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rantnrave

Sky News How the UK is facing five housing crises at once

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Currently the main story on their website:

https://news.sky.com/story/line-18-uks-housing-crisis-wont-be-solved-by-building-more-homes-11503447

The UK is facing not one but five concurrent mini housing crises - each with dramatically different consequences and solutions, research from Sky News finds.

...

Finally, and arguably far more importantly than the supply crisis the government fixates on, there is a problem of cost and credit. In many parts of the UK the level of house prices is determined as much by how easily and cheaply people can borrow than by actual housing need. Intriguingly, this credit crisis is far more widespread across the UK than the other crises we identified in our research - though it is particularly focused in London and the South East, and in towns where second homes are popular.

 

TO ADD: There's another write up of this. Sky massively plugging this issue:

https://news.sky.com/story/line-18-the-full-story-on-nations-housing-crisis-11503796

Edited by rantnrave

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1 hour ago, rantnrave said:

In many parts of the UK the level of house prices is determined as much [Ed: lol still pumping the HPI propaganda in a bearish article] by how easily and cheaply people can borrow than by actual housing need.

And yet some cretards on here still squeal and cry when I say that the housings crisis is almost entirely a result of credit conditions and that there is not a shortage of housing.

Edited by Locke

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7 minutes ago, Locke said:

And yet some cretards on here still squeal and cry when I say that the housings crisis is almost entirely a result of credit conditions and that there is not a shortage of housing.

I agree with you, its the main reason for most HMO's and people staying with parents longer is due to cost and not due to shortage of properties. It only takes 30seconds on right move to see how many properties are for rent or sale

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3 hours ago, rantnrave said:

Finally, and arguably far more importantly than the supply crisis the government fixates on, there is a problem of cost and credit. In many parts of the UK the level of house prices is determined as much by how easily and cheaply people can borrow be 'persuaded' to take out a PREDATORY LIAR LOAN than by actual housing need. Intriguingly, this credit crisis is far more widespread across the UK than the other crises we identified in our research - though it is particularly focused in London and the South East, and in towns where second homes are popular.

 

Corrected

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1 hour ago, Monkey said:

I agree with you, its the main reason for most HMO's and people staying with parents longer is due to cost and not due to shortage of properties. It only takes 30seconds on right move to see how many properties are for rent or sale

Surely a lot of properties for sale are occupied so when sold will create a demand for another property.  I hope that is clear.

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I’m surprised how many properties for sale are unoccupied. On closer inspection EAs tell us forced house sales, because elderly owners get ill, die or couples seperate is more common than we may think! I’m guessing siblings or single partner can’t make use of the house because they can’t afford to buy out the other party. 

- Siblings want to sell to pay for care costs

- Single partner can’t easily buy out the other on a single wage

- divorce and separation apparently on the increase

- huge pressure and costs of elderly care

- still unrealistic expectation of achieveing high house prices resulting in empty properties lingering far longer than necessary.

Quite pleased Sky have bothered to raise what many of us have been saying for years...let’s see where it goes from here.

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2 hours ago, Locke said:

And yet some cretards on here still squeal and cry when I say that the housings crisis is almost entirely a result of credit conditions and that there is not a shortage of housing.

Credit conditions is a huge part of it, but the pitiful amount of housing actually being built seems to just be investment vehicles for speculation, not the actual homes people need.

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2 minutes ago, JustAnotherProle said:

Credit conditions is a huge part of it, but the pitiful amount of housing actually being built seems to just be investment vehicles for speculation, not the actual homes people need.

More houses have been built in the last 5 years than for a very long time - I forget the figures but there was a big discussion about it on radio 4 this week and the numbers were huge in comparison to the last decade 

Help to buy has aided people onto the market and has encouraged builders to build more homes - part of the reason for H2B was to get this to happen and therefore increase the affordable housing which is a part of moist developments 

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3 hours ago, Locke said:

And yet some cretards on here still squeal and cry when I say that the housings crisis is almost entirely a result of credit conditions and that there is not a shortage of housing.

in a way the reason WHY is not important what matters is what the situation is 

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3 minutes ago, happyguy said:

More houses have been built in the last 5 years than for a very long time - I forget the figures but there was a big discussion about it on radio 4 this week and the numbers were huge in comparison to the last decade 

Help to buy has aided people onto the market and has encouraged builders to build more homes - part of the reason for H2B was to get this to happen and therefore increase the affordable housing which is a part of moist developments 

Pitiful when compared to what is actually required, and also historically:

House_building_since_1920s_NOV_17.png

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1 hour ago, MinistryMan said:

I’m surprised how many properties for sale are unoccupied. On closer inspection EAs tell us forced house sales, because elderly owners get ill, die or couples seperate is more common than we may think! I’m guessing siblings or single partner can’t make use of the house because they can’t afford to buy out the other party. 

- Siblings want to sell to pay for care costs

- Single partner can’t easily buy out the other on a single wage

- divorce and separation apparently on the increase

- huge pressure and costs of elderly care

- still unrealistic expectation of achieveing high house prices resulting in empty properties lingering far longer than necessary.

Quite pleased Sky have bothered to raise what many of us have been saying for years...let’s see where it goes from here.

Great Post....entirely agree.;)

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34 minutes ago, MinistryMan said:

I’m surprised how many properties for sale are unoccupied. On closer inspection EAs tell us forced house sales, because elderly owners get ill, die or couples seperate is more common than we may think! I’m guessing siblings or single partner can’t make use of the house because they can’t afford to buy out the other party. 

- Siblings want to sell to pay for care costs

- Single partner can’t easily buy out the other on a single wage

- divorce and separation apparently on the increase

- huge pressure and costs of elderly care

- still unrealistic expectation of achieveing high house prices resulting in empty properties lingering far longer than necessary.

Quite pleased Sky have bothered to raise what many of us have been saying for years...let’s see where it goes from here.

Thanks for that.

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5 hours ago, AdamoMucci said:

Well that is rather nuanced for Sky and the MSM in general. Brief, but different for them, and not bad.

It is more nuanced than I expected too.

Incidentally, I dont think supply/ratio-of-houses-vs-people can be totally discounted all them same.  A persistently low and restricted ratio might make the market over-sensitive to other factors such as low IRs.  Consider how increased PCP/credit hasn't caused hyper inflation in new cars as their supply can increase with demand to keep prices stable.

Edited by nightowl

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"House prices rose when interest rates fell and banks were happy to give out mortgages." .... so hence why they ever so slow raise interest rates.... hence what Brexit will do... lead to a rapid rise in lending rates, to shore up the value of sterling... 😁

The research was commissioned by Sky News and carried out by Neal Hudson, housing market analyst and director of Residential Analysts.

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15 hours ago, maverick73 said:

hence what Brexit will do... lead to a rapid rise in lending rates, to shore up the value of sterling

Watch this space and check in 2 years where we're at interest rates :) 

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16 hours ago, maverick73 said:

 hence what Brexit will do... lead to a rapid rise in lending rates, to shore up the value of sterling... 😁

The research was commissioned by Sky News and carried out by Neal Hudson, housing market analyst and director of Residential Analysts.

Ha, no.

They'll continue to let GBP tank. They'll even print more. 

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6 hours ago, zugzwang said:

0.5%.

The US could overheat. increased deficit spending, tax cuts and tariffs. I see IR rising.

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On 21/09/2018 at 10:46, Locke said:

And yet some cretards on here still squeal and cry when I say that the housings crisis is almost entirely a result of credit conditions and that there is not a shortage of housing.

Funny that housing is affordable in those parts of the country where there is no shortage however...prices are only as much as folk can borrow because they are competing due to conditions of scarcity. There are some here that just don't get the basics.

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On 21/09/2018 at 13:50, happyguy said:

More houses have been built in the last 5 years than for a very long time - I forget the figures but there was a big discussion about it on radio 4 this week and the numbers were huge in comparison to the last decade 

Help to buy has aided people onto the market and has encouraged builders to build more homes - part of the reason for H2B was to get this to happen and therefore increase the affordable housing which is a part of moist developments 

Still not enough, and the dross new-builds which are being built are of such poor quality that they are not fit for purpose. 

making sure that the new-builds are poor quality and too small ensures that those that do buy them are then very motivated to clear their instant negative equity and slave away to the banks, so they can eventually get an older suitable property with reasonable proportions and build quality. 

The new build are built to create more demand. It makes me fear that to keep that cycle going they will have to make housing in 10 years even worse than the new-builds of today. 

Edited by jiltedjen

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1 hour ago, jiltedjen said:

Still not enough, and the dross new-builds which are being built are of such poor quality that they are not fit for purpose. 

making sure that the new-builds are poor quality and too small ensures that those that do buy them are then very motivated to clear their instant negative equity and slave away to the banks, so they can eventually get an older suitable property with reasonable proportions and build quality. 

The new build are built to create more demand. It makes me fear that to keep that cycle going they will have to make housing in 10 years even worse than the new-builds of today. 

I love your cynicism but fear you are correct.

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1 hour ago, jiltedjen said:

Still not enough, and the dross new-builds which are being built are of such poor quality that they are not fit for purpose. 

making sure that the new-builds are poor quality and too small ensures that those that do buy them are then very motivated to clear their instant negative equity and slave away to the banks, so they can eventually get an older suitable property with reasonable proportions and build quality. 

The new build are built to create more demand. It makes me fear that to keep that cycle going they will have to make housing in 10 years even worse than the new-builds of today. 

New builds are pretty poor unless you've Got millions and build one yourself. Partly it's insulation values required, to comply you need to insulate the f*** out of everything which costs. However, internal walls made of drywall are shocking. Dot And dap board on the external blockwork walls are terrible.

Down the road from me they've built some new housing. I think it cost them 500k. 3 bed semi, small garden backs onto train line (you can see the trains from the kitchen!) And a long driveway for three cars but blocking each other in.  Rooms are not a terrible size but you would spend your life running up and down the stairs. Im Wondering how long it'll be before they all astroturf their gardens and start flooding each other with runoff 😀

In contrast we bought a late 50s chalet bungalow with in and out driveway, 100+ft rear garden (with rear access), good living space and easy walking distance of the town and mainline station for 70k less. This place needs work though. Garden is far too big to keep tidy let alone astroturf!

Most people aren't interested in doing much for themselves let alone taking on an older property and having the hassle, work and stress of refurbishing it. 

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1 hour ago, adarmo said:

New builds are pretty poor unless you've Got millions and build one yourself. Partly it's insulation values required, to comply you need to insulate the f*** out of everything which costs. However, internal walls made of drywall are shocking. Dot And dap board on the external blockwork walls are terrible.

Down the road from me they've built some new housing. I think it cost them 500k. 3 bed semi, small garden backs onto train line (you can see the trains from the kitchen!) And a long driveway for three cars but blocking each other in.  Rooms are not a terrible size but you would spend your life running up and down the stairs. Im Wondering how long it'll be before they all astroturf their gardens and start flooding each other with runoff 😀

In contrast we bought a late 50s chalet bungalow with in and out driveway, 100+ft rear garden (with rear access), good living space and easy walking distance of the town and mainline station for 70k less. This place needs work though. Garden is far too big to keep tidy let alone astroturf!

Most people aren't interested in doing much for themselves let alone taking on an older property and having the hassle, work and stress of refurbishing it. 

 

2 hours ago, jiltedjen said:

Still not enough, and the dross new-builds which are being built are of such poor quality that they are not fit for purpose. 

making sure that the new-builds are poor quality and too small ensures that those that do buy them are then very motivated to clear their instant negative equity and slave away to the banks, so they can eventually get an older suitable property with reasonable proportions and build quality. 

The new build are built to create more demand. It makes me fear that to keep that cycle going they will have to make housing in 10 years even worse than the new-builds of today. 

Be careful I made a throw away mark about never buying a new build and someone implied that I was slow.

I have heard lots of stories like yours about new builds, very sad.

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  • 149 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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