Thursday, Sep 28, 2006

The Social Cost of High House Prices

MSN: Families in unfit homes over prices.

"The shortage of housing not only hits first time buyers in the pocket, it also means thousands of homeless and badly housed families will continue to suffer in temporary, unfit or overcrowded homes." The comment that "Building more social homes will give those who will never be able to afford to buy, the chance of a decent place to live", however places a band-aid on a gaping wound.

Posted by sirgoogle @ 04:34 AM (682 views)
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7 Comments

1. Ticktock said...

The "overweight, scruffy, foul-mouthed, tatooed bunch of losers" (to steal a charming capitalist phrase from this board) don't seem to have much of a future in Britain do they?

One might be forgiven for forgetting that it is their country too, and that this huge socialy engineered growth in the new proletariet, may not be entirely good news for 'decent, hard working.... selfish, greedy, money loving traitors' (to paraphrase the increasingly bitter working class response) at the end of the cyclical day.

Throw in the growing grumbles about immigrants, jews, yanks, E.U. etc. and I'd say that their was a pretty ugly 'National Socialist' backlash bubbling away just beneath the social surface.

'Losers' may not except their position for ever. Particularly when the 'winners' seem so unworthy of their status.

Thursday, September 28, 2006 09:05AM Report Comment
 

2. george monsoon said...

Am I missing the point?
Surely the answer is not to build more, but to make it unlawful to buy more than one property. (maybe make new rules on BTL's whereby a licence and vetting system are required.. and while we are at it, up the capital gains tax to about 60%)

Why not also add another tax on people wealthy enough to buy second homes in quaint towns where the locals are completely priced out... (me included!!!) Come on...

Thursday, September 28, 2006 09:15AM Report Comment
 

3. paul said...

... with the effect that people stop having children because they can't afford the extra space required.

The government hasn't twigged this yet. Or more likely knows it but studiously ignores it.

Thursday, September 28, 2006 09:16AM Report Comment
 

4. waitingfor hpc said...

estate agent in my town admitted house prices would drop. She had been in the 'business' (that's a joke!) for 34 years. Said people on average borrowing 6x joint salary to buy houses. Even she felt this was over the top but said independant mortgage advisors where getting the deals.
She also said she is having 'repossession drive by's' for the first time in over 15 years ! But by law was not allowed to disclose the property was repossessed. (Good way to cover up any problems).

Anyway not long now - all the pieces are in place just needs a little push and inflation / interest rates should do it.

Thursday, September 28, 2006 09:40AM Report Comment
 

5. Sam. said...

I've long thought that second houses esp. BTls should pay an extra levy/tax. Also there are too many tax loopholes on property which make it easy for someone with lots of property to not pay CGT etc

While I think that its good for society for this to happen (I can imagine a loophole where lots of couples have a property each), I also think that it would free up cash so that people would be forced to invest in real wealth creating businesses, rather than this stupid zero sum game where money gets passed around like a hot potato.

Thursday, September 28, 2006 10:04AM Report Comment
 

6. Geed said...

George Monsoon


My father is a builder who has worked in the trade (Self Employed, no sick pay, no paid holidays, no company paid pension like me) all his life. He has made himself by renovating property and building new builds. He now has 3 rental properties in his local town, all paid for with not a penny owed. This income, together with some of his savings will form the basis of his retirement. He is 5 years away from proper retirement and will probably ride at least another cycle of the boom/bust housing before he may off load one of the properties. Who knows, he may buy another if there is a big correction.

My point is this, hard working people have not created this over-inflated boom. Poor Government Fiscal policy, Lax lending rules from banks and irrational borrowing from inexperienced property investors (who think they can be a successful property investors overnight as opposed to my father who has built his experience over 40 years) are the very reason why this website exists.

Not every landlord is an @sshole. My father provides a much needed service for young families who, irrespective of house values, will always need a place to rent for 2-3 years (20 years in the current climate!!) before saving enough deposit to buy their very first home. People will always need to rent for some reason and therefore there will always be a market for rental properties. His rental homes are fully renovated with new fixtures, double glazing, central heating, they want for nothing.

Limiting the amount of houses one can own is by no way the way forward. Do you really want to live in a nanny state completely controlled by more rules and regulations. Live in a business climate that does not encourage hard work and self betterment. Will there be a day when this little island fills up that you will want to limit the amount of children families have ala Communist China?

Cut the statistcal crap this government spews out (restructure the inflationary index to include utility bills, fuel, house values), raise interest rates, clamp down on lax banking lending policy and lets weed these "wet behind the ears" BTLers out of the market so that we can all afford a home soon.

And just in case you think I have a vested interest myself in BTL, I rent and cannot afford to buy.


Thursday, September 28, 2006 12:38PM Report Comment
 

7. Ali said...

Its interesting that we are seeing contrary news reports I wonder if that is symptomatic of being on the edge of a crash?

A lot are still saying massive rises who and how is anybody going to pay for houses if they go up another 30-40%

Thursday, September 28, 2006 07:12PM Report Comment
 

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