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New Infographic: 7 Ways You’Re Paying For High House Prices

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I feel like the root of the problem is the widespread belief that house prices going up is a good thing. Hence the world needs a new infographic, that I thought should be run past the hive mind before adding some design. This is intended to be read by a potential FTB, boomer, or politician that might be concerned about the public voting with their wallets in 2020.

7 Ways You’re Paying For High House Prices:

  1. Your next home costs more. We all love paying more for the same thing. Prices are historically out of whack with salaries, which means you (and your kids) will be working decades longer servicing mortgage debt. If you already own your home, you’ll also need to lend money to your children so they can move out.

  2. You pay more in rent. People who can’t afford to buy, rent. Forcing up rents which draws money out of the productive economy.

  3. You pay other people's rent. Private Landlords pocketed £9.3 billion last year in housing benefit. That’s not welfare, that’s your money going directly to landlords because rents are too high.

  4. You pay more tax. Higher prices means more Stamp Duty, Inheritance tax (if you’re not a Duke), etc. You love paying tax right?

  5. Brain Drain. Hundreds of thousands of our best and brightest move abroad every year to escape spiralling cost of living in the UK. Eroding our skills base damages the economy. Buying French nuclear reactors isn't cheap.

  6. No time for kids. Larger mortgages means both parents working. Best case is you’ll spend your retirement babysitting grandkids five days a week.

  7. Government bidding up house prices. Every time prices look like they might fall (because they’re too high), government steps in with your cash to prop up prices. Help-to-Buy £3.7 Billion and counting, making the problem worse for everybody.

Maybe some kind of how much this is all costing you calculater can go here.

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Really nice work.

Perhaps change the wording of number 7 from 'Government bidding up house prices' to 'Politicians use your tax to bid up house prices'.

And maybe add another item in about how taking on more debt or taking out longer mortgages is another way people are paying.

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Hi, you kind of touch on this in brain drain paragraph but the adverse impact on national competitiveness of high housing costs is worth its own bullet point. This is an important point for our future prospects.

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Hi, you kind of touch on this in brain drain paragraph but the adverse impact on national competitiveness of high housing costs is worth its own bullet point. This is an important point for our future prospects.

That made me think of adding to number two that high rents drive up the cost to business of employing staff

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Excellent enumeration. I'd lose the sarcasm at the start of the first point, and emphasise that you need to borrow even more for your next home instead. Really good stuff though.

We should crowd fund a full page ad in the times or something similar, as well as trying to get a viral share. The old media is still a good way of getting it 'officially' in the heads of people. I'd be happy to chip in a few quid or whatever.

Edited by Frugal Git

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I am sure we can make it a round ten points...

What about the wealth inequality implications/ morality of hpi? We have witnessed the greatness transfer of wealth from the poor and young to the rich and old in modern times. Arguably since the enclosures.

What about social cohesion?

Creation of neo feudalism ? Possessing classes and those that work to pay rents to them.

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Yep I would also add in the closure of pubs and other community assets. When even the most profitable businesses can earn more by converting into flats, you lose out on places to go out, have to travel for food etc.

The more staff have to pay in rent, the more you need to pay them to bring you that bottle of wine.

As homeownership falls and turnover of residents increases, local communities suffer as participation falls.

Finally I would also highlight under HtB FLS and so on, that directly relates to less money to spend on NHS education Road repairs etc.

Other than that, brilliant.

Maybe list number of MPs that derive income from HB or own multiple properties.

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Sorry if this is out of scope but I would want to offer some solutions. Almost everyone knows that prices are high but they don't know what they can do to bring it down. Only other option to buying is renting so people tend to choose the lesser evil.

If anyone is offering a cheaper alternative many would jump in.

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Hi, you kind of touch on this in brain drain paragraph but the adverse impact on national competitiveness of high housing costs is worth its own bullet point. This is an important point for our future prospects.

Yes, I think this one is really important, especially now that we're likely to be outside the EU's protectionist umbrella. Higher housing costs -> higher wage costs -> UK unable to compete effectively in the global economy -> higher risk of losing your job if you have one, less chance of finding one if you don't.

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One additional point is that a lot of people try to make money out of property, rather than by working or investing in business. Making money out of property is at best wealth redistribution, whereas the alternatives may actually create new wealth which is beneficial for the economy.

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We should crowd fund a full page ad in the times or something similar, as well as trying to get a viral share. The old media is still a good way of getting it 'officially' in the heads of people. I'd be happy to chip in a few quid or whatever.

Now that's a cracking idea. I'm in.

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Now that's a cracking idea. I'm in.

Ditto.

I've seen a few unused advertising hoardings at the side of the motorway saying "advertise here". We could target all the depressed commuters stuck in queues who are commuting because they can't afford to live near where they work.

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Ditto.

I've seen a few unused advertising hoardings at the side of the motorway saying "advertise here". We could target all the depressed commuters stuck in queues who are commuting because they can't afford to live near where they work.

Me too.

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Good work. Make it pretty and I would donate to getting it in a national paper.

If you did go that route I would suggest advertising a new webpage which gives people step by step info on how to lobby their MPs to address the problem of high house prices. Keep it simple and maybe highlight some proposed policies.

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8. High house prices negatively impact YOUR wages. People have less cash to spend after they've paid their mortgage/rent. This affects YOUR job, and is partly why YOUR wages are not increasing in line with the cost of living: the company you work for is likely suffering from low demand for the services/products they provide - because your customers have less money to spend.

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Good work. Make it pretty and I would donate to getting it in a national paper.

If you did go that route I would suggest advertising a new webpage which gives people step by step info on how to lobby their MPs to address the problem of high house prices. Keep it simple and maybe highlight some proposed policies.

Great idea on lobbying MPs.

Could I suggest the whole idea behind this thread would be more successful if we teamed up with one of the established pressure groups such as Generation Rent or PricedOut rather than doing this on our own? Three reasons:

1) They have more expertise in relation to dealing with the media, putting out campaigning messages and lobbying MPs (see this thread for example)

2) They would be grateful for donations and ideas, so if we go to them with this plus a set amount of money that would help.

3) If this ends up being an advert in one of the papers, the brand behind it matters. One, HPC is not the most mainstream-friendly brand to put it mildly. Two, it would be more efficient to have the Generation Rent or PricedOut brand on it as they are already known to an extent and it would widen people's awareness of them.

If people think that is a good idea I would be happy to approach Generation Rent. I know one of their volunteers a little bit, although if anyone else has a better contact I'll demur.

Edited by Patient London FTB

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Sorry if this is out of scope but I would want to offer some solutions...

Everybody has solutions, but nothing will change until people are convinced this is a problem. Hence the focus on "High house prices are bad".

We should crowd fund a full page ad in the times or something similar, as well as trying to get a viral share...

I'm going to start off with the web viral stuff as I'd like to collect some metrics, do some A/B testing, surveys, etc. Money isn't an issue (ads are cheap), but creating impactful copy is hard.
Thanks for the feedback everyone. I think there can be many more versions of this list, but this is the slightly tweaked version I'll go with:

7 Ways You’re Paying For High House Prices

  1. Your next home costs more. You are paying more for the same thing. Prices are historically out of whack with salaries, which means you (and your kids) will be borrowing more, and working decades longer servicing mortgage debt. If you already own your home, you’ll need to pay more for your next home, or need to lend money to your children so they can move out.

  2. You pay more in rent. People who can’t afford to buy, rent. Forcing up rents, making it more expensive to employ staff, and drawing money out of the real economy.

  3. You pay other people's rent. Private Landlords pocketed £9.3 billion last year in housing benefit. That’s not welfare, that’s your money going directly to landlords because rents are too high.

  4. You pay more tax. Higher prices means more Stamp Duty, Inheritance tax (if you’re not a Duke), etc. You love paying tax right?

  5. Brain Drain. Hundreds of thousands of our best and brightest move abroad every year to escape spiralling cost of living in the UK. Eroding our skills base damages the economy and our national competitiveness. Buying French nuclear reactors isn't cheap.

  6. No time for kids. Larger mortgages means both parents working. Best case is you’ll spend your retirement babysitting grandkids five days a week.

  7. Politicians use your money to bid up house prices. Every time prices look like they might fall (because they’re too high), government steps in with your cash to prop up prices. Help-to-Buy alone costs £3.7 Billion and counting, making the problem worse for everybody.

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8. Explain why house prices are high. Banks creating new money against homes, higher income multiples combined with externalised risk and securitisation.

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7 Ways You’re Paying For High House Prices

  1. Your next home costs more. You are paying more for the same thing. Prices are historically out of whack with salaries, which means you (and your kids) will be borrowing more, and working decades longer servicing mortgage debt. If you already own your home, you’ll need to pay more for your next home, or need to lend money to your children so they can move out.

  2. You pay more in rent. People who can’t afford to buy, rent. Forcing up rents, making it more expensive to employ staff, and drawing money out of the real economy.

  3. You pay other people's rent. Private Landlords pocketed £9.3 billion last year in housing benefit. That’s not welfare, that’s your money going directly to landlords because rents are too high.

  4. You pay more tax. Higher prices means more Stamp Duty, Inheritance tax (if you’re not a Duke), etc. You love paying tax right?

  5. Brain Drain. Hundreds of thousands of our best and brightest move abroad every year to escape spiralling cost of living in the UK. Eroding our skills base damages the economy and our national competitiveness. Buying French nuclear reactors isn't cheap.

  6. No time for kids. Larger mortgages means both parents working. Best case is you’ll spend your retirement babysitting grandkids five days a week.

  7. Politicians use your money to bid up house prices. Every time prices look like they might fall (because they’re too high), government steps in with your cash to prop up prices. Help-to-Buy alone costs £3.7 Billion and counting, making the problem worse for everybody.

The draft above is absolutely spot on IMO. Great stuff.

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I feel like the root of the problem is the widespread belief that house prices going up is a good thing. Hence the world needs a new infographic, that I thought should be run past the hive mind before adding some design. This is intended to be read by a potential FTB, boomer, or politician that might be concerned about the public voting with their wallets in 2020.

7 Ways You’re Paying For High House Prices:

  1. Your next home costs more. We all love paying more for the same thing. Prices are historically out of whack with salaries, which means you (and your kids) will be working decades longer servicing mortgage debt. If you already own your home, you’ll also need to lend money to your children so they can move out.

  2. You pay more in rent. People who can’t afford to buy, rent. Forcing up rents which draws money out of the productive economy.

  3. You pay other people's rent. Private Landlords pocketed £9.3 billion last year in housing benefit. That’s not welfare, that’s your money going directly to landlords because rents are too high.

  4. You pay more tax. Higher prices means more Stamp Duty, Inheritance tax (if you’re not a Duke), etc. You love paying tax right?

  5. Brain Drain. Hundreds of thousands of our best and brightest move abroad every year to escape spiralling cost of living in the UK. Eroding our skills base damages the economy. Buying French nuclear reactors isn't cheap.

  6. No time for kids. Larger mortgages means both parents working. Best case is you’ll spend your retirement babysitting grandkids five days a week.

  7. Government bidding up house prices. Every time prices look like they might fall (because they’re too high), government steps in with your cash to prop up prices. Help-to-Buy £3.7 Billion and counting, making the problem worse for everybody.

Maybe some kind of how much this is all costing you calculater can go here.

But some people don't care about their kids

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Great idea on lobbying MPs.

Could I suggest the whole idea behind this thread would be more successful if we teamed up with one of the established pressure groups such as Generation Rent or PricedOut rather than doing this on our own?

It may be worth doing...but can i be frank? My opinion is they have been thus far utterly ineffectual in altering public opinion in any meaningful way, and seem to skirt around the core issues of price/loose lending/government intervention. Campaigns generally tend to be based on 'What can we get the government to do to help?' Rather than 'Get rid of these props and open your eyes'. The 'crisis' is entering the mainstream not because of their work, but because it's beginning to seriously affect everyone.

That's not to say they aren't trying, or good people....but I think they are afraid of saying the things we do on here because they think it won't get air time.

You are absolutely correct that HPC is rightly or wrongly perceived as 'lunatic fringe' stuff by some. But that's not to say rational, well presented arguments will be ignored.

Take out a full page ad in a few national papers and it will be difficult for even the most obstinate media to ignore it. It'll show that there are people who are serious and unafraid of doing it.

Frankly I suspect if a few of us were willing to put in a load of effort - and I'm game - we'd stir up more debate and get people thinking in a more active way.

Solutions - a pithier version of 'Prices are set at the margin, so let's change the margin by bidding so you can have a life without excessive debt'.

Edited by Frugal Git

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