Torygraph billionaire land owners launch a campaign we can all get behind...

[BrilloPad]

I've said a similar thing. It's not one thing that causes UK house prices to be crazy multiples of income, it is the combined effect, including:

Banks have loose lending criteria for BTL. This means BTL money is easy to come-by and creates competition with people looking for a home. Result, prices pushed up.
Bank interest and pensions suck, so older people choose property as part or all of their pension. This includes the "me 'ouse is me pension" brigade, two people living in a huge 5 bed house ready for downsizing late in life. This means less property for younger people.
Very tight planning laws and NIMBY means a lot of areas don't get built on. People like this idea and hence prices rise in those areas.
Tory schemes like "Help to Buy" using tax payers money to prop up prices further.
Leaking of QE money into property.
Wealthy foreigners seizing on this and buying property here.
Very low taxes on property in the UK. Primary residence CGT free with no limit. Until recently easy to side-step stamp duty.

I could go on, but you get the drift. It's all stacked in favour of property and land owners, the more it goes up, the more "investors" want a slice. A huge bubble, seemingly unpoppable.

I could not agree more. If I had any money I would go for BTL. Its wrong from a moral standpoint. But that should never affect the right decision for one personally.

The government can never let the market fall.

[DimPrawn]

The government can never let the market fall.

Absolutely. Since the UK economy if just house prices rises, popping the bubble is political and economic suicide.

Govt will do more to fan the flames.

Young people can either suck it up and become rich or feck off where prices are reasonable and living standards are better.

If I were young again, it would be latter without a doubt.

Whining and voting a Communist leader in will only make life worse overall.

[PurpleGorilla]

I've said a similar thing. It's not one thing that causes UK house prices to be crazy multiples of income, it is the combined effect, including:

Banks have loose lending criteria for BTL. This means BTL money is easy to come-by and creates competition with people looking for a home. Result, prices pushed up.
Bank interest and pensions suck, so older people choose property as part or all of their pension. This includes the "me 'ouse is me pension" brigade, two people living in a huge 5 bed house ready for downsizing late in life. This means less property for younger people.
Very tight planning laws and NIMBY means a lot of areas don't get built on. People like this idea and hence prices rise in those areas.
Tory schemes like "Help to Buy" using tax payers money to prop up prices further.
Leaking of QE money into property.
Wealthy foreigners seizing on this and buying property here.
Small country with highest population density in Europe. Land is at a premium.
Massive immigration which is growing.
Huge, powerful and wealthy building/construction companies sitting on land banks, holding prices firm.
Very low taxes on property in the UK. Primary residence CGT free with no limit. Until recently easy to side-step stamp duty.

I could go on, but you get the drift. It's all stacked in favour of property and land owners, the more it goes up, the more "investors" want a slice. A huge bubble, seemingly unpoppable.

I agree with pretty much all of that DP.

[DimPrawn]

I agree with pretty much all of that DP.

I forgot to add, media obsession with property investment and owning. E.g. Property Ladder, Location, Location, Location, Homes Under the Hammer, etc etc. All talking about "profits, gains, investment, return, portfolio" over and over brain washing everyone that's it's 100% about making lots of money with no risk.

Interesting that most media giants also owns property websites. Media has a vested interest in the house price bubble.

[PurpleGorilla]

The government can never let the market fall.

Like China and the Shanghai Index?

The higher and more bubbly it gets, the easier it will be to collapse.

Ultimately the government will not be able to save it. Then party time.

[BrilloPad]

Like China and the Shanghai Index?

The higher and more bubbly it gets, the easier it will be to collapse.

Ultimately the government will not be able to save it. Then party time.

China has created a monster it can’t control - Telegraph

When in trouble, shoot the messenger. This time-honoured approach to dealing with unwelcome news was much in evidence in China this week when nearly 200 people were rounded up and criminally charged with spreading “false” rumours about the stock market and the economy, or otherwise profiting from their travails.

China was meant to have embraced free market reform, yet these latest actions suggest an altogether different approach. Roughly summarised, it amounts to: “Reform good, but woe betide the free market if it doesn’t do what the high command wants it to.”

[PurpleGorilla]

“Reform good, but woe betide the free market if it doesn’t do what the high command wants it to.”

[BlasterBates]

House prices are governed by interest rates:



Houses are currently not overpriced for the current interest rates. You can easily spot the where crashes occured in the above graph.

The next crash will occur in a few years when interest rates get jacked up.

[PurpleGorilla]

House prices are governed by interest rates:



Houses are currently not overpriced for the current interest rates. You can easily spot the where crashes occured in the above graph.

The next crash will occur in a few years when interest rates get jacked up.

Not in Japan:









I agree low IR has helped the bubble.

We are in unprecedented times regarding IR.



IR are now an irrelevance, the bubble will pop purely on fundamentals.

[DimPrawn]

House prices are governed by interest rates:



Houses are currently not overpriced for the current interest rates. You can easily spot the where crashes occured in the above graph.

The next crash will occur in a few years when interest rates get jacked up.

Indeed. You can either have lower purchase price with very high monthly mortgage payments, or very high purchase price with lower monthly mortgage payments.

What Mauve Monkey thinks we will get is low purchase prices with low monthly payments. That never happens I'm afraid.