Monday, Dec 10, 2012

No new news

The Grauniad: Generation Rent: why millions are locked out of owning homes

Re-hash of some existing stats so not a lot new but there are amusing comments...
"i do however maintain i wish to punch the next landlord squarely in the ****ing face whos "hiking up prices" to take advantage of the market."

Posted by richy richless @ 01:42 PM (3170 views) Add Comment


1. jack c said...

Its not just "Soaring property prices and a mortgage famine" its also the cost of running and maintaining a home. It's akin to pouring water into a bucket with a hole in it - residential properties gobble up cash.

Recently re-decorated part of my house and 1x5L tin of ordinary emulsion plus some Dulux kitchen & Bathroom anti mould emulsion and a tin of Dulux Satin cost £90

Monday, December 10, 2012 05:49PM Report Comment

2. alan said...

...and also punch E.ON for hiking up Gas prices.... or Virgin media...?

...add your own favourite to the list.

Monday, December 10, 2012 06:31PM Report Comment

3. libertas said...

Richy, you exhibit perfect Marxism here which is totally counterproductive, by criticizing price hikes. Landlords are raising prices because the price of borrowing is increasing. If you bring in rent controls, fine, some people will get cheaper rent BUT, there will be massive shortages as a result. Wage and price controls, always and everywhere, create shortages. If you live in a rent control country, you have to go through ridiculous hoops to get a flat. In some parts of Europe you submit a CV, go to interviews, etc. because supply is well below demand, and expect to be tied in, to long contracts.

They and the energy companies are hiking prices to counteract the affects of inflation and the devaluation of Sterling through artificially low interest rates and quantitative easing.

Unless you understand the situation and blame the government and Bank of England, you will only exacerbate your suffering:

"What You Should Know About Inflation" Henry Hazlitt (1964)

Tuesday, December 11, 2012 07:46AM Report Comment

4. sibley's b'stard child said...

What on earth are you banging on about Lube? Last time I checked the cost of borrowing for existing borrowers with low LTVs was going down, not up. Landlords raise their rents because they can, until such point that the cost of default and void periods makes this uneconomical.

You say that rent controls would reduce supply. Why; will residential housing disappear into the ether? You'll have to explain that one to me.

"...and expect to be tied in, to long contracts"

That's a bad thing how exactly?

Tuesday, December 11, 2012 10:27AM Report Comment

5. jack c said...

To back up Sib's point. If someone has a big enough deposit or sufficient equity if re-mortgaging (say 60% LTV) then the current rates are historically very low - example - borrow £100k x 25 years capital repayment with Nationwide (3.09% x 5 year fix) = monthly payment of £480.

I have had a few people recently as both FTB's and re-mortgages and the deals work out cheaper than renting.

Tuesday, December 11, 2012 11:38AM Report Comment

6. mark wadsworth said...

Sibs, 4, exactly.

The rent a landlord can charge have little or nothing to do with his costs (or else the price of land would not vary so much depending on the location). And his interest payments aren't even really a cost, they are just a way of splitting up the income between the two owners of any piece of mortgaged land - the registered owner (landlord) and the economic owner (the bank).

Think about it, a husband and wife partnership charges what their goods are worth and they split the net profits. If the wife says she doesn't want to be a partner any more, just a paid employee, then the husband now has a "cost" of employing but that doesn't mean that they can put prices up, and the husband and wife, taken together, still have the same total income (ignoring NIC).

But on Planet Piddly Riddly, interest rates are currently RISING and starting with something which is an outright lie he then goes on to apply completely false (i.e. Home-Owner-Ist) logic anyway. What an idiot!

Tuesday, December 11, 2012 11:52AM Report Comment

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