House prices rose by another 6.5% in the last 5 months, highest since 2004

HACO · 7 Dec 2020 at 13:38

https://www.yourmoney.com/mortgages...in-five-months-wiping-out-stamp-duty-savings/

The last five months from July to November have seen the average house price rise by 6.5% – the strongest five-month gain since 2004, according to the latest Halifax House Price Index.

Average UK property is now £253,000.

At the same time our that GDP and average income has decreased, and our unemployment skyrocketed.

As they say:

“There have been few withdrawals from previously-agreed sales and prices are holding up well, supported by the continuing shortage of the right properties at the right prices in the right locations.”

This is what happens when we don't build anything to meet the demand. Housing shortage is now estimated to be more than 1 million by the BBC.

Russinating · 7 Dec 2020 at 13:43

You are aware of the temporary changes to stamp duty as a result of COVID-19, yes?

Arsonist · 7 Dec 2020 at 13:43

HACO said:
“There have been few withdrawals from previously-agreed sales.

That's me unfortunately. Pulled out at the last minute (were ready to sign contract) due to likely redundancy. Started looking again as the job situation resolved itself, but I'm almost priced out of the market now. Just hoping come March when furlough and stamp duty holiday ends that prices stabilise and I can try and find somewhere decent.

HACO · 7 Dec 2020 at 13:46

Russinating said:
You are aware of the temporary changes to stamp duty as a result of COVID-19, yes?

Yes, a government scheme to channel tax-payer money to wealthy home sellers. Instead of paying as a tax, you pay the seller more! How amazing.

HACO · 7 Dec 2020 at 13:48

Arsonist said:
That's me unfortunately. Pulled out at the last minute (were ready to sign contract) due to likely redundancy. Started looking again as the job situation resolved itself, but I'm almost priced out of the market now. Just hoping come March when furlough and stamp duty holiday ends that prices stabilise and I can try and find somewhere decent.

Same. The place that I had in mind has been increased by almost exactly what the stamp duty would have been, the agent notified me that I can afford this as I won't need to pay stamp duty anymore.

And nothing will change in March. There will be another scheme to ensure that prices continue their ever-increasing trend.

Calpol · 7 Dec 2020 at 13:49

Housing policy in the UK has been a sham for years and this latest news underscores the issue. Whilst there isn't a lot of data supporting the statement it's crazy that with average salaries in the c£30k area that the average house price is now a multiple of >8. Middle class and higher earners have driven the prices up further as a result of the recent SDLT abatement. All of which makes it harder for younger people to get affordable housing. The government has basically given a tax cut to people who didn't need it. I cannot see why anyone thought that was a good idea. It genuinely worries me what will happen in the next few years in this country as we come to terms with post COVID, Brexit.

HACO · 7 Dec 2020 at 13:53

Calpol said:
Housing policy in the UK has been a sham for years and this latest news underscores the issue. Whilst there isn't a lot of data supporting the statement it's crazy that with average salaries in the c£30k area that the average house price is now a multiple of >8. Middle class and higher earners have driven the prices up further as a result of the recent SDLT abatement. All of which makes it harder for younger people to get affordable housing. The government has basically given a tax cut to people who didn't need it. I cannot see why anyone thought that was a good idea. It genuinely worries me what will happen in the next few years in this country as we come to terms with post COVID, Brexit.

We're approaching a time where the only path to home ownership is inheritance.

UK's total housing stock is now worth about £7.5 trillion. 3 times more than the entire GBP in existence. That ratio was less than 1 just 20 years ago. We'll likely pass £10 trillion within a few years, and likely £20 trillion within a decade.

Kenai · 7 Dec 2020 at 13:54

HACO said:
the continuing shortage of the right properties at the right prices in the right locations.

In other words - most of the market is overpriced and is either crap housing or crap locations or both, anything that manages to be half decent in a half decent area is snapped up in minutes.

Russinating · 7 Dec 2020 at 13:54

I've no idea what people expect the solution to be in a free market economy. 'Affordable' housing in desirable areas still won't be at the level people deem 'affordable' for first time buyers, and most want to live in desirable areas. You can buy 2-3 bed houses for sub £30k up north.

Calpol · 7 Dec 2020 at 13:57

Russinating said:
I've no idea what people expect to be the solution in a free market economy. 'Affordable' housing in desirable areas still won't be at the level people deem 'affordable' for first time buyers, and most want to live in desirable areas. You can buy 2-3 bed houses for sub £30k up north.

Stop giving ridiculous tax breaks to top earners and people buying houses > national average value?

builder22 · 7 Dec 2020 at 13:57

Yeah...you don’t need to pay average house price to liv somewhere that isn’t a hellhole

HACO · 7 Dec 2020 at 13:57

Russinating said:
I've no idea what people expect to be the solution in a free market economy. 'Affordable' housing in desirable areas still won't be at the level people deem 'affordable' for first time buyers, and most want to live in desirable areas. You can buy 2-3 bed houses for sub £30k up north.

We should look at what other countries do. Like land value taxes, empty property taxes, landlord taxes, banning/taxing foreign ownership, etc.

And a nationwide mobilisation effort to built millions of new housing units, including entire cities from scratch within vicinity of desirable locations.

Russinating · 7 Dec 2020 at 13:57

Calpol said:
Stop giving ridiculous tax breaks to top earners and people buying houses > national average value?

What tax breaks? You mean the stamp duty that's tiered with a surcharge for second properties?

Stu999 · 7 Dec 2020 at 14:01

So is that 6.5% in their bank accounts?

Psycho Sonny · 7 Dec 2020 at 14:51

HACO said:
We're approaching a time where the only path to home ownership is inheritance.

UK's total housing stock is now worth about £7.5 trillion. 3 times more than the entire GBP in existence. That ratio was less than 1 just 20 years ago. We'll likely pass £10 trillion within a few years, and likely £20 trillion within a decade.

Absolute rubbish.

You can buy a home on minimum wage easily if you compromise on area and the home.

Problem is people want fancy homes in fancy areas or overpopulated areas like London.

I know someone who is early twenties and just bought 25 miles outside of London on an apprenticeship wage.

I'm guessing that you earn peanuts yet think you are entitled to a 4 bedroom house in Mayfair.

I've posted links before. You can get flats in a crap area for £20k and a decent area is up to £250k for a 1 bedroom in Glasgow that's the difference 5-6 miles can make as well as the area.

I can show you a house around the corner from me for £1 million go around the other corner and there are homes for less than £80k.

Your argument is always based on cost of housing but always looking at the expensive houses. Guess what I can do that with cars too. I can't afford a Bugatti so guess what I drive a BMW. Live within your means.

Psycho Sonny · 7 Dec 2020 at 14:56

Russinating said:
I've no idea what people expect the solution to be in a free market economy. 'Affordable' housing in desirable areas still won't be at the level people deem 'affordable' for first time buyers, and most want to live in desirable areas. You can buy 2-3 bed houses for sub £30k up north.

Haco wants to continue to work at McDonald's. Yet drive a lambo and live in the penthouses in the west end of London.

So his solution is to build so many lambos and penthouses that demand is so saturated to the point a lambo and a penthouse cost 50p.

Until then it's everybody else's fault he can't afford them.

Ayahuasca · 7 Dec 2020 at 14:58

I've just put down a deposit on a no bedroom hovel, I'm looking forward to sleeping on a floor mattress and pulling my bootstraps so hard that I can't feel my feet.

Rroff · 7 Dec 2020 at 15:03

Psycho Sonny said:
Absolute rubbish.

You can buy a home on minimum wage easily if you compromise on area and the home.

Problem is people want fancy homes in fancy areas or overpopulated areas like London.

I know someone who is early twenties and just bought 25 miles outside of London on an apprenticeship wage.

I'm guessing that you earn peanuts yet think you are entitled to a 4 bedroom house in Mayfair.

I've posted links before. You can get flats in a crap area for £20k and a decent area is up to £250k for a 1 bedroom in Glasgow that's the difference 5-6 miles can make as well as the area.

I can show you a house around the corner from me for £1 million go around the other corner and there are homes for less than £80k.

Your argument is always based on cost of housing but always looking at the expensive houses. Guess what I can do that with cars too. I can't afford a Bugatti so guess what I drive a BMW. Live within your means.

Problem is there is little in between - around where I live you wouldn't wish the property or area on your worst enemy at ~100K and then it is a big jump to almost 300K for an entry level property in an area that isn't an absolute **** hole with only a tiny fringe of options in between.

Efour · 7 Dec 2020 at 15:10

Lol uk....

Russinating · 7 Dec 2020 at 15:11

Rroff said:
Problem is there is little in between - around where I live you wouldn't wish the property or area on your worst enemy at ~100K and then it is a big jump to almost 300K for an entry level property in an area that isn't an absolute **** hole with only a tiny fringe of options in between.

So exactly Psycho Sunny's point then; there are properties available at an affordable price, you just don't want to live there (you plural).