House prices rose 7.3% this year, average now almost £250k

[HACO]

I'm waiting to sell mine up and put the money into the stock market instead, owning a property and renting it out is too much hassle for bad returns.

That's a good idea. Stock market has always returned more than rental property.

Apart from a 5% LTV rate will be around 3-4%

And a 15% LTV around 2.5%

So you will likely pay a similar amount in outgoings on your mortgage even on the cheaper house.

So you're not disadvantaged by the drop, and in the worst case scenario (which the example was supposed to show), you're just not advantaged or disadvantaged. You still save on stamp duty.

I wouldn't be surprised if you ended up paying more over the term of the mortgage on the lower amount at a higher rate.

Anyway, the point is that you likely wouldn't be able to move, you're not likely to get a mortgage with the 6% deposit.
I thought the main argument about house prices being unaffordable was because people can't save up the required deposit? and the actual cost of the mortgage over the full term is largely irrelevant.

At worst, they'll be within the same ballpark, and don't forget that the high interest period is temporary, once time passes everyone will remortgage on a better LTV. And 5% mortgages were common up until this year, and they will return. Hell, soon we'll also go the Netherlands way and introduce 100% or even 105% mortgages to keep propping up the market. All it needs is a mortgage government guarantee which is on the table anyway.

Outside of London, deposit is not a big issue, monthly payments are. In London, deposit is also a major issue as well as the monthly outgoings.

 

[touch]

Outside of London, deposit is not a big issue, monthly payments are. In London, deposit is also a major issue as well as the monthly outgoings.

That seems different from a lot of posts in similar threads to this. I had thought that the general opinion was that most people who could afford to rent a house could also afford a mortgage on it as the monthly payment for a mortgage is often lower (or at least not significantly higher) and the main hurdle to ownership was the deposit required.
I don't know enough about the rental market though so maybe I'm mistaken.

 

[HACO]

That seems different from a lot of posts in similar threads to this. I had thought that the general opinion was that most people who could afford to rent a house could also afford a mortgage on it as the monthly payment for a mortgage is often lower (or at least not significantly higher) and the main hurdle to ownership was the deposit required.
I don't know enough about the rental market though so maybe I'm mistaken.

I don't think you're wrong, it's largely depends on area.

 

[CaptainRAVE]

House prices in our area have gone insane. You wouldn’t think the economy was under strain. It’s a pretty affluent area, but still.

 

[DarrenM343]

House prices in our area have gone insane. You wouldn’t think the economy was under strain. It’s a pretty affluent area, but still.

UK gov does what it can to prop up house prices. Pretty much the only thing we have going for the country atm. All is good as long as property continues to rise in value. Land owners (commercial notably) always come out shining too - could do with a land value tax or something. I'm really hoping Boris gets a Brexit deal sorted and the UK can go back to being a serious country again. Might even give stonks a boost too if that happens.

I still have an old BTL I want rid of. Whenever I'm in a position to sell it something seems goes wrong with the market

 

[potatolord]

The only real solution is increasing wages. To do that we need to sort out the economy. To do that you need to try and keep every pound spent within the UK inside the UK.

That's a fair point. The problem is, wages would need to increase hugely at the bottom end to make houses affordable. And that would cause inflation.

Inflation might be a partial answer to this problem- but obviously creates other issues....

 

[Psycho Sonny]

That's a fair point. The problem is, wages would need to increase hugely at the bottom end to make houses affordable. And that would cause inflation.

Inflation might be a partial answer to this problem- but obviously creates other issues....

Exactly making houses cheaper isn't going to solve the majority of issues as other essential purchases will continue to rise.

 

[FoxEye]

Believe it not but the government does seem interested in building lots of homes. Most Local Authorities do not. I’ve worked on dozens of the largest new housing schemes across the country in the last 10 years. They almost all were rejected by the Local Authority and a planning appeal was lodged with the Planning Inspectorate who overturns the Local authority decision.

People don’t want new homes built near them.

So you are probably fully aware of the absolute state of many new builds, then. My brother is in the building trade and boy does he have some stories to tell

As govt desperation to build houses increases, the standard of planning applications and the standard of the houses being built drops off accordingly.

Local govt and local planning officers are the only thing standing between us and absolute lowest quality of housing that the developers can get away with.

As you say they're getting overruled a lot by central govt but that's not a good thing, unless you want to see absolute garbage housing all over the place.

 

[Luckystrike123]

Is Psycho Sonny the mayor of Cumbernauld? If not I'd vote for him as he's doing a great job of raising the profile of the place....

 

[Psycho Sonny]

So you are probably fully aware of the absolute state of many new builds, then. My brother is in the building trade and boy does he have some stories to tell

As govt desperation to build houses increases, the standard of planning applications and the standard of the houses being built drops off accordingly.

Local govt and local planning officers are the only thing standing between us and absolute lowest quality of housing that the developers can get away with.

As you say they're getting overruled a lot by central govt but that's not a good thing, unless you want to see absolute garbage housing all over the place.

It depends on the builder. There are plenty of new builds which are built to a higher standard than others.

I personally wouldn't buy a new build as they tend to attract a premium of around 20% compared to a similar house in the same area which is maybe 10-20 years old so hardly old in terms of age either and will have the majority of not all of the modern facilities and regulations covered.

 

[sanaxe1]

Don't want to start a new thread. But does anybody know why new build streets aren't in a line anymore? I know they must be trying to maximise space but it seems some houses are just random with some being 1m more back from the road than next door, another at a different angle etc Doesn't seem to be any symmetry.

 

[bayo000]

Don't want to start a new thread. But does anybody know why new build streets aren't in a line anymore? I know they must be trying to maximise space but it seems some houses are just random with them 1 being 1m back from the road than next door, another at a different angle etc Doesn't seem to be any symmetry.

I think it's to break up the view so it doesn't end up looking like terrace houses

 

[Psycho Sonny]

Don't want to start a new thread. But does anybody know why new build streets aren't in a line anymore? I know they must be trying to maximise space but it seems some houses are just random with some being 1m more back from the road than next door, another at a different angle etc Doesn't seem to be any symmetry.

It looks more private and intimate.

Having long straight roads with straight rows of houses looks terrible even if it is efficient.

A windy road with randomness everywhere just looks more natural.

 

[HACO]

What is the UK world leaders in? You think of other countries and Germany and you have many household names

Miele
Mercedes
BMW
VW
Porsche
Siemens
Bosch
Continental
Adidas

The list goes on and on.

Dyson has moved to Singapore. Virgin has his own Island tax haven. We need to stop these companies from leaving the UK and stop foreign companies from taking all the money out of the UK.

That will solve all the problems if you do that.

We're world leaders in financial services, computing and software tech. That's what we're good at. The rest of the country is nothing special and would be no different than any average European country.

It's good to prop up the manufacturing industry but we have no chance of competing against powerhouses like Germany. Brexit, which I expect you're much in favour of given your general posts, is going to hurt manufacturing far more than it helps it and will push us far more towards a services-based economy (we're already 80% services).

 

[Psycho Sonny]

We're world leaders in financial services, computing and software tech. That's what we're good at. The rest of the country is nothing special and would be no different than any average European country.

It's good to prop up the manufacturing industry but we have no chance of competing against powerhouses like Germany. Brexit, which I expect you're much in favour of given your general posts, is going to hurt manufacturing far more than it helps it and will push us far more towards a services-based economy (we're already 80% services).

Last time I checked only raspberry pis are made here.

Majority of software is now in places like America, Russia and China.

I'm very much anti Brexit. Pro independence for Scotland.

I think our politicians have the greater good of our people in mind whereas Westminster only have themselves in mind.

I'd also like to see northern Ireland just unified into Ireland with the Republic it would have made Brexit negotiations a lot easier and reduced the burden on the UK taxpayer.

I'm also a great believer in hard work. If you want to be able to afford a house in a nice area then you have to work for it. Not keep complaining and hope someone hands you it on a plate

 

[HACO]

I'm very much anti Brexit. Pro independence for Scotland.

I think our politicians have the greater good of our people in mind whereas Westminster only have themselves in mind.

I'd also like to see northern Ireland just unified into Ireland with the Republic it would have made Brexit negotiations a lot easier and reduced the burden on the UK taxpayer.

Good for you.

I'm also a great believer in hard work. If you want to be able to afford a house in a nice area then you have to work for it. Not keep complaining and hope someone hands you it on a plate

Despite what you think and keep repeating about me, I'm doing fine and don't need a handout and if there's any handout I won't be getting it since I make too much money, lol. I worry about a crisis that is hurting this country and the future of the young generation are and will be carrying the full burden of it.

I know it may sound strange, but some of us are capable of empathy.

 

[Psycho Sonny]

Good for you.



Despite what you think and keep repeating about me, I'm doing fine and don't need a handout and if there's any handout I won't be getting it since I make too much money, lol. I worry about a crisis that is hurting this country and the future of the young generation are and will be carrying the full burden of it.

I know it may sound strange, but some of us are capable of empathy.

You seem to be fixated on house prices.

If you are making good money then you understand others can too. You also understand the important points I've raised in terms of the real solution being increasing wages not decreasing house prices.

All decreasing house prices will do is fix the real problem temporarily and then when the real problem rears it head again it will be too late to do anything about it without any valuable assets at our disposal.

Simply complaining about house prices isn't a solution neither is decreasing them. Move on to the real problem rather than fixating on what you believe it to be.

 

[HACO]

If you are making good money then you understand others can too.

Lol no. I make good money because I'm lucky that the particular things that I'm good at are currently valued a lot in the market. Not everyone is so lucky so that stars are aligned where their natural talents can be nurtured into developing skills that the market values highly.

Again it comes down to empathy which I have for those less fortunate than me instead of calling them lazy and telling them to just work harder. I don't think having something as basic as an affordable roof over your head has to be only for the winners in one of the richest countries in the world.

 

[Psycho Sonny]

Lol no. I make good money because I'm lucky that the particular things that I'm good at are currently valued a lot in the market. Not everyone is so lucky so that stars are aligned where their natural talents can be nurtured into developing skills that the market values highly.

Again it comes down to empathy which I have for those less fortunate than me instead of calling them lazy and telling them to just work harder. I don't think having something as basic as an affordable roof over your head has to be only for the winners in one of the richest countries in the world.

How do you define one of the richest in the world?

Also why stop here?

Why can't people who happen to be born in Africa, Asia, etc? Also have access to affordable housing wherever they want it?

You have to be realistic. Or are you advocating communism?

 

[HACO]

How do you define one of the richest in the world?

https://en.wikipedia.org/wiki/List_of_countries_by_total_wealth

UK are fifth, after the US, China, Japan and Germany. If you go by GDP, results are similar.

Why can't people who happen to be born in Africa, Asia, etc? Also have access to affordable housing wherever they want it?

You added the "wherever they want it" to make it sound unreasonable, as if anyone has ever suggested that anyone should be entitled to anything they want.

You have to be realistic. Or are you advocating communism?

Keeping housing affordable isn't communism. Just look at what other western countries who doesn't have a housing crisis have achieved. Policies like land value taxes (which even the US has), ignoring NIMBYsm, taxing or banning foreign ownership of properties (which is mostly why London has become so unaffordable), expanding social housing by major non-profit building projects, etc will make the housing situation a lot better.

You're pretending like any policy towards making this situation better for people = communism. There are reasonable policies out there that we can implement.