Why are house prices still so high?

lisyloo

A couple have 4 sets of grand parents

You forgot about the siblings.
And the care aspect.


I don't dispute that money will be inherited, but
it's not evenly spread
and not plannable for anyone wanting to buy a house

ukcarper

lisyloo wrote: »

You forgot about the siblings.
And the care aspect.


I don't dispute that money will be inherited, but
it's not evenly spread
and not plannable for anyone wanting to buy a house

I gave up discussing this the GreatApe he has this idea that inheritance is the solution to everybodies housing problems when it clearly isn't and no matter what anybody says will not deviate from his theory.

PokerPlayer111

GreatApe wrote: »

The main problem is those on lower than average wages/wealth dont realize that they are on lower than average wages/wealth and thus come up with incorrect economic models to justify wrong positions and also live their lives in sub optimal ways. I was the same 10+ years ago I thought I earned more or less the average and was more or less the average person income wise but I soon realized I wasn't average I was actually poor even though I earned about £25k + ~£8k pension at the time.

Although I had ok income I had no wealth and no non working income and would not have gotten any significant gifts or inherited wealth for decades so in the pile of wealth I was actually very low which of course makes sense as I had just started working

The first thing to realize is that if you are a man on lower than £35k wages you need to up your game

The second thing to realize is if you are from a poor family you either need to do much much better than your peers earning the same income but who will inherit a free house or two. Or you need to actively seek to partner up with someone who is not from a poor family

And the third thing to realize is that you need to gather yourself a share of the £600 billion in annual non wage income.


The good news is that for most people in the UK they dont need to earn all that much or gain a share of the £600 billion in capital income because most uk born brits will just inherit huge sums of capital from their grand parents and parents

I agree with you on the work ethic, being productive and putting much effort in is a good idea in life for all.


Many jobs are unhealthy for a number of reasons that most people dont even seem to consider. Working hard for that 35k+ a year can be sub optimal itself so that leaves you with working smart or smart/hard to be optimal holistically and making that 35k+.


If you come from a poor background with bad education and likely probably bad parenting the task is harder still.



My overall point is im not surprised when i see people moaning about things like house prices.

GreatApe

ukcarper wrote: »

I gave up discussing this the GreatApe he has this idea that inheritance is the solution to everybodies housing problems when it clearly isn't and no matter what anybody says will not deviate from his theory.

~£6 trillion following from older to younger per generation is what explains a lot of things including how high house prices are affordable

On one end is the hpc cheerleaders who ignore or dont know about this huge flow of capital
On the other end is myself saying it is a huge significant part of the economy

Even if you take somewhere in between the two you find it is a very significant part of the housing market.

I suspect in excess of 2/3rds of housing purchases are made with prior wealth/gifts/inheritances. Perhaps as high as 3/4ths of housing purchases.

ukcarper

GreatApe wrote: »

~£6 trillion following from older to younger per generation is what explains a lot of things including how high house prices are affordable

On one end is the hpc cheerleaders who ignore or dont know about this huge flow of capital
On the other end is myself saying it is a huge significant part of the economy

Even if you take somewhere in between the two you find it is a very significant part of the housing market.

I suspect in excess of 2/3rds of housing purchases are made with prior wealth/gifts/inheritances. Perhaps as high as 3/4ths of housing purchases.

That might impact on house prices but it doesn't help the majority of people at the time they need it.

Zero_Sum

GreatApe wrote: »

There is no 'ladder' there never was a 'ladder'

The typical house buyer has only ever purchased 2 homes in their life with a gap of ~23 years between the first and second purchase. That is a housing 'step' not a ladder

And despite your protests that homes are unaffordable we have home ownership in nominal terms as high as it has ever been and in relative terms for uk born brits its very close to as high as its ever been

And 2017 saw a decrease in private renting and a big increase in home ownership (~250,000)
2018 data not yet out but likely the same again

And again you're just making stuff up.
Ive not said homes are unaffordable. In fact ive actually stated the opposite with regards to the north. The problem is a London one.

snowqueen555

Not just London.

I live in the South West, housing is quite expensive here too.

I really wish the studio apartments they make for students were available for normal people too. We all know the modern household is shrinking, there are a lot of people living alone, why not make some housing the cater for that?

Jonbvn

snowqueen555 wrote: »

I really wish the studio apartments they make for students were available for normal people too. We all know the modern household is shrinking, there are a lot of people living alone, why not make some housing the cater for that?

Interestingly, this is what a lot of developers are doing across the country, in an effort to circumvent planning requirements. Normal residential flats require suitable parking and a portion of social housing, whereas student flats do not. A lot of developers go for a change of use to residential after building student flats. IMHO, this loophole should be closed ASAP.

snowqueen555

Jonbvn wrote: »

Interestingly, this is what a lot of developers are doing across the country, in an effort to circumvent planning requirements. Normal residential flats require suitable parking and a portion of social housing, whereas student flats do not. A lot of developers go for a change of use to residential after building student flats. IMHO, this loophole should be closed ASAP.

I've not noticed student flats changing to normal ones. When i search Rightmove in any student city, all the of the studio complexes are student ones.

I've realised they have started selling the studios as investments. So not only have they sold the flat and made their money, they also let it out on your behalf and skim money off that as well, so making more money than just selling the thing.

lisyloo

snowqueen555 wrote: »

Not just London.

I live in the South West, housing is quite expensive here too.

I really wish the studio apartments they make for students were available for normal people too. We all know the modern household is shrinking, there are a lot of people living alone, why not make some housing the cater for that?

I'd say it's the other way round with retirement housing.
I've am selling a 2-bed retirement flat (in Bristol) and got full asking price 2 days before it went on the market (EA already had a buyer).


There are too many 1-beds.


Actually the lady that bought it is single but wanted the space.



But it's obviously not that easy to change housing stock overnight, it will take time to adjust to different demographics.