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House Price Rises Caused By Lack Of Houses. Utter. Tosh.

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I'm fed up with being told the reason house prices are so high is because there is so much demand and not enough houses.

1. Most people who want to buy currently live in a rented property. The property they currently rent is a property that could be owner occupied. But it is not.... it is kept away from the market by a landlord. Think about it, if 8.3 million properties are rentals (ONS 2011 census stats), if just 10% of those were put up for sale that is immediately 800k properties on the market. That is more than is built in the UK in 6 years.

2. The London market has 2000 new build flats on the market in one postcode alone, which is more than 3 years supply.

3. Most of the new housing built is bought by landlords. Again, plenty of supply but it ends up in the wrong hands.

cqWQzqz.png

If you want to really sort out the housing crisis, stop incentivising BTL landlords, drastically cut access to BTL mortgages, and get houses back into the hands of people who want to live in them.

Enough is enough.

Edited by Guest

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I'm fed up with being told the reason house prices are so high is because there is so much demand and not enough houses.

1. Most people who want to buy currently live in a rented property. The property they currently rent is a property that could be owner occupied. But it is not.... it is kept away from the market by a landlord. Think about it, if 8.3 million properties are rentals (ONS 2011 census stats), if just 10% of those were put up for sale that is immediately 800k properties on the market. That is more than is built in the UK in 6 years.

2. The London market has 2000 new build flats on the market in one postcode alone, which is more than 3 years supply.

3. Most of the new housing built is bought by landlords. Again, plenty of supply but it ends up in the wrong hands.

cqWQzqz.png

If you want to really sort out the housing crisis, stop incentivising BTL landlords, drastically cut access to BTL mortgages, and get houses back into the hands of people who want to live in them.

Enough is enough.

...and stop the sub-prime state backed liar loans

Simple.

Lets face it....THEY DONT WANT TO STOP THIS MEGA BUBBLE.

Their wealth depends on it

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You only have to look at the graph in the "Why you can't afford a home in the UK" thread to see there's no correlation between house prices and lending and population and housing stock.

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Correct analysis. The number of dwellings in the UK has increased by 45% since 1971 from 19.3million to 27.9million. The population of the UK has increased by 16% over the same period from 56million to 65 million.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/423173/LT_101.xls

You will be told the problem is immigration coupled with a shortage of housing. It is a lie. You need to ask yourself who is doing the lying and why?

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This is now the constant mantra - we need to build more houses. It's a fallacy, the population was increasing in 2008 and during the 90s when prices were falling. It's easy credit and BTL.

Plus, no-one profiting from this insane set of circumstances wants more houses built. Plus, the government wants prices kept high so everything looks rosy in the short term.

How about putting an end to land banking? Arranging government-backed co-ops to encourage self-building? There are lots of different routes to get more houses built, but none of them would profit the big house builders.

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I'm fed up with being told the reason house prices are so high is because there is so much demand and not enough houses.

1. Most people who want to buy currently live in a rented property. The property they currently rent is a property that could be owner occupied. But it is not.... it is kept away from the market by a landlord. Think about it, if 8.3 million properties are rentals (ONS 2011 census stats), if just 10% of those were put up for sale that is immediately 800k properties on the market. That is more than is built in the UK in 6 years.

2. The London market has 2000 new build flats on the market in one postcode alone, which is more than 3 years supply.

3. Most of the new housing built is bought by landlords. Again, plenty of supply but it ends up in the wrong hands.

cqWQzqz.png

If you want to really sort out the housing crisis, stop incentivising BTL landlords, drastically cut access to BTL mortgages, and get houses back into the hands of people who want to live in them.

Enough is enough.

It is a pisstake how long it has taken to disincentivise BTL in any meaningful way whatsoever, indeed State-backed lenders until recently were openly advertising subsidised BTL loan rates due to the FLS!

However, the landscape is changing shortly regarding stamp duty and although the restriction in subsidy on borrowing costs to basic rate of income tax should be brought in much more quickly and indeed abolished entirely in my view, it should hit sentiment amongst lenders and potential BTLers alike.

The stamp duty does not require anyone to have done any homework, they'll have to pay that up front.

I am also very frustrated by the lack of action and feel increasingly let down by the Govt and those who elected them. I did actually manage to get a staunch Tory voter of a certain age to express surprise at the tax relief wheeze currently employed by BTLers, they were surprised and quite dismayed. The problem is that many people don't really care to look if it does not affect them and the media narrative of the feckless young is just too appealing to resist. They have dropped the ball big time imo.

Edited by The Knimbies who say No

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Why are no opposition/independent politicians getting angry about this? The reason the young don't vote is because nobody has policies worth voting for. BTL mortgages appeared in 1996, they could just as easy be ended after 20 years of carnage. Just takes someone with the balls to suggest it.

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Why are no opposition/independent politicians getting angry about this? The reason the young don't vote is because nobody has policies worth voting for. BTL mortgages appeared in 1996, they could just as easy be ended after 20 years of carnage. Just takes someone with the balls to suggest it.

Couldn't get Labour to even engage on the many flaws in their housing proposals prior to the election- they would have made things even worse for tenants on a security of tenure basis! I contacted their then housing minister Emma Reynolds and had an exchange of emails with one of her staff which pretty much went nowhere, just point blank refusal to acknowledge even just mundane facts. Completely pointless. Wasn't just me either, other lobbying on similar lines from prominent groups was a waste of time and effort too.

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Why are no opposition/independent politicians getting angry about this? The reason the young don't vote is because nobody has policies worth voting for. BTL mortgages appeared in 1996, they could just as easy be ended after 20 years of carnage. Just takes someone with the balls to suggest it.

Jeremy Corbyn has publicly stated that he would extend right to buy to tenants of large scale private landlords. You won't read it it the Daily Express though.

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You will be told the problem is immigration coupled with a shortage of housing. It is a lie. You need to ask yourself who is doing the lying and why?

Well more people is never going to help the situation even if it's a minor component; it's certainly something we could do without. But I've no argument whatsoever with the general thrust of this thread. Demand is completely out of touch with requirement.

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Why are no opposition/independent politicians getting angry about this? The reason the young don't vote is because nobody has policies worth voting for. BTL mortgages appeared in 1996, they could just as easy be ended after 20 years of carnage. Just takes someone with the balls to suggest it.

the politicians sop to the young is Help to Buy and other schemes.

They dont tackle the problem, they use the mindset of everlasting riches from housing and use taxpayers money to persuade the young that the Government are taking action.

get a load more votes, problem made worse....blame something else.

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1. Most people who want to buy currently live in a rented property. The property they currently rent is a property that could be owner occupied. But it is not.... it is kept away from the market by a landlord. Think about it, if 8.3 million properties are rentals (ONS 2011 census stats), if just 10% of those were put up for sale that is immediately 800k properties on the market. That is more than is built in the UK in 6 years.

Well no because each of the properties put up for sale requires each of the tenants to find a new property or buy the one they rent.

how has that added supply in the long run? All you are doing is changing the tenure, which may be desirable if you want to change your tenure or have some political objective to increase % of home ownership but it doesnt change "supply" of properties or "demand" for properties overall in the long run.

It also assumes all those people currently renting either want to buy or are financially able to buy.

Prices didnt fall in 2008 because there was a "surplus" of houses, but because the financial system ground to a halt, a recession ensued, unemployment rocketed and earnings collapsed.

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how has that added supply in the long run? All you are doing is changing the tenure, which may be desirable if you want to change your tenure or have some political objective to increase % of home ownership but it doesnt change "supply" of properties or "demand" for properties overall in the long run.

Read the OP.

hi_acedrifter is arguing about price rises not supply and rejecting the premise that the rises are explained by supply. For you to frame a counter argument that begins "how has that added supply in the long run?" beggars belief.

Your claim that all you are doing by moving existing property out of the PRS is changing tenure is also incorrect because by changing the tenure you are also changing the financing. As median income aspiring owner-occupiers no longer have access to interest-only financing this changes demand and thus moves prices. The supposition is not that landlords sell to owner-occupiers at the prices they have bid the market up to with interest-only unregulated lending, the supposition is that if they are forced out of the market - i.e. forced to sell - then if they have to sell to MMR constrained aspiring owner-occupiers prices will reflect the demand from those buyers, given the financing options that are available to them.

Edited by Idlewild

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I'm fed up with being told the reason house prices are so high is because there is so much demand and not enough houses.

1. Most people who want to buy currently live in a rented property. The property they currently rent is a property that could be owner occupied. But it is not.... it is kept away from the market by a landlord. Think about it, if 8.3 million properties are rentals (ONS 2011 census stats), if just 10% of those were put up for sale that is immediately 800k properties on the market. That is more than is built in the UK in 6 years.

2. The London market has 2000 new build flats on the market in one postcode alone, which is more than 3 years supply.

3. Most of the new housing built is bought by landlords. Again, plenty of supply but it ends up in the wrong hands.

cqWQzqz.png

If you want to really sort out the housing crisis, stop incentivising BTL landlords, drastically cut access to BTL mortgages, and get houses back into the hands of people who want to live in them.

Enough is enough.

Possibly a shortage of individual non estate houses with something called a front garden. They don't build those anymore. The additional property is all God forsaken high density new builds with a bit of bling inside to compensate and tens of thousands of pounds of depreciation when you pick up the keys which has been off set by HPI recently.

Edited by crashmonitor

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Without competitive bidding what mechanism forces houseprices to increase? there needs to conditions of scarcity for upward pressure. It doesn't matter how much debt the government/banks throw at this there still needs to be conditions of scarcity, whether 10 houses and 11 potential buyers or 1,000,000 houses and 1,000,001 buyers it doesn't matter because at the margin they are competing. On the other hand think of 10 houses and 9 potential buyers and we don't have competitive bidding only offers of discounts.

I know many here will scream heresy! and what about BTL - but they are proxy bidders. They know there are 10 houses and 11+ potential buyers - they outbid those at the margin. If the excess demand didn't exist they would be left with an empty BTL. BTL is a consequence of scarcity not a cause.

so IMO yes debt has driven prices to absurd level but my point is you still need in parallel with the debt conditions of scarcity to drive bidding and upwards pressure, therefore no surprise the possessing classes have ensured conditions of scarcity do exist. Nothing has more successfully shifted wealth into the hands of the wealthy than HPI, they are greedy for it and it will bring the whole economy down.

Therefore I say we should be demanding more homes are built and we do need to limit immigration. It is common sense - more homes can only increase the sum of human happiness in the UK - but no one cares about that.

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