Rant - London rent prices...
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Man of Honour
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Agreed.
In fact why live in London when there's lovely rural areas to live in which can still get you into town in under an hour?!
That said, owning property in London is great to rent out - especially if you've cleared your mortgage, that makes a nice extra bit of income.
I'm not saying hat correlate exactly. More of a tandem. Crash comes, confidence wanes, construction slows.
You don't want to know how many times I have heard his whilst buying my first house.
But as you said... they are laughing all the way to the bank..
'And cousin, business is a-boomin''
100% CGT on gains over RPI on residential property. Remove speculation from the market. The market will then be driven by people wanting homes, not people trying to make an easy profit.
Government will take a massive hit I imagine... Why bother selling it for more than original cost + RPI increase? First come first served for that amount...
Unless I have overlooked something.
Having house prices effectively capped at RPI would be a bad thing because?
how do you allocate homes then?
prices are fixed artificially low but you've got 20 buyers say for one house?
First person that wants it? Not sure why that would be a problem. Rents are capped here in Germany and I got my current apartment because I was the first to take it, no rate negotiation involved.
100% is an extreme example. 80% would have the same effect on speculation and still allow competitive bids, if that was a problem for whatever reason.
100% is an extreme example. 80% would have the same effect on speculation and still allow competitive bids, if that was a problem for whatever reason.
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It's just getting into effect. What Government is going to ruin a lot of peoples retirement plans? Especially when we have an ageing population.
Hmm indeed, all these voting types that have made a **** ton of money to retire on at the expense of the younger generations. Let's be clear, 'millenials' have been utterly shafted, and their parents generation have done very nicely.
Time for them to share the wealth/pain.
Yeah well said mid_gen. If the current baby-boomer retirees think they have it hard retiring sitting on a £250k house all paid off, then imagine how bad it will be for generation rent when we're 75yrs old, no house in our name and still expected to pay rent until we wither away and die. It's farcical. Just exactly what are we going to do? 
who would organise that - in some areas you'd have so much demand that you've made estate agents redundant, you'd need a bidding process though you can't have one that involves the price going up - essentially turning buying a house into buying Glastonbury tickets...
so you'd give the house to the person with the lowest ping time on their internet connection
all you'd do in reality is introduce lots of corruption, under the table deals etc.. and probably reduce most of the supply of homes - anyone who owned one in an area with high demand would be better off doing whatever they could to hold onto it and rent it out
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London prices are hardly a secret, why bother applying for a uni there if you can't afford it?
There are other just as good/better universities outside of London, where you will be able to live much much more affordably.
There are other just as good/better universities outside of London, where you will be able to live much much more affordably.
Without taking this too far off track, I don't see the problem. My current place had an open house, we went, we looked along with several other people, and we were the first to say we'd take it. Not rocket science.
Bearing in mind that the market would return to some semblance of normality as BTL'ers/speculators relying on capital gains would flood the market with properties.
Not if they had to rely on rental yields for their return. A lot of people would get out of BTL as other investments become more attractive.
Yeah well said mid_gen. If the current baby-boomer retirees think they have it hard retiring sitting on a £250k house all paid off, then imagine how bad it will be for generation rent when we're 75yrs old, no house in our name and still expected to pay rent until we wither away and die. It's farcical. Just exactly what are we going to do?
That may be the case for you. I'm 31 and have owned in London for almost 5 years. Around 65%-70% of my friends of the same age are also owners in London. Just because it doesn't suit you, or you didn't have the foresight or risk appetite to purchase a property earlier, that doesn't mean a whole system needs to change. Genuinely can't believe how expectant and demanding this generation is.
no but you're missing a key point, you've not got a cap on price in that scenario
nah it would be completely abnormal - implementing a price cap doesn't take away demand - lots of people would still be quite happy with a flat in Central London and if they were priced artificially low then you'd easily get a scenario where multiple people would want one at once... yet no good way of allocating it
Are you wanting to roll this idea out globally? Paris, New York, San Francisco, etc. have similar property markets. Or are you just advocating this for London?
Having been unfortunate enough to spend some time in both Tooting and Morden I can honestly say that I would rather live in a box.
Or catch rocks with my eyes.
One of them.
nope, rental yields would become very attractive if you capped property prices in areas with high demand
for example my flat in London has gone up over 50% in the past 4 years... the rental yield I can get is only a few percent... however if you'd capped prices 4 years ago then the rental yield I'd be getting now would be rather high relative the the artificially low 'value' you've imposed on the flat