the hell out of greedy property owners, here we come.

The brexit disaster of uncertainty being extended will make the property crash go much longer nd much further down before it bottoms out

lisyloo

AG47 wrote: »

The brexit disaster of uncertainty being extended will make the property crash go much longer nd much further down before it bottoms out

Another day another totally wrong prediction.
Brexit is not having a long extension.

James_Green_1982

AG47 wrote: »

The government will keep making things harder for property owners and easier for renters, because renters are the majority of voters as the property owners get older nd need to liquidate to pay for their care homes.

Labour bringing in rent caps and tax the hell out of greedy property owners, here we come.

The brexit disaster of uncertainty being extended will make the property crash go much longer nd much further down before it bottoms out

Harry Dent has also pointed out that someone (ie the younger generation) needs to buy all the houses from those dying or going into care homes etc.

A house is only worth what someone is willing and able to pay for it.

GreatApe

AG47 wrote: »

The government will keep making things harder for property owners and easier for renters, because renters are the majority of voters as the property owners get older nd need to liquidate to pay for their care homes.

Labour bringing in rent caps and tax the hell out of greedy property owners, here we come.

The brexit disaster of uncertainty being extended will make the property crash go much longer nd much further down before it bottoms out

Long term private renters are a minority

about 75% of private renters rent for less than 10 years often much less. So while the headline might be that ~20% rent privately the reality is that only 5% rent long term privately and this 5% as you can imagine is not a huge voting block

But yes the government and most ministers are stupid and think 20-25% rent privately long term which is simply false

phillw

James_Green_1982 wrote: »

Harry Dent has also pointed out that someone (ie the younger generation) needs to buy all the houses from those dying or going into care homes etc.

A house is only worth what someone is willing and able to pay for it.

The expensive properties will be bought by people further up the ladder who can afford it (or landlords).

lisyloo wrote: »

Brexit is not having a long extension.

Careful, all way know is Theresa "U-Turn" May has ruled out a long extension.

We may have no extension, a short extension or a long extension. There is no way of predicting as the situation is too fluid.

James_Green_1982

GreatApe wrote: »

Long term private renters are a minority

about 75% of private renters rent for less than 10 years often much less. So while the headline might be that ~20% rent privately the reality is that only 5% rent long term privately and this 5% as you can imagine is not a huge voting block

But yes the government and most ministers are stupid and think 20-25% rent privately long term which is simply false

You may be right with your figures - I don't know.
But it's not always the total number of people in a population that change the political decisions; it's more complicated. It often depends on which constituencies these people are in etc. It also depends on their age and how much influence they can exert etc.

Landlords are in a weak position politically. The politicians assume they will usually vote Tory whatever happens. So either Labour or the Tories can hit landlords as hard as they like and it won't really change an election outcome - because the landlords won't vote Labour and there is no ''landlord friendly'' party to turn to.

If the tenants are ''swing voters'' their votes are much more important for the politicians.