Friday, Nov 24, 2006

An insight into our obsession with house (prices)

BBC: Why is it so expensive to buy a house?

It covers the usual stuff about population, single households etc, but also covers speculation.

Posted by holding out @ 10:17 AM (466 views)
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15 Comments

1. Grasuth said...

I agree. As the article says: "The combined effects of rampant house price inflation, a lack of good quality, cheap, rented property, and windfalls gains for home owners have left a deep psychological imprint on the UK public" is certainly true, but it arguably temporary. The same sentiment must have true for other momentous events throughout history, the more distant of which have now faded for many of us. I have a question. Does the media's interest interest in house prices feed upon or fuel 'our' interest in this subject? How big a factor is this in HPI? Any thoughts?

Friday, November 24, 2006 10:50AM Report Comment
 

2. george monsoon said...

The BBC shouting from the "not enough housing" corner again...

I don't understand how this can work. I can see at least a dozen houses in my area that have been on sale for at least 6 months. If there was a shortage of housing, surely these would have been snapped up by all the people looking?

Saying that this is the (BBC) Ministry of Truth we are talking about here, so far into the back pocket of our current government that any news regarding such a sensitive political issue is bound to have been structured, authorised and suggested over a round of golf.

Friday, November 24, 2006 10:58AM Report Comment
 

3. george monsoon said...

The BBC shouting from the "not enough housing" corner again...

I don't understand how this can work. I can see at least a dozen houses in my area that have been on sale for at least 6 months. If there was a shortage of housing, surely these would have been snapped up by all the people looking?

Saying that this is the (BBC) Ministry of Truth we are talking about here, so far into the back pocket of our current government that any news regarding such a sensitive political issue is bound to have been structured, authorised and suggested over a round of golf.

Friday, November 24, 2006 10:58AM Report Comment
 

4. japanese uncle said...

Drastic reform of laws governing tenancy agreements is good enough. Tenants in UK are far less protected than their counterparts in Europe, hence the drive to own your residence.

Friday, November 24, 2006 11:20AM Report Comment
 

5. The Capitalist said...

Just got my Money Week issue - UK House Prices is the cover story. And yes, it's a bubble. One big mother of a bubble - excellent piece sensibly argued. I urge you all to get your copy today - subscribe online and get three issues free.

My estate agent boss - over 40, sensible and wise is certain of a crash too.

Friday, November 24, 2006 11:52AM Report Comment
 

6. paul said...

george, I'm with you there.

The demand-led price rise idea is a myth peddled by estate agents and lazy journalists/"economists".

It's just cheap credit - like printing money.

Friday, November 24, 2006 12:35PM Report Comment
 

7. Jake The Muss said...

The Capitalist - Have you also got a crush on Merryn Somersett-Webb? If housepricecrash.co.uk put out a calendar I think she'd make the cover.

Friday, November 24, 2006 01:00PM Report Comment
 

8. bidin'matime said...

The irony is that, as prices rise, good value property naturally becomes more scarce, so buyers have to travel further, register with more estate agents and generally kick up more dust than when prices are low, thus only increasing the impression of more demand...

Friday, November 24, 2006 01:18PM Report Comment
 

9. Rimmer said...

I still think time Gordons messes the economy further, intrest rates remain high long term, immigrants go home as there are no jobs, a real government reforms the social system, council taxes have triples and the cost of living generally doubled you will see people taking down extensions and moving to smaller properties to save money.

What goes around comes around and always has!

So why is the UK population set to increase by 2011 when Italys is declining i wonder?, could it be increasing by external factors ( Tony? ), maybe a lack of affordable housing should be a valid reason to stop any further immigration?

Friday, November 24, 2006 02:37PM Report Comment
 

10. This comment has been removed as it was found to be in breach of our Blog Policies.

 

11. monty said...

To dismiss demand as a myth is wishful thinking. The very popularity of sites such a firstrung, pricedout and this one show that there is demand. Sure, the demand may well be fuelled by the availability of cheap credit but it's no myth. What is lacking is supply at the right price. For better or worse we are a nation obsessed with property with one of the highest rates of home ownership in Europe.

Friday, November 24, 2006 04:27PM Report Comment
 

12. Nohpc said...

Highest rates of home ownership yes but no more obsessed than anywhere else in the world. Look at the marches in spain by first time buyers! New Zealand and australia.. similarly obsessed. It is a worldwide obsession not just a UK one.

And of course demand is fueled by cheap credit. There wouldn't be any demand if rates were at 30%. However, unlike the USA cheap credit is not the only factor fuelling demand. There is a genuine undersupply of housing in the UK and I believe this is the main driver for the house price index.

Friday, November 24, 2006 06:36PM Report Comment
 

13. Nohpc said...

How can anybody think money week is credible when they keep sending out stuff like
"MAKE 2 MILLION DOLLARS IN A YEAR DOING NOTHING FROM HOME" on a regular basis.

Friday, November 24, 2006 06:37PM Report Comment
 

14. harold said...

"There is a genuine undersupply of housing in the UK and I believe this is the main driver for the house price index." Nohpc

I'm afraid that is wishful thinking - the massive growth in prices over the past decade simply cannot be accounted for by any demographic change in the country. The present bubble is 90% credit led and 10% demographic change - that means housing IS a bubble, and it WILL crash when credit conditions change. Stop kidding yourself that the UK is fundamentally different from the States - they too have had huge immigration and their housing bubble is popping.

Friday, November 24, 2006 11:49PM Report Comment
 

15. This comment has been removed as it was found to be in breach of our Blog Policies.

 

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