Jump to content
House Price Crash Forum

It's Happening


Recommended Posts

0
HOLA441

The Conservatives need opposition so that our politics can be vital, but that chair is empty and the Labour Party cannot fill it.

That's been a problem a few times. Under Mrs T, the real opposition came from within her own party. We could easily see an element of that again.

But the SNP now bring a new dynamic. And stand to do very well out of our constitutional mess so long as it remains unresolved and they can practice socialism on the back of a more capitalist economy. Interesting times.

Powerful stuff Blandy. I can only hope there is a purge inside Labour and some proper minds come through.

There was a bit more to it, as you probably know. They announced it the double-part of MIRAS was going to end... and there was a rush of buyers pushing and falling over each other to buy houses at ever higher prices, mental, to ensure they qualified for duel MIRAS.

The ending of double-miras was clumsily executed: it should never have been announced for several months ahead. But apart from that, what was not to like about it? Take government money away from homebuyers (the opposite to help-to-buy) and prices fall.

It wasn't even very much government money: we still had housing benefit, and on rents that were - relatively speaking - much higher than today. But with double-digit interest rates it was sufficient to do the job.

Edited by porca misèria
Link to comment
Share on other sites

  • Replies 80
  • Created
  • Last Reply

Top Posters In This Topic

1
HOLA442

The best time I have know the UK economy was 92-97ish, when property was falling and people not buying/spending much on property.

Actually, the era when John Major was in power wasn't too bad imo. It's a shame I was too young to buy a house back then. Had there been a 1997 Tory win then I think I may be a homeowner now.

In 1993 I did my work experience in an Estate Agents. Townhouses were like £37k - £55k at the time iirc, Around £60k ish for 3 bedroomed suburban semis.

ANECDOTAL: In 1996 my sister bought a rock solid 1950s 3 bed ex-LA house for £38k on the estate where we grew up. Sold that for £146k in 2006 after modernising it and putting on a front extension. There wasn't £108ks worth of improvements done to it, although very nicely done. Recently divorced, she has just completed on an identical house on the same estate. It's more modernised than the one bought in '96 was (the latter already has central heating). She paid £156k for it. She might have paid £125k or less for it/similar house if it wasn't for those 'HTB' props!

Re: 'Things can only get better' promo - I actually got the video cassette of that through the post just before the 1997 General Election (the first I was old enough to vote in). :lol: I voted Lib Dems instead.

Link to comment
Share on other sites

2
HOLA443

Actually, the era when John Major was in power wasn't too bad imo. It's a shame I was too young to buy a house back then. Had there been a 1997 Tory win then I think I may be a homeowner now.

In 1993 I did my work experience in an Estate Agents. Townhouses were like £37k - £55k at the time iirc, Around £60k ish for 3 bedroomed suburban semis.

ANECDOTAL: In 1996 my sister bought a rock solid 1950s 3 bed ex-LA house for £38k on the estate where we grew up. Sold that for £146k in 2006 after modernising it and putting on a front extension. There wasn't £108ks worth of improvements done to it, although very nicely done. Recently divorced, she has just completed on an identical house on the same estate. It's more modernised than the one bought in '96 was (the latter already has central heating). She paid £156k for it. She might have paid £125k or less for it/similar house if it wasn't for those 'HTB' props!

Re: 'Things can only get better' promo - I actually got the video cassette of that through the post just before the 1997 General Election (the first I was old enough to vote in). :lol: I voted Lib Dems instead.

So you're the person that voted Lib Dem that year.

Link to comment
Share on other sites

3
HOLA444

That's been a problem a few times. Under Mrs T, the real opposition came from within her own party. We could easily see an element of that again.

But the SNP now bring a new dynamic. And stand to do very well out of our constitutional mess so long as it remains unresolved and they can practice socialism on the back of a more capitalist economy. Interesting times.

The ending of double-miras was clumsily executed: it should never have been announced for several months ahead. But apart from that, what was not to like about it? Take government money away from homebuyers (the opposite to help-to-buy) and prices fall.

It wasn't even very much government money: we still had housing benefit, and on rents that were - relatively speaking - much higher than today. But with double-digit interest rates it was sufficient to do the job.

No one in Government encouraged market participants to go out and pay .

What I woke up this morning thinking; 'clumsily executed is the claim' - (innocence or by design - I don't know - could they really expect market participants to go so stupidly wild, so wild, in paying such high prices for a little bit of tax relief - it was buyers own choices in a market, even though many people seem to think renters lives < or belong to owners.)

Although then came Gov vs Soros markets in testing Treasury on their will to keep pound so high. Markets knocked out of ERM, Gov backing down after losing £Bns trying to defend high pound, involving two interest hikes in one day. The first base rate up 2%. Followed by another, the very same day at 3% hike. The second hike was cancelled later that day (leaving the rate at 12%) as Lamont came out to say suspending Britain's from the ERM.

First minute and a half

MIRAS end, frenzy buyers.. telegraphed duel part MIRAS was ending (hmmm as I woke up thinking the BTL tax-relief is telegraphed being heavily reduced but over a longer time line - "take money/relief away from "Borrower-To-Letters and prices fall" / cooling of new BTLers in this instance?)... followed by a normal slowdown post end that relief, then more serious market action for HPC with interest rates/recession.

Edited by Venger
Link to comment
Share on other sites

4
HOLA445
5
HOLA446

Mods please feel free to move to anecdotal, but this is too good to miss.

Looked at a house in the spring. £550k. It was an open house day and there were a number of 'investors'. I may have posted about it at the time, spoke to one about how it was cheaper to rent than buy in the area at current prices.

I liked it, but not at that price. It was changed to offers over £500k and quickly went SSTC. this was April/ May time.

Got a call from the EA today saying the buyer was an investor and had pulled out due to the budget tax changes and asked if would I be tempted to put an offer in at a lower price. Said the seller would accept £500k. I said I was expecting more property to come on the market due to the tax changes so was holding off until the autumn to allow them to work through.

I am generally astounded this has just happened, I'm also astounded that a Tory government has done this. I am about to tuck into my hat. I never thought that a party whose rhetoric was so pro-rentier would do something like this.

...BTL total debt is a risk to the economy..that is why... :rolleyes:

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information