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

[Scam]

Ok how so? I'm a homeowner how exactly am I paying directly into a landlords pocket unless you mean by my tax being paid to people on benefits that is then used to house them but that's totally out of my control.

You answered your own question. Your taxes are being paid into housing benefit, of which £9bn/year goes into the pockets of private landlords.

Or to flip it on it's head, I'm a landlord who owns properties I rent out to people on housing benefit. My mortgage(s) are inadvertently paid for by tax payers which means I can buy more and more properties. I get richer and richer.. all the while serving to further fuel house-price increases (because landlords can buy more properties), which further fuel higher rents, which in turn increase housing benefit available, which in turn means I get more money from taxpayers to pay off my now-larger mortgages. Tell me that's not ****ed up?

 

[Maundie]

You're wrong though, it's not homeowners who's taxes go to this but anyone who works and pays tax so everyone in the country who is employed is to blame for BTL landlords and also we have no say in where our taxes go so we aren't assisting it it is something we have no control over so you can't blame everyone.

What's your answer then? Are you going to say anyone on benefits can't use said benefits to pay towards being housed because it's encouraging BTLs hell lets just make anyone on benefits homeless that's just solved the majority of the issues straight away.

This was only gonna go one way and that's as it always has been, the richer can afford the houses and the poorer can't as it has always been through time, there has always been some 'haves' and some 'have nots' and the divide gets wider, I'll bet your issue is because you aren't one of the 'haves', you're opinion on this would certainly be different should you be one of them.

 

[jaybee]

Jeez this thread should have a warning "***Majorly Depressing content inside***"

It's hard to know what to add constructively to this. It is depressing...truly. The rich get richer.

...I keep wondering why I'm still here. The answer is family, literally nothing else. Without family I'd be off like a shot. ...

I often have the same thoughts but don't know realistically where I would go. I personally could cope missing my family and friends if I took my immediate (wife and kids I mean) with me to a new country. But I know they would struggle...especially the kids.

 

[FoxEye]

Jeez this thread should have a warning "***Majorly Depressing content inside***"

It's hard to know what to add constructively to this. It is depressing...truly. The rich get richer.

I often have the same thoughts but don't know realistically where I would go. I personally could cope missing my family and friends if I took my immediate (wife and kids I mean) with me to a new country. But I know they would struggle...especially the kids.

Actually the kids normally have a much easier time of it (depending on age). A family I know has just relocated with school age children. They picked up a new language and started new schools and are absolutely loving their new country.

They'd been there on and off for holidays so that helped.

Learning a language is so much easier when you have the motivation that you absolutely have no choice if you want to survive

 

[Spook187]

Oh yes. When I talk to homeowners that don't care about the broken housing market I like to point out that they are infact also propping it up and directly paying into landlord's pockets.

Private landlords get £9.3bn in housing benefit from taxpayer

So, as a tenant I get to pay off my landlord's mortgage and pay my taxes to pay off other landlord's mortgages. Fantastic!

I'm still hankering for a crash. My girlfriend and I have a generous deposit, just not quite generous enough for what we'd want to buy around here. If prices crash that'd mean a lower LTV for us and probably no issues getting a mortgage. In an ideal world that would mean that finally our sensible money-saving habits engrained in our youth will actually come to fruition - rather than sitting there paying into a pathetic 0.5% ISA and not even breaking even over inflation like we've spent the last XX years doing!

No point in moaning about paying landlords mortgage off and waiting for a crash, It may be sometime in waiting, best thing I ever did was buying my own property instead of waiting for something that may never happen.

 

[dowie]

I'm still hankering for a crash. My girlfriend and I have a generous deposit, just not quite generous enough for what we'd want to buy around here. If prices crash that'd mean a lower LTV for us and probably no issues getting a mortgage. In an ideal world that would mean that finally our sensible money-saving habits engrained in our youth will actually come to fruition - rather than sitting there paying into a pathetic 0.5% ISA and not even breaking even over inflation like we've spent the last XX years doing!

Would be ironic if you finally get around to buying in the posher area you want (after spending additional years paying this landlords mortgage) and for there to then be a crash afterwards.

These things work both ways tbh... ideally I don't think we should wish for crashes or indeed excessive price rises, I'd rather property prices were relatively stable and just grew steadily with inflation... (or at least weren't too far off overall, in the long run).

No point in moaning about paying landlords mortgage off and waiting for a crash, It may be sometime in waiting, best thing I ever did was buying my own property instead of waiting for something that may never happen.

Yeah but you're up north, @Scam 's deposit alone could probably buy half a street up your way!

(Could probably buy even more if he fancied risking a property in one of those areas around your way that tend to get flooded!)

 

[Spook187]

Would be ironic if you finally get around to buying in the posher area you want (after spending additional years paying this landlords mortgage) and for there to then be a crash afterwards.

These things work both ways tbh... ideally I don't think we should wish for crashes or indeed excessive price rises, I'd rather property prices were relatively stable and just grew steadily with inflation... (or at least weren't too far off overall, in the long run).



Yeah but you're up north, @Scam 's deposit alone could probably buy half a street up your way!

 I wish, I live in a nice area though and have a decent salary for a northerner

 

[neocon]

There are plenty of houses for £150k in Norfolk. Why don't people want them?

 

[AiiR]

There are plenty of houses for £150k in Norfolk. Why don't people want them?

Because most unaffordable properties are in the south, and people don't want to move that far away from their support network.

I don't blame them but it's becoming a necessity if you want to own the roof over your head. We are considering it ourselves.

 

[Chris1712]

All those waiting for a crash, it’s not happening. The market is effectively underwritten by the government after years of ‘Help’ to Buy. They’ve got skin in the game now so it will be propped up forever more. This last year is imo proof of that.

 

[413x]

I don't want a crash (obviously, I'm an owner (with mortgage))

But prices need to stabilise.

We surely have to have a correction soon though with covid and unemployment

 

[Fusion]

I don't want a crash (obviously, I'm an owner (with mortgage))

But prices need to stabilise.

We surely have to have a correction soon though with covid and unemployment

I don’t think there’s been a time when GDP has significantly fallen, unemployment has risen and prices haven’t gone down. Early 80s recession, early 90s recession, 2008 crash have all followed this pattern. Might well be the same this time around.

Article on the front page of the Times today saying that flat sales have halved, though the commentators seem quick to say this is more down to Grenfell-style cladding issues than Covid. Not sure I agree with that.

Maybe the slide is beginning to start?

 

[silversurfer]

All those waiting for a crash, it’s not happening. The market is effectively underwritten by the government after years of ‘Help’ to Buy. They’ve got skin in the game now so it will be propped up forever more. This last year is imo proof of that.

The main worry for the government is the cost of servicing debt. They wont choose to raise rates on themselves until they are able to run a fiscal surplus and thats not on the horizon so far as I know. Any reversal wont be voluntary

 

[Fusion]

The main worry for the government is the cost of servicing debt. They wont choose to raise rates on themselves until they are able to run a fiscal surplus and thats not on the horizon so far as I know. Any reversal wont be voluntary

Interest rates aren't set by the government.

 

[Fubsy]

If there was a crash, and the prices came down and BTLs were scrambling to offload their assets (now liabilities), who would they be offloading them to?

As the market recovers, who and what do you think will start buying up at bargain prices? It will just balloon again because there is so much demand.

 

[Fusion]

If there was a crash, and the prices came down and BTLs were scrambling to offload their assets (now liabilities), who would they be offloading them to?

As the market recovers, who and what do you think will start buying up at bargain prices? It will just balloon again because there is so much demand.

I don't know that BTL owners would be selling up. It might be regular buyers that can't get mortgages, or people that want to "wait it out" until prices bottom out/their job stability/situation improves.

 

[Bald-Eagle22]

There are plenty of houses for £150k in Norfolk. Why don't people want them?

And Ive argued this till the cows come home . It’s people’s sense of entitlement in this country that makes me sick , I’d like a house on Park Lane Mayfair or St Mawes In Cornwall or even Sandbanks - guess what ? I can’t afford it .

Theres plenty of cheap property around the UK . Even if you don’t want to live there buy it and rent it out , rinse and repeat every 7-8 years when you can take some equity out - it’s really not that hard to do .

 

[adam cool dude]

Both myself and the missus started with nothing and worked our careers up from nothing. We are about to buy a lovely 4 bed detached with a double garage, nice area, schools etc for 300,000. It's in the midlands but we have access to everything. Within an hour to East Midlands airport etc. Our salary is above the national average and whilst we might theoretically get another ten grand between us down south the quality of life will be far worse.

There is plenty of housing available and accessibility for everything. People just need to realise the south is just uneconomical to the vast majority of people. We managed to save a 30k deposit in two years whilst both working around the national average wage ten years ago but we were very frugal. Everyone wants the latest I phone or car lease but then moan about renting.

My brother in law came to this country in 2005 with nothing and no skills. Even his English wasn't the best. He bought a decent sized detached house ten years ago and will be mortgage free within the next decade.

 

[413x]

I don’t think there’s been a time when GDP has significantly fallen, unemployment has risen and prices haven’t gone down. Early 80s recession, early 90s recession, 2008 crash have all followed this pattern. Might well be the same this time around.

Article on the front page of the Times today saying that flat sales have halved, though the commentators seem quick to say this is more down to Grenfell-style cladding issues than Covid. Not sure I agree with that.

Maybe the slide is beginning to start?

I can't understand how it's not going to impact. Housing and the stock market seem disconnected from what's going on in the world .

I don't pretend to fully understand it. But feels like a correction g has to come.
For myself I just hope it isn't too bad

 

[adam cool dude]

I can't understand how it's not going to impact. Housing and the stock market seem disconnected from what's going on in the world .

I don't pretend to fully understand it. But feels like a correction g has to come.
For myself I just hope it isn't too bad

We bought in 2010 and whilst the housing market didn't crash there were plenty of cheap repo's which was fantastic if you had money at the time. I guess that's what buyers will need to hope for now and I am sure there will plenty.