Thursday, Jun 07, 2007
NHPAU call for new homes to be built
SKY News: House Prices 'To Reach Ten Times Pay'
The next generation of homebuyers could face average house prices that are 10 times their salaries unless the number of homes being built increases, an independent housing body has warned. Research from the newly-established National Housing and Planning Advice Unit (NHPAU) found that more than a third of non-homeowners think they will never be able to buy.
Posted by Webmaster @ 06:59 AM (156 views) Add Comment
14 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. waitingfor hpc said...
I SMELL BULLSH*T
2. paul said...
newly-established National Housing and Planning Advice Unit?
Oh it's Kate Barker's quango. Kate Barker says what Gordon tells her, and the remit is to provide "non-binding advice to the government".
Her advice is "build more houses". Great. So nothing about forcibly taking back the younger generation's birthright to affordable housing using taxation on second properties then, no?
Didn't think so.
3. mrmickey said...
Yep they had some professor on radio saying this was all down to us being richer, excuse me but if you'll now need 10 times your salary to buy a house rather than 3.5 then in my book that means your getting poorer. He also said the only way there would be a crash was if there was a recession which he didn't think there was going to be one. He was obviously a nutty professor they'd dug up from the local care home who'd given up trying to make gold from corn flakes, didn't say what he was a professor in must have been David Beckham studies.
4. Pinetree said...
this "news" only sparked another argument this morning with my girlfriend about why we should be buying a house now otherwise we'll never be able to afford one. AAAAAAAAAAAAAGGGGGGGGGGGGGGGGGGGHHHHHHHHHHHHHHHHHHHHHHH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Doesn't help that I've been banging on about house prices being too high for about 3 years now.
5. Realist said...
mrmickey - i also guffawed when i hear him say that. i'd love someone to have asked him how he measured the fact that we are all getting richer when taxes are up, house prices are up and inflation is rising.
6. C'mon Correction said...
Too true mrmickey. If people are getting richer why are we in record levels of debt? Why has a nation of 65 million now have £1.5 TRILLION worth of debt !!!!!!
7. El_boydy said...
blah blah blah. THis is old story - first time buyers cant afford houses. Who cares? I can.
One thing - building more houses won`t solve the problem. If it was only a case of supply & demand, how have they measured that demand has increased with house values.Inthe last 10 years prices have trebled and what? The poulation is trebled? Where`s the logic?
It has always been and always will be hard for first time buyers. Because most buyers aren`t first timers and have better jobs and more money.
8. El_boydy said...
blah blah blah. THis is old story - first time buyers cant afford houses. Who cares? I can.
One thing - building more houses won`t solve the problem. If it was only a case of supply & demand, how have they measured that demand has increased with house values.Inthe last 10 years prices have trebled and what? The poulation is trebled? Where`s the logic?
It has always been and always will be hard for first time buyers. Because most buyers aren`t first timers and have better jobs and more money.
9. harold said...
"...if you'll now need 10 times your salary to buy a house rather than 3.5 then in my book that means your getting poorer"
mrmickey, correct. And isn't if funny that despite the fact that we are all sooo much richer, both adults in the family have to work these days to make ends meet.
I wonder who's siphoning off all the wealth? Can't imagine.
10. Wage Slave said...
It won't take a recession to prompt a house price correction.
They market's being bouyed by the BTL bubble and once the BTL latecomers realise they're onto a loser there will be a stampede for the exit causing lots more property coming onto the market.
Just about everyone I talk to seems to think that property values 'only go up', despite the fact that they've all lived through the 89 / 90 crash. Proof of a bubble.
11. Mark Wadsworth said...
"Ten times salary" is complete and utter f***ing b****cks, at that level, your mortage repayments would be 60% of your gross salary and 90% of your net salary after basic rate tax. (half that for twin earner couples of course, but still a heck of a lot)
House prices go in roughly 18-year boom's'bust cycles, 1953, 1973, 1989, 2007, there is an element of "shortage" but largely this are just speculative bubbles.
What the government should do is wait for prices to bottom out between 2010 and 2012 and then replace Council Tax (and Stamp Duty Land Tax, Inheritance Tax, capital gains tax on properties and the TV licence fee, according to taste) with a fiscally netural Land Value Tax on unimproved site only residential land values (i.e. value of property minus bricks and mortar). This will act like a much higher interest rate on the land element and smoothe out these enromously damaging cycles.
12. royston said...
I read this as a warning not a prediction. It is a message from the government to tory-run councils that we need more houses, so stop resisting urban expansion. If is aimed at increasing supply, which should help to soften prices. I expect it will have a slowing effect on house price growth and eventually will guide prices back down to reality over a very prolonged period, which is what the government ultimately wants.
13. Ticktock said...
So News Corp. (Times and Sky both 'reporting' this hillarious fiction) are attempting to spin up the 'if you don't buy now you never will' propaganda on behalf of VI's. This often happens on the brink of a collapse in one market or another. So good news maybe?
Anyone who trusts the 'knowledge' they recieve from such a proven and consistant 'lie factory' deserve all they shall receive.
14. Pr said...
We need to build more homes? Will housebuilders really wish to flood the market and send prices down when the market is at its most vulnerable? They rig the market and blame the planners. There are only a few big house builders, the sooner we realise that they act like a cartel, the better.