Tuesday, December 11, 2012

Britain is becoming a nation of renters and overseas investors gobble up the housing stock

Britain is becoming a nation of renters and overseas investors gobble up the housing stock

"Lack of mortgage finance is not the main issue here. Indeed, there is much merit in going back to a system where mortgages are properly priced and a reasonable dollop of equity is demanded. Rather the problem lies with unduly oppressive planning restrictions and still unsustainably high house prices."

Posted by becky @ 02:31 PM (2408 views)
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11 thoughts on “Britain is becoming a nation of renters and overseas investors gobble up the housing stock

  • Could the last person to leave, turn out the light?

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  • In fact, a completely burnt out shell of a country…..nice.

    Thank you Nu Libor.

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  • It will be interesting to know who the Chinese are going to sell their London homes on to.

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  • @3 will, I was just thinking the same. If it is an investment then at some point the investor will want to cash out and wither make a profit or cut their losses.
    The heard mentality will ensure that this happens all at once.

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  • during ‘tulips from amsterdam’ the bulbs had reached such a level that one time without warning no-one turned up to an auction

    after that bulbs dropped 90%

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  • Will,
    The Chinese will sell them to other immigrant families. London is full of people who are not “natural Londoners”. See the Census results.

    Taffee,
    I saw Andrew Marr’s History of the World, too. However, lots of industries hub in London, it’s a place people want to be. I guess that if the Interest Rates jumped up by 3% (wet finger exercise) you might have a drop of 15 – 20% on house prices. With Euro politics, loss of AAA in the UK and the “Fiscal Cliff” in the US, who knows what may happen in 2013. You could see a really big drop!

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  • I would imagine the exchange rate currently benefits the Chinese who are buying London houses.

    Perhaps I could open an ‘English restaurant’ in London.

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  • will, khards,

    “Who are the Chinese going to sell their London homes on to?”

    They needn’t ever sell. Their London home provides a guaranteed inflation-proof income stream with relatively little risk to capital. If I may be so bold as to coin a phrase: “Our homes are their pensions”.

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  • @8….but what if prices drop 90-99%……like in japan…I’m sure that seemed inconceivable in 1991

    ==================================================================================================
    Prices were highest in Tokyo’s Ginza district in 1989, with choice properties fetching over 30 million yen[7] (approximately $215,000 US dollars) per square meter ($20,000 per square foot). Prices were only marginally less in other large business districts of Tokyo. By 2004, prime “A” property in Tokyo’s financial districts had slumped to less than 1 percent of its peak, and Tokyo’s residential homes were less than a tenth of their peak, but still managed to be listed as the most expensive in the world until being surpassed in the late 2000s by Moscow and other cities. However, since 2012, Tokyo is once again, the world’s most expensive city, followed by Osaka in number and Moscow as number 4. Tens of trillions of dollars worth were wiped out with the combined collapse of the Tokyo stock and real estate markets. Only in 2007 had property prices begun to rise; however, they began to fall in late 2008 due to the financial crisis.
    ================================================================================================

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  • If Victoria could see this.

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  • mark wadsworth says:

    “Our homes are their pensions”

    Exactly 🙂

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