Capping House Price Inflation

[flanajb]

Made me chuckle listening to this proposal last night on the news. Me thinks the horse has already bolted on that one!

What was even funnier was that they asked an Estate Agent whether he thought capping house prices was a good idea. It's like asking an alcoholic whether increasing duty on alcohol should be in the budget!

 

[Jacob]

Yep. Madness all round. Another huge bubble.
The simplest cap would be higher death duties - plus some very extensive tax reforms to stop avoidance and evasion. Tax the dead - spend the money on public housing.
Followed by taxes on empty properties - even the bedroom tax is a good ides except they are hitting exactly the wrong target.

 

[flanajb]

I also forgot to mention. On one side they are talking about capping house prices and then you have George Osborne's crazy 'Help To Buy' scheme being rolled out to all in January next year. The Government being a guarantor with tax payers money to someone buying a house with potentially just a 5% deposit. That is just going to fuel the housing market when it comes into play.

 

[wizard]

they should ban second homes

 

[Lons]

Oh God
Not another soapbox subject!
Should be banned along with politics, religion and of course...sharpening :wink:

Bob

 

[Phil Pascoe]

I also forgot to mention. On one side they are talking about capping house prices and then you have George Osborne's crazy 'Help To Buy' scheme being rolled out to all in January next year. The Government being a guarantor with tax payers money to someone buying a house with potentially just a 5% deposit. That is just going to fuel the housing market when it comes into play.

:lol: Yes, a bit of idiocy there. Unfortunately it suits any government to have a rising house market, when it would be better for the country (not for individuals, though) if house prices halved.

 

[RogerS]

.... even the bedroom tax is a good ides except they are hitting exactly the wrong target.

How so? If you're living in three bed council house and there is just you........there are loads of families who need social housing so why should a single person live (free) in a three bed house?

 

[RogerS]

they should ban second homes

Define 'second home'. When we were both working I lived in a flat in London which is where my work was located and my wife was living in the family home...near where she was working. Is that a 'second home' ? Just assuming that they banned second homes (whatever they might be) just how would that be regulated?

I'd ban holiday let houses.....the local Judge has ripped the heart out of our village by buying up several properties as Holiday Lets.

 

[flanajb]

Oh God
Not another soapbox subject!
Should be banned along with politics, religion and of course...sharpening :wink:

Bob

Come on Bob you know you want to contribute to the discussion. Thoughts?

 

[MIGNAL]

Yes it's odd that fast rising house prices are deemed to be a good thing by many people. Of course the same people would be absolutely furious if the price of Cars, Underwear, Axminsters tool prices, The Daily Mail/Express and a loaf of bread rose by 10% year on year! House prices (or rents, same thing) are simply another 'cost' to the working person. Double that cost and folk want higher pay increases. You can hardly blame them.

 

[Jacob]

.... even the bedroom tax is a good ides except they are hitting exactly the wrong target.

How so? If you're living in three bed council house and there is just you........there are loads of families who need social housing so why should a single person live (free) in a three bed house?

if there is a housing problem by all means encourage people to downsize, but the bedroom tax is hitting people who didn't choose their homes in the first place (they are allocated), don't have much choice about where to go next (suitable housing not necessarily available), haven't much money (by definition), may not be able to afford to move even if there was somewhere to go, may not benefit by being dislodged from their community, may have special needs.
Hit the better off, e.g. second home owners first. Only fair, sensible and could be effective.

 

[Jacob]

....

I'd ban holiday let houses.....the local Judge has ripped the heart out of our village by buying up several properties as Holiday Lets.

Agree. Parts of the country are seriously blighted by the empty home phenomenon. Worst in picturesque areas where much more than half of all housing is empty except as holiday lets.

 

[Lons]

Come on Bob you know you want to contribute to the discussion. Thoughts?

Leaving in 10 mins from my large det house in my comfortable Audi to for a round of golf at my local club so I guess you know where I might stand :wink:

Might contribute later if the thread doesn't degenerate into meaningless heated opinions (as it usually does on this subject).

I don't agree with a boom and bust policy on house prices or on indescriminate lending BTW but the large majority of house owners have acted responsibly and borrowed within their means as well as sacrificing the booze, cigs and many luxuries that others may not have done in order to buy a comfortable home. Why drag everyone down to another level?

cheers
Bob

 

[Jacob]

..... Why drag everyone down to another level?

cheers
Bob

The housing problem isn't about those who don't find it a problem.

 

[Hardwood66]

We have been having alsorts of problems with ate move, we have lost one house 2 buyers and now were waiting for the planning one the new house! I know say why people say moving is stressful

 

[doorframe]

So Bob, did you get soaked?

 

[finneyb]

BoE Governor says interest stay low until unemployment reduces to 7%
This is looking to be sooner that he expected
If interest rates go up, I'm in clover- my rightful place , but those with a mortgage are really going to feel it - the rise from 4% to 6% interest is a 50% increase in payments. If that happens you won't need a cap.

Having said that I can remember 16% mortgage interest rates -went from 8% in the June of 1973 to 16% by December - we didn't have two months with the same payment - we moved into the house in the June.

Brian

 

[Lons]

So Bob, did you get soaked?

Nope. Absolutely beautiful sunny day, excellent for golf, pity my game was cr*p #-o Didn't even get "soaked" at the 19th, just a pint shandy as a responsible driver

If interest rates go up, I'm in clover- my rightful place , but those with a mortgage are really going to feel it - the rise from 4% to 6% interest is a 50% increase in payments. If that happens you won't need a cap.

Having said that I can remember 16% mortgage interest rates -went from 8% in the June of 1973 to 16% by December - we didn't have two months with the same payment - we moved into the house in the June.

Relatively few "normal" houseowners really gain from the ups and downs of the housing market as after all it has to be primarily a home and if you sell you need to buy unless getting out of the market or gaining some of your investment back by downsizing. Only those with money to speculate can make real gains but such is the case in any area of investment. I also came through the crippling interest rates era and I very much doubt our difficulty raising a deposit at the time was much easier than current. We were prepared to give up more to save it than many of todays would be buyers who wouldn't dream opf sacrificing their mobile phones, nights out etc.

I grew up in a council house along with my 4 brothers and 4 sisters. My father was a miner and we were always very hard up. I'm proud of my roots, my parents raised us to have honest, moral attitudes and a healthy respect for hard graft and the value of money but I did decide at a young age that I would never rent.
Grammar school, uni and bloody hard work opened doors and gave me enough wherewithal to buy but it was hard especially when interest rates rocketed even though I never fully stretched our mortgage and never borrowed against equity. We had few holidays until I bought a s/h touring caravan which I was allowed to pull with my company car, whilst some of my family in local authority housing had holidays abroad, latest electrical gizmos, quality motors and got drunk every Friday and Saturday, saved not a penny and had no worries over house repair bills, even though they earned less than me. Anyone who doubts this needs to take a drive around some of these estates.
Now, self employed, mortgage paid off years ago and a decent equity in my home, why should I or people like me be penalised for being prudent? I am after all still paying inflated contributions in council tax which is levied on the perceived value (size / location) of my property rather than the number of occupants.

They need to vastly increase the number of affordable new build houses and make it less attractice to those speculating private landlords who build up housing portfolios to rent out at inflated rates.
Stop all extra mortgage borrowing unless buying or significantly upgrading a home, i.e. no more hols and cars "on the mortgage".
Social housing should be for those who absolutely need it and not a "house for life" which is often the case even when the house size is no longer appropriate.

Inflated prices are caused largely by supply and demand. Increase supply and the market finds a sustainable level.
Bob

ps - flanajb.. you forced me into a rant :lol:

 

[finneyb]

Stop all extra mortgage borrowing unless buying or significantly upgrading a home, i.e. no more hols and cars "on the mortgage".

AH BUT - it's that borrowing that drives the economy and politicians get elected easier with a rising economy. So that ain't going to change. The end result of course is that we end up disappearing up our fundamental orifice - much like 2008.

Brian

 

[Lons]

Stop all extra mortgage borrowing unless buying or significantly upgrading a home, i.e. no more hols and cars "on the mortgage".

AH BUT - it's that borrowing that drives the economy and politicians get elected easier with a rising economy. So that ain't going to change. The end result of course is that we end up disappearing up our fundamental orifice - much like 2008.

Brian

Agreed but adding to the mortgage was seen as cheap money and borrowing against the gains or potential gains of property value. Let people borrow if they want or need to but by normal methods subject to the usual checks and regulations. the object being to force people to borrow only if within their means.

AND... stop these bl**dy payday loans companies fleecing those who can least afford it. (One of the bu*ggers sponsor my footy team :evil: )

Bob