High property prices

[Westdene Seagull]

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.

I utterly agree .... too many nimbys and as BHA fans we should know all about them. It still doesn't deflect from the fact that low interest rates do not make for higher property prices.

 

[Triggaaar]

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.

You don't understand the housing market.

 

[jimbob5]

I utterly agree .... too many nimbys and as BHA fans we should know all about them. It still doesn't deflect from the fact that low interest rates do not make for higher property prices.

building one football stadium where a polytechnic car park used to be is a bit different to trying to house thousands of people isn't it?

 

[Westdene Seagull]

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...

I'm not sure how your post backs up his 'low interest rates push up prices' argument ? What you've described is a lack of supply.

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

Yes, well done, if you don't have a decent argument then almost invoke Godwin's Law .... but only just !

 

[beorhthelm]

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.

stop being a knob about it. your premise has been completely shot down by two separate sets of data, and then there's Uncle S' comment about mortgage take up. of course low interest rates are a factor in fueling price increase, just as Russian buying in Kensington or Chinese buying flats off plan are factors. the overriding factor is lack of supply, two decades of cronic under-development which followed a decade of reduced development. planning laws means developments can take 2 years to get through planning, if they get approved at all. that cost money, which house prices reflect. if you cant build new, you pay more for the existing, simples.

 

[yxee]

with money they've borrowed at a low rate of interest.

Such as what, 4.5% on a ten year fixed rate mortgage?

 

[Westdene Seagull]

You don't understand the housing market.

OK I'll sell my two homes and 5 BTL's because I don't understand the housing market

 

[Triggaaar]

OK I'll sell my two homes and 5 BTL's because I don't understand the housing market

You think that house prices have "NOTHING to do with interest rates." I don't care how many house you have, you're wrong.

 

[jimbob5]

stop being a knob about it. your premise has been completely shot down by two separate sets of data, and then there's Uncle S' comment about mortgage take up. of course low interest rates are a factor in fueling price increase, just as Russian buying in Kensington or Chinese buying flats off plan are factors. the overriding factor is lack of supply, two decades of cronic under-development which followed a decade of reduced development. planning laws means developments can take 2 years to get through planning, if they get approved at all. that cost money, which house prices reflect. if you cant build new, you pay more for the existing, simples.

I'll let someone else comment on this if you're resorting to insults it does not help your case.

 

[Jesus Gul]

Polish interest rates for the last 10 years:

Polish house prices for the last 10 years:

How do you explain that then?

Lots have Swiss franc mortgages and are negative equity due to zlote v chf movement apparently

 

[Westdene Seagull]

You think that house prices have "NOTHING to do with interest rates." I don't care how many house you have, you're wrong.

OK, I'm wrong. Now comment on how the two graphs I posted ( and I could do similar ones for the 90's and 00's if you like ) have ANY correlation between each other at all ?

 

[larus]

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.

I always find these type of comments amusing. Whenever I fly over Sussex I look down and nearly all I see is fields/open spaces and a 'relatively' small amount of land that is actually built on. (I accept that local services need to be upgraded as well, but that's a separate issue).

The problem, IMHO, is mainly supply/demand, however, it is definitely compounded by the fact that interest rates are low (they have been kept low and this is penalising savers with net negative rates - when compared to inflation).

We need a MAJOR investment in housing stock, however, achieving this is difficult as we are a country with a lot of Nimby's, so achieving the desired level of 200,000 homes nationwide p.a. is difficult. Only once we start to address the supply side, will there be a natural correction to house prices. I'm lucky, I own my own place, but I feel the treatment of the younger generation today is grossly unfair. The debts they accrue when going to university, the costs of housing, and then the national debt which their generation will have to pay off plus the unfunded pension liabilities promised by previous governments. Add to this the demographic time-bomb of the baby-boomer generation retiring and therefore causing more demand on public services, there are huge problems which need to be address, and housing is just one of them.

The welfare/social model of the Western economies is screwed, as the benefits are too great for those not wanting to work, and the super rich find it too easy to hide their wealth from the authorities. Average Joe (whatever that is), is being squeezed more and more.

 

[Westdene Seagull]

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

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

I'll let someone else comment on this if you're resorting to insults it does not help your case.

Pot, kettle and black.

 

[Spadge]

It shows prices going up as rates fall and vice versa! It backs up my premise.

What this tells me is there are more poles living outside of Poland so the demand for houses has dropped and so has the price.

i.e. 5 Houses on the market, 1 looking to buy, naturally the price drops to try and attract the one buyer.

In England its the opposite due to the private buy to let market, probably 10 people per property available to buy so the price is pushed up as one of the 10 will pay top whack.

its like anything in life, if there are people desperate enough for it then the more expensive it becomes

Bit like football players and transfer values really and then it all comes down to who can really afford it, its a dog eat dog world.

 

[jimbob5]

I always find these type of comments amusing. Whenever I fly over Sussex I look down and nearly all I see is fields/open spaces and a 'relatively' small amount of land that is actually built on. (I accept that local services need to be upgraded as well, but that's a separate issue).

The problem, IMHO, is mainly supply/demand, however, it is definitely compounded by the fact that interest rates are low (they have been kept low and this is penalising savers with net negative rates - when compared to inflation).

We need a MAJOR investment in housing stock, however, achieving this is difficult as we are a country with a lot of Nimby's, so achieving the desired level of 200,000 homes nationwide p.a. is difficult. Only once we start to address the supply side, will there be a natural correction to house prices. I'm lucky, I own my own place, but I feel the treatment of the younger generation today is grossly unfair. The debts they accrue when going to university, the costs of housing, and then the national debt which their generation will have to pay off plus the unfunded pension liabilities promised by previous governments. Add to this the demographic time-bomb of the baby-boomer generation retiring and therefore causing more demand on public services, there are huge problems which need to be address, and housing is just one of them.

The welfare/social model of the Western economies is screwed, as the benefits are too great for those not wanting to work, and the super rich find it too easy to hide their wealth from the authorities. Average Joe (whatever that is), is being squeezed more and more.

Shock horror, countryside is Sussex! Get it built up!

 

[Herr Tubthumper]

It is probably young people that caused this, they are the people you normally blame for everything else...

I blame immigrants.

 

[Herr Tubthumper]

stop being a knob about it. your premise has been completely shot down by two separate sets of data, and then there's Uncle S' comment about mortgage take up. of course low interest rates are a factor in fueling price increase, just as Russian buying in Kensington or Chinese buying flats off plan are factors. the overriding factor is lack of supply, two decades of cronic under-development which followed a decade of reduced development. planning laws means developments can take 2 years to get through planning, if they get approved at all. that cost money, which house prices reflect. if you cant build new, you pay more for the existing, simples.

A British obsession with home ownership also plays a big part.

 

[larus]

Shock horror, countryside is Sussex! Get it built up!

Intelligent, reasoned argument.

Where have I said or implied that all countryside should be built on? If you can't have a discussion and be civil, then maybe you shouldn't be on here. Note the word 'relatively' in my post.

 

[jimbob5]

Such as what, 4.5% on a ten year fixed rate mortgage?

That's low.

 

[jimbob5]

If you have a mortgage on several properties and interest rates rise, you might have to sell. This would mean property prices would fall. Why on earth did interest rates get slashed in 2009 if if it was not to prop up the property market.