Tory DOOM™: Property

[vetran]

we need 250,000 homes built every year to accomodate the new bodies appearing. We are lucky if we build 100,000 no chance of any real drop unless we have a decent recession.

[Mordac]

we need 250,000 homes built every year to accomodate the new bodies appearing. We are lucky if we build 100,000 no chance of any real drop unless we have a decent recession.

Or a nuclear war - similar effect...

[SueEllen]

If you think Estate Agents will suffer, you're living in some sort of parallel universe.

Estate agents shops are closing down as more people are looking online.

[Hobosapien]

Estate agents shops are closing down as more people are looking online.

Yep, online alternatives (PurpleBricks etc) for sales, and OpenRent for private landlords to DIY the letting process.

It's been a long time coming.

The plan to reduce letting fees will also have an impact as that is one area they've been able to raise income when the sales side is in a lull, though I expect the cost will be passed on to the tenant one way or another just hopefully not to the same level of cost. Last time I rented somewhere (close to a client to avoid b&b/hotels week in week out) the letting agent tried to defend the extortionate fees (over £200) by saying she was only leasing a BMW and not a Range Rover like some of her peers.

[northernladyuk]

we need 250,000 homes built every year to accomodate the new bodies appearing. We are lucky if we build 100,000 no chance of any real drop unless we have a decent recession.

House prices appear to be driven up by investment demand, not excessive 'real' demand for housing. Have a look at:



If it was 'real' demand, it would look more like th Dublin figures:
e

[SueEllen]

Yep, online alternatives (PurpleBricks etc) for sales, and OpenRent for private landlords to DIY the letting process.

It's been a long time coming.

The plan to reduce letting fees will also have an impact as that is one area they've been able to raise income when the sales side is in a lull, though I expect the cost will be passed on to the tenant one way or another just hopefully not to the same level of cost. Last time I rented somewhere (close to a client to avoid b&b/hotels week in week out) the letting agent tried to defend the extortionate fees (over £200) by saying she was only leasing a BMW and not a Range Rover like some of her peers.

When she is leasing a Corsa she will have something to complain about.

[OwlHoot]

Or a nuclear war - similar effect...

Not really. If there was a major nuclear war, it would affect temperate latitudes on the whole far more than tropical areas, so literally hundreds of millions of immigrants would soon start pouring into Europe and the UK from Africa.

[northernladyuk]

Not really. If there was a major nuclear war, it would affect temperate latitudes on the whole far more than tropical areas, so literally hundreds of millions of immigrants would soon start pouring into Europe and the UK from Africa.

At least they could benefit from the Brexit dividend.

[Hobosapien]

When she is leasing a Corsa she will have something to complain about.

That was my point, using the freaky eyes, which I tend to relate to 'WTF is this person on'.

House prices appear to be driven up by investment demand, not excessive 'real' demand for housing. ...

It's a vicious cycle of cheap credit allowing people to enter the house prices always rising race (they wouldn't be able to afford an average house price on an average wage if interest rates were nearer to historical average of 5%) causing the government to bail out the banks (funding for lending at lower rates than they pay traditional savers) and builders (Help to Buy gives builders a nice 20% bonus on new build prices) so it all doesn't come crashing down.

No more boom and bust. It's magic, helped by foreign investment (driving London prices, many places not even rented out) and devaluation of sterling (making assets appear to be worth more when really it's your wage that's worth less), and 'emergency' BOE interest rates to keep it from crashing. They're doing a fine job.

[jamesbrown]

House prices appear to be driven up by investment demand, not excessive 'real' demand for housing.

It's really quite straightforward. As is the unwinding:

https://www.ft.com/content/8e131f28-...a-295c97e6fd0b

Not a subscriber: "Payback time for QE looms — and it will be expensive."

The unwinding may happen slowly, but markets tend to bring forward their reaction.