High property prices

[Deleted member 22389]

House prices down here are a direct reflection to what has been going on in London.

People from London have sold up and bought down this way, they get a better deal, better quality of life, they have been doing this for the last 10 years or so.

The downside, pushing up prices so high has stopped local people or specifically young people who's parents who have lived down this way all their life from being able to get on the property ladder. So they build more and more housing, but the prices are still out of reach.

On top of this due to lack of social housing in London, rising rents the government are moving people out these areas to places like Sussex because things are cheaper.

In turn that is making everything much busier down this way now, and they still want to be build more and more houses.
Newhaven is due for 800+ homes, Rottingdean new homes, Peacehaven new homes, without any consideration being taken on the current job situation, extra traffic on our roads it will create, and impact on our local services.

The system is pathetic.

 

[jimbob5]

Really ? So with politeness, where was the "price fall" ??

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The property prices follow the interest rate adjustments Following the crash in the late 80s, the Government obviously lowered rates to try to stoke the market.

 

[Westdene Seagull]

High property prices are caused mainly by low interest rates. This suits whoever is governing.

The property prices follow the interest rate adjustments Following the crash in the late 80s, the Government obviously lowered rates to try to stoke the market.

But your first post is utterly disproved by the graphs I posted. As I said, you're talking absolute rubbish.

 

[jimbob5]

ha ha ha. Nice one!

 

[Buzzer]

ha ha ha. Nice one!

 

[jimbob5]

But your first post is utterly disproved by the graphs I posted. As I said, you're talking absolute rubbish.

Your graphs are absolute rubbish. The cheaper it is for people to borrow the more expensive will be the biggest investment they make. That's just common sense. You can throw your toys out of the pram as much as you like sunshine.

 

[ditchy]

Haha... Yes, and people were required to make substantial monthly payments into a repayment method. The removal of this requirement, along with greater salary multiples and longer terms, has allowed people to borrow more, which has pushed up house prices to ridiculous levels that benefit only the relatively empowered and better off.

You didnt have to pay into the endowment , but it was sold that way and a lot of people earned good money on the back of insurance premiums . It was just a way of providing an investment vehicle . As rates fell endowment performance also fell leaving shortfalls .

 

[Triggaaar]

High property prices are caused mainly by low interest rates. This suits whoever is governing.

Really ? So with politeness, where was the "price fall" ??

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A lot has changed over the decades, home ownership was low, and the idea of a house being an investment as well as a home was not around. Of course there are many things that affect house prices, but most of these factors have settled over the last couple of relatively stable decades, and available interest rates (and expectations of future rates) have been the main driver of house prices. The BoE base rate doesn't show what rates have been available to borrowers though.

 

[Notters]

Whichever way you look at it, those of us that are 20 - 35 feel like we've been massively screwed over by those in the 35-50 age group who bought up all the cheap property in the 90s.

 

[jimbob5]

Whichever way you look at it, those of us that are 20 - 35 feel like we've been massively screwed over by those in the 35-50 age group who bought up all the cheap property in the 90s.

Yes but they'll retire, want to downsize, emigrate and/or die.

 

[Notters]

Yes but they'll retire, want to downsize, emigrate and/or die.

It's the small properties that are the issue. People are living in smaller and smaller units, BTLs love small properties and older people downsize; the price of small properties is therefore disproportionately high.

 

[Deleted member 22389]

Whichever way you look at it, those of us that are 20 - 35 feel like we've been massively screwed over by those in the 35-50 age group who bought up all the cheap property in the 90s.

Think it's a shame. It's looking like people in your age group will never be able to afford to get on this property ladder. I sometimes think the whole property market could do with a crash, because for what they are house prices in this country are now a complete and utter rip off. It will also serve as a lesson to all those greedy buggers who have been selling shoe boxes for £500,000

This is a fake property boom, because nobody is reallly any better off. Jobs still pay shit money, living standards have actually gone down, and the whole areas just keep getting built over.

People need to stop looking at properties for how much money they can make, and look at them as a roof over their heads.

It's ridicolous what's going on, they take one large bungalow, demolish this and put two small bungalows in their place. Hardly any garden, only space for one car at the front when lots of people have two cars. When you see the price, the size and you remember what was there before, you can see what a rip off things have become.

 

[jimbob5]

But your first post is utterly disproved by the graphs I posted. As I said, you're talking absolute rubbish.

No I'm making an intelligent point. You are just spouting insults.

 

[Westdene Seagull]

Your graphs are absolute rubbish. The cheaper it is for people to borrow the more expensive will be the biggest investment they make. That's just common sense. You can throw your toys out of the pram as much as you like sunshine.

Look, I get that the younger generations are bitter ( and rightly so ) about how much housing costs BUT it is NOTHING to do with interest rates. It's basic economics - less supply and up goes the price. We need to build more ..... much more .... in fact HUGE amounts more. So you can ignore the market and basic economics as much as you like boyo, it's still fact. See, I can be as dismissive and rude as you !!!

 

[jimbob5]

Look, I get that the younger generations are bitter ( and rightly so ) about how much housing costs BUT it is NOTHING to do with interest rates. It's basic economics - less supply and up goes the price. We need to build more ..... much more .... in fact HUGE amounts more. So you can ignore the market and basic economics as much as you like boyo, it's still fact. See, I can be as dismissive and rude as you !!!

You can be rude all right! Where are we going to build these houses then? On the downs? In the parks? On the beach on stilts? Maybe we should build loads of apartments like in Spain.

 

[Deleted member 22389]

Look, I get that the younger generations are bitter ( and rightly so ) about how much housing costs BUT it is NOTHING to do with interest rates. It's basic economics - less supply and up goes the price. We need to build more ..... much more .... in fact HUGE amounts more. So you can ignore the market and basic economics as much as you like boyo, it's still fact. See, I can be as dismissive and rude as you !!!

Trouble is people don't want more and more houses built in their own towns, especially when at the same time our governments keep putting less and less in to our services, our infrastructure. In the end it just leads to poorer living standards for all.

 

[Westdene Seagull]

You can be rude all right! I'm just pouting out that you can also talk rubbish.

Let's review it shall we ?

You said low interest rates were the reason for high property prices ? Yes or no ?

Then you said this ...

"The property prices follow the interest rate adjustments"

... about the 80's

Yet the figures show that interest rates rose erratically ( up down up down ) over the 80's but strangely house prices rose gradually at a steady rate ( i.e. NOT up down nor erratically ). So how does THAT back up your ridiculous assertion that "interest rates were the reason for high property prices" or even "The property prices follow the interest rate adjustments" ?

Clearly you're someone who can't, for whatever reason, buy a property but the blame does not lie with the interest rate .... as YOU stated.

 

[Diego Napier]

Think it's a shame. It's looking like people in your age group will never be able to afford to get on this property ladder. I sometimes think the whole property market could do with a crash, because for what they are house prices in this country are now a complete and utter rip off. It will also serve as a lesson to all those greedy buggers who have been selling shoe boxes for £500,000

This is a fake property boom, because nobody is reallly any better off. Jobs still pay shit money, living standards have actually gone down, and the whole areas just keep getting built over.

People need to stop looking at properties for how much money they can make, and look at them as a roof over their heads.

It's ridicolous what's going on, they take one large bungalow, demolish this and put two small bungalows in their place. Hardly any garden, only space for one car at the front when lots of people have two cars. When you see the price, the size and you remember what was there before, you can see what a rip off things have become.

There was a very interesting programme on BBC1 last night called The Super-Rich and Us http://www.bbc.co.uk/iplayer/episode/b04xw2x8/the-superrich-and-us-episode-1
that backs up a lot of what you say.

It also points out that successive British governments have effectively provided the best tax haven in the world for the super-rich to invest in property. They've done this based on the theory that the "trickle-down" of their wealth would reach and benefit all layers of society. The reality has been the opposite, "trickle up" up is endemic and the programme painted very bleak prospects for future home ownership by ordinary people.

 

[Seasidesage]

Look, I get that the younger generations are bitter ( and rightly so ) about how much housing costs BUT it is NOTHING to do with interest rates. It's basic economics - less supply and up goes the price. We need to build more ..... much more .... in fact HUGE amounts more. So you can ignore the market and basic economics as much as you like boyo, it's still fact. See, I can be as dismissive and rude as you !!!

He might be rude but he's also right...

Where this and previous governments have failed is allowing mass immigration, selling off of council property without replacement and rampant nimbyism to inflate the demand for housing while doing little or nothing to meet that demand. If there was say 30% more available properties, prices would be considerably lower. That is the thing that the young should be bitter about...

 

[jimbob5]

Let's review it shall we ?

You said low interest rates were the reason for high property prices ? Yes or no ?

Then you said this ...

"The property prices follow the interest rate adjustments"

... about the 80's

Yet the figures show that interest rates rose erratically ( up down up down ) over the 80's but strangely house prices rose gradually at a steady rate ( i.e. NOT up down nor erratically ). So how does THAT back up your ridiculous assertion that "interest rates were the reason for high property prices" or even "The property prices follow the interest rate adjustments" ?

Clearly you're someone who can't, for whatever reason, buy a property but the blame does not lie with the interest rate .... as YOU stated.

You did not work for a German bank in the 20s did you? ha ha ha ha