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Bruce Banner

Bbc News - Renting Forever

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BBC News are doing articles on the housing market all morning, they say.

Problems they say they will discuss include...

Lenders not lending enough to let people get on the property ladder.

Under 45s will never afford a house and will rent forever.

House prices increasing at 20% "every single year".

20% each year eh! Bring it on, the faster they rise the faster they'll fall!

Edited by Bruce Banner

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So, who do the owners sell to then?

No need, all property will be BTL. Prices up 20% pa, rents down 1.985% pa (this week's figure) means gross yields only drop 56% in 5 years, so no problem.

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They just had someone on who referred to "Paying your landlord's mortgage" and "Renting is dead money", but said that for him renting is the best option as it doesn't tie up his capital.

Edit: He was introduced as someone who definitely can't afford to buy, even though he chooses not to. No bias there then!

Edited by Bruce Banner

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They just had someone on who referred to "Paying your landlord's mortgage" and "Renting is dead money", but said that for him renting is the best option as it doesn't tie up his capital.

Edit: He was introduced as someone who definitely can't afford to buy, even though he chooses not to. No bias there then!

probably ties up a fair part of his pension capital via a circuitous route through the financial industry, also adds to his taxes as actual buyers are taking free government cash, and others are taking free government guarantees.

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Full on spring bounce mode.

I guess prices wont be discussed in any serious manner.

They don't know how to do serious. People at HPC have been way too forgiving of the greed and entitlement, with excuses for those at the margin paying ever higher prices. Protect them, and you protect multiple landlords, and values for older VI home-owners.

It's all seen the position of the VI home-owner coarsening with their attitudes with forever HPI. And many take it in their stride younger people will be forever renters, and how wise they were to buy, and upto x100 gains since they bought years ago.

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On 5live this morning a presenter asked a guy from the Halifax why rents were not rising. They have done another survey (marketing) with results that some believe they will never own their own home. The Halifax guy panicked a bit as logic kicked in. The presenter then prompted him with another question re not building enough and then they talked about shortage , htb. I was half asleep though !

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I can't seem to paste into the new forum anymore but Ash4781, Lloyds HBOS have today released the latest installment of their report, entitled 'Generation Rent 2014', a google will find the page which links to the full .pdf release at the bottom.

Cheers for the heads up, it looks like it might be a decent read.

Edited by The Knimbies who say no

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I can't seem to paste into the new forum anymore but Ash4781, Lloyds HBOS have today released the latest installment of their report, entitled 'Generation Rent 2014', a google will find the page which links to the full .pdf release at the bottom.

Cheers for the heads up, it looks like it might be a decent read.

I'm not going to bother reading it.

I'll just assume that any solution involves more taxpayer money to support high prices and builder profits and leave it at that.

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They just had someone on who referred to "Paying your landlord's mortgage" and "Renting is dead money", but said that for him renting is the best option as it doesn't tie up his capital.

He was quite good, sounded like an HPCer. He also said he was free to move for work/a change of circumstances.

On BBC news after his bit the presenter said, 'So, still concerned about trying to get on the ladder.' Point missed.

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I can't seem to paste into the new forum anymore but Ash4781, Lloyds HBOS have today released the latest installment of their report, entitled 'Generation Rent 2014', a google will find the page which links to the full .pdf release at the bottom.

Cheers for the heads up, it looks like it might be a decent read.

Ta. 5live are doing a phone in article now (10am).

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It's quite funny how short sighted the finance and banking industry has been and will be.

On the one hand they lament the destruction of various parts of the 'housing ladder' and how it works over people's life times and on the other they intend to profit as much as possible to lend to landlords to corner the homes market.

What they don't realise is that landlords don't move and so the opportunities to profit from the various products sold at that time disappear. And secondly, landlords may acquire the ability to pay off the loans on the housing stock over time. Where will that leave the banks? What will that do to the money supply?

Often thought about that ,but always come up with, can they really be that daft ? or is it just part of a bigger plan yet to unfold or just short term greed

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It's quite funny how short sighted the finance and banking industry has been and will be.

On the one hand they lament the destruction of various parts of the 'housing ladder' and how it works over people's life times and on the other they intend to profit as much as possible to lend to landlords to corner the homes market.

What they don't realise is that landlords don't move and so the opportunities to profit from the various products sold at that time disappear. And secondly, landlords may acquire the ability to pay off the loans on the housing stock over time. Where will that leave the banks? What will that do to the money supply?

Very good point. I guess ultimately therre eill be an Irish style construction boom, there is no other way out for them.

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A teacher in her late 20s early 30s, from Aberdeen, being interviewed on BBC News / News 24, 1/2 hour ago.

Saying she thought she'd saved a substantial amount, but house prices keep outpacing savings.

Hopeless questions from the female interviewer, in line with thoughts of forever HPI. Teacher saying she doesn't want to be paying someone else's mortgage forever.

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The problem, according to the BBC reporter, is not that there is a bubble and prices are ridiculously high, but that people can not manage to borrow enough money to pay the asking prices.

There is an easy answer to this problem, but not one that the BBC would consider mentioning.

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The problem, according to the BBC reporter, is not that there is a bubble and prices are ridiculously high, but that people can not manage to borrow enough money to pay the asking prices.

There is an easy answer to this problem, but not one that the BBC would consider mentioning.

Put every BBC journalist in a locked room and gas them like badgers?

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Put every BBC journalist in a locked room and gas them like badgers?

No! Raise interest rates, stop propping up house prices with taxpayers money and watch them all scramble to sell their buy to lets for whatever they can get for them.

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Put every BBC journalist in a locked room and gas them like badgers?

A more fitting punishment might be to strap them in front of a television Clockwork Orange-style and make them watch all 775 episodes of Homes Under the Hammer back-to-back.

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Doesn't sound very good for BTL yields does it? :rolleyes:

Quite......if it were worth that much, income would be falling and growth compared to cost of upkeep would be rising...... ;)

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