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Landlords To Blame For Britain's Rising House Prices

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Buy-to-let Britain is limiting choice for new home buyers as the average asking price for a property across England and Wales rose 2.1pc in January, says Rightmove. UK asking prices jumped by more than £5,000 in February as landlords, often slow to sell, limited choice on the market for house hunters. As interest in the market heats up, following the traditionally quiet months of January and February, some estate agents are reporting their lowest ever stocks of quality property for sale. The website said the UK's chronic housing supply shortage, caused by three decades of low levels of construction, is now being intensified by an increase in homes being owned by buy-to-let investors, who tend to be buying a property as part of a long-term plan and are more likely to keep it for longer than an owner-occupier would.

Many who are contemplating moving will have noticed a lack of suitable property for sale in their area, and may be hoping that it’s a temporary shortage. What they may not fully appreciate is that this is the new norm, and is the consequence of over 20 years of not enough homes being built to meet the burgeoning growth in household numbers, resulting in a lack of quality homes for sale in many popular areas of the UK.”

http://www.telegraph.co.uk/finance/property/house-prices/11414643/House-asking-prices-rise-as-buy-to-let-blocks-up-supply.html

Edited by rollover

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Funny

In roger bootles latest opinion piece on the housing market, he of the first class economics degree from Oxford and the visiting professor at LSE, he points out that over the last decade home building has matched household formation

Writing in the same newspaper

Who to believe?

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Funny

In roger bootles latest opinion piece on the housing market, he of the first class economics degree from Oxford and the visiting professor at LSE, he points out that over the last decade home building has matched household formation

Writing in the same newspaper

Who to believe?

Yes I wonder, although price trends themselves may have impacted household formation. "...the UK's chronic housing supply shortage, caused by three decades of low levels of construction, is now being intensified by an increase in homes being owned by buy-to-let investors". She just can't or won't quite put 2 and 2 together by investigating facts rather than opinion.

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In roger bootles latest opinion piece on the housing market, he of the first class economics degree from Oxford and the visiting professor at LSE, he points out that over the last decade home building has matched household formation

I don't see a contradiction there.

You can't form a new household without a house, surely?

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Funny

In roger bootles latest opinion piece on the housing market, he of the first class economics degree from Oxford and the visiting professor at LSE, he points out that over the last decade home building has matched household formation

Writing in the same newspaper

Who to believe?

I think it's genuinely difficult to distinguish between supply shortage caused by fundamentals vs market manipulation, especially when both appear to be happening simultaneously.

It's clear however that there is a problem if a significant portion of the population can't get access to the housing stock - renting or buying - at a price level supported by earned income.

There are both interventionist and libertarian approaches to solving this problem. Why won't someone in government just choose to enact one of them? We have this kind of paralysis wherein the right are afraid of the free market and the left are afraid of intervention.

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There's no mention of Help to Buy (Sell) or all the other financial schemes to prop up house prices. There's no mention of in London of all the overseas buyers being encouraged to buy and set price levels at their own levels of "affordability".

It's claiming it's all a structural problem and going back decades which of course it is as well - but only to some extent.

It's an article trying to remove the current government from responsiblity for the current problems. The general election is less than 3 months away.

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Saw a lecture by him at Leeds Business school a few weeks ago. Very good. You even get the chance to chat with him after the lecture over wine and nibbles.

All free. This one was sponsored by the FT.

There is another one I'm interested in this week that I might go to. Frank Field at York University on welfare and 'austerity'.

ooh, I do like Frank Field. One of the only Labourites who it appears can actually do sums....

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At the end of the day landlords are just playing the game in accordance with the rules set by the LIBLABCON.

So whilst many may be arrogant parasitic scum theyre just doing what is best for themselves.

I blame the fukwits who continue to vote LIBLABCON.

Edited by Samboy

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Saw a lecture by him at Leeds Business school a few weeks ago. Very good. You even get the chance to chat with him after the lecture over wine and nibbles.

All free. This one was sponsored by the FT.

There is another one I'm interested in this week that I might go to. Frank Field at York University on welfare and 'austerity'.

I'd have gone to that if only is known but there you go

I wonder which business schools Anna white has been invited to present at?

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Ah, Anna White, bless her.

What they may not fully appreciate is that this is the new norm

So naive she can't even spot the biggest cliche in a bubble.

It's Shipside doing the talking there, but still funny.

Just a few months ago, before teaser rates down a bit further.. seems to me he'll talk the talk for whatever is likely to be short-term gain for VI side. Whatever will pull in sales from 'uneducated 25 year olds' / older BTL 'dead-money in bank vs forever HPI' painfully high buyers. "Just when I thought I was out, they pulled me back in (at a new peak price)."

Rightmove Index June 2014 Shipside notes: “Many serious buyers who were waiting in the wings have now bought and moved in, taking a slug out of the pent-up demand for a few years to come, and the consequent chatter on the street is that quality buyers are now thinner on the ground. The next wave of buyers may have less motivation or ability to buy and sellers are going to have to be sensitive to their local market and not pitch their asking prices too high as choosy buyers will not arrange to come and visit.”

http://www.rightmove.co.uk/news/articles/property-news/prices-go-off-the-boil-as-supply-and-demand-find-a-better-balance

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Funny

In roger bootles latest opinion piece on the housing market, he of the first class economics degree from Oxford and the visiting professor at LSE, he points out that over the last decade home building has matched household formation

Writing in the same newspaper

Who to believe?

Bit difficult to form a new household without a house to put it in.

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Bit difficult to form a new household without a house to put it in.

True. Someone else made that point above.

I would like to know what definitions roger Bootle's researchers use

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Don't blame landlords per se... That's like blaming the junkie for all of society’s ills.

I put the blame at the feet of bankers and their politician pals, rigging the market and playing master to a nation of feckless, greedy, stupid people.

Who wins in the end?

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being owned by buy-to-let investors, who tend to be buying a property as part of a long-term plan and are more likely to keep it for longer than an owner-occupier would.

It's this bit that gets me. How do they know this, is it just general opinion or research?

Do these BTL'ers even think about how long they want to keep it when they sign up? I bet a lot of them have not even thought any further ahead than the 'thrill of the purchase' and the initial rent coming in. Maybe they only start to think about it when the building deteriorates so much and they 'can't afford' to repair it - cue exit.

A lot of them will get out when the environment changes, and they will leave a legacy of dilapidated homes, which will be left to future home owners to put right.

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It's this bit that gets me. How do they know this, is it just general opinion or research?

Do these BTL'ers even think about how long they want to keep it when they sign up? I bet a lot of them have not even thought any further ahead than the 'thrill of the purchase' and the initial rent coming in. Maybe they only start to think about it when the building deteriorates so much and they 'can't afford' to repair it - cue exit.

A lot of them will get out when the environment changes, and they will leave a legacy of dilapidated homes, which will be left to future home owners to put right.

When I had my house valued last year we asked the estate agent about improvements we were thinking of making (new front door, small extension) and he said basically don't bother doing anything. It would most likely be sold to a landlord and they wouldn't care.

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Bit difficult to form a new household without a house to put it in.

It's been the norm for most of history.

Where do you think the tradition of mother-in-law jokes comes from? It's the restricted lifestyle of being constantly under her gaze when you get married and move in to her back room, leading to tensions which find their release in those jokes.

Edited by porca misèria

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