Why are house prices still so high?

James_Green_1982

phillw wrote: »

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

.

That's true. But I think the argument is that due to demographic changes, there will be fewer potential buyers.

This argument relies on the fact that the ''baby boomer'' cohort is larger than the younger generations. I'm not sure if it's true once immigration and higher birth rates among immigrants is accounted for. you'd need to check out Harry Dent's website etc for that.

ukcarper

James_Green_1982 wrote: »

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.

If BTL landlords are discouraged and the number of rental properties is reduced what do you think would happen.

James_Green_1982

ukcarper wrote: »

If BTL landlords are discouraged and the number of rental properties is reduced what do you think would happen.

Probably similar to how the market was in the 1960s-70s.
But it would depend on tenancy security rules, rent caps etc, etc.

ukcarper

James_Green_1982 wrote: »

Probably similar to how the market was in the 1960s-70s.
But it would depend on tenancy security rules, rent caps etc, etc.

Don't see that happening larger percentage of homes council houses then and lower home ownership.

James_Green_1982

ukcarper wrote: »

Don't see that happening larger percentage of homes council houses then and lower home ownership.

Yes. But less council tenants - as they are living in the houses they bought from the council.

People who live in a council house don't create a demand for private rental homes whether they buy their council home or not. Whatever they do they still occupy the same property. All that changes is the name on the deeds.

ukcarper

James_Green_1982 wrote: »

Yes. But less council tenants - as they are living in the houses they bought from the council.

People who live in a council house don't create a demand for private rental homes whether they buy their council home or not. Whatever they do they still occupy the same property. All that changes is the name on the deeds.

The demand for social housing is just as high and plenty of people in private rental getting housing benefit.

James_Green_1982

ukcarper wrote: »

The demand for social housing is just as high and plenty of people in private rental getting housing benefit.

Yes. That's due to the number of people who want to live in certain areas, compared to the number of houses in those areas.

ukcarper

James_Green_1982 wrote: »

Yes. That's due to the number of people who want to live in certain areas, compared to the number of houses in those areas.

That's why prices are dearer in some areas than others, but restricting private Landlords won't alter that.

GreatApe

ukcarper wrote: »

If BTL landlords are discouraged and the number of rental properties is reduced what do you think would happen.

The first thing to note is that in the economy whatever it is you are looking at nothing changes over night it takes many years potentially decades be it trying to switch to green energy or be it trying to manipulate the mix of tenures

2017 landlord numbers shrank and ownership went up about 250,000 units, I suspect the same is also true for 2018 and will be true for 2019&2020 so in those 4 years ownership will have increased by 1 million units quite significant

Rents and prices may nudge a bit either side of what they would have been but not by much

Overall the UK mix is not abnormal or bad. The main thing most do not understand is that private renting is temporary for most private renters when you realize this you can see that lifetime ownership or social is in the region of 95% in the uk then things look not just ok but pretty good.

ukcarper

GreatApe wrote: »

The first thing to note is that in the economy whatever it is you are looking at nothing changes over night it takes many years potentially decades be it trying to switch to green energy or be it trying to manipulate the mix of tenures

2017 landlord numbers shrank and ownership went up about 250,000 units, I suspect the same is also true for 2018 and will be true for 2019&2020 so in those 4 years ownership will have increased by 1 million units quite significant

Rents and prices may nudge a bit either side of what they would have been but not by much

Overall the UK mix is not abnormal or bad. The main thing most do not understand is that private renting is temporary for most private renters when you realize this you can see that lifetime ownership or social is in the region of 95% in the uk then things look not just ok but pretty good.

You keep posting that renting temporary have you got any proof