Wednesday, November 6, 2013

We can look forward to a lot of smug headlines

House prices: 'south-east set to outpace London' for first time in a decade

Estate agent Savills argue that sustained price rises in the South East are locked in for the next five years at a rate even greater than in London. I presume that this prediction is based upon continuing low interest rates. HTB also gets a mention: "Help to Buy will allow some trapped renters to access home ownership even though the costs of home ownership will exceed those of renting," said Cook, but he said the majority of beneficiaries were likely to those who already own a home, rather than first-time buyers.

Posted by quiet guy @ 07:41 AM (2379 views)
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10 thoughts on “We can look forward to a lot of smug headlines

  • Thecountofnowhere says:

    Ah, that takes me back to 2007 with such headlines as flats to cost 1,000,000 by 2015.

    Collapse followed.

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  • “allow some trapped renters to access home ownership”

    That’s nice of them!

    Anyway, the young people I know back in the UK have given up the ‘hope’ of having a decent job or home and are quite happy playing on their PlayStation, Facebook, watching sky TV and enjoying free heating back in their boomers mansion.

    Lets face it, for them there is no benefit joining the treadmill for no reward – I wouldn’t encourage them too either.

    The number of trapped renters must be in the 1,000’s not the 10,000’s. Why would you buy some poorly maintained ex-BTL landlords house with help from the government when you could rent such an undesirable place? It’s not like you are going to buy a decent home even with the government interference. Much better to do your 16 hours a week at pound stretched and get the government to do the heavy lifting of paying rent.

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  • This reads like an inflationary disaster. I can’t believe that an article stating 20 and 25 % rises over 5 years…also so glibly states that they won’t break through their old inflation adjusted real value!
    How can people pay on the same wages? Two years ago I was way above the average salary but paying 70% of income straight out as tax and rent..but it’s going to get worse?
    What a true sh-t hole country. People should be getting their pitchforks out but sadly all I see are the idiots lining up for a dose of Milliband.

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  • Depends what you mean by inflation. If you mean asset price inflation, especially housing, then we’ve had it for some years, the odd dip notwithstanding, and that appears to be continuing. Otherwise inflation is looking steady at 2 – 3% while wages are stagnating, or falling.

    If you think the “idiots” are rooting for Milliband, how would you describe those supporting Cameron? (Apart from the very rich of course)

    The worst scenario, as I’ve pointed out in the past, is a return to the Victorian era and its concentration of wealth with Dickensian nasties. Looks more that way to me every day.

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  • I am not so sure that the Conservatives are the sell outs that they appear to be. Remember that when they took over the last government discussions were about turning off the cash machines and how to maintain public order. Also, despite the very public face of pro-home ownership there does seem to be a kick-start of the home building industry and alterations to the planning system. Labour went out of power at the point of essentially a social collapse. That’s why I think you would have to be nuts to vote for them again. Unfortunately the situation was recovered.
    The UK needs to discover the failure that is the UK Labour parties way of thinking and be disillusioned over a few decades. This is the problem there is a bias towards socialism from ignorance, and also the voters don’t think that wealth, being tied up in property would be subject to redistribution. Milliband didn’t turn a hair when he announced price controls on power and everybody thought yeah great cheap power my home’s worth half a mill what’s not to like. I personally still think that the UK is just waiting to fall over, I really hope I am wrong. Pensions are in collapse, but what that means is that the curtains of poverty are being pulled back. Anyway, lets see if Carney raises rates, we have all placed our bets kind of.

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  • “Unfortunately the situation was recovered “isn’t exactly what I meant. “Unfortunately the severity of the situation was disguised and dragged out to the end detriment of everybody rather than going through a correction” is more what I meant.

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  • @letthemfall – “The worst scenario, as I’ve pointed out in the past, is a return to the Victorian era and its concentration of wealth with Dickensian nasties. Looks more that way to me every day.”

    Why would people stick around in the UK (more importantly the south of the UK) if living standards were reduced to Victorian standards? The poor and unemployed are already being reduced to those standards, but there is no reason that anyone intelegent should hang around in the UK under those conditions.

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  • ST
    It’s an exaggeration to talk about social collapse – financial collapse perhaps (and maybe a social one would have gone with it), but that was averted by the govt of the time (Labour) – GB was applauded around the world at the time. It’s also nonsense to talk about Labour’s failure of thinking. Look at the Cons – still the same old cutting wages, cutting public spending, trickle down effect. If that isn’t discredited thinking in politics I don’t know what is.

    Bias towards socialism in this country! Now you must be joking. You only have to read the tabloids to see how right of centre the majority of the population is. The New Labour govt made loads of errors for sure, but God knows this one is too – and it’s quite happy to stuff anyone who isn’t asset rich, or just plain rich.

    I agree with you that the problems with the UK are not being resolved. All this austerity stuff is not so different to that of the 30s, and despite the nominal growth figures, it still feels like a depression here to most of us. But I doubt the UK economy will collapse. The US will before us I think, not that I believe it will. Inequality will just get worse.

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  • crash bandicoot says:

    How many people are living in houses that they bought years ago but couldn’t afford to buy now? And I mean actually buy now not just pay interest only bank rent. That’ll give some idea of the size of the bubble.

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  • mark wadsworth says:

    CB: “How many people are living in houses that they bought years ago but couldn’t afford to buy now?”

    I did an impromptu survey in my office over ten years ago (reasonably well paid people in London) and half of them said they wouldn’t be able to afford to buy their own home. But they all said that they would be able to afford to rent the house they live in.

    This madness has trebled down here since. More or less nobody can afford to buy any more and rents are getting increasingly oppressive.

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