House Price Rises Capped at 5%

Yeah I think seeing housing as investment is just wrong, housing is a necessity as food and should not be speculated to make massive profits.#

Go play stock-market, or buy oil/gold.

You can play food and houses on the stock market. Very easy if in a portfolio. If you have a pension you probably invest directly or indirectly in what you would class as "necessities".
 
But the point being made is that it's not a free market. It isn't, doesn't matter how you try to dress it up that house are only being built by private enterprise, fundamentally they are only allowed to do so by government planning policy. Though this is considered restrictive by the Conservatives at the moment who (as you say maybe at the bequest of big companies) are looking to makes things easier in order to meet our housing requirements which are lagging behind demand. That drives up prices, where in a free market it would spur extra supply.

The money to build the houses comes from the market. If the market is held back then that money dries up and we end up with less houses built. We can either have lots of expensive hiuses or very few slightly less expensive houses with people with highest deposits winning them. Basically you would be even further from the ladder if you have a small deposit.
 
Find me a place around here - where I can still have a stomachable commute to work - that has house prices that aren't stupidly expensive.

Didn't you hear? You have to move 100 miles north away from the area you have lived your whole life, away from all your friends and family if you want to buy a home on a working wage. The "Just Move" Brigade really need to shut the hell up, in what situation is it ok to uproot your entire life, just because the housing market is so inflated by bankers and general incompetence of the government (of whom own multiple renting properties in their portfolios). Awesome!
 
The money to build the houses comes from the market. If the market is held back then that money dries up and we end up with less houses built. We can either have lots of expensive hiuses or very few slightly less expensive houses with people with highest deposits winning them. Basically you would be even further from the ladder if you have a small deposit.
It seems people are completely missing the point of what a free market is. The housing market in the UK is not free. It's highly restricted by direct and indirect government control, both on supply and demand sides of the coin. Supply via direct government control of the planning authorities and demand via the BoE control of the base rate amongst other things.
 
Instead of spending money on HS2 spend that on building affordable council housing stock ......again.....
 
Instead of spending money on HS2 spend that on building affordable council housing stock ......again.....

Indeed, this country needs Millions of new homes, not a few hundred here and there over the next five years. Rental Caps to reduce the buy to let vultures as well would be nice.
 
Didn't you hear? You have to move 100 miles north away from the area you have lived your whole life, away from all your friends and family if you want to buy a home on a working wage. The "Just Move" Brigade really need to shut the hell up, in what situation is it ok to uproot your entire life, just because the housing market is so inflated by bankers and general incompetence of the government (of whom own multiple renting properties in their portfolios). Awesome!

erm - when you can't afford the size of property you want in the area you want... the idea that you should get something for cheap because you happened to be born there is ridiculous - if there's lots of demand for something then the price goes up... so yeah, just move - or get a better job
 
It seems people are completely missing the point of what a free market is. The housing market in the UK is not free. It's highly restricted by direct and indirect government control, both on supply and demand sides of the coin. Supply via direct government control of the planning authorities and demand via the BoE control of the base rate amongst other things.

Every market has controls. One like this will kill supply.
 
Every market has controls. One like this will kill supply.
Not to the same level as the housing market though. Actually it won't kill supply, that'll force price inflation up, if the BoE wanted to keep house price inflation down they would need to either stimulate an increase in supply or a decrease in demand.
 
Didn't you hear? You have to move 100 miles north away from the area you have lived your whole life, away from all your friends and family if you want to buy a home on a working wage. The "Just Move" Brigade really need to shut the hell up, in what situation is it ok to uproot your entire life, just because the housing market is so inflated by bankers and general incompetence of the government (of whom own multiple renting properties in their portfolios). Awesome!

A good post

erm - when you can't afford the size of property you want in the area you want... the idea that you should get something for cheap because you happened to be born there is ridiculous - if there's lots of demand for something then the price goes up... so yeah, just move - or get a better job

Erm, when people can't even get on the ladder because small houses don't exist, or when they do, they are below even basic size standards to be adequate, and rather than being bought by people who want to own their own home are instead bought by people who want to rent them out because they know they will make a killing then clearly enough homes are not being built, and the fault is not of the person wanting something "cheap" but because of the complete lack of affordable housing.

Study after study shows forcing someone to move away from their local support network can be absolutely devastating, this country should be doing more to prevent that, but are not, because the people with the money want the housing boom to continue, to the complete bane of this generations first time buyers. It is complete corruption.
 
I find it quite ironic those people suggesting the government shouldn't meddle in free markets. The whole problem with the housing market is that it is not a free market, the government controls supply and demand for political gains and has done for a very long time.

If it had not have done this and left it to the free market then there would not be a housing crisis in the first place as the market would have already delivered enough properties to meet demand.

The government restricts supply to boost prices to keep current home owners sweet. It is an even bigger ponzi scheme then state pensions.
 
I find it quite ironic those people suggesting the government shouldn't meddle in free markets. The whole problem with the housing market is that it is not a free market, the government controls supply and demand for political gains and has done for a very long time.

If it had not have done this and left it to the free market then there would not be a housing crisis in the first place as the market would have already delivered enough properties to meet demand.

The government restricts supply to boost prices to keep current home owners sweet. It is an even bigger ponzi scheme then state pensions.

Another good post.
 
If the incentive to invest is removed where is the benefit for us? It won't help house prices as the supply will dry up due to less houses being built and the lower income portion of the market that could have a house now won't be able to as the one with the higher deposit or a second property (BTL) will get it. Competition for the remaining stock will be even more intense. All that will happen is mortgage-less sales and high deposit loans will be the only way to buy a property. Mortgage approvals were at very low levels not long ago yet house prices still rose greatly. The ladder will just move a bit more.
 
Last edited:
Erm, when people can't even get on the ladder because small houses don't exist, or when they do, they are below even basic size standards to be adequate, and rather than being bought by people who want to own their own home are instead bought by people who want to rent them out because they know they will make a killing then clearly enough homes are not being built, and the fault is not of the person wanting something "cheap" but because of the complete lack of affordable housing.

Small houses exist... people can't get on the ladder because they can't afford them not because they don't exist.
 
Small houses exist... people can't get on the ladder because they can't afford them not because they don't exist.

The Royal Institute of British Architecture has pointed out repeatedly how small homes are being built far to sparsely and far too poorly compared to other EU standards, and has even called for government intervention. Even these small homes are way over valued and snapped up because of desperation. It really is criminal.
 
scrap HS2 and use it for cheap and I mean cheap housing for those of us who cant afford to get on the housing ladder in our home areas
 
Personally, I think that something should be done to limit the cost of renting...

Myself and my wife have been extremely fortunate to have recently been accepted for a mortgage, and had an offer accepted on our first house - though this was due to her parents being able to give us a huge helping hand with a 30K deposit (the house is 151K).

Prior to this, we have been renting in Bristol whilst she's full time at uni, and my salary has funded living there, but the cost of renting our current place has risen from an initial £675 a moth, to £695, and now to £725 - if we were to stay for the remainder of her course then I could easily to expect that figure to rise to nearly (maybe over) £800 a month!

Though I totally accept our situation can be changed by moving to a cheaper place, it seems daft that rent can cost this much, when our mortgage is £600 fixed for 5 years.

Though I appreciate that our landlord probably has a variable mortgage that will mean his repayments go up, maybe there should be some sort of change to regulations or something, so that 'buy to let' homes can only be funded by small mortgages (maybe 60%), and the monthly fee charged to tennants cannot exceed X amount; this would mean that people 'stuck' renting have a more realistic chance of saving a deposit...

Just my thoughts, I'm certainly glad to be out of the renting trap (as I personally see it) and looking forward to the challenges that being a home owner brings.

Most landlord rent hikes is based on the amount the house would be worth if a new buy to let mortgage was calculated that day.
 
erm - when you can't afford the size of property you want in the area you want... the idea that you should get something for cheap because you happened to be born there is ridiculous - if there's lots of demand for something then the price goes up... so yeah, just move - or get a better job

£1300 for a three bedroom house (bottom of the market) is cheap? This is the norm for my area and that's the bottom end of the market, how much is too much? Could you afford that? With council tax that's 22k a year wage to cover the two basic costs of living. Which is just really quite insane considering that's just to RENT.

People should just move to the other side of the country, away from their entire lives and their roots, just because the housing market has been inflated to ridiculous levels? 15 years ago the propertys here were 1/3 of the price they are now, the population hasn't increased that much to cause the problem, the banks and buy to let vultures have.
 
Last edited:
Back
Top Bottom