House prices to rise 50% in next 10 years, London to double...

[fly high]

I had several colleagues in HK that had significant property portfolios in the UK.... didn't even bother to rent them out much of the time, simply a 'store of value' away from China. They always bought flats for their kids when they sent them to the UK to study too.

My view for a very long time is we should have introduced similar restrictions Denmark places on foreign ownership. You have to have been a resident for 5 years or more, currently work there and have a valid residency or business permit.

 

[BrightonCottager]

Not really, because as I suggested earlier the s and d situation is so broken, only direct market intervention will bring the availability and price of rental property to a sustainable level.
I threw out an idea in my OP that is clearly, by the reaction on here, a non starter. But the idea that (the absolute necessity) of building houses is going to correct the market significantly in the next 10 to 20 years is unfortunately fantasy.

So what should the gov do that is considered fair and electable (which means, bluntly, those who have homes will agree to for the benefit of those that don’t)?

A number of small things have been done or consulted on:
- reduced discounts for Right to Buy
- Councils can double Council Tax for homes left empty
- increased stamp duty on second home purchases
- more money for infrastructure and decontamination on sites with planning permission but not enough £ to progress
- proposed changes to planning policy to make it easier to build homes
- changes to the way that housing targets for planning authorities are calculated (B&H's have gone up by several hundred/year).

By the way, the Council have started a consultation on the new Local Plan. Perhaps we should put together a NSC response?

 

[dazzer6666]

My view for a very long time is we should have introduced similar restrictions Denmark places on foreign ownership. You have to have been a resident for 5 years or more, currently work there and have a valid residency or business permit.

Wasn’t aware but sounds good - or if you’re non-res you pay some form of additional (punitive) tax to buy.

 

[beorhthelm]

Not really, because as I suggested earlier the s and d situation is so broken, only direct market intervention will bring the availability and price of rental property to a sustainable level.
I threw out an idea in my OP that is clearly, by the reaction on here, a non starter. But the idea that (the absolute necessity) of building houses is going to correct the market significantly in the next 10 to 20 years is unfortunately fantasy.

So what should the gov do that is considered fair and electable (which means, bluntly, those who have homes will agree to for the benefit of those that don’t)?

direct intervention would be increasing amount of supply or imposing laws on ownership to affect demand. taxes to alter behaviour is indirect.

 

[Half Time Pies]

Most people don't realise this but house prices in the UK have basically been flat for the past 20 years when adjusted for Inflation. There have been big regional variations to this, like in the south east and London, but in general the perception of ever increasing house prices due to a lack of supply/ house building seems to be a bit of a myth!

 

[RandyWanger]

This time in 10 years I'll be a millionaire. Cushty.

 

[Uncle Spielberg]

Interest rate cut to 4.75% today ?

 

[golddene]

So if someone buys a property for £250k, does nothing to it, and property prices double (say over 20 years) and they decide to move somewhere else, to a similar property - they sell for £500k, they buy for £500k, they pay costs of moving, legal fees, estate agent fees, they also pay £12.5k stamp duty. So it's cost them a fair bit to move to an equivalent house.

But you now want them to pay some Capital Gains Tax too, when they haven't actually gained anything?

Absolutely but the thing is who decides a property’s value and to what level its value has increased ? Certainly not the house owner, as in my experience the value is set by the estate agent who markets the property, maybe cap property price increases and link to inflation somehow ! Certainly doesn’t benefit home owners who see their homes increase in value on paper and if buying a further property to live in after selling the one they own see the next property has increased as much or more than the one they are selling. Crazy system really, as I get older and less able to continue maintaining the property myself I often wish I’d never gone down the home ownership route and instead moved into my wife’s council flat where she lived instead of having her move in with me when we married,(40 years ago) there’s a lot to be said for the peace of mind renting gives one where most building maintenance work is carried out by the owner bar painting/decorating etc.

 

[Weststander]

Most people don't realise this but house prices in the UK have basically been flat for the past 20 years when adjusted for Inflation. There have been big regional variations to this, like in the south east and London, but in general the perception of ever increasing house prices due to a lack of supply/ house building seems to be a bit of a myth!

View attachment 191994

It's very valid in southern England.