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Europe Vs Uk

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My home ‘owning’ work colleagues enjoy telling me that the reason property prices will continue to rise forever is that we’re reverting to system found in Europe where the majority of people rent for their whole lives and property is owned by a rich elite class. (They love the bit about them becoming the rich elite and me being 'left behind' as a renter!) Is this actually the situation?

With euro interest rates lower than the UK at present, rents would surely have to be significantly lower than the equivalent mortgage payments for the majority of people to be happy doing this. Or are house prices so astronomical that even with low interest rates they're still out of most peoples reach. If this were the case, surely this would mean very low yields for landlords?

Is there some legislation/tax rules that have encouraged this arrangement over there and yet previously prevented it happening in the UK? Have things changed in the last 5 years?

(apologies if this has been covered previously)

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My home ‘owning’ work colleagues enjoy telling me that the reason property prices will continue to rise forever is that we’re reverting to system found in Europe where the majority of people rent for their whole lives and property is owned by a rich elite class. (They love the bit about them becoming the rich elite and me being 'left behind' as a renter!) Is this actually the situation?

With euro interest rates lower than the UK at present, rents would surely have to be significantly lower than the equivalent mortgage payments for the majority of people to be happy doing this. Or are house prices so astronomical that even with low interest rates they're still out of most peoples reach. If this were the case, surely this would mean very low yields for landlords?

Is there some legislation/tax rules that have encouraged this arrangement over there and yet previously prevented it happening in the UK? Have things changed in the last 5 years?

(apologies if this has been covered previously)

You are making a lot of assumptions about other European countries. You need to realise that people on the continent are not english peoploe who speak a different language BUT rather independent nations who have a different culture and THINK differently.

It would take to long to explain...

I suggest you..

1. Search on this board for discussions about the German property market (berlin)..

2. Look at some of the posts from jmpoure (I think he runs a french website not to different to HPC.co.uk)..

3. Read about the European social model (German, French and Scandanavian as a start)

4. Read about employment laws in these countries

5. Realise that it is the punters in the UK whose logic vis-a-vis housing is skewed and NOT the other way around.

:blink:

Edited by Wuluf

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In most of europe there is over 70% owner occupation.

The only exception is germany, which spurred massive reconstrution from the ashes of the war, right through the 50s and 60s by creating incentives for landlords to build in the war torn state, and forming a nation of tenants in west Germany, defacto and by law for this purpose. However, the laws and tenancies in Germany are totally secure for tenants so they do not get a bad deal at all.

Here in the UK the engineering of a large underclass and an elilte of property owners who rent out to them is enshrined in large tax breaks to investors. What is occuring in the UK is more like a return to the situation of the pre 1900s.

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  • 341 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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