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

[HACO]

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.
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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.

 

[HACO]

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]

​

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.

 

[HACO]

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.

 

[HACO]

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.

 

[HACO]

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.

Hahaha. /r/thathappened

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.

Not sure why you felt the need to make this personal.

 

[HACO]

Crazy, will be interesting to see whether SDLT relief gets extended. I'm a first time buyer and in a position to buy but unsure what to do to be honest!

It will most likely be extended, and then will likely become permanent.