Oh how could we be so stupid?

[vetran]

much as I'd like t throw all sorts of blame around... the housing crisis is purely and simply a lack of supply.
Blame it on planning, NIMBYs and the green belt.

Not on massive population growth then?

[vetran]

Really, my mortgage was 10%, and the mortgage rate shot up after that. Mortgage rates at the beginning and the end of the 1980's were around 15%, and they went down during the mid 1980's but were rarely below 10%. The official statistics show them dropping briefly to 8% in the mid 80's.

Driven by government min rates.

[DealorNoDeal]

Really, my mortgage was 10%, and the mortgage rate shot up after that. Mortgage rates at the beginning and the end of the 1980's were around 15%, and they went down during the mid 1980's but were rarely below 10%. The official statistics show them dropping briefly to 8% in the mid 80's.

Maybe I've misremembered. Anyway, I didn't have any problem paying a £20k mortgage on a £7k salary.

I doubt a single graduate these days, in a relatively low paid University job, could buy that semi I had which is now £170k.

[BlasterBates]

Maybe I've misremembered. Anyway, I didn't have any problem paying a £20k mortgage on a £7k salary.

I doubt a single graduate these days, in a relatively low paid University job, could buy that semi I had which is now £170k.

A house for 170K would probably result in a mortgage of £700 per month which to me seems affordable for a recent graduate on 25K.

[DealorNoDeal]

A house for 170K would probably result in a mortgage of £700 per month which to me seems affordable for a recent graduate on 25K.

Lenders would lend 170k to someone on 25k? I guess it shows how long it is since I've had a mortgage, and how out of touch I am.

Clearly, there is an assumption that rates will remain rock bottom for a very long time.

I guess the stumbling block would be coming up with the deposit.

[BlasterBates]

Lenders would lend 170k to someone on 25k? I guess it shows how long it is since I've had a mortgage, and how out of touch I am.

Clearly, there is an assumption that rates will remain rock bottom for a very long time.

I guess the stumbling block would be coming up with the deposit.

I see terraced houses for under 120K, which as a single graduate is quite adequate. If married their income is doubled. A graduate won't stay on 25K for the rest of his life.

[NotAllThere]

In olden days, interests rates were volatile. 15% wasn't out of the running. So, affordability had to take that into account. Nowadays, affordability is 5x or more of salary. Back in ancient times, people earning so much that 60% of their earnings go into the mortgage isn't an issue was unheard off.

Switzerland has never been in favour of a housing market like the UK. So, there's a capital gains tax that minimise after 20 years and is 100% in the first 2 years. Stamp duty that's payable if you cash in within five years (And don't buy a house with the results), wealth tax, and an imputed additon to your taxable income, which is the rent you avoided paying because you arrogant rich bastard bought a house, you scum. As a result, in 30 years, in real terms, house prices have fallen, overall. (Although, mine has doubled... )

If the government wanted to cool the housing market, they could introduce any of these measures. But they won't because it's part of how the UK works. And how voters want it to work.

I am absolutely not saying that the Swiss system is better. Just pointing out that measures can be taken. In fact it's a lot easier to buy a house here in the UK because there isn't the same kind of market. Stamp duty waiver after 5 years is nice. But in terms of investment - nah, unless you're lucky. Like me.

[DoctorStrangelove]

Ah yes, imputed tax on owning a house.

I found some of those that my very late grandfather paid under ?Schedule A?

The sums seem trivial now but probably weren't back in the 50s & early 60s.

Abolished in 1963.

By which time he was dead and recently buried.

[NotAllThere]

Really, my mortgage was 10%, and the mortgage rate shot up after that. Mortgage rates at the beginning and the end of the 1980's were around 15%, and they went down during the mid 1980's but were rarely below 10%. The official statistics show them dropping briefly to 8% in the mid 80's.

Mortgage rates were high, but I remember getting 11% pay rises.

[Lance]

Not on massive population growth then?

seeing as housing demand lags behind population growth by about 20 years I'd say that not building houses is the problem.
And as we have an ageing 'natural' population we need immigration to keep the economy running so they also need houses. Ergo we need to build more houses.

Build more houses.....