High property prices

[jimbob5]

I win!

 

[Hampster Gull]

Polish interest rates for the last 10 years:

Polish house prices for the last 10 years:

How do you explain that then?

I blame the communists

 

[Hampster Gull]

HT is in Germany. You can get a 10 year fixed rate here under 3% now, 60% ltv

barclays have just done the same here. I am tempted but not sure. I nailed the drop in rates with trackers only just sbove base but playing the very long game this might be the time to jump.

 

[Herr Tubthumper]

Where?! Is the term length >>10 years?

Yup. I understand you can have a mortgage up to at least 36 years. 1.8 fixed for 10 years is pretty good huh? This is in a Germany though

 

[Mellor 3 Ward 4]

House prices 'should' be decided by supply and demand.build more and the prices should come down.

But in reality that's not the case.

When new houses are built they are more expensive than the second hand local housing stock for the same type of house. This just pushes up the prices of all the other houses being sold locally.

IMO it's not ALL about building more houses (remember there are 850,000 empty houses in the UK) encouraging the regeneration of our Northern Cities would be good, such initiates as moving the BBC to Salford are a start.

The way to solve the housing problem is to tax BTLs. The problem will get worse with the new pension rules.Lots of 55 year olds hoovering up the smaller houses for BTLS.

 

[Seasidesage]

House prices 'should' be decided by supply and demand.build more and the prices should come down.

But in reality that's not the case.

When new houses are built they are more expensive than the second hand local housing stock for the same type of house. This just pushes up the prices of all the other houses being sold locally.

IMO it's not ALL about building more houses (remember there are 850,000 empty houses in the UK) encouraging the regeneration of our Northern Cities would be good, such initiates as moving the BBC to Salford are a start.

The way to solve the housing problem is to tax BTLs. The problem will get worse with the new pension rules.Lots of 55 year olds hoovering up the smaller houses for BTLS.

I think the supply and demand issue is that no one has been able to build enough homes in the right places to make a dent in the demand. Agree totally on the infrastructure issue though we are never going to narrow the gap between London and the rest of the country while our roads and railways are in such a mess. The empty homes are mostly in areas with no demand, hence they are empty. I thinking taxing BTL is fair although I also have sympathy with people faced with little or no interest paid on their life savings who see BTL as the best and maybe only way to see enough of an RTI to live off.

Of course the demographics have also changed with a lot more people choosing to live alone creating still more demand, for me the only answer is to build more in the 'demand areas' while throwing resources into HS2 and other infrastructure projects to regenerate more areas to take some of the pressure off the south east. I feel sorry for kids who face the prospect of never owning their own homes unless drastic and decisive action is taken on this. Raising interest rates will make this less affordable for the young and have only a limited effect on the market IMO.

 

[seagullsovergrimsby]

High property prices only exist where people want to move to or they see as the next best thing which is affordable. The value of my house is not much more than what I paid for it in late 2003. There are still parts of the country where prices are still recovering from the 2008 crash whereas elsewhere prices have risen 50% above the 2008 peak level.

 

[Kevlar]

inflation reveals conflict in the economy.
If prices in one area rise more than another then there are winners and losers
For people like me who have owned my own house in Brighton for over 20 years
have seen the value of my house more than quadruple now but live in the house
as a home I see little difference a home is a home .
For those in the property sector,investors landlords etc have extracted extra purchasing
power they have more claims on real resources tenants and first time buyers have less.
God knows how many more houses would need to be built in Brighton before
those with greater spending power cannot outbid first time buyers for them.
I do know my new work colleagues who earn as good as money as I did when I bought
22 years ago have no chance of buying my house of me now.
Who woulda thought unregulated markets seem to favour those with the most spending power

 

[Hampster Gull]

Have prices risen today?