Buy to let stamp duty surcharge and other related news

[vetran]

So we simply go back to the days when it wasn't considered the norm for every middle class family to own a rental property? Which was when - 10 years ago? 15? Isn't this just cyclical rather than the end of the world?

And who will buy the properties?

None of the renters can afford to buy them.

Where will the renters go? There isn't any social housing for them.

As always "Buy to Let" the clue is in the name.

[DimPrawn]

And who will buy the properties?

None of the renters can afford to buy them.

Where will the renters go? There isn't any social housing for them.

As always "Buy to Let" the clue is in the name.

Ah, the old "renters can't afford to buy them" claim. However, when a million BTLers flood the market with properties to crystallise their profit and avoid taxes, the supply and demand balance will tip in the favour of buyers, and suddenly the ex-renters will be home owners....

[vetran]

Ah, the old "renters can't afford to buy them" claim. However, when a million BTLers flood the market with properties to crystallise their profit and avoid taxes, the supply and demand balance will tip in the favour of buyers, and suddenly the ex-renters will be home owners....

good luck getting a mortgage 8 times your wages. Or are the house prices going to fall 70% with a shortage of roughly 200,000 a year since 2005 so say 5-6 million short.

UK houses now cost almost eight times average earnings, says ONS | The Independent

UK houses now cost almost eight times average earnings, says ONS

Average house price to earnings ratio hits 7.77, up from 7.6 in 2016 and the highest in the official time series going back to 2002

The state of the UK housing market in five charts

we haven't built many council houses for decades yet we have been selling them off, so those who have a rubbish credit history will have no home.

[DimPrawn]

Maybe.

Housing costs in the UK is a wonderfully complex subject, it is true that we are a tiny, highly populated island, with a huge number of immigrants to house, and some of the toughest planning laws in the world, where everyone is a NIMBY.

Any sensible person, given the bet "will house prices rise over a 10 year timescale" should always go with YES**

** If Komrade Korbying is in power, all bets are off.

[scooterscot]

with a huge number of immigrants to house, and some of the toughest planning laws in the world, where everyone is a NIMBY.

nothing to do with immigrants

When interest rates go up (and they will), and owning a meaningful pension is rewarding, you'll see swathes of working class folks let go of their BTLs. Then you'll have a full on housing crash.

That part no one is paying attention to is the rate this could happen. We've had years to control it. Now it is more likely it'll happen over a very short period of time. Far more damaging.

[DimPrawn]

nothing to do with immigrants

.

Approx 300,000 net arrivals per annum, most seeking rented housing from private landlords, and you think this hasn't stoked the demand?

[vetran]

nothing to do with immigrants

When interest rates go up (and they will), and owning a meaningful pension is rewarding, you'll see swathes of working class folks let go of their BTLs. Then you'll have a full on housing crash.

That part no one is paying attention to is the rate this could happen. We've had years to control it. Now it is more likely it'll happen over a very short period of time. Far more damaging.

Its Spooter "Diane what migrants??? Abbott" !

If you remove the effects of immigration our population would be falling. House prices would stagnate or fall.

[scooterscot]

Approx 300,000 net arrivals per annum, most seeking rented housing from private landlords, and you think this hasn't stoked the demand?

It's not helped, most migrants to the UK come from outside the EU. The statistics have been made available many times over I'm past caring. Demand is being stoked through:

1) collapsing volume of new-builds. My sister bought a new build recently. Supposed to be a 3-bed. I've seen bigger studio apartments. Built right under a river bank as well and one wall is already showing cracks!!

2) people like ourselves buying up or becoming accidental landlords in favour of a pension that does not deliver thereby removing much needed stock from the marketplace. Although that's about to change once interest rates return to normal.

[vetran]

It's not helped, most migrants to the UK come from outside the EU. The statistics have been made available many times over I'm past caring. Demand is being stoked through:

1) collapsing volume of new-builds. My sister bought a new build recently. Supposed to be a 3-bed. I've seen bigger studio apartments. Built right under a river bank as well and one wall is already showing cracks!!

2) people like ourselves buying up or becoming accidental landlords in favour of a pension that does not deliver thereby removing much needed stock from the marketplace. Although that's about to change once interest rates return to normal.

Ah whataboutery again no one mentioned the EU.

[scooterscot]

If you remove the effects of immigration our population would be falling. House prices would stagnate or fall.

Not true. House prices would fall when the government stops printing money and the BoE maintains a level of interest rate that attracts savers. Right now neither exist. If interest rates were 5-7% no one would bother with BTL.
I can't make it any clearer than that. Do you see a pattern in the graph below? Scotland's population is more or less static yet house prices have almost doubled in the last 10 years (or so mine has) - that's just plan Jane insane,

After every banking crisis immigrants are one of the first groups to be blamed. How depressing. I'm aggravated by those without the foresight to see facts. Even more so as the UK would not exist today as it does without immigration.