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TheCountOfNowhere

House Price Backlash

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Main story on the radio today about unaffordability. The hand of government trying to influence opinion, I wonder what's coming.

No mention of getting rid of the props, so it won't be that.

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Main story on the radio today about unaffordability. The hand of government trying to influence opinion, I wonder what's coming.

No mention of getting rid of the props, so it won't be that.

Both props were to profit the bankers and the builders....not the buyers.

We all know what's coming next

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Main story on the radio today about unaffordability. The hand of government trying to influence opinion, I wonder what's coming.

No mention of getting rid of the props, so it won't be that.

Exactly its not because prices are too high that people can't afford to buy its because those horrible banks won't lend average earners in their late 30s £250K for a 2 bed starter home.

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House price back splash .... months after the bubble has popped, BTL scum and EA c*nts will realise they've p*ssing on their own shoes.

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The housing minister says the situation has stabilised (% of home owners no longer falling) .need to build more as this is the only solution ... help to buy ..... shared ownership .... demand outstripping supply ............. can you see where this is going

Ms May hasn't shown her hand yet so i will treat all the talk as just that, a case of waiting to see what they do as opposed to what they say.

However I am not very optimistic as i see her as a Blairite 5th columnist.

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Government must do more...to keep prices unaffordable, which is all they have ever done.

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Ms May hasn't shown her hand yet so i will treat all the talk as just that, a case of waiting to see what they do as opposed to what they say.

However I am not very optimistic as i see her as a Blairite 5th columnist.

As with previous PMs you need to look at the advisers they have... Couldn't find much though. Apart from this:

Nick Timothy:

“[believes] that the state must remain small, capitalism must be preserved and private property protected, but working-class children needed to be educated, workers protected from industrial injuries and unscrupulous bosses and the ownership of property extended to people of all classes"

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Well I've broke the habit of a a long time and actually watched and listened to the state media today.. Firstly the 5 live phone in, then Victoria Derbyshire, then You and Yours, all discussing the "affordability crisis" that this latest study has highlighted.

Whist a few of the callers were allowed to mention a drop in prices they largely went ignored and instead the overwhelming narrative from the presenters and studio guests was all very much how can we help people to afford these prices and what a wonderful success the current various HTB schemes have been.

Unfortunately I'm not seeing any backlash.

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Well I've broke the habit of a a long time and actually watched and listened to the state media today.. Firstly the 5 live phone in, then Victoria Derbyshire, then You and Yours, all discussing the "affordability crisis" that this latest study has highlighted.

Whist a few of the callers were allowed to mention a drop in prices they largely went ignored and instead the overwhelming narrative from the presenters and studio guests was all very much how can we help people to afford these prices and what a wonderful success the current various HTB schemes have been.

Unfortunately I'm not seeing any backlash.

The backlash doesnt come from the BBC...it comes from the People and I am hearing plenty House Price Backlash.

Edited by TheCountOfNowhere

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How about House Price Cashback?

Where the government refunds the 50% overpaid by anyone who bought in the last few years? 'Investors' are excluded from the hand out...

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Main story on the radio today about unaffordability. The hand of government trying to influence opinion, I wonder what's coming.

No mention of getting rid of the props, so it won't be that.

It was the first item on BBC TV news earlier - home ownership at its lowest since whenever it was.

But the journo was still wondering whether this was down to affordability, or whether people are renting from choice. She actually implied that 'young professionals' who are renting must be doing it from choice, because they'd be able to save a deposit. Astonishing.

Luckily someone from Shelter on afterwards pointed out that many young profs. are quite unable to afford to save because of the level of rents they have to pay. She spoke some more sense about how letting is too badly regulated here, 6 month tenancies, no security of tenure, etc.

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House price back splash .... months after the bubble has popped, BTL scum and EA c*nts will realise they've p*ssing on their own shoes.

I feel this deserved a bit more acknowledgement :)

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It was the first item on BBC TV news earlier - home ownership at its lowest since whenever it was.

But the journo was still wondering whether this was down to affordability, or whether people are renting from choice. She actually implied that 'young professionals' who are renting must be doing it from choice, because they'd be able to save a deposit. Astonishing.

Luckily someone from Shelter on afterwards pointed out that many young profs. are quite unable to afford to save because of the level of rents they have to pay. She spoke some more sense about how letting is too badly regulated here, 6 month tenancies, no security of tenure, etc.

The classic 20% deposit - a reasonable figure to put down and save for a prospective housebuyer - is now pretty much what the house is really worth.

Instead of borrowing three times you salary, that's what you have to save up as a deposit. Ludicrous is not the word.

(Yes the above is a little south east centric. Doesn't stop it being true).

The game will be up for these moronic cheerleaders as soon as the veil of delusion lifts from them. If it doesn't happen, well, let's hope global warming does its thing and the sea levels bury us all because a watery grave and a systemic reset is needed whichever which way it comes.

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My experience is that there remains the prevailing narrative of an "affordability" problem (as if HTB or other schemes are the answer to bridge the gap - more the same failed policies basically) and not a "stupid prices" problem. 2/3 of the pop. are homeowners so what do you expect to change? You really can't even begin to legislate for the thickness of most people I am afraid and a significant portion of those thickos are the 1/3 who can't buy as well. Most people who can't buy that I talk to (but desperately want to) still seem to think property is the root to all riches. It is all they know.

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My experience is that there remains the prevailing narrative of an "affordability" problem (as if HTB or other schemes are the answer to bridge the gap - more the same failed policies basically) and not a "stupid prices" problem. 2/3 of the pop. are homeowners so what do you expect to change? You really can't even begin to legislate for the thickness of most people I am afraid and a significant portion of those thickos are the 1/3 who can't buy as well. Most people who can't buy that I talk to (but desperately want to) still seem to think property is the root to all riches. It is all they know.

Yes they see to think if a million 3 bed semi detached houses suddenly appeared for £250-300K each we'd all be saved.

Because obviously its a housing shortage and fook all to do with the price.

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The classic 20% deposit - a reasonable figure to put down and save for a prospective housebuyer - is now pretty much what the house is really worth.

Instead of borrowing three times you salary, that's what you have to save up as a deposit. Ludicrous is not the word.

Absolutely spot on. My Parents bought their House for 26k in 1985, in an inflating housing market. A near identical house 3 doors down, sold for 284k in February 2016. Using a simple online inflation calculator, that 26k now has a value of 71K, exactly 25% of the 284K. Not quite 20% but I could buy the House outright at 71K in 2016.

As an anecdote, I was chatting to my Parents at the weekend. They had to have an interview with my Dad's Bank Manager, it was touch and go whether they got the mortgage for a combination of 2.5 x his salary and 1x my Mother's salary, with a 30% deposit. My Dad remembers the day interest rates went to 15%, he was annoyed at the massive increase in mortgage repayments but had budgeted for it. They share our disgust for the rewards reaped by the feckless.

Oh for the days when our economy and currency was elastic and had a semblance of control with interest rates and bank regulation.

Edited by Untoward

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How to work out what is historically affordable.......average wage of area say £26k, monthly repayment mortgage over 25 years no more than 35% to 40% of gross monthly income....

Thing is nobody wants people to eventually own their own homes outright, they want them to be forever indebted.....or renting for the rest of their lives.

When too old or too sick to work who will be paying the debts and rents...governments never look further ahead than five years, never to the long-term, tomorrow will be somebody else's problem.....sure as eggs are eggs they will be alright jack.;)

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How to work out what is historically affordable.......average wage of area say £26k, monthly repayment mortgage over 25 years no more than 35% to 40% of gross monthly income....

Thing is nobody wants people to eventually own their own homes outright, they want them to be forever indebted.....or renting for the rest of their lives.

When too old or too sick to work who will be paying the debts and rents...governments never look further ahead than five years, never to the long-term, tomorrow will be somebody else's problem.....sure as eggs are eggs they will be alright jack. ;)

It was far easier to overpay on a mortgage when the ratio of debt to earning capacity was so much lower. Again, more flexibility.

But now without the levers and no way to maneuver, they have zero control over a crashing economy. The next crash is going to be uncontrollable. 0.5% base rate is effectively zero and 10 x salary lending is going to be spectacular in it's failure. anything above 4 x salary is going to be tough.

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It was far easier to overpay on a mortgage when the ratio of debt to earning capacity was so much lower. Again, more flexibility.

But now without the levers and no way to maneuver, they have zero control over a crashing economy. The next crash is going to be uncontrollable. 0.5% base rate is effectively zero and 10 x salary lending is going to be spectacular in it's failure. anything above 4 x salary is going to be tough.

4 x salary when interest rates were 7% is very different to 4 x salary at 2%.....so term of loan at percentage of salary is a better judge of affordability......but then there is the deposit required....that is the killer.

Building homes is good but building unaffordable homes is no good.....thousands of empty homes at prices people can't buy does not help anyone.

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Main story on the radio today about unaffordability. The hand of government trying to influence opinion, I wonder what's coming.

No mention of getting rid of the props, so it won't be that.

Was that the Radio 1 piece? Where they explained the reasons for high house prices but didn't mention the supply side issue of mass immigration once?

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