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Roof Over Your Head. Bbc Radio 4 Pm Programme

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First one interesting. Andrew Lillico on saying prices not so much linked to house building as mortgage and capital availability. One couple so overjoyed that their offer 35k over asking price accepted.

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First one interesting. Andrew Lillico on saying prices not so much linked to house building as mortgage and capital availability. One couple so overjoyed that their offer 35k over asking price accepted.

I do love a good comedy.

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In the program is says that. Immigration is a key driver of houses prices. It's something that we talk about on here all the time but politicians will not speak of.

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Starts about 30 mins in for approx 10 mins

http://www.bbc.co.uk/programmes/b041xc1w

Actually spoke some sense about house price factors. Interesting to see how missing out on 7 homes, helped make the couple so crazy that they thought they still wouldn't get a 2 bed house for a +£35 offer! They should have offer +£100 just to make sure!

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In the program is says that. Immigration is a key driver of houses prices. It's something that we talk about on here all the time but politicians will not speak of.

Yes, immigration of capital is a bitch.

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"expert panel on housing on Friday, if you've got questions on housing or points to make....." (think it say email pm@bbc.co.uk but not sure).

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In the program is says that. Immigration is a key driver of houses prices. It's something that we talk about on here all the time but politicians will not speak of.

The immigration is one thing that we shouldn't joining in the chorus of blame for, it's loved by the baby boomer NIMBYs / BANANAs who want to put a stop to house building. By using it we strengthen their arguments, so fewer houses get built making the whole situation worse. It's called shooting yourself in the foot!

Our birth rate is ~12 births per 1,000 population and our death rate is ~9 births per 1,000 population, once you add people getting divorced (~10 divorces per 1,000 married population) it's apparent that we are not building enough houses. We need to be building 180,000 a year to cope with population rise and another 120,000 or so to house newly divorced people - 300,000 just to keep still (nevermind the backlog).

In the 1970's we were building around 300,000 houses a year, last year it was something like 150,000. Once everyone starts blaming foreigners we might struggle to get 150,000 built and prices shoot-up even more, pleasing only boomers, speculators, government and BTL landlords.

What also feeds HPI is the availability of cheap credit, it so obvious even the government knows this! Hence why state supported 95% mortgages were introduced, and what happened afterwards - property prices start to bubble again.

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The immigration is one thing that we shouldn't joining in the chorus of blame for, it's loved by the baby boomer NIMBYs / BANANAs who want to put a stop to house building. By using it we strengthen their arguments, so fewer houses get built making the whole situation worse. It's called shooting yourself in the foot!

Our birth rate is ~12 births per 1,000 population and our death rate is ~9 births per 1,000 population, once you add people getting divorced (~10 divorces per 1,000 married population) it's apparent that we are not building enough houses. We need to be building 180,000 a year to cope with population rise and another 120,000 or so to house newly divorced people - 300,000 just to keep still (nevermind the backlog).

In the 1970's we were building around 300,000 houses a year, last year it was something like 150,000. Once everyone starts blaming foreigners we might struggle to get 150,000 built and prices shoot-up even more, pleasing only boomers, speculators, government and BTL landlords.

What also feeds HPI is the availability of cheap credit, it so obvious even the government knows this! Hence why state supported 95% mortgages were introduced, and what happened afterwards - property prices start to bubble again.

+1

You've nailed it, ultra low interest rates and many years of not building enough (especially in the south-east) have put us in this appalling position.

However, I doubt either of these two critical factors will change much any time soon. Which is why I believe that house prices will most likely drift sideways for a generation.

Property is a lousy investment, but that's not the same thing as saying there will soon be a significant fall in nominal prices. We're stuck at the upper limits of the affordability barrier, but that's exactly where we'll be in ten, twenty, or thirty years time. So if you're currently priced out the best strategies are either to move to a low house price area, or reconcile yourself to an entire lifetime of renting and structure your lifestyle to best cope with the realities of that situation.

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