Jump to content
House Price Crash Forum
Bruce Banner

Buy-To-Let Housing Market Is A Bubble According To B O E Says Osborne.

Recommended Posts

Apparently, Osborne told the Treasury select committee, today, that the Bank of England have assessed the buy-to-let housing market as a bubble and that it was highly likely he will give the bank further powers to reign it in........ according to Faisal Islam on Sky news.

Edit:

http://news.sky.com/story/1666305/bank-of-england-set-for-new-buy-to-let-powers

Edited by Bruce Banner

Share this post


Link to post
Share on other sites
Guest BillyNI

"the knowledge the Bank of England has concerns about a bubble emerging in this market"

'emerging', not has emerged. They are just concerned that a bubble MIGHT happen. :(

Share this post


Link to post
Share on other sites

I'm amazed they may have woken up and realised that allowing a feudal slumlord society to develop unchecked will likely lead to something akin to a revolution at the very least?

Naa I expect Georgie and chums have finally offloaded their portfolios and are giving the nod to bail.

Share this post


Link to post
Share on other sites

So what's his main motivation fro doing this?

We know he likes rocketing house prices and bubbles in general.

Does he see votes in bashing BTL? or will this in some way help him raise money?

Share this post


Link to post
Share on other sites

So what's his main motivation fro doing this?

We know he likes rocketing house prices and bubbles in general.

Does he see votes in bashing BTL? or will this in some way help him raise money?

I'd say he sees CGT in forcing sales. He's already had the loose change down the back of the sofa, now he's resorting to smashing the "piggy" bank.

Edit, correction

Edited by Fully Detached

Share this post


Link to post
Share on other sites

There are votes in bashing BTL and it will also raise money. You could forgive Osborne feeling like a dog with two dicks in the circumstances. All the tax credit backlash, the budget fiasco, UC car crash in the making.... he at least has one issue that he knows is a complete no brainer as far as political plaudits go.

but FFS man:

Edited by The Knimbies who say No

Share this post


Link to post
Share on other sites
Guest

So how are BTL a bubble and normal OO not?

If you deflate the BTL bubble, you also bring down OO prices. This way they haven't too they haven't gone against the "everyone a home owner mantra"

Share this post


Link to post
Share on other sites

What are the metrics?

How is BTL a bubble now when it wasn't, say, three months ago?

It's been an obvious bubble for years, but now, for the second time, Osborne is admitting that it is a bubble. The first time was before the coalition came to power and he was criticising Labour's housing bubble.

Share this post


Link to post
Share on other sites

Does he see votes in bashing BTL? or will this in some way help him raise money?

Drive a decent number towards incorporation and take the CGT on the transfer to a limited company then have HMRC declare that all these BTL companies that have been created are purely vehicles for tax avoidance and tax the landlords as if they were individuals anyway.

Win win for a cash strapped chancellor.

Share this post


Link to post
Share on other sites

"We are expressing mild concern about buy-to-let," Taylor told MPs. He said it was a relatively new market buy-to-let mortgages were only introduced in the mid-1990s so the central bank was not as familiar with its characteristics as it is with owner-occupier mortgages. "We are looking at it carefully," Taylor added.

Well screw me silly, BTL has been around for 20+ years but they still don't understand it because it's new.

Share this post


Link to post
Share on other sites

You can review Osborne's actual comments before the Treasury Committee on the additional 3% SDLT charge, foreign ownership of homes in London, and possible powers of direction for the BoE over BTL at the following link:

http://parliamentlive.tv/event/index/420e7352-7d95-47c8-b8ed-1c8e2b09ac85?in=10:53:12

The comments re directional powers over BTL start at 10:56:28 and go on to roughly 11.00.00.

Share this post


Link to post
Share on other sites

You can review Osborne's actual comments before the Treasury Committee on the additional 3% SDLT charge, foreign ownership of homes in London, and possible powers of direction for the BoE over BTL at the following link:

http://parliamentlive.tv/event/index/420e7352-7d95-47c8-b8ed-1c8e2b09ac85?in=10:53:12

The comments re directional powers over BTL start at 10:56:28 and go on to roughly 11.00.00.

Thanks for that. Andrew Tyrie's view of the housing market was interesting.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   90 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.