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The Great British Hpi: House Price Rise Boosts British Wealth To £8.8 Trillion


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HOLA441

Telegraph: House price rise boosts British wealth to £8.8 trillion

Link: http://www.telegraph.co.uk/business/2016/08/18/house-price-rise-boosts-british-wealth-to-88-trillion/

Overall wealth increased by almost £500bn on the year, largely because of rising house prices.

That is equivalent to an average of £135,000 per person, or £327,000 for each household.

Where is the £327,000 Cheque for my household?

Edited by Fairyland
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HOLA445

Telegraph: House price rise boosts British wealth to £8.8 trillion

Link: http://www.telegraph.co.uk/business/2016/08/18/house-price-rise-boosts-british-wealth-to-88-trillion/

Overall wealth increased by almost £500bn on the year, largely because of rising house prices.

That is equivalent to an average of £135,000 per person, or £327,000 for each household.

Where is the £327,000 Cheque for my household?

With Help to Buy Bail Banks people are buying new builds in a shared equity scheme with the governbankment. The governbankment has a larger property portfolio than anyone else with 40% in London and 20% in sales everywhere else. People won't get a cheque for any increase in wealth, they will just higher taxes to pay if house prices fall, when the governbankment has to hand money over to bankers to cover their losses.

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On the radio (sport) yesterday they were saying that prices near London's Olympic Stadium had increased by 40% as a result of the event there and how wonderful it was. It had improved the area. I'd just started listening and I think they were trying to justify a poor country and poor Brazil people paying for the Rio Olympics etc.

Mind you these commentators are ex football players so you have to take that into account. Nevertheless amazingly some people will believe it (how wonderful it is) and even blame themselves for not being able to afford the tiny houses that cost 40% more now.

Edited by billybong
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With Help to Buy Bail Banks people are buying new builds in a shared equity scheme with the governbankment. The governbankment has a larger property portfolio than anyone else with 40% in London and 20% in sales everywhere else. People won't get a cheque for any increase in wealth, they will just higher taxes to pay if house prices fall, when the governbankment has to hand money over to bankers to cover their losses.

Imagine if that 40% sub to London property owners was instead used to treble the VAT free allowance in deprived areas of the country.Small business could grow and employ other people.No,instead it needs to be given to mostly millionaires in London.

I see young people here in the north getting this help to buy on terrible new builds.Really poor houses and paying double what they should be even without the 20%.Stuck there forever probably as nobody will pay anywhere near the price for them on re-sale.

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http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION^87490&maxPrice=600000&numberOfPropertiesPerPage=24&radius=0.0&sortType=2&index=0&propertyTypes=detached&secondaryDisplayPropertyType=detachedshouses&includeSSTC=false&viewType=LIST&mustHave=garden%2CnewHome&currencyCode=GBP

This is frightening. I was looking at the 40% HTB in London and thought, what if I could get a nice lovely detached new build house in London with a bit of garden for £600k. Who cares if it loses £240k when things do decide to go pear-shaped, just let the government/tax payer (me as well) take the hit.

And then this is all I could find. A single 50 sqM one-bed (at a push) rabbit-hutch.

http://www.rightmove.co.uk/new-homes-for-sale/property-34429491.html

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https://www.theguardian.com/business/2016/aug/18/ons-data-shows-uk-wealth-wedded-to-property

Britain’s obsession with property has sent the country’s net worth soaring to an estimated £8.8tn, an increase of 6% (£493bn) compared with the end of 2014.

A surge in house prices in 2015 offset the UK’s decline in savings, the slow recovery of the banking sector and the government’s growing debt mountain.

Overall, house prices increased by 7% in 2015 to add a further £355bn to the already huge value locked up in Britain’s homes. The Office for National Statistics said in its annual assessment of Britain’s assets and liabilities that the value of dwellings was estimated at £5.5tn at the end of 2015, more than four times their estimated value in 1995, when the figure touched £1.2tn.

Completely bonkers isn't it?

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I'm sure that if Adam Smith were still around we could have a jolly good discussion about whether a rentier generates wealth. Without doubt he would say that people selling the same thing to each other for an ever increasing price is certainly not creating wealth though.

Surely it's wealth as its the only way we'll ever get our currency back from China. They sell us cheap useless tat, then buy our overpriced houses with the same money. If we didn't get this money back wouldn't we end up as a banana republic in about a week? OK so we've already reached the point where because of this nobody can actually afford a roof over there head, but who cares when 42 inch flat screens are so cheap?

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