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

[GingerBeerMan]

Think you're a bit out on that one. Current odds on Corbyn being next PM 8-1. Chances of asteroid 2012 TC04 hitting the earth in 2017 about 450,000 -1. Corbyn was also 200-1 to win the labour leadership

Wasn't that before he got on the ballot paper, which isn't surprising seeing as 5 minutes before the deadline he didn't have enough nominations.

 

[Wrong-Direction]

Well that's me well and truly fu**ed then

 

[Bozza]

However, the reality is, if it did. I'd financially ruin myself and risk the roof that's over their heads now.

Was that meant as one sentence, i.e.:

However, the reality is, if it did [crash], I'd financially ruin myself and risk the roof that's over their heads now.

If so, why would a crash impact you at all? You sound like me, living in a house with your kids. It's our home not an investment. We have no intention of selling any time in the near-medium term so it makes no difference to me whether prices halve, double or stay the same. I really don't care on a personal level.

 

[ropey9]

I'm not convinced that will have any effect. If houses are more expensive to buy, landlords will put up rent to cover the cost. If landlords lose more money through taxation, then they'll put rent to cover the cost

So its a genius move by Osborne as rent increases mean more tax paid - with the only people being screwed are renters and anyone wanting to buy a house for the first time. Its a shitty vicious circle for first time buyers, can't save because rent is exhorbitant and house price / rent increases outstrip wages.

 

[Gwylan]

So its a genius move by Osborne as rent increases mean more tax paid - with the only people being screwed are renters and anyone wanting to buy a house for the first time. Its a shitty vicious circle for first time buyers, can't save because rent is exhorbitant and house price / rent increases outstrip wages.

Precisely. But, as I said, doesn't affect 80 to 90 percent of the voters so most people are happy

 

[Wrong-Direction]

So its a genius move by Osborne as rent increases mean more tax paid - with the only people being screwed are renters and anyone wanting to buy a house for the first time. Its a shitty vicious circle for first time buyers, can't save because rent is exhorbitant and house price / rent increases outstrip wages.

Welcome to my world

 

[Notters]

5]Or make it so houses weren't a main source of income for some super wealthy people[/B]. How many times have we heard, 'he owns property and rents it out'. It's beyond a joke now. Maximum two house limit, anything after that can only be rented at a nominal level given to people who need it. Logistically would be hard, but could be done with a bit of effort.

Unfortunately it's hard to see that change in a country that's run by the landed gentry.

 

[happypig]

My plan is to downsize when I retire in a few years and some of the money I free up will be put aside for my boy to use a deposit on a flat. Fortunately I have owned a house for nearly 30 years and have a decent pension but I appreciate many aren't such a position.

In reality what's going to have to happen is that, because people are living so much longer, our inheritance ethos is going to have to change and where previously people left their property/assets to their children, it will have to be left to their grandchildren; the problem with this is that one generation is going to have to accept they are not getting much (won't be me, when my mum died I inherited £50, a torch and a Star Wars box set).

 

[Guinness Boy]

Was that meant as one sentence, i.e.:

However, the reality is, if it did [crash], I'd financially ruin myself and risk the roof that's over their heads now.

If so, why would a crash impact you at all? You sound like me, living in a house with your kids. It's our home not an investment. We have no intention of selling any time in the near-medium term so it makes no difference to me whether prices halve, double or stay the same. I really don't care on a personal level.

Yes, one sentence.

Sadly this comes from bitter experience. In the early 90s interest rates went up to around 15% making repayments on most mortgages unaffordable. This led to a crash in prices as demand fell and, as no one wanted to pay 15% rates, no one wanted to buy our house which my dad could no longer afford. We were pretty close to being repossessed but in the end managed to sell it, though for 20k less than it had been worth the year before (and that's when 20k meant something in the housing market). If we'd ended up in negative equity we'd also have ended up homeless. Who's to say Corbyn wouldn't take back interest rate setting from the Bank of England or impose a mansion tax that effectively made houses in the South East government cash cows?

And yes it IS an investment. The only way I am going to be able to help my own kids get on the ladder is by gifting them some of what we make when we come to sell the fmaily home and downsize.

 

[Bozza]

Yes, one sentence.

Sadly this comes from bitter experience. In the early 90s interest rates went up to around 15% making repayments on most mortgages unaffordable. This led to a crash in prices as demand fell and, as no one wanted to pay 15% rates, no one wanted to buy our house which my dad could no longer afford. We were pretty close to being repossessed but in the end managed to sell it, though for 20k less than it had been worth the year before (and that's when 20k meant something in the housing market). If we'd ended up in negative equity we'd also have ended up homeless. Who's to say Corbyn wouldn't take back interest rate setting from the Bank of England or impose a mansion tax that effectively made houses in the South East government cash cows?

And yes it IS an investment. The only way I am going to be able to help my own kids get on the ladder is by gifting them some of what we make when we come to sell the fmaily home and downsize.

Fair enough. Persistent high rates, relative to what we are used to, would be a struggle for many including us. I wasn't necessarily equating a house price correction being driven by high rates though. There are many factors that hit market confidence and/or supply that could cause prices to start heading down again.

In the early 90s, rates did go to 15% but not from a particularly low base. Double-digit interest rates were the norm back then. Here's Halifax's rate history...

 

[Bozza]

I'll add that we sold our last home, in Somerset, having lived there for a good five years and we lost a fair bit in the process. It happens, unfortunately.

 

[Citrus]

Rent control, as seen in other parts of Europe, and far more aggressive taxation on rental income would be a good start in helping to stop this madness.

Rent control doesn't work, the solution isn't that simple. In the long run it's actually argued to reduce supply and push average prices up.

Stockholm, with a metro population of 2.2 million, has a wait list of 500,000... http://www.theguardian.com/world/2015/aug/19/why-stockholm-housing-rules-rent-control-flat

We need to increase supply or reduce demand, realistically, that means either build more houses or stop immigration.

 

[knocky1]

Wouldn't it just mean that the landlords are overseas, where they don't bother paying tax on their rental income?

You can sometimes see a devil of a man in his Courtlands Hotel. Not always with his mate Idi Amin. Shouldn't think he pays a penny in tax on income.

 

[sir albion]

You'll never get a price crash as their is to much demand for properties and way to many people from overseas buying like there's no tomorrow.
Will get worse and worse and rents will also go through the roof year after year....Ticking time bomb.

 

[The Antikythera Mechanism]

We need to increase supply or reduce demand, realistically, that means either build more houses or stop immigration.

And there's the problem with Brighton & Hove. There is, practically, nowhere left to build apart from green belt. The only place I can think of is Toads Hall Valley

 

[jakarta]

Think you're a bit out on that one. Current odds on Corbyn being next PM 8-1. Chances of asteroid 2012 TC04 hitting the earth in 2017 about 450,000 -1. Corbyn was also 200-1 to win the labour leadership

8-1 in a two horse race? Think the Tories will have to screw up big time before Citizen Corbyn achieves Freedom for Tooting.

 

[alfredmizen]

You can sometimes see a devil of a man in his Courtlands Hotel. Not always with his mate Idi Amin. Shouldn't think he pays a penny in tax on income.

Its Mugabe.

 

[Notters]

And there's the problem with Brighton & Hove. There is, practically, nowhere left to build apart from green belt. The only place I can think of is Toads Hall Valley

Sorry to be pedantic but there are no green belts in Sussex. Just a National Park.

 

[Arthritic Toe]

I'm not convinced that will have any effect. If houses are more expensive to buy, landlords will put up rent to cover the cost. If landlords lose more money through taxation, then they'll put rent to cover the cost

Agree with most of what you've said but rents are set by the market, not by what landlords costs are. Landlords will always charge the maximum they can get, thats the business they are in.

 

[The Antikythera Mechanism]

Sorry to be pedantic but there are no green belts in Sussex. Just a National Park.

Yes, you're right, it was just a figure of speech