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desertorchid

Generational Divide Caused By House Prices

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Good article. I think more people think like this than we realise. Its just a shame no political party realises this.....

Beneficiaries of the housing boom.

I think UKIP might just - well their 'Shadow Chancellor' Godfrey Bloom anyway.

http://www.londonlovesbusiness.com/business-news/politics/meet-godfrey-bloom-the-osborne-of-ukip-i-hope-thousands-of-public-sector-jobs-will-be-lost/5559.article

"Bloom believes that UKIP could stop the inflation spiral - a sign of our “crony capitalism” system - by curtailing government action, notably quantitate easing.

Why on the front page of newspapers when houses go up 10% [does] everyone say it is good news?” says Bloom. “Why then is the price of bread going up 10% bad news? […] It is good for a certain type of person but not another. […]

The whole system at the moment is geared to benefit some people at the expense of others. The banks were bailed out at the expense of tax payers, ordinary little old ladies in an act of unbelievable obscenity.”

His ideas are probably a bit too 'libertarian' for the UK though - but he is the only politician I have heard mention terms like fractional reserve banking!

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I think UKIP might just - well their 'Shadow Chancellor' Godfrey Bloom anyway.

Are we talking about the same UKIP?

The UKIP I know fervently supports even more restrictive planning regulation, in other words they are the ultimate NIMBY party.

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it's the Guardian :huh:

it's about 'rich Londoners' with their million pound houses

she is not a 'baby boomer'

the divide is not between one generation and the rest:-

it is between haves and have nots

between London and the south east and the rest of the UK

it is between those with jobs in a two income well paid household

and those who can only dream of a job writing drivel in the Guardian (not what I would dream but to each their own)

she and the rest of the well-heeled do not get it.

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it's the Guardian :huh:

it's about 'rich Londoners' with their million pound houses

she is not a 'baby boomer'

the divide is not between one generation and the rest:-

it is between haves and have nots

between London and the south east and the rest of the UK

it is between those with jobs in a two income well paid household

and those who can only dream of a job writing drivel in the Guardian (not what I would dream but to each their own)

she and the rest of the well-heeled do not get it.

I am sure that they get it.......but why change it while it suits, not to say it will always suit....times and circumstances are always changing. ;)

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Good article. I think more people think like this than we realise. Its just a shame no political party realises this.....

Beneficiaries of the housing boom.

Good article.

Unfortunately I don't meet that many people who really get it. I know lots of middle aged people who have been massive beneficiaries of HPI, but they fall into two camps. Mildly generous but stupid, and mean and stupid...

1. We will help our children out with a deposit so that they can get a massive mortgage and themselves benefit from the next wave of house price increases. In other words the next thirty years will be exactly the same as the last thirty years.

2. We advise our children that they should they should do whatever is necessary to get on the housing ladder with no help from us, our greatest gift to them is to share the secret that property is the way to wealth as there is absolutely no doubt that the next thirty years will be exactly the same as the last thirty years.

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Some cashed-out leftie who probably supported Blair/Brown with every fibre is a bit rich for taking the fatalistic view of it being 'just luck' they happened to find themselves with pockets stuffed with loot from their kids' futures. She knew exactly what was going on and smelled the lucre. Not that many others have not done likewise of course.

Another BTLer to boot.

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"bedroom tax"

"generation rent"

Even this grizzled old feminist gets it wrong. So many people do.

Britain's theft to the 'kids' is the ongoing decline of energy sovereignty.

A Thatcher era gift to America and London, from the bounty that is the privatised UKCS oil and gas reserves.

Houses mean nothing. Folk in Britain aren't starving to death, nor are they subject to plague, war, drought, etc...

Your kids are going to be in houses, flats, etc... but will to make the choice between food and heat, its that simple, and it will get that expensive.

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Some cashed-out leftie who probably supported Blair/Brown with every fibre is a bit rich for taking the fatalistic view of it being 'just luck' they happened to find themselves with pockets stuffed with loot from their kids' futures. She knew exactly what was going on and smelled the lucre. Not that many others have not done likewise of course.

Another BTLer to boot.

You've summarized exactly what I thought

> Moving from a flat to a house changed my life because when you have kids, being able to get away from them is crucial.

I have kids and don't feel any need to "get away from them". Her kids were probably feral spoilt middle class brats. Maybe nanny could have taken them to the park?

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Have these old people really* benefitted that much?

*as in real rather than nominal

Surely they can remember a time when their pounds were actually capable of buying something? The credit expansion with HPI means they get pounds worth much less when they sell. Plus interest on savings have been wiped out along with pension annuities.

They are deluded if they think they are really better off because of HPI. They need to think about how much fuel etc they can buy and realise they have largely been duped.

It's true young people have it worse though because houses now cost more hours of labour to service the greater debt.

It's a population divide, landowners and bankers versus debt slaves.

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Good article. I think more people think like this than we realise. Its just a shame no political party realises this.....

Beneficiaries of the housing boom.

I think most people with older/grown up children are all too painfully aware of how comparatively disadvantaged their kids are when it comes to housing. And they worry about it, and try to help if they can. That's why there's the BofM&D, that's often why people MEW if they don't have spare cash. That's why many people who get a legacy will immediately pass most or all of it on via a tax-free deed of variation to their own kids. And yes, that's why it's so unfair for people whose parents can't help them, and who can't expect any inheritance. A generation back, most people's parents couldn't possibly have afforded to help them, and many of us wouldn't have dreamt of asking even if they could, so it was just as well most of us didn't need to.

Having said that, prices did shoot up astronomically even back then. My sister is just 4 years older than me, and married a bit younger. Her first house - a 3 bed semi near Reading, cost about £3,500K. Not many years later our first - admittedly a mite bigger and in Kingston, cost £38,500K. And within a year, prices started zooming up again. I don't think one of our neighbours has ever quite forgiven us for getting a bigger house than his for considerably less than he paid (over £50K IIRC) just about a year later. (At the time there was no way of knowing what anyone had paid unless they told you, and it wasn't 'done' to ask - but he did, and I was so taken aback I told him.)

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I'm having fun in the comments - well, I say 'fun', but I'm stunned that anyone still hasn't figured out that inheriting half the value of a house still requires you to fund another half, which is easier if houses are cheap (even though you inherit less).

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So many contradictions in this article, not least the fact she objects to the property bubble and inheritance yet BTL and providing property for her children seem to be important to her. Writing that it is all painful when she is actually loving it.

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I'm having fun in the comments - well, I say 'fun', but I'm stunned that anyone still hasn't figured out that inheriting half the value of a house still requires you to fund another half, which is easier if houses are cheap (even though you inherit less).

I can hear the cogs whirring and grinding from where I am sitting. Nice work.

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Cracking comment underneath, highlighting the hypocrisy of lefty journos

"In my defense," said Suzanne, holding her glass of chablis to the light, "I will never get used to this."

"Nor should we!" cried Alan, lying one lounger to her left, both physically and politically. "Come the revolution I will be first to offer to share this bottle of quite excellent white burgundy with the proles. But until then..." Alan quietly refilled his glass and, finding the bottle now empty, felt a momentary pang of regret that the proletariat would not now be sharing his wine.

Hold on! That pang wasn't regret, it was peckishness! Where was Polly with the bloody canapes?

Polly arrived on the terrace bearing tiny fois gras flecked slices of toasted brioche. She wore a grim, determined look on her face. She was feeling the fire of her principles flow through her veins - or was the artisanal grappa?

"I overheard you agonising, Suzanne," said Polly, "and you mustn't. It's not our place to be rolemodels for change. We call for change from other people."

"And nobody calls louder than you, for a six-figure salary," beamed Alan. Polly flushed with pleasure at the compliment.

Still, something didn't sit quite right with Suzanne.

"But oughtn't we do things differently? It may be my right to spend my money as I wish, but in defending the privileges I have bought my children, or by considering buy-to-let as a way to retire on some working stiff's rent... aren't I no different to Amazon, saying I don't make the rules I just play by them?"

Suzanne was having a moment. It was, frankly, uncomfortable for everybody.

"Look," said Polly, finally. "If you used your privilege to benefit the poor, on principle, you'd be doing the state's work! Letting those bloody Bullingdon rotters off the hook!"

Yes, thought Suzanne. This feels good.

"If we, the middle-earners with mere millions, are forced to step in when the state stops paying, only the billionaires benefit!" cried Polly, her towering rage reaching heights almost as exquisite as the fois gras melting onto her fingertips. "If you believe in social justice you'll damn well buy your children a house and enjoy fine wines and this unbelievable Tuscan sunset and take the sheer-bloody-anger it generates in your soul and demand change!"

"Change cannot come soon enough!" said Alan, opening the next bottle.

But perhaps there would after all be time for one last little drinky before change absolutely had to come.

(This laboured piece of satire was brought to you buy the "Working class people have mums, middle-class people only ever have Mummy and Daddy" school of prose-making.)

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I can hear the cogs whirring and grinding from where I am sitting. Nice work.

It's doing my head in tbh. afaict some seem to think that the option of the kids moving to Sunderland changes the basic equation...

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Like how some beat a retreat under fire using the cover of "it's all unearned inheritance anyway" claptrap.

Yes, between the numerically-challenged and the class-warriors, I feel like I'm in an asylum.

paddyalmunia

23 May 2013 12:10pm

@tomandlu -

If you leave a house worth a million to two children they only have half a million to put down as a deposit on their own place. How terrible. They may even have to get a mortgage. This is disgusting.

...or they could just buy a house that is a bit cheaper, but not in their ideal location? No. that's just bloody stupid. We should double inheritance payments if there are more than two kids. So then they can both buy a house of the same value to that of their late parents. Yes that is how the world should work.

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I'm having fun in the comments - well, I say 'fun', but I'm stunned that anyone still hasn't figured out that inheriting half the value of a house still requires you to fund another half, which is easier if houses are cheap (even though you inherit less).

Just read the comments ,know wonder this country is going down the swane

You have far more patients than I have

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Just read the comments ,know wonder this country is going down the swane

Bad spelling? ;)

You have far more patients than I have

Well, I design hospital databases, but...

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Second stepper; 'No No ... don't understand ... my flat has double in value, the kids are in bunk beds with a cot in the main bedroom and no garden, but for some reason we can't afford a house.'

Me; 'Yes, the doubling of house prices means you need an extra two salaries on your mortgage to move not one and the banks will not lend you the extra, so you are trapped.'

Second stepper; 'But isn't it good that I have made so much money on my property investment .... I am so glad property prices always double every ten years.'

Can they work out how much they will work out to be when their own three kids wish to leave home?....who's crying now. ;)

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Ah, it's _your_ fault...

Not those ones. (the people I work for and with were shaking their heads at that silliness even before it descended into farce). We do relatively small systems to cope with specialist treatments.

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  • 243 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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