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Economics Of The Uk Housing Market Enquiry - House Of Lords

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If you want to provide input to the House of Lords enquiry about the UK housing market, you can: written submissions are invited

"The Committee is to investigate the economics of the UK housing market. Buying a house is becoming increasingly unaffordable for first time buyers. The cost of private rented accommodation is rising and there is a lack of affordable social housing. This Inquiry will consider the economic factors that influence the demand for and availability of reasonably priced housing to buy and to rent. This is a complex topic and the inquiry will particularly focus on the effectiveness of government economic measures designed to improve housing affordability."

http://www.parliament.uk/business/committees/committees-a-z/lords-select/economic-affairs-committee/inquiries/parliament-2015/economics-of-the-uk-housing-market/

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This is a complex topic and the inquiry will particularly focus on the effectiveness of government economic measures designed to improve housing affordability.

What measures are those?

Help to Buy makes houses more expensive.

Right to Buy gives free houses to people who already have a secure tenancy.

'Starter Homes' sound like slums, and no-one has built any yet.

New Towns are going to be out in a field somewhere two hours commute away from any jobs, and again, no-one has laid a brick.

The billions we spend on Housing Benefit and Tax Credits drive up rents.

Net migration of a an extra million every three years means I may well eventually go from sharing a house to bunkbeds to sharing a mattress with a stranger as we're packed in ever more densely.

I'll have to summon the energy to make a submission, but to be frank after five or ten years priced out and complaining and voting I'm getting tired. I wrote a detailed letter to the Treasury a month or so ago. No reply.

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What measures are those?

Help to Buy makes houses more expensive.

Right to Buy gives free houses to people who already have a secure tenancy.

'Starter Homes' sound like slums, and no-one has built any yet.

New Towns are going to be out in a field somewhere two hours commute away from any jobs, and again, no-one has laid a brick.

The billions we spend on Housing Benefit and Tax Credits drive up rents.

Net migration of a an extra million every three years means I may well eventually go from sharing a house to bunkbeds to sharing a mattress with a stranger as we're packed in ever more densely.

I'll have to summon the energy to make a submission, but to be frank after five or ten years priced out and complaining and voting I'm getting tired. I wrote a detailed letter to the Treasury a month or so ago. No reply.

You could simply submit the same letter to this inquiry - save your energy for more exciting things!

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but to be frank after five or ten years priced out and complaining and voting I'm getting tired.

Excellent, large scale capitulation of the masses into "accepting their lot" is what they are after, its the big win.

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Amusing. The existence of the HoL is a testament to the fact they understand the economics of the UK housing market perfectly. But if we're pretending perhaps they could start with Government's own work like the Barker/Lyons reviews, or the IFS Mirlees review, or even just reading a book or papers on the subject.

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Amusing. The existence of the HoL is a testament to the fact they understand the economics of the UK housing market perfectly. But if we're pretending perhaps they could start with Government's own work like the Barker/Lyons reviews, or the IFS Mirlees review, or even just reading a book or papers on the subject.

+1

Indeed.

Yet another report. There have been mountains upon mountains of reports and white papers etc over the decades and over the years. Now there's going to be another one that will likely take more years to complete. In the meantime they'll yet again be saying that everyone will have to wait until that new report is complete before deciding what to do - like they've done with every similar report in the past.

They're all just time wasters wasting people's time.

Edited by billybong

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Bland

Surely the committee members are worthy recipients of a personal copy of bland unsight's shoblerant?

Bland Unsight is totally right to identify BTL as the main course of HPI. Some on here think it's the 85 year old down the road who bought a house 50 years ago for £1,000 that has made house prices too expensive.(that is obviously nonsense).

The truth is the young out bid themselves by making a pact with the devil.

If BTL had never been introduced in 1996 The young would have been forced to stay in their childhood bedrooms until they had saved a deposit. In 1996 they would only have to have saved for two years to get a deposit. But as house prices have Quadrupled so has the time it takes to save a deposit.

Nobody thought that renting would course HPI and a lot still deny it.

Lets sell all the council houses and let the private sector take over. Everybody knows public sector bad private sector good.

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Bland Unsight is totally right to identify BTL as the main course of HPI. Some on here think it's the 85 year old down the road who bought a house 50 years ago for £1,000 that has made house prices too expensive.(that is obviously nonsense).

The truth is the young out bid themselves by making a pact with the devil.

If BTL had never been introduced in 1996 The young would have been forced to stay in their childhood bedrooms until they had saved a deposit. In 1996 they would only have to have saved for two years to get a deposit. But as house prices have Quadrupled so has the time it takes to save a deposit.

Nobody thought that renting would course HPI and a lot still deny it.

Lets sell all the council houses and let the private sector take over. Everybody knows public sector bad private sector good.

You should submit that. The Lords will love it.

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If BTL had never been introduced in 1996 The young would have been forced to stay in their childhood bedrooms until they had saved a deposit. In 1996 they would only have to have saved for two years to get a deposit. But as house prices have Quadrupled so has the time it takes to save a deposit.

My bold.

In any letter not to forget that before BtL there were still bedsits for rent and still rooms to rent and having to be shared with strangers. There were plenty of stories of homelessness and ten to a room stories for some immigrants etc - although there weren't so many rules and regulations.

Just saying

* Edit to add - as well as bed sharing for shift workers.

Edited by billybong

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It's the combination of cheap credit and liar loans which drove up house prices. After a blip in 2008 Osbourne saved the banks and developers from oblivion with Help to Buy.

Private banks create 97% of the UK money supply when making loans, with around 85% as mortgages.

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Yes, and what about everyone who got kicked out at 16 or at 18, or whose parents live miles from anywhere, or whose careers require them to be somewhere other than the town their parents live in?

If I'd stayed at home I would have been much, much worse off, house prices or no house prices. This idea that somehow the young are the architects of their own destruction, or that they've entered into a pact with landlords to deny those virtuous savers lucky enough to be able to live with their parents, is offensive.

If you don't have a choice, it's not a deal with the devil. It's Catch 22.

If you're stuck at home, put the blame where it belongs - on profiteering landlords, or on bankers, or on people who didn't save for retirement, or on the government, or on Gordon Brown. There's a lot of blame to go around without resenting people who are just as priced out as you are, and who - with rent to pay - have markedly less ability to save.

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I love the wording on these things and media reports. Houses are "becoming increasingly unaffordable"? Erm, where have you been the last 10 years House of Lords?

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My bold.

In any letter not to forget that before BtL there were still bedsits for rent and still rooms to rent and having to be shared with strangers. There were plenty of stories of homelessness and ten to a room stories for some immigrants etc - although there weren't so many rules and regulations.

Just saying.

I

Yes, and what about everyone who got kicked out at 16 or at 18, or whose parents live miles from anywhere, or whose careers require them to be somewhere other than the town their parents live in?

If I'd stayed at home I would have been much, much worse off, house prices or no house prices. This idea that somehow the young are the architects of their own destruction, or that they've entered into a pact with landlords to deny those virtuous savers lucky enough to be able to live with their parents, is offensive.

If you don't have a choice, it's not a deal with the devil. It's Catch 22.

If you're stuck at home, put the blame where it belongs - on profiteering landlords, or on bankers, or on people who didn't save for retirement, or on the government, or on Gordon Brown. There's a lot of blame to go around without resenting people who are just as priced out as you are, and who - with rent to pay - have markedly less ability to save.

Years ago there were council houses for you to goto and no parent would kick their kid out to live on the street. Renting off a nice BTL LL seemed so simple and I for one would never have thought of the repercussions. BTL started out as a yield play but soon turned into a HPI play

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I

Years ago there were council houses for you to goto and no parent would kick their kid out to live on the street. Renting off a nice BTL LL seemed so simple and I for one would never have thought of the repercussions. BTL started out as a yield play but soon turned into a HPI play

Council houses before BtL had long waiting lists (months even years by anecdote) and weren't intended for the young singles - they had little or no chance perhaps unless disabled. In the time before BtL it was generally accepted that the young males left home to establish themselves and to find work etc although I guess not all did leave home especially the females. It wasn't so expected of females.

Edited by billybong

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Membership of the HoL Economic Affairs Committee:

*Lord Hollick (Chairman), Labour
Member, Advisory Board, Jefferies Inc (financial services)
Senior Adviser, GP Bullhound Ltd (investment banking)

*Baroness Blackstone, Labour
Chair, Orbit Group (housing associations)

*Lord Forsyth of Drumlean, Conservative
Land and property: Self-catering holiday accommodation at home in Scotland, from which rental income is received
President-elect of the Royal Highland and Agricultural Society of Scotland (in office from July 2014)

*Lord Griffiths of Fforestfach, Conservative
Director, Goldman Sachs International Bank
Director, Goldman Sachs International
Telereal Trillium (property company)

*Lord Kerr of Kinlochard, Crossbench
Non-executive Director, Rio Tinto plc
Non-executive Director, Rio Tinto Ltd (Australia)
Deputy Chairman, Scottish Power plc
Non-executive Director, Scottish American Investment Co Ltd

*Lord Lamont of Lerwick, Conservative
Director, Stanhope Gate Architecture & Urban Design Ltd (property development)
Certain secretarial services are provided to the Member by Land Holdings Capital Ltd

*Lord Layard, Labour
Land and property: House in London

*Lord May of Oxford, Crossbench
Land and property: Two flats in Oxford

*Lord Monks, Labour

*Lord Sharkey, Liberal Democrat
Land and property: Flat in London, House in the Isle of Wight

*Lord Teverson, Liberal Democrat
Director, Wessex Investors Ltd (real estate management)
Director, Wessex Hotel Operators Limited
Land and property: House in Devon from which rental income is received

*Lord Turnbull, Crossbench
Non-executive Director, Prudential plc
Non-executive Director, British Land Company plc

*Baroness Wheatcroft, Conservative
Non-executive Director, St James’s Place plc (financial services)

http://www.publications.parliament.uk/pa/ld/ldreg/prevreg/2014/Register041214.pdf

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Membership of the HoL Economic Affairs Committee:

*Lord Hollick (Chairman), Labour

Member, Advisory Board, Jefferies Inc (financial services)

Senior Adviser, GP Bullhound Ltd (investment banking)

*Baroness Blackstone, Labour

Chair, Orbit Group (housing associations)

*Lord Forsyth of Drumlean, Conservative

Land and property: Self-catering holiday accommodation at home in Scotland, from which rental income is received

President-elect of the Royal Highland and Agricultural Society of Scotland (in office from July 2014)

*Lord Griffiths of Fforestfach, Conservative

Director, Goldman Sachs International Bank

Director, Goldman Sachs International

Telereal Trillium (property company)

*Lord Kerr of Kinlochard, Crossbench

Non-executive Director, Rio Tinto plc

Non-executive Director, Rio Tinto Ltd (Australia)

Deputy Chairman, Scottish Power plc

Non-executive Director, Scottish American Investment Co Ltd

*Lord Lamont of Lerwick, Conservative

Director, Stanhope Gate Architecture & Urban Design Ltd (property development)

Certain secretarial services are provided to the Member by Land Holdings Capital Ltd

*Lord Layard, Labour

Land and property: House in London

*Lord May of Oxford, Crossbench

Land and property: Two flats in Oxford

*Lord Monks, Labour

*Lord Sharkey, Liberal Democrat

Land and property: Flat in London, House in the Isle of Wight

*Lord Teverson, Liberal Democrat

Director, Wessex Investors Ltd (real estate management)

Director, Wessex Hotel Operators Limited

Land and property: House in Devon from which rental income is received

*Lord Turnbull, Crossbench

Non-executive Director, Prudential plc

Non-executive Director, British Land Company plc

*Baroness Wheatcroft, Conservative

Non-executive Director, St James’s Place plc (financial services)

Full of bankers, property developers and land barons etc and they need people to write and tell them about the economics of the housing market and how the housing market works.

It's worth at least a page full of :lol: (hollow ones of course).

It's all so crooked - and it's no way to run a country.

Edited by billybong

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Council houses before BtL had long waiting lists (months even years by anecdote) and weren't intended for the young singles - they had little or no chance perhaps unless disabled. In the time before BtL it was generally accepted that the young males left home to establish themselves and to find work etc although I guess not all did leave home especially the females. It wasn't so expected of females.

When my mum was young she went in to digs.(had a bedroom in somebody's house) would be interesting to Know how long the council house list was before they started selling them off.

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Here a suggestion your Lordships, we should abolish the house of lords, the aristocracy, including the royal family, and all their strangleholds on land, release this land to sensible planning of the towns and cities of the future that are fit to the needs of the people and ensure that every man woman and child is adequately housed as efficiently and cost effectively as possible and ensure legislation is made where no man should hold the power to restrict another mans right to shelter ever again by credit or by force in this land.

Oh and you will all have to sell your multiple BTL's together with your MP mates.

Thanks,

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Bland

Bland Unsight is totally right to identify BTL as the main course of HPI. Some on here think it's the 85 year old down the road who bought a house 50 years ago for £1,000 that has made house prices too expensive.(that is obviously nonsense).

The truth is the young out bid themselves by making a pact with the devil.

If BTL had never been introduced in 1996 The young would have been forced to stay in their childhood bedrooms until they had saved a deposit. In 1996 they would only have to have saved for two years to get a deposit. But as house prices have Quadrupled so has the time it takes to save a deposit.

Nobody thought that renting would course HPI and a lot still deny it.

Lets sell all the council houses and let the private sector take over. Everybody knows public sector bad private sector good.

It's the switch from single income to joint income mortgages at ever increasing multiples of salary and stretched over longer mortgage terms to reduce initial payments. Houses cost as much as most people are prepared to borrow to buy one.

It's simple maths, 3x or 4x single income has become 4x or 5x joint income, yet people still think houses are too expensive in terms of 6, 8 or 10 times single income.

If tomorrow everybody decided to only pay 3x main income, houses would become cheaper and the BTL lot would NOT bid them all up because without the ridiculous capital appreciation seen from the fairly recent extension of mortgage lending, there would be nowhere near the same profit in BTL.

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One of the other problems is all the extra borrow has coursed a mini boom in Britain.(There is a whole load of MEWing going on)

This has brought in loads of immigrants that don't have a deposit for a house either. So more BTL more HPI. Doesn't Fergus Wilson only let to immigrants now?

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It's the switch from single income to joint income mortgages at ever increasing multiples of salary and stretched over longer mortgage terms to reduce initial payments. Houses cost as much as most people are prepared to borrow to buy one.

It's simple maths, 3x or 4x single income has become 4x or 5x joint income, yet people still think houses are too expensive in terms of 6, 8 or 10 times single income.

If tomorrow everybody decided to only pay 3x main income, houses would become cheaper and the BTL lot would NOT bid them all up because without the ridiculous capital appreciation seen from the fairly recent extension of mortgage lending, there would be nowhere near the same profit in BTL.

There is a good ebook written by Bland Unsight that claims that BTL was the driver of HPI. Maybe the other lose lending came in to give OO a chance.

https://drive.google.com/file/d/0B24wHuyDETj3WG80RExwUDJoS2M/view

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Why don't we just have a house of the people? At least then people with understandings of reality could hold the government to account.

I want the government to be fun on a forum like this one. With a restricted area where only MP's can post and an open area where we all can post. Thumbs up and Thumbs down icons so we know what MP's voted for what.and thumbs up and down icons so they know what posts the general public like.

I could see people like durumborn being allowed onto the MP's forum because of all the thumbs up he would get from the general public.

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