Jump to content
House Price Crash Forum
Eddie_George

Buying And Selling Homes Is Becoming Britain’S Biggest Business

Recommended Posts

Buying and selling homes is becoming Britain’s biggest business. It desperately needs a 21st-century transformation

...... the output of the property industry has risen so fast in recent years that it now contributes more of GDP (11 per cent) than manufacturing (9.6 per cent). It is fast closing in on retail as Britain’s most important line of business.
In almost every other major field we are streamlining the connection between buyers and sellers — yet we still pay estate agents sizeable fees to do something that could quite easily be done by an algorithm.
The only other major sector where a similar anachronism still exists is finance, whose main purpose ought simply be to connect lenders and borrowers but which remains a highly expensive, intermediated business, often benefiting banks at the expense of the consumers.
In both cases, the internet has so far only greased the wheels of the existing system. You can check property prices and your bank balance more easily. But real, disruptive innovation that actually changes the nature of the industry? Forget it.
Yet between them the property and banking industry contribute almost a fifth of Britain’s national income each year. We are more reliant on them than any other sector — so why are they among the last to change?
The clue is in the question. With the economic recovery only just taking hold, the last thing the government wants to do is upend it with painful reforms to the way the banking and real estate systems are run. This is a shame — a little bit of bravery is what is needed now to drag the remaining parts of Britain’s economy into the 21st century.

http://www.thetimes.co.uk/tto/opinion/columnists/article4342328.ece

Edited by Eddie_George

Share this post


Link to post
Share on other sites

The only other major sector where a similar anachronism still exists is finance, whose main purpose ought simply be to connect lenders and borrowers but which remains a highly expensive, intermediated business, often benefiting banks at the expense of the consumers.

Wrong wrong wrong! Banks create credit against assets.

Share this post


Link to post
Share on other sites

LEADING a dull suburban life with a mortgage and two children is now a phenomenal achievement, everyone has agreed.

Modern life has become so challenging that ‘averageness’ is now considered an ambition on a par with becoming an acclaimed novelist, professional sportsperson or successful entrepreneur.

Part-time barista Tom Logan said: “I know a guy who’s got a two bedroom semi, a Vauxhall Corsa and a fairly generous pension. To me he may as well be Alan Sugar. “I’d love all the trappings of success, like a garden and 2.4 children at the local comprehensive, but the only way an ordinary person like me could afford all that is by winning the lottery or becoming a drug dealer.”

Economist Donna Sheridan said: “The dire state of the job market means that people who were once mocked for their unexciting careers are now, relatively speaking, incredibly successful. “It’s increasingly common for attractive young women to go to nightclubs with the intention of bagging themselves an accountant or geography teacher.”

Factory supervisor Roy Hobbs said: “With my small detached house, ‘luxury’ caravan and three ISAs, I’m living the dream, although not a very interesting one. “My advice is to have the purely coincidental good fortune to buy a house just before a massive property boom that fukcs everyone else.”

http://www.thedailymash.co.uk/news/society/boring-conformity-now-a-massive-achievement-2015020395004

Share this post


Link to post
Share on other sites

When real business is frowned upon and anyone who is successful is taxed to the hilt for making some money, it is no surprise that the tax free growth of trading your own home becomes so attractive. A crazy country.

Share this post


Link to post
Share on other sites

Find it crazy that governments past threw the manufacturing sector under the bus due to 'unprofitable' industries and supposed bolshie workers asking for pay rises. Yet here we surely have massive state backing for the few big builders, estate agents and the mortgage industry? How is this ok with the disciples of thatcher?

Share this post


Link to post
Share on other sites

And look at earnings. An average worker earns 27k per year and then pays tax. The average house earned 27K last year tax free. It's hard-working houses v lazy benefit seeking workers in this new paradigm as Dave enacts his long-term economic plan for houses that want to work hard and get on in life.

Brilliant...

Share this post


Link to post
Share on other sites

I am sitting watching this madness thinking, how f**king stupid ( or corrupt ) are the government and the bankers when the whole system went belly up in 2007 and basically since then they have done everything they can to push up prices and lump more and more debt on people.

If you take a step back and think about where we are now in the context of what happened in 2007/2008 the whole thing is beyond belief!!!

I can scarcely believe the stupidity of the British public, all I can imagine is that they are so desperate that they will happily believe anything the government and bankers tell them if they think they can make a bit of money.

Share this post


Link to post
Share on other sites

Thousands of jobs and taxes are tied up in buying and selling homes......whilst people are able to move regularly liquidity runs freely...when people are sitting living in the same home for many years because there is no longer a ladder for them, or homes that are rented out do not appear on the market and are stored for many years this no longer works.......your home then becomes your care home medical care costs, or your children's future home deposit or children's interest only repayment vehicle....such is life. ;)

Share this post


Link to post
Share on other sites

The clue is in the question. With the economic recovery only just taking hold, the last thing the government wants to do is upend it with painful reforms to the way the banking and real estate systems are run. This is a shame a little bit of bravery is what is needed now to drag the remaining parts of Britains economy into the 21st century.

Look up the newspapers including The Times from the 70s, 80s and 90s and for sure you will find similar articles in those days.

Even Mr Wilson would have said something similar in the 60s - "White heat of technology" etc etc and the "Gnomes of Zurich" and so on.

Now people in the 2020s and 30s will be able to refer back to at least one Times article on the subject written in 2015

At the same time the UK economy gets worse and worse and ever more unbalanced.

"Painful reforms" - as if. Likely there's not much that can be done about it due to the self servers, vested interests and time wasters but it helps not to be taken in by the twisters.

Edited by billybong

Share this post


Link to post
Share on other sites

"Painful reforms" - as if. Likely there's not much that can be done about it due to the self servers, vested interests and time wasters but it helps not to be taken in by the twisters.

Spot on.

We are expecting the public sector ( MPs ) to make public sector cuts ( MPs colleagues affected ). As you say, "as if". The will wait until it's too late and it all collapses around their ears,

The main trouble being, they will take all of us down with them.

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   206 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.