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

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Psycho Sonny said:
why do you need to build cities from scratch?

people are unwilling to move as it is yet you want to enforce it?

you can buy a flat in cumbernauld for £10K.

rather than build a city from scratch why don't they all move to cumbernauld?

the average house price in Scotland is only £150k
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And you can buy acres of land in the middle of Sudan for £100. We need to build where people want to live, cities within vicinities of areas that people want to live in. Just because people don't want to live in Cumbernauld doesn't mean new cities within 1 hour of London won't be attractive.

UK's housing shortage is in millions according to any report you want to read. 10 cheap flats in the middle of nowhere doesn't solve it as much as you want to pretend it does.
 
Psycho Sonny said:
why do you need to build cities from scratch?

people are unwilling to move as it is yet you want to enforce it?

you can buy a flat in cumbernauld for £10K.

rather than build a city from scratch why don't they all move to cumbernauld?

the average house price in Scotland is only £150k
Click to expand...

Cheap houses in places no one wants to live, because there are no jobs, the weather is ****, or it's full of crackheads. Great...
 
Psycho Sonny said:
why do you need to build cities from scratch?

people are unwilling to move as it is yet you want to enforce it?

you can buy a flat in cumbernauld for £10K.

rather than build a city from scratch why don't they all move to cumbernauld?

the average house price in Scotland is only £150k
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You are so far detached from reality it is quite incredible really.
 
gort said:
Answer: The UK and the rest of the world to get a grip on unsustainable population growth.
Sorted!
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We're way past the point of no return on that. We should have got a grip on that in early 1900s. We need a Thanos now.
 
HACO said:
Mortgage application, not approval. Not all applications are approved, and not all approved mortgages actually complete a sale. It's pretty common to have multiple approvals (in-principle, from multiple lenders, expiration of offer, etc) before you actually buy something.
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A decision in principle is not the same as an approval.
 
gort said:
Answer: The UK and the rest of the world to get a grip on unsustainable population growth.
Sorted!
Click to expand...

Its going to happen.

I believe its projected that the west will peak in population at 2050 ish

https://www.bbc.com/news/health-53409521

This is a good thing for the planet.
And also, at the rate of automation we won't need so many people. There won't be enough jobs. Almost feels like a natural population correction is coming. Like it does in nature.


Now, to keep house prices up we would have to welcome immigration. So potentially hereafterwards we will see a Japan style decline.

Personally, I don't think this house price climb can continue. But that all depends on long term employment/tax figures.
We have brexit and covid impact. It might be a short lived dip. But if those jobs don't come back (for example cinema dies) then who knows.

I also think the recent stamp duty break was/is disgusting.
Would have been better to fund a few percent of first time buyers deposits!
 
413x said:
Its going to happen.

I believe its projected that the west will peak in population at 2050 ish

https://www.bbc.com/news/health-53409521

This is a good thing for the planet.
And also, at the rate of automation we won't need so many people. There won't be enough jobs. Almost feels like a natural population correction is coming. Like it does in nature.


Now, to keep house prices up we would have to welcome immigration. So potentially hereafterwards we will see a Japan style decline.

Personally, I don't think this house price climb can continue. But that all depends on long term employment/tax figures.
We have brexit and covid impact. It might be a short lived dip. But if those jobs don't come back (for example cinema dies) then who knows.

I also think the recent stamp duty break was/is disgusting.
Would have been better to fund a few percent of first time buyers deposits!
Click to expand...

It absolutely is a great thing for the earth. Quite honestly, without this I don't think our civilisation would survive and we'd have gone extinct if 20th population growth levels were to repeat in 21st century.

I think house prices are completely decoupled from the economy, earnings and anything else. We're heading to a situation where income can't ever buy housing, and it's only inherited (or gifted) wealth that makes someone a homeowner. In that scenario, it never matters if someone is in employment or not, what matters is if someone have rich parents who are also homeowner class. Everyone else? Renters for life.

Just imagine if 7.3% growth were to be the norm, median house would be £720k within 15 years and £2m within 30 years. You may say this means it can't grow by 7.3% per year, I think it absolutely can when the government will do everything in their absolute power do ensure that they do.

We'll soon see no deposit mortgages, higher income multiples, lifetime mortgages, government insured mortgage packages, and other policies to make sure the property market will continue to grow.
 
HACO said:
It absolutely is a great thing for the earth. Quite honestly, without this I don't think our civilisation would survive and we'd have gone extinct if 20th population growth levels were to repeat in 21st century.

I think house prices are completely decoupled from the economy, earnings and anything else. We're heading to a situation where income can't ever buy housing, and it's only inherited (or gifted) wealth that makes someone a homeowner. In that scenario, it never matters if someone is in employment or not, what matters is if someone have rich parents who are also homeowner class. Everyone else? Renters for life.

Just imagine if 7.3% growth were to be the norm, median house would be £720k within 15 years and £2m within 30 years. You may say this means it can't grow by 7.3% per year, I think it absolutely can when the government will do everything in their absolute power do ensure that they do.

We'll soon see no deposit mortgages, higher income multiples, lifetime mortgages, government insured mortgage packages, and other policies to make sure the property market will continue to grow.
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Good post i think this will actually happen and there will be a revolt. The best quote i heard on this scenario where most people will rent for life is that "Bad farmers farm animals and good farmers farm humans" which is 100% true. It is from the handbook of human ownership.
 
HACO said:
It absolutely is a great thing for the earth. Quite honestly, without this I don't think our civilisation would survive and we'd have gone extinct if 20th population growth levels were to repeat in 21st century.

I think house prices are completely decoupled from the economy, earnings and anything else. We're heading to a situation where income can't ever buy housing, and it's only inherited (or gifted) wealth that makes someone a homeowner. In that scenario, it never matters if someone is in employment or not, what matters is if someone have rich parents who are also homeowner class. Everyone else? Renters for life.

Just imagine if 7.3% growth were to be the norm, median house would be £720k within 15 years and £2m within 30 years. You may say this means it can't grow by 7.3% per year, I think it absolutely can when the government will do everything in their absolute power do ensure that they do.

We'll soon see no deposit mortgages, higher income multiples, lifetime mortgages, government insured mortgage packages, and other policies to make sure the property market will continue to grow.
Click to expand...

So many factors. Jobs is the big one.

If people can't get jobs and stay home with parents , there won't be demand for rental. Prices will drop, landlords will sell up and prices will fall.

If jobs do increase people can still rent and probably end up with modest rises.
Home ownership will fall, the wealth divide will grow and we will end up with an end of life.funding crisis.

Even now. With boomers and thier paid off mortgages having to downsize to pay for care. When next gen gets to that point the burden on state will be enormous. I don't want to think about what will happen then.

Not looking pretty for kids of today.

Unless you have something to give kids, anyone without having kids now should be seriously concerned for thier quality of life.

I don't expect to have much left at end of life to pass to anyone.
A paid off mortgage and enough to release equity and pay for end of life stuff is as much as I can hope for.
Anything left can go to charity
 
HACO said:
And you can buy acres of land in the middle of Sudan for £100. We need to build where people want to live, cities within vicinities of areas that people want to live in. Just because people don't want to live in Cumbernauld doesn't mean new cities within 1 hour of London won't be attractive.
Click to expand...

There's a bit of an issue with that.

If you build where people want to live. Guess what, lots of people will want to live there, driving up demand (and so prices). Unless you artificially limit prices in these new desirable locations, they're just going to get bought by the highest bidder.
 
I still fail to see why it's so hard for banks, goverment to help get you on the ladder when your renting. To me below would make sense

Bring 100 mortgages back but with heavy restrictions and I don't mean this family "loan"

If you can prove you have rented a home say for minimum of 4 years and never missed a payment you should be eligible for a house at 100 LTV mortgage providing the monthly cost would equate to the same as the rent.

The owner / landlord would also have to provide proof it's the case.

This should give the banks confidence and as you can only have a house that equates to what you pay in rent in theory you aren't borrowing more than you can afford
 
I agree that 100% need to come back or where you can show you at least have say a few thousand in savings and not drowning in debt. Couple that with no missed rent payments for 3 years should clearly show you can pay a mortgage. As it stands now unless you can save about 20k your not getting a house and that is difficult if your renting.
 
Haggisman said:
There's a bit of an issue with that.

If you build where people want to live. Guess what, lots of people will want to live there, driving up demand (and so prices). Unless you artificially limit prices in these new desirable locations, they're just going to get bought by the highest bidder.
Click to expand...

If you build enough of them, there will be supply for everyone for prices to remain reasonable. And people coming to those places will free up demand in other places. Demand isn't unlimited.
 
Through furlough I started watching trash TV in the morning, 'Homes Under the Hammer' was one. An astonishing amount of people with questionable morals just filling up portfolios.

Presenter: "So you landed this house at auction, could be potential for a nice family home you've got here. What do you plan on doing with it?"
Buyer: "Well, I'm going to do the bare minimum to it. Maybe turn the upstairs into a one bed flat, add them to my 30 large portfolio and rent them out for maximum return."

Now i'm not saying all landlords and property investors are the same. But I do feel just from what a few friends have gone through that things need to be changed in residential property ownership. The focus should be homes rather than investments.
 
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I work with people in Derby who earn £50k+ and still claim they cannot afford a house. It is all about priorities and choices.

It is rubbish that housing is so expensive, in some areas to the point where owning your own is not a possibility. However, you either do it or you don't i.e. your first house cannot be in the most desirable area. There is no housing building spree coming.

If you are working towards a promotion whilst wearing Primark clothes, driving a 10 year old Focus and spending your spare time watching Netflix and visiting a cheap gym, then I have sympathy.

If you're driving a leased Golf R, wearing a £40 T shirt, go on holiday twice per year, £50 per month phone contract etc. whilst pratting around age 30 in a £20k per year job then I do not have sympathy.
 
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