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rantnrave

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The premise of the article is that there will be no house price crash in the next decade

It could be a sound premise, if there continues to be a co-ordinated effort by Europe, UK and USA to continue their efforts of the last 7 years

But it could all go wrong for them

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It's deliberate. "QE causing house price bubble" says report.

http://www.ft.com/cms/s/0/739a3700-2eeb-11e5-8873-775ba7c2ea3d.html

QE feeding Europe house price bubble, says study

Love the use of the word 'risks' as though it wasn't already here!

But it notes this is ECB QE and refers to UK as one of the likely property markets to be susceptible and affected.

Directly and indirectly, the central planners piss in the same pool. The primary dealers they employ to distribute their QE largesse are the local offices of the same vast, criminogenic enterprises the world over: Barclays, Deutsche, Mizuo, UBS et al.

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The only "problem", according to the Guardian article, is that potential FTBs can't save enough for a deposit. It is not that house prices are too high. Once again the elephant in the room is completely ignored. This is the kind of thinking that leads to HTB, first home owner (seller) grants and all the other crap that simply helps prop house prices up.

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The only "problem", according to the Guardian article, is that potential FTBs can't save enough for a deposit. It is not that house prices are too high. Once again the elephant in the room is completely ignored. This is the kind of thinking that leads to HTB, first home owner (seller) grants and all the other crap that simply helps prop house prices up.

Greater fools only worry about scraping together a deposit for something that is vastly over-valued. What about financial security? Throwing your life savings, THEN tying yourself to an enormous mortgage to a single asset that's hugely over-valued - in unstable and unprecedented economic times - how is that sensible? Yet The Guardian are insinuating that you are "unlucky" if you can't put yourself in that position. OK.

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Regardless of what's hidden in the main content of the article, a mainstream newspaper headline containing the words 'housing ladder' and 'collapse' can only help change to adjust the majority sentiment of everlasting HPI.

Following all the recent developments for BTL and the national obsession with it, word will soon get round that it is no longer the free money machine it once was and this will reduce the price of property as an easy income-generating asset rather than somewhere to live, and hopefully take it nearer what I believe to be real value.

My brother-in-law has just bought a house with the intention of letting it but was not aware of these changes. I overheard his dad telling him about it in somewhat hushed tones and I wondered how many other conversations like this were going to have happened around the country.

There will be resistance to selling up at first but I think it will snowball, especially with messages like this starting to permeate from the MSM.

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"There's never been a better time to get into BTL..."

I don't believe in the soundness of a BTL investment, even if it makes financial sense the sleepless nights of tenants trashing the joint or the on going maintenance ends any advantage for me.

But policies that continue to enrich older cohorts to the disadvantage of generation x and y mean there is the money to keep the props under the market. Look no further than zero universal welfare cuts for the retired (state pension etc ) and zero inheritance tax to pass on the property portfolio, even if that is just the family home. The trillions of pounds on balance sheets will continue to find their way into property. The Tories are creating a Victorian society of inheritance and wealthy old people.

Edited by crashmonitor

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The only "problem", according to the Guardian article, is that potential FTBs can't save enough for a deposit. It is not that house prices are too high. Once again the elephant in the room is completely ignored. This is the kind of thinking that leads to HTB, first home owner (seller) grants and all the other crap that simply helps prop house prices up.

Exactly. The article should be classed as HPI propaganda. Far from actually analysing the issue - or recognising that a major prop has now being kicked away, the message is simply 'bend over and take it youth'.

It wouldn't suprise me if the commisioning editor and reporter are offloading a btl portfolio as we speak, or sweating bricks about it.

If the writer reads this - i have a 'deposit'. And its the size of what i think the average home in the south east would be without any props.

Edited by Frugal Git

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I think a bit like the proles, they would rather consign them to poverty forever than truly address issues. Otherwise, they would lack a constituency to sell to. It is a bit like Labour complaining of the 'toffs' in the House of Lords....they've had ample chance to change it but never have.

This is all about making people miserable and complain about the evil Tories. Not about solutions. They need their readers to be miserable renters for whom they can claim to be representing and fighting on the behalf.

Yep.

I love the timing of this too. It is after all - suddenly - front page news.

Sniff of a market jitters perhaps?

Anyone with a brain cell has seen this develop since 2000. Where were the front pages doing the requisite journalism to expose why over the last 15 years?

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Isn't it time to retire the word "ladder" about property now? Who is really treating property as a ladder these days? Who buys a 1-bed, then maybe 2-bed, then finally 3-bed with a family in mind? And are prices really rising in the provinces to pay for the entry and exit costs via the HPI? The market is incredibly illiquid and vastly expensive to action any move up or down. Average age of FTB is late 30s - surely most people want to have a family by then, so the whole ladder thing is a nonsense.

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Yep.

I love the timing of this too. It is after all - suddenly - front page news.

Sniff of a market jitters perhaps?

Anyone with a brain cell has seen this develop since 2000. Where were the front pages doing the requisite journalism to expose why over the last 15 years?

Well when Labour was in power the Guardian didn't care.

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They had a previous article, saying majority home ownership was just a historical blip. Renting had always been the norm until the 1960s.

More accurately the mass credit to the masses experiment was a historical blip, that was the fuel that drove high house prices, but also allowed people to pay them, everything since that collapse is just fire fighting measures to prevent the inevitable.

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Regardless of what's hidden in the main content of the article, a mainstream newspaper headline containing the words 'housing ladder' and 'collapse' can only help change to adjust the majority sentiment of everlasting HPI.

Following all the recent developments for BTL and the national obsession with it, word will soon get round that it is no longer the free money machine it once was and this will reduce the price of property as an easy income-generating asset rather than somewhere to live, and hopefully take it nearer what I believe to be real value.

My brother-in-law has just bought a house with the intention of letting it but was not aware of these changes. I overheard his dad telling him about it in somewhat hushed tones and I wondered how many other conversations like this were going to have happened around the country.

There will be resistance to selling up at first but I think it will snowball, especially with messages like this starting to permeate from the MSM.

Many people probably gave up on HPI years ago (outside London) the BTL thing is the final straw, they will lose faith soon, on a big scale, IMO.

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It's OK they have also informed us the rise in diabetes may be linked to sugary drinks !!

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Regarding the headline the housing ladder has collapsed for everyone/all ages and that happened some time ago because as house prices get more expensive it gets more difficult to reach the next rung - for everyone.

The headline is misleading because for the under 40s (40 being about the age of the average first time buyer now) there is no ladder to collapse if they haven't even got on the first rung.

The only good thing about the headline is the use of the word collapse as has been mentioned already - anything which is starting to collapse isn't stable or healthy.

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With house prices being so high, without the guarantee of rapid house price rises, then you have to weigh up that big up front cost against perhaps slightly higher monthly rent per month.

And not just stamp duty - survey / EA fees usually are based on house price cost too - so they go up commensurately with house prices.

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Regarding the headline the housing ladder has collapsed for everyone/all ages and that happened some time ago because as house prices get more expensive it gets more difficult to reach the next rung - for everyone.

The headline is misleading because for the under 40s (40 being about the age of the average first time buyer now) there is no ladder to collapse if they haven't even got on the first rung.

The only good thing about the headline is the use of the word collapse as has been mentioned already - anything which is starting to collapse isn't stable or healthy.

The headline should say "Generation rent means that the housing "ladder" has collapsed for those who thought they were living in a windfall"?

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