Reply to: oh dear: House prices continue to go through the roof

[Hart-floot]

People are worried they are missing the free money boat. Reminds me of a pyramid scheme, sooner or later someone is going to get screwed.

I Blame Gordon Brown and his tinkering/undermining of pensions in the UK

BTL only boomed once people working in the private sector realised their pensions were going to amount to zilch so many all lemming-like put their savings into BTL.

[shaunbhoy]

You don't seem to have grasped the concept of insignificant impact - if I jump it would make some impact, but it does not mean people in China would hear it

Top Tip,
alexei, go and take a running jump in China.......or India.......or anywhere far away for that matter. Don't rush back either, we are stocked out with idiots here already!
Leave those of us astute enough to be on the property ladder to count our profits in peace!

[Bagpuss]

People are worried they are missing the free money boat. Reminds me of a pyramid scheme, sooner or later someone is going to get screwed.

[sasguru]

I dont think this housing boom is caused by immigrants. The main reason seem to be so called inestors buying 5,10 or 20 properties just for BTL .

Spot on.

[andy]

I dont think this housing boom is caused by immigrants. The main reason seem to be so called inestors buying 5,10 or 20 properties just for BTL .

[AtW]

You don't seem to have grasped the concept of the knock-on effect, explained as well as anyone by sockpuppet.

You don't seem to have grasped the concept of insignificant impact - if I jump it would make some impact, but it does not mean people in China would hear it: immigrants do not use much housing (though they might stress council houses resource).

If it was not for banks doing irresponsible lending then house prices would have never reached current levels.

[Bagpuss]

AtW, if all those immigrants aren't living in houses, where are they living? Trees?

I'll grant you some might be living in cardboard boxes, under piers, and in tents, but the majority have got themselves under a roof somewhere - it is immaterial whether they buy, rent or squat - which ultimately affects everyone.

You don't seem to have grasped the concept of the knock-on effect, explained as well as anyone by sockpuppet.

Why are rents not going up if demand is outstretching supply of housing?

Only one thing is keeping the bubble going, BTL and it's reached saturation point as demonstrated by falling real term rents. If your assertion were true rents would be rising in line with house prices, they are not. Yields are falling, how can that be?

[BlasterBates]

I have a shoe box, which I have worked out at current property prices, it is worth £63.67.

Which ain't bad for a shoe box.

[wendigo100]

They don't buy houses - and won't buy for a long time if at all, and their usage of existing houses that they rent is as efficient as it can possibly be (4-6 adults in a 3 bedroom house is not uncommon).

Demand on housing obviously goes up but by a very low value and demand for buying houses by those people is next to zero - even I don't buy a house even though I am much better off than most of new immigrants.

AtW, if all those immigrants aren't living in houses, where are they living? Trees?

I'll grant you some might be living in cardboard boxes, under piers, and in tents, but the majority have got themselves under a roof somewhere - it is immaterial whether they buy, rent or squat - which ultimately affects everyone.

You don't seem to have grasped the concept of the knock-on effect, explained as well as anyone by sockpuppet.

[Bagpuss]

because of the btl glut.

Buy to letters (many of us on here methinks) go after the same sort of property first time buyers go for - thus raising prices, keeping demand higher than it used to be when compared to the early 90's price collapse. At the same time there is far more rental supply today thus depressing rents; so all the prospective first time buyers can drive a hard bargain at the moment.

Yes, there is plenty of supply, so how can the boom continue?

[Hart-floot]

All well and good, but if that is true why aren't rents rocketing?

because of the btl glut.

Buy to letters (many of us on here methinks) go after the same sort of property first time buyers go for - thus raising prices, keeping demand higher than it used to be when compared to the early 90's price collapse. At the same time there is far more rental supply today thus depressing rents; so all the prospective first time buyers can drive a hard bargain at the moment.

[Jawz .]

Move to India. It's hot, they do good currys and there's no fat chicks.

[Bagpuss]

Which reduces the supply of crappier houses and forces people to spend more to get onto the ladder which increases costs at the next level which increases costs at the next level which....

If demand for housing is so high why aren't rents rising ?

[shaunbhoy]

= AtWspeak for "I think that..."

And has become abundantly clear over the years on here, AtW and "thinking" are not that firmly coupled. He is clearly wired wrong.

[Euro-commuter]

There is a clear need for 2 laws:

= AtWspeak for "I think that..."