House price rises 'could be running out of steam’
05/02/2021 | news | business | 722
The Halifax says prices fell last month and are likely to come under pressure in the months ahead.
1
05/02/2021 14:57:54 23 6
bbc
How many times have we heard this before. In truth it's all speculation and nobody knows for certain.
2
05/02/2021 14:59:00 114 31
bbc
The bubble was always going to burst as the prices being paid for houses has become unsustainable. Some form of reality has to return to the housing market.
25
05/02/2021 15:14:43 82 11
bbc
how has it burst? A slight decline last month but still a year on year growth.
82
05/02/2021 15:33:29 13 5
bbc
The bubble isn't going to burst - All that will happen is house price rises will slow down a bit - shows how regressive Stamp Duty is - was originally meant to only effect the rich, now it traps anyone who is fortunate to afford a house in the south east.

fundamentally the demand for house hasn't changed - the population is increasing and we are not building enough.....
172
05/02/2021 15:59:22 5 0
bbc
People said the same in the 2008 'crash'. turned out to be nothing in the big picture
174
05/02/2021 15:59:27 10 2
bbc
the UK has long been in a housing crisis. the government need to invest into social housing and private housing must be affordable for first time buyers. rises in prices of houses only ever benefit those rich enough to be able and willing to pay the high prices.
277
05/02/2021 16:34:42 4 2
bbc
I think it depends on where you live. There is and always has been a poor population and a wealthy population. It is not fair but it is the reality we have to live with. Please also bear in mind without wealthy individuals where would the taxes be paid from? Not the poorest of our country, that is a fact
493
05/02/2021 18:59:30 2 1
bbc
Nonsense ..there is no bubble. Deal in facts not your own myths .Check the charts ...twenty year average has been and is 3% on ave per annum. across the twenty...Theres no bubble and nothings going to burst.
3
05/02/2021 15:00:00 177 24
bbc
It will be a big mistake to extend the stamp duty holiday again.
33
05/02/2021 15:18:13 133 19
bbc
I think that Stamp Duty for your main residence should be reduced (and that duty for subsequent properties should be raised).

If the cost of moving was lower, there would be more fluidity in the market. It may well lead to a larger volume of sales (and no overall drop in the tax take).

Might help to free up housing (e.g. older couples moving out of larger homes once their children leave home).
142
05/02/2021 15:49:41 9 2
bbc
Over £3Bn in lost income into the Tax payers kitty due to the stamp duty holiday. It will put presure on the govt to get the money from somewhere else or reduce the expenditure on something else - poss Social payments / Universal Credit. The Govt (You and I) need all the money the Govt can get into their coffers.
229
05/02/2021 16:20:37 9 0
bbc
Huge mistake if extended. All it has done is add 5% or more to the price and created panic buying.
Unfortunately it looks like it is being extended by 3 months.
254
05/02/2021 16:28:38 8 0
bbc
It was a big mistake FULL STOP!
4
05/02/2021 15:02:36 49 12
bbc
The housing market needs a reality check so maybe it could could a good thing that they drop 10% ish
157
Jim
05/02/2021 15:54:44 9 2
bbc
If only! Even COVID took a year to have any impact on its momentum.
364
05/02/2021 17:10:33 1 2
bbc
30% would be better.
Even speaking as a homeowner, the value of an asset I can't ever liquidate is irrelevant, and the high cost of housing will affect my children, keeping them trapped at home or forcing them to move far away to cheaper areas.
496
05/02/2021 19:05:44 1 1
bbc
Go and check the the facts and stop following silly myths..there are three sources Halifax.. nationwide and O>N>S all three charts show an almost identical pattern equating to an average house price gain of JUST 3% per annum av per year across last 20 years. Perfectly normal.In fact in that 20yrs biggest single spike was DOWN!
5
05/02/2021 15:04:48 130 35
bbc
We have increased the population by about 9 million over the last 20 years or so, without building the extra homes to house that increase. Supply and demand means houses are over expensive.

Build more homes and get a grip on immigration, for the sake of everyone's quality of life.
32
05/02/2021 15:16:57 32 55
bbc
It's increased by 9 million since ~ 1975. The quality of housing has increased a lot since then as well.
46
05/02/2021 15:22:31 21 28
bbc
Houses aren't "over expensive". They're exactly the price they should be based on demand heavily outstripping supply.

If you don't want to live in a market-driven economy don't vote Tory at the next election. Vote Green like I do.
60
05/02/2021 15:27:17 21 1
bbc
The population has grown because U.K. PLC does not do productivity growth, it just relies on cheap labour.
282
Alf
05/02/2021 16:35:51 2 8
bbc
Planning permission needs to be relaxed and the CIL levy needs to be scrapped.
287
ian
05/02/2021 16:36:54 0 0
bbc
There’s 2 house if estates been built in our village with another 300 houses to be built planning permission all ready granted
291
05/02/2021 16:38:28 5 4
bbc
Population growth is also fueled by people living longer. Immigration is still required to keep the numbers in work high.
401
05/02/2021 17:36:58 3 4
bbc
I'm afraid you're wrong. The numbers for England are:

Number of people per dwelling (2001): 2.33 (21.2m homes, 49.4m people)
Number of people per dwelling (2019): 2.30 (24.4million homes, 56.2m people)

The number of people per house is pretty much the same. We have built houses at a rate to keep up with population increases. If only people checked facts before publishing on the internet...
435
sc
05/02/2021 18:11:04 3 1
bbc
Lack of housing reduces quality of life. Increased development also does. There's no good way out of this mess that years of short-sighted greed have got us in to.
468
05/02/2021 18:32:38 0 1
bbc
About to increase the population more if we see an influx from Hong Kong if they take up the government offer, then we will have too see if we buckle to India and China who want passports included in any trade deal. That combination will keep the prices high.
536
05/02/2021 20:01:57 2 0
bbc
Yep, keep building houses that are unaffordable! Help to buy only drives government interest to raise prices further, it is a double negative
6
05/02/2021 15:04:52 55 24
bbc
They could try building much needed council homes. But their ideology wont let them.
And the very people who NEED them then vote for the party most against them.

Weirdo Patriotism.
233
05/02/2021 16:21:44 19 7
bbc
Local Councils MUST be told to build homes on sites they own - the cost to build homes isn't that much and if rented on ability to pay for key workers that would be a great help

100 homes per Council would be a huge help right across the UK

Setting low rents for everybody would not be the answer.
261
05/02/2021 16:30:20 6 4
bbc
Thatcher is to blame. Worst thing she done let council tenants buy council house stock cheap as...then no houses for council use...former tenants selling at huge profits, or letting.
612
06/02/2021 09:43:45 3 0
bbc
It would be great if we could have new council houses but only if the tenants were made to look after them properly and could be chucked out with no further obligation on the council if they don't and also chucked out if they indulge in anti-social behaviour. Too many areas of social housing are no go dumps, because of the people who live there and how they are allowed to behave.
7
05/02/2021 15:05:31 3 1
bbc
Good luck to anyone trying to predict UK house price rises. (or falls)
8
05/02/2021 15:05:50 287 44
bbc
House prices are massively manipulated to be kept artificially high. Without this any number of banks would immediately collapse from not having these debts on their asset sheets.

Real demand for housing cannot be accurately measured while banks aggressively lend money they don't have to anyone prepared to accept it.

Foreign money in housing is also a national problem.

gov don't want to fixit
26
05/02/2021 15:15:04 129 21
bbc
Totally right! Demand is governed by the mortgage market - Banks lend more, houses sell higher. If prices went up and Banks refused to lend more to buyers, then they just would not sell at higher prices. SIMPLE. It has been happening for decades and governments allow them to lend more to push house prices up to secure consumer debt to keep people buying into the economy. B.S World!
47
NP
05/02/2021 15:22:32 2 0
bbc
I bought a new house and I am putting hypothetical numbers here,

On average of £100,000 house, my insurance say £ 75,000 is cost to rebuild (according to RICS), and they are right based on commodities, construction labour + services cost, regulations, taxes etc.

As a economist, valuation is based on what it does take to build the house on the day + demand pressure.
125
Alf
05/02/2021 15:42:54 11 11
bbc
If you think banks are throwing money at mortgages then you have no idea what you're talking about.
129
05/02/2021 15:44:33 6 17
bbc
There's nothing inflated about house prices. It's supply and demand. Too many single occupancy homes of two or more bedrooms. It's not the houses bricks ans mortar that add most of the cost - its the land - and there is only some much of that left.
187
05/02/2021 16:04:16 11 2
bbc
You might also add government policy to what inflates house prices. For most of us, our house represents our largest amount of capital, and if it increases in value, we feel more affluent, and when we feel affluent, we're more likely to approve of the current government. Even more so when the current government is Conservative.
191
05/02/2021 16:07:18 17 2
bbc
High house prices are essential for the government, to ensure everyone living in them has to work... Gone are the days a single salary is permitted to suffice for that!
202
05/02/2021 16:11:44 7 3
bbc
Spot on sir. The banks need to be lending as much as possible especially with interest rates so low. If their income drops by lending less, then I can see a lot of trouble for banks. I'm sure the government have no interest in reducing the cost of housing because of this reason. In fact, government will intervene at any suggestion of a drop in the housing market.
207
05/02/2021 16:13:20 5 1
bbc
Another thing to consider is that a very large proportion of people's asset class is tied up in the value of their property since home ownership has been pushed so much the last few decades. The middle class is asset heavy on property.
330
Mo
05/02/2021 16:55:35 7 2
bbc
Rent control would bring down the prices.
367
05/02/2021 17:13:04 3 3
bbc
You need more immigration to keep prices high, zero interest rates help but as we no longer produce children here to replenish the old deaths we need to build more cheaper homes for immigrants, India can give us hundreds of millions just one example, Nigeria 250 million people many also poor could come here and buy or rent win win for the whole earth community here in London.
484
05/02/2021 18:50:44 1 0
bbc
What utter nonsense .Its impossible to lend money you dont have. Banks dont collapse either when mortgages or other "debts" are low.
Foreign money is not any sort of problem ..even a minor one in the great majority of the U>K. Also like many other amateurs on here you presume house prices are somehow wrong?/ averaged 3% per annum inflation for the last 20 years no more.
nature of the beast sir , if a short overweight chinaman with goofy teeth offered 10 grand more than a english adonis with a celebrity wife within the same timeframe for your home , i wonder who you would sell it too L O L Removed
600
06/02/2021 08:42:35 0 0
bbc
Which gov? Did not see labour di better... the system is broken do not matter who is in charge..at least Tories can sum 2+2
613
06/02/2021 09:55:11 0 0
bbc
Nonsense. Interest rates are the most important factor overall and the BoE sets those rates according to many factors. The second biggest factor is supply and demand. Gov would build extra housing to allow people to purchase affordable (?) housing which could effect prices overall, but it's not intended as a manipulation of house prices in itself.
625
06/02/2021 11:05:33 0 0
bbc
Banks are just fine if the prices are low, and the interest % is high. In many ways thats worse for the customer, because you can end up paying the 'same' ammount in repayments for a home thats worth less. In the late 2000's i struggled to pay my 9% mortgage, and with reposessions 10x higher it was a worry . Its much harder now to get on the ladder, but i don't remember it ever being easy.
638
06/02/2021 11:30:41 0 2
bbc
Agreed.
Some people own 50, 100 and even thousands of houses. It is sick and vile that this is allowed to happen. All they are doing is playing monopoly and its the poor landing on the properties and paying massive rents.
691
06/02/2021 18:29:47 0 0
bbc
Totally wrong..youve clearly no experience of the current protocols applied by lenders..they are very stringent ..so the exact opposite of "aggressive lending" You simply do not know what you are talikng about. They apply income demands /ratios way above what has gone before and way above actual pay rates.
9
05/02/2021 15:05:56 0 1
bbc
With all the savings that selected groups have amassed during lockdown, possibly the cliff edge in sales is not inevitable.
12
05/02/2021 15:08:43 1 1
bbc
I think the savings are the minority with wealth, rather than the majority, who have been under tremendous hardship.
10
05/02/2021 15:07:19 29 9
bbc
What happens when you subside housing - you increase house prices and make householders better-off. You do not help those they do not own a home at all! Yet again, policy helping the 'haves' and harming the 'have-nots'. Welcome to Britain.
508
05/02/2021 19:19:59 5 2
bbc
When you subside houses they generally fall down and/ or get fractured walls and foundations etc..they certainly dont go up in value.
11
05/02/2021 15:07:40 110 5
bbc
The recent rise of prices was largely just the transfer of stamp duty onto asking price. This year prices will drop once we start paying for covid through all the tax rises coming our way
98
05/02/2021 15:36:57 61 40
bbc
It needs a massive cut, in the order of 50%. People need homes, they should not been assets or retirement plans.
212
05/02/2021 16:14:36 12 0
bbc
I noticed that, stamp duty reduction straight onto the asking price of an already stupidly high prices
271
05/02/2021 16:32:52 8 0
bbc
And the rest! People have been adding much more than the stamp duty onto the price.
494
MX
05/02/2021 19:00:26 1 0
bbc
Spot on about stamp duty. Martin Lewis said the same.
9
05/02/2021 15:05:56 0 1
bbc
With all the savings that selected groups have amassed during lockdown, possibly the cliff edge in sales is not inevitable.
12
05/02/2021 15:08:43 1 1
bbc
I think the savings are the minority with wealth, rather than the majority, who have been under tremendous hardship.
13
05/02/2021 15:10:39 15 3
bbc
There are various levers the govt could pull to start to sort this out - further buy-to-let and second home restrictions, greater supply of Local Auth. housing, but they won't. Houses should be homes not investments
58
05/02/2021 15:26:54 8 2
bbc
Homes are an investment if you are an MP as they all have at least 2 being paid for by Joe Public. So they will not be looking to do anything that harms their investments. (Remind me how big is Rishi's property empire?)
516
05/02/2021 19:34:18 3 0
bbc
Restricting buy to let does not create a single home more .It would create less over time in fact due to a reduction of investment and it would HAVE to inflate rents so thats a silly suggestion.By the way B to Letters are a massive contributor to income tax...capital gains tax...and even taxed on their Mortgage interest COSTS..yes income tax on a cost ! ..see HMRC.
14
05/02/2021 15:10:42 11 2
bbc
End of Stamp Duty easing = Stagnation of house prices for 12 months
15
NP
05/02/2021 15:10:59 1 0
bbc
(Observation as hobbyist), builder companies profitability per house is not increased drastically (return YoY over valuation) if you compare data since 1990s. They are more profitable in terms of net profit but not as much as house price rises.

If you see labour, services, materials and commodities cost has increased exponentially. How will that allow market crash without supply overflows.
23
NP
05/02/2021 15:13:30 1 0
bbc
Cont. I see realistically, I see stagnate market. It will take far more in terms of people to sell their properties on negative equity.
16
05/02/2021 15:11:20 58 33
bbc
Simply put we should devalue house prices. They should be re labelled as Homes - they should be one of life's necessaries not a means to make money. The buying and selling of houses is of no benefit to the country - just the wombats that run it.
76
05/02/2021 15:31:20 49 33
bbc
The buying and selling of property generates income, spending and taxes. It has a great benefit to the country
286
Alf
05/02/2021 16:36:42 5 5
bbc
Well sod the millions of people that work in the industry then I guess.
299
05/02/2021 16:40:49 5 3
bbc
What would you say to people who have bought at the top of the curve who then find they have an asset which is worth half of the debt incurred to buy it (i.e. they are 'negative equity') ?

The answer is to build more 'Council Houses' which are not allowed to be sold. The inability to afford to put a roof over one's head emanates from the time council houses were allowed to be sold off cheaply.
366
05/02/2021 17:11:52 8 0
bbc
People owning homes and not needing to pay rent into their retirement is a great value to the country.
503
05/02/2021 19:14:56 2 1
bbc
De value housing and you will create a massive recesssion which will of course impact the poorer members of society the most. Like most others on here you presume houses somehow over inflated without even looking at the three information sources/charts which actually show just 3% per annum ave across last 20.yrs.
17
05/02/2021 15:11:29 2 6
bbc
Awaiting the doom and gloomers who say the house prices need to drop 20% to 'reset' the market. Probably the same people who have seen the price of their home increase several fold since buying them.
30
05/02/2021 15:16:22 2 5
bbc
Exactly, the arm chair economists.
18
05/02/2021 15:11:30 3 3
bbc
This is why the BoE puppets of Sunak are proposing negative interest rates.

Nick YOUR savings to keep THEIR property prices up.

What was that fable about houses built on sand ? No .. it wasn't a fable ... it IS the UK economy.
19
05/02/2021 15:12:30 8 2
bbc
Stamp duty holiday will mainly have benefited people with disposable income who were already OK, but would ideally like to move. Nice as this was for them, Govt subsidies would have been better targeted at those with no home at all, or being forced to lockdown in overcrowded accommodation.
20
05/02/2021 15:12:42 12 2
bbc
With stamp duty holiday about to end & with a lot people going to lose there jobs i expect prices to fall.
49
05/02/2021 15:23:22 2 3
bbc
Wow, regurgitate what was said in the article! How informative!
322
Dee
05/02/2021 16:51:45 0 0
bbc
It depends, among other factors, on which industry you’re working in, where you live & how desperate people are to sell.
21
CT
05/02/2021 15:12:58 45 13
bbc
Thank goodness for that. Hopefully they will fall soon, so that the young get a chance again to have housing Stabilty.
50
05/02/2021 15:15:10 14 5
bbc
Spot on.
117
05/02/2021 15:41:13 5 2
bbc
houses were cheap in the 80's

how much were people paying for mortages compared to their income.

MORE than now.

Cheap doesn't mean cheap!!
506
05/02/2021 19:17:45 1 0
bbc
CT mortgages are what first timers buy houses with and mortgages have never ever been cheaper..and despite the myths 10% deposits products have been available throughout. Again like most others on here you think..wrongly..that we have hyper inflated house prices.Theyve averaged just 3% inflation across the last twenty years per annum.
22
05/02/2021 14:59:54 102 48
bbc
Falling house prices is good news because they become more affordable. Be good if prices fell by 50 per cent. Houses are places to live, not investments particularly as the UK has decided not to build enough houses for those who would wish to have one.
27
05/02/2021 15:15:16 80 19
bbc
That wouldn't be particularly good news for those that then end up in negative equity....
31
05/02/2021 15:16:26 14 10
bbc
And how many people who be forced into negative equity by a 50% fall? Some may effectively trapped in a home which is not fit for purpose due to changes in their lifestyle (kids, moving for a new job, etc).
79
05/02/2021 15:32:16 15 15
bbc
absolutely clueless.

Mortgages as a percentage of income prior to pandemic (possibly still are) are pretty much historic low.

Lower house prices does not mean they are more affordable. Lower house prices would be a result of pricier mortgages and could mean houses are more expensive not less.

Deposits are expensive but once you own the property they are cheap by historic standards.
119
05/02/2021 15:42:14 4 10
bbc
Ridiculous argument
171
05/02/2021 15:59:12 1 4
bbc
That would leave a lot of people in Negative Equity. With people having 3-plus jobs during their lifetime, they'll be sure to experience this as they move to their new job location. Rental properties offer flexibility here.

It seems those against second homes are also those that either can't afford to have one, or those that don't understand the benefits of debt with regards to building wealth.
189
05/02/2021 16:06:21 1 5
bbc
The only way house prices would fall 50% is if there was a massive recession and a coresponding 50% fall in incomes. We live in a capitalist society and the basic laws of supply and demand dictate prices. Not sure I would like what's on offer in China to ensure I have a place to live!
281
Alf
05/02/2021 16:34:59 3 6
bbc
It's only good news if you don't own a house. Otherwise it's terrible news. A steady increase in houseprices in line with inflation is very healthy for the economy.
375
05/02/2021 17:18:31 0 3
bbc
Yes, negative equity and very high mortgage repayments for millions trapped in their houses, who spent years saving for a deposit.
You spoke like a true 'entitlement generation'.
549
05/02/2021 20:19:49 0 0
bbc
Yes, but only in real terms. Prices need to simply stop and neither go up nor down. Property will become cheaper over time due to inflation and (slowly) rising wages and existing owners won't be completely burned. Sadly not how things work.
630
06/02/2021 11:18:08 0 0
bbc
A 50% house price drop would crush the economy - all those waiting to buy would be losing their jobs.
635
06/02/2021 11:29:51 0 1
bbc
50% fall in house prices would be very extreme indeed is not going to happen.
682
06/02/2021 16:59:42 1 0
bbc
Fool! Jealousy is so obvious, well millions have worked hard for their homes and you want to rob them. EVIL THOUGHT!
692
06/02/2021 18:32:13 0 0
bbc
That would be an idiotic situation to create and any economist would tell you it would represent the very worst of outcomes for the wider economy. You are clearly not qualified or experienced in such matters.
15
NP
05/02/2021 15:10:59 1 0
bbc
(Observation as hobbyist), builder companies profitability per house is not increased drastically (return YoY over valuation) if you compare data since 1990s. They are more profitable in terms of net profit but not as much as house price rises.

If you see labour, services, materials and commodities cost has increased exponentially. How will that allow market crash without supply overflows.
23
NP
05/02/2021 15:13:30 1 0
bbc
Cont. I see realistically, I see stagnate market. It will take far more in terms of people to sell their properties on negative equity.
24
05/02/2021 15:13:41 15 6
bbc
If you could have greater control of the buy to let market then house prices would fall and be affordable to those who have difficulty getting on the property ladder.Remember paying rent is dead money and you have nothing to show for it at the end.
57
05/02/2021 15:26:49 11 9
bbc
The Buy to let market is not the devil every makes it out to be. Affordable rental housing is a must have- because owning a house is not for everyone. However recent restrictions has to some extent only increased rental prices.

Owning a house can be very expensive and is only worthwhile in most cases if its a long-term stay.
631
06/02/2021 11:25:00 1 0
bbc
You could say paying for electricity, water, gas, food is "dead money" as you similarly have nothing to show for it in the end (unless very fat). What you got was a roof over your head at the time.
2
05/02/2021 14:59:00 114 31
bbc
The bubble was always going to burst as the prices being paid for houses has become unsustainable. Some form of reality has to return to the housing market.
25
05/02/2021 15:14:43 82 11
bbc
how has it burst? A slight decline last month but still a year on year growth.
8
05/02/2021 15:05:50 287 44
bbc
House prices are massively manipulated to be kept artificially high. Without this any number of banks would immediately collapse from not having these debts on their asset sheets.

Real demand for housing cannot be accurately measured while banks aggressively lend money they don't have to anyone prepared to accept it.

Foreign money in housing is also a national problem.

gov don't want to fixit
26
05/02/2021 15:15:04 129 21
bbc
Totally right! Demand is governed by the mortgage market - Banks lend more, houses sell higher. If prices went up and Banks refused to lend more to buyers, then they just would not sell at higher prices. SIMPLE. It has been happening for decades and governments allow them to lend more to push house prices up to secure consumer debt to keep people buying into the economy. B.S World!
219
05/02/2021 16:18:35 8 14
bbc
So speaks a person who didn’t bother saving for a house
269
05/02/2021 16:31:13 0 1
bbc
So true
485
05/02/2021 18:51:51 1 1
bbc
Totally inaccurate .Lending criteria have got very significantly tighter not slacker.You clearly do not work in finance !
640
06/02/2021 11:33:15 0 0
bbc
B.S world is exactly right. I wish I had my time again and not be nice because being nice gets you financially nowhere.
Having said that, I can go to my grave saying that I have "never knowingly ripped anyone off".
22
05/02/2021 14:59:54 102 48
bbc
Falling house prices is good news because they become more affordable. Be good if prices fell by 50 per cent. Houses are places to live, not investments particularly as the UK has decided not to build enough houses for those who would wish to have one.
27
05/02/2021 15:15:16 80 19
bbc
That wouldn't be particularly good news for those that then end up in negative equity....
48
05/02/2021 15:22:47 6 3
bbc
House prices pushed up 5% by BoE and Rishi, and you needed at least 10% deposit if you purchased in the last year. So unless prices fall by over 15% negative equity is a consideration. But a sizable drop would at least mean that property owners are not making a profit out of COVID.
66
05/02/2021 15:21:54 16 6
bbc
Negative equity isn’t relevant for many, if not most people who just want a home to live in.
95
Bob
05/02/2021 15:36:43 12 3
bbc
Negative equity is only an issue when you come to sell or need to remortgage.

Given the average equity and the new protections introduced since the issues following the financial crash in 2008 it is kind of a non-issue these days for remortgaging.
102
xlr
05/02/2021 15:37:47 10 0
bbc
Housing equity itself is, by definition, a pyramid scheme.
342
05/02/2021 17:02:55 6 2
bbc
Negative equity is far better than paying rent for nothing.
28
05/02/2021 15:15:27 53 6
bbc
Try London, with its COVID induced population drop.

We COULD take this as an opportunity to promote a London with affordable housing, so that people working on the minimum wage can live reasonable lives in the city.

Or

We could go back to the old system where London's economy depends on cheap foreign labour, people who live 14 or more to a cramped flat.

Hmmm... I wonder which one it will be?
53
05/02/2021 15:23:54 49 0
bbc
And as in City of London, increasing building of new offices, and extensions of existing ones. Plus of course multimillion pound flats as investments still being built to stay empty for most or all of the year
And don't forget that "affordable" with regards to housing, means 80% of so-called "market values". And so in London "affordable" is unaffordable for the vast number of residents
105
05/02/2021 15:38:38 1 5
bbc
The old people living in their own hoarding run down 4 bed places are the problem.

The laws allowing HMO’s and laz regulations on estate agents and letting us an issue.

If it was illegal to bundle 14 in a cramped flat (evidence please) then it wouldn’t happen.

Why do you have an issue with poor people willing to work to earn a living?
29
05/02/2021 15:16:20 3 3
bbc
High rates of stamp duty are choking off supply. I live in a small terraced house in SW London, I bought in 1994, paying 1.6K Stamp duty. Under the new system, a buyer would have to pay 130K in Stamp Duty on top of price. If I upsize I pay even more SD, so it makes sense for me to improve my existing home. That is why few houses are for sale & every Street in London has builders working in them.
54
05/02/2021 15:24:58 3 0
bbc
Your house is worth £1.8 million?
135
Dee
05/02/2021 15:47:54 1 0
bbc
Agree. Also, stamp duty rates are putting off people buying from downsizers so, for example, elderly people will remain in big houses & anyway there are no small or medium sized houses for them to buy as most developments tend to be small, expensive flats.
17
05/02/2021 15:11:29 2 6
bbc
Awaiting the doom and gloomers who say the house prices need to drop 20% to 'reset' the market. Probably the same people who have seen the price of their home increase several fold since buying them.
30
05/02/2021 15:16:22 2 5
bbc
Exactly, the arm chair economists.
22
05/02/2021 14:59:54 102 48
bbc
Falling house prices is good news because they become more affordable. Be good if prices fell by 50 per cent. Houses are places to live, not investments particularly as the UK has decided not to build enough houses for those who would wish to have one.
31
05/02/2021 15:16:26 14 10
bbc
And how many people who be forced into negative equity by a 50% fall? Some may effectively trapped in a home which is not fit for purpose due to changes in their lifestyle (kids, moving for a new job, etc).
45
05/02/2021 15:22:23 11 7
bbc
A very significant proportion would end up in negative equity mate....
63
05/02/2021 15:20:11 22 6
bbc
They would still be in a better place than those who are not able to get on the ladder because of obscenely priced properties.
120
05/02/2021 15:42:14 18 0
bbc
the value of your investment can go down as well as up... applies to every investment out there, and only a fool thinks otherwise.
5
05/02/2021 15:04:48 130 35
bbc
We have increased the population by about 9 million over the last 20 years or so, without building the extra homes to house that increase. Supply and demand means houses are over expensive.

Build more homes and get a grip on immigration, for the sake of everyone's quality of life.
32
05/02/2021 15:16:57 32 55
bbc
It's increased by 9 million since ~ 1975. The quality of housing has increased a lot since then as well.
303
05/02/2021 16:41:32 19 2
bbc
The quality of housing has increased??! Have you ever bought a new build? The mortar between the bricks is an optional extra and whilst it looks nice it won't last. Give me a 1930's house any day.
511
05/02/2021 19:27:07 2 1
bbc
most of that is under lying post 2010 Tories - remember the net migration in the tens of thousands manifesto's ..
Whilst they bring in 300k net. All for the Developers and Neo libs that have taken over what was once the Conservative party. So whilst bringing mega house prices they also destroyed wages - as you know us plebs have to compete with China slaves now !! Disgusting take over of Tories.
3
05/02/2021 15:00:00 177 24
bbc
It will be a big mistake to extend the stamp duty holiday again.
33
05/02/2021 15:18:13 133 19
bbc
I think that Stamp Duty for your main residence should be reduced (and that duty for subsequent properties should be raised).

If the cost of moving was lower, there would be more fluidity in the market. It may well lead to a larger volume of sales (and no overall drop in the tax take).

Might help to free up housing (e.g. older couples moving out of larger homes once their children leave home).
43
05/02/2021 15:21:45 12 0
bbc
Yeah It's an interesting one, I agree with 2nd home stamp duty as a discouragement.
But having such a large transactional cost generates such a barrier to moving home. Especially with potentially a lot of people looking to find new work.
181
05/02/2021 16:01:14 13 1
bbc
"Might help to free up housing (e.g. older couples moving out of larger homes once their children leave home)"

Main reason that doesn't already happen is because there's a shortage of suitable smaller homes
185
05/02/2021 16:02:47 16 4
bbc
Agree

For only home. It should a % based on the differential between Sold and Bought
For non-main residence a high double digit tax.
We need our children to be able to buy a home. Not investors to invest and rip our kids off
218
05/02/2021 16:18:19 5 1
bbc
I would like to see a stamp exemption applied to one (or joint) mortgage holders throughout their life
one that exempts them from stamp provided they sell/buy one property on each occasion (presumably their home)

as you say, a greater stamp burden on owners of multiple properties seems fair
437
05/02/2021 18:12:08 0 0
bbc
SDLT on your first residence is already lower than on a second one.
491
05/02/2021 18:55:42 0 0
bbc
The stamp on second homes and buy to lets HAS NOT BEEN REMOVED and is also HIGHER than for single home owners.
637
06/02/2021 11:30:16 1 0
bbc
I agree that 'stinging' multiple ownership seems sensible. Maybe the measures being introduced to kerb buy-2-let landlords may help cool the market a bit. But the house builders also need to play their part and build properties that older couples WANT to buy. Why would anyone sell the home they love, to move into a small roomed new build on an overcrowded estate if they don't need to.
34
05/02/2021 15:18:34 171 10
bbc
I live alone and pay £900 a month in rent. I'm 52 and unlikely to ever get on the ladder now. Dead money and pretty stuffed when I retire......
62
05/02/2021 15:28:10 133 21
bbc
I feel your pain.
Perhaps also clamping down on second homes would help the situation of demand outstripping supply. Some people own no house others have more than one. Weird.
The demand for houses just seems to mean the continual concreting over the whole country.
132
05/02/2021 15:46:36 59 3
bbc
Ten years younger, but same situation. What really infuriates me is that I can display a decade of on time rent payment and good credit. If I can afford £900 (plus in my case) in rent, I can afford £700 pm in mortgage. Why doesn't the government make these payments reportable on your credit file, and allow lower deposit mortgages for those with a history of good rent payment.
176
05/02/2021 16:00:08 3 33
bbc
should have bought some bitcoin years ago. Oh well.
245
ian
05/02/2021 16:25:55 6 42
bbc
You have more money then sense if you pay 900 rent
278
05/02/2021 16:34:44 9 12
bbc
I'm 55 and bought in Outer London in 1995, when house prices were sensible. You would have been in your mid-20s. Were you working but unable to save at this point ?
486
05/02/2021 18:53:18 2 4
bbc
There are literally many thousands of houses in lots of different parts of the country that you could buy on that sort of money. Wake up and get real.
509
05/02/2021 19:22:25 3 0
bbc
move to West yorks and get a 2 bed terrace for 80k-with a 10% deposit you will need a mortgae of 72k and income of 18k a year and of course this still assumes they have not snagged up your credit rating and over lent Credit to you to do so-The trap for the masses. We must escape them and the best way to pressure the price down is to control immigration and get the banks and developers on the run.
623
06/02/2021 10:38:47 1 0
bbc
You blew it.

Try to find someone wealthy to marry!

That said I assume you have a halfway decent army pension coming your way.

£900 for a single person who isn't a high-flyer is excessive, move somewhere cheaper.
644
06/02/2021 11:48:02 1 0
bbc
expensive for rent isn't it, you thought of anywhere smaller/cheaper ?
35
RG
05/02/2021 15:18:42 5 1
bbc
Most property prices didn’t go up 5.4% last year. The houses bought by the rich with no stamp duty has made the mean average higher. However the mode (most common) was less so. Secondly, these valuations are based on asking price rather than sales.
124
05/02/2021 15:42:45 1 0
bbc
The stamp duty was only on primary residences. Second homes still had to pay the second home stamp duty.
36
05/02/2021 15:19:32 8 5
bbc
House prices are self regulating. If they drop significantly people stop selling them. As a result there isn’t enough brick on the market so prices soar. Rightly or wrongly it will never change.
51
05/02/2021 15:23:37 7 3
bbc
Yeah, it's always been that way right? Couldn't possibly be different.

Now we have cleared that up, can I sell you a second hand boat? One owner and only a few holes.
65
05/02/2021 15:21:32 1 0
bbc
Precisely. Demand will always outstrip supply on an over populated Island.
150
05/02/2021 15:52:43 1 0
bbc
History has proven this to not be true.
37
05/02/2021 15:19:45 16 2
bbc
Houses are ultimately worth what people are willing to pay for the specific property, based on factors such as standard of finish, whether it's a good example of its type, its position, its immediate area, local amenities, etc.

It's pointless saying "house prices did this" and "house prices did that" because it suggests price increases apply to all houses in general, which they absolutely don't.
320
Dee
05/02/2021 16:48:40 6 1
bbc
Spot on. The market is complex and depends on a huge number of factors.
512
05/02/2021 19:30:12 0 0
bbc
Agreed...also measuring by average..is ridiculous when there are houses in the north east for 20 K..literally... lots of them...and the same house in London..200K plus..at least twenty times more..2000% (ish ) more...only ten million people in greater london..so only maybe 5 million homes (ish). the distortion that creates in the "national" average renders it a useless statistic.
38
05/02/2021 15:19:49 8 2
bbc
the system is broken has been for a long time what we need a new system. because the system is only working for the few the rest of us work for it. and that needs to stop
44
05/02/2021 15:22:23 5 2
bbc
That is true across the board, not just the housing market.
39
05/02/2021 15:09:32 13 1
bbc
Cant keep going up when you have no job or money and have to downsize
40
05/02/2021 15:20:40 24 4
bbc
It was January and we are all locked down. Solicitors and councils and mortgage providers have all slowed up. So until the country opens up and the weather improves, I think that its far too early to make such statements.
41
05/02/2021 15:12:03 33 9
bbc
wow house prices dropped by 0.3% in January , a month when we weren't allowed to leave our homes
56
05/02/2021 15:26:06 15 18
bbc
Try and keep up with the debate. We can't keep repeating stuff.

Check out the details, read the article and around the subject then please come back with something useful to contribute. Thanks.
214
05/02/2021 16:15:48 2 1
bbc
People are allowed to leave their homes to view properties which shows how obsessed this country is with buying homes.
289
05/02/2021 16:37:21 4 0
bbc
Do keep up! You are still allowed to buy, sell and view homes during lockdown.
42
05/02/2021 15:21:36 76 24
bbc
The government must stop meddling in the housing market Ponzi scheme. The only thing keeping house prices rising are the government's own subsidies to the housing cartel...Stamp Duty breaks, Help to 'Sell' etc. driving up asking prices and lumbering young people with enormous mortgages! Nothing short of a Tory bung to their biggest donors!
68
05/02/2021 15:29:19 55 10
bbc
The housing market is like all markets. Rigged. No such thing as a free market, right?

No modern govt. will let housing fail for fear of the repercussions. You must know that? No chance that they will keep their noses out and as usual they feather their own nests first.
615
06/02/2021 10:05:04 0 0
bbc
Well, actually, the fact that people go to such extraordinary lengths to pay the higher prices plays a big part. If people were less willing, prices would fall.
33
05/02/2021 15:18:13 133 19
bbc
I think that Stamp Duty for your main residence should be reduced (and that duty for subsequent properties should be raised).

If the cost of moving was lower, there would be more fluidity in the market. It may well lead to a larger volume of sales (and no overall drop in the tax take).

Might help to free up housing (e.g. older couples moving out of larger homes once their children leave home).
43
05/02/2021 15:21:45 12 0
bbc
Yeah It's an interesting one, I agree with 2nd home stamp duty as a discouragement.
But having such a large transactional cost generates such a barrier to moving home. Especially with potentially a lot of people looking to find new work.
38
05/02/2021 15:19:49 8 2
bbc
the system is broken has been for a long time what we need a new system. because the system is only working for the few the rest of us work for it. and that needs to stop
44
05/02/2021 15:22:23 5 2
bbc
That is true across the board, not just the housing market.
31
05/02/2021 15:16:26 14 10
bbc
And how many people who be forced into negative equity by a 50% fall? Some may effectively trapped in a home which is not fit for purpose due to changes in their lifestyle (kids, moving for a new job, etc).
45
05/02/2021 15:22:23 11 7
bbc
A very significant proportion would end up in negative equity mate....
5
05/02/2021 15:04:48 130 35
bbc
We have increased the population by about 9 million over the last 20 years or so, without building the extra homes to house that increase. Supply and demand means houses are over expensive.

Build more homes and get a grip on immigration, for the sake of everyone's quality of life.
46
05/02/2021 15:22:31 21 28
bbc
Houses aren't "over expensive". They're exactly the price they should be based on demand heavily outstripping supply.

If you don't want to live in a market-driven economy don't vote Tory at the next election. Vote Green like I do.
97
xlr
05/02/2021 15:36:49 14 3
bbc
I'm perfectly fine with a market-driven economy, I just think that uncontrolled buying to let and Right-To-Buy have skew the system away from a free market and ultimately towards a two tier system where a small minority own very expensive property which the vast majority could never hope to buy.
156
djf
05/02/2021 15:54:41 6 6
bbc
This is a load of cobblers. It went likeit is after 1997.
354
05/02/2021 17:07:19 5 0
bbc
What's the policy of the green party on building more homes to meet the demand?
383
05/02/2021 17:21:18 7 0
bbc
The same Greens who want to open the border to literally anyone who wants to come here? If you genuinely think that's going to help reduce house prices then you must be living in topsy turvy world.
8
05/02/2021 15:05:50 287 44
bbc
House prices are massively manipulated to be kept artificially high. Without this any number of banks would immediately collapse from not having these debts on their asset sheets.

Real demand for housing cannot be accurately measured while banks aggressively lend money they don't have to anyone prepared to accept it.

Foreign money in housing is also a national problem.

gov don't want to fixit
47
NP
05/02/2021 15:22:32 2 0
bbc
I bought a new house and I am putting hypothetical numbers here,

On average of £100,000 house, my insurance say £ 75,000 is cost to rebuild (according to RICS), and they are right based on commodities, construction labour + services cost, regulations, taxes etc.

As a economist, valuation is based on what it does take to build the house on the day + demand pressure.
109
05/02/2021 15:39:15 8 1
bbc
Me and Dodgy Dave will rebuild your house for £50,000.
138
05/02/2021 15:48:17 7 3
bbc
cost to rebuild is always cheaper than purchase price, even accounting for the clearance of site the land is already owned so isn't a factor.
It was much the same 20 years ago when I queried my insurance back then.
27
05/02/2021 15:15:16 80 19
bbc
That wouldn't be particularly good news for those that then end up in negative equity....
48
05/02/2021 15:22:47 6 3
bbc
House prices pushed up 5% by BoE and Rishi, and you needed at least 10% deposit if you purchased in the last year. So unless prices fall by over 15% negative equity is a consideration. But a sizable drop would at least mean that property owners are not making a profit out of COVID.
20
05/02/2021 15:12:42 12 2
bbc
With stamp duty holiday about to end & with a lot people going to lose there jobs i expect prices to fall.
49
05/02/2021 15:23:22 2 3
bbc
Wow, regurgitate what was said in the article! How informative!
21
CT
05/02/2021 15:12:58 45 13
bbc
Thank goodness for that. Hopefully they will fall soon, so that the young get a chance again to have housing Stabilty.
50
05/02/2021 15:15:10 14 5
bbc
Spot on.
36
05/02/2021 15:19:32 8 5
bbc
House prices are self regulating. If they drop significantly people stop selling them. As a result there isn’t enough brick on the market so prices soar. Rightly or wrongly it will never change.
51
05/02/2021 15:23:37 7 3
bbc
Yeah, it's always been that way right? Couldn't possibly be different.

Now we have cleared that up, can I sell you a second hand boat? One owner and only a few holes.
52
05/02/2021 15:23:44 8 3
bbc
Stamp duty holidays and Lifetime and Help to Buy ISAs are just tinkering with the symptoms and inflating pricess. The only way to sort out the problem is to build more houses...
69
05/02/2021 15:29:40 12 2
bbc
....and breed less. The planet is Over populated and Overcrowded.
118
05/02/2021 15:41:19 0 1
bbc
Look at the local outrage when they do. I live on a new build estate in a village. The locals hate us, just because we bought on this estate.
28
05/02/2021 15:15:27 53 6
bbc
Try London, with its COVID induced population drop.

We COULD take this as an opportunity to promote a London with affordable housing, so that people working on the minimum wage can live reasonable lives in the city.

Or

We could go back to the old system where London's economy depends on cheap foreign labour, people who live 14 or more to a cramped flat.

Hmmm... I wonder which one it will be?
53
05/02/2021 15:23:54 49 0
bbc
And as in City of London, increasing building of new offices, and extensions of existing ones. Plus of course multimillion pound flats as investments still being built to stay empty for most or all of the year
And don't forget that "affordable" with regards to housing, means 80% of so-called "market values". And so in London "affordable" is unaffordable for the vast number of residents
495
05/02/2021 19:02:48 3 3
bbc
Wow so wealthy people are dumb enough to build million pound places and deliberately leave them empty.....do you seriously believe that utter nonsense.
29
05/02/2021 15:16:20 3 3
bbc
High rates of stamp duty are choking off supply. I live in a small terraced house in SW London, I bought in 1994, paying 1.6K Stamp duty. Under the new system, a buyer would have to pay 130K in Stamp Duty on top of price. If I upsize I pay even more SD, so it makes sense for me to improve my existing home. That is why few houses are for sale & every Street in London has builders working in them.
54
05/02/2021 15:24:58 3 0
bbc
Your house is worth £1.8 million?
99
05/02/2021 15:37:03 2 0
bbc
In SW London it is more than likely
104
05/02/2021 15:38:03 1 0
bbc
I saw 2-bed maisonettes over shops in London advertised for over a million pictures of Lizzie...

And that was in 2014!

I'd have needed a passport though - it was in Pimlico :-)

Location is always important.
146
Dee
05/02/2021 15:50:54 0 0
bbc
SW London is one of the most expensive parts of the country. However, it depends on which part of SW London Anarcho-Libertarian lives in.
165
05/02/2021 15:56:33 1 0
bbc
You obviously don't live in SW London! However, to be fair to you, I think I was slightly off in my sums. My house would probably sell for 1.3 to 1.5M. That doesn't disprove my point, which is that by choking off supply, higher rates of stamp duty are actually causing house prices to rise. We should go back to the old 1% flat rate. It is John Major's fault. He was the first PM to start tinkering!
55
05/02/2021 15:26:00 5 1
bbc
Just limit the max mortgage to five times salary. In the 1960/70 the limit was three to three and a half times salary, house prices kept in line with inflation not rampant increase.
86
05/02/2021 15:34:36 0 3
bbc
But only those with a house could afford them. Or the north would be overrun with Londoners.
114
05/02/2021 15:40:29 1 0
bbc
Also, in 1960/70 it was more common for families to have just one bread winner, so the market is even more skewed.
127
VoR
05/02/2021 15:43:31 1 0
bbc
Interest rates were much higher in the 60s (albeit nothing like as high as the 80s) which renders any income multiple comparison a bit pointless. Back then your monthly outgo on interest would have been higher per pound borrowed, so covering a 5x mortgage would have been prohibitively difficult for almost all.

Even today 5x is too much for many people. Can't rely on maintaining low rates.
670
06/02/2021 13:17:42 0 0
bbc
Agreed 'terg' but since then £Billions of foreign investment has poured into UK which isn't affected by ;ending criteria. If non-doms paid 100% tax on profits from property sales, it would stop that, but it's just decades too late.
41
05/02/2021 15:12:03 33 9
bbc
wow house prices dropped by 0.3% in January , a month when we weren't allowed to leave our homes
56
05/02/2021 15:26:06 15 18
bbc
Try and keep up with the debate. We can't keep repeating stuff.

Check out the details, read the article and around the subject then please come back with something useful to contribute. Thanks.
24
05/02/2021 15:13:41 15 6
bbc
If you could have greater control of the buy to let market then house prices would fall and be affordable to those who have difficulty getting on the property ladder.Remember paying rent is dead money and you have nothing to show for it at the end.
57
05/02/2021 15:26:49 11 9
bbc
The Buy to let market is not the devil every makes it out to be. Affordable rental housing is a must have- because owning a house is not for everyone. However recent restrictions has to some extent only increased rental prices.

Owning a house can be very expensive and is only worthwhile in most cases if its a long-term stay.
13
05/02/2021 15:10:39 15 3
bbc
There are various levers the govt could pull to start to sort this out - further buy-to-let and second home restrictions, greater supply of Local Auth. housing, but they won't. Houses should be homes not investments
58
05/02/2021 15:26:54 8 2
bbc
Homes are an investment if you are an MP as they all have at least 2 being paid for by Joe Public. So they will not be looking to do anything that harms their investments. (Remind me how big is Rishi's property empire?)
477
05/02/2021 18:40:20 0 0
bbc
ALL have AT LEAST 2 houses? Rubbish!

Rishi's wife is incredibly wealthy as the result of her father's success in business. No wonder they have a property empire!
59
05/02/2021 15:16:35 8 1
bbc
Nothing to do with bubbles bursting, or a price collapse. House prices were artificially inflated due to the stamp duty holiday. These reductions are simply as a result of people listing properties priced knowing they will not complete before the March cut off.
5
05/02/2021 15:04:48 130 35
bbc
We have increased the population by about 9 million over the last 20 years or so, without building the extra homes to house that increase. Supply and demand means houses are over expensive.

Build more homes and get a grip on immigration, for the sake of everyone's quality of life.
60
05/02/2021 15:27:17 21 1
bbc
The population has grown because U.K. PLC does not do productivity growth, it just relies on cheap labour.
88
05/02/2021 15:34:44 14 4
bbc
Indeed, and will continue to after Brexit, only from India/China/anywhere other than Europe.

Population is only a problem because successive gov'ts (over decades) have failed to build. May's gov't said they would build 200,000 starter homes, and spent ~£200m in taxes preparing the land, before siphoning off the building money and building precisely 0. And the ones they do build are too expensive.
627
06/02/2021 11:13:36 1 0
bbc
Indeed - or high inbound migration of cheap labour suppresses the investment in automation etc that generates productivity growth.
61
05/02/2021 15:28:02 1 4
bbc
Lol.
3D printers will be churning them out everywhere sooner than almost anyone realises. They already are in a couple of places at half the cost of neighbouring properties. Half the cost. Already. If pundits called #GME a bubble then they'll need a new vocabulary for property speculation.
83
05/02/2021 15:33:47 1 1
bbc
You think the Tory party and their property investment donors will allow that?
141
05/02/2021 15:49:41 1 0
bbc
The building has always been cheap, its the land that is expensive.
34
05/02/2021 15:18:34 171 10
bbc
I live alone and pay £900 a month in rent. I'm 52 and unlikely to ever get on the ladder now. Dead money and pretty stuffed when I retire......
62
05/02/2021 15:28:10 133 21
bbc
I feel your pain.
Perhaps also clamping down on second homes would help the situation of demand outstripping supply. Some people own no house others have more than one. Weird.
The demand for houses just seems to mean the continual concreting over the whole country.
488
05/02/2021 18:54:28 1 1
bbc
The number of people owning second homes and not renting them out is a minute fraction of the market. Jealousy is no substitute for reality Gordon.
610
06/02/2021 09:41:19 1 0
bbc
What’s it matter if people have two houses if they choose to. What business is it of if anyone else how someone else spends their Money.
720
06/02/2021 21:32:41 0 0
bbc
The real cuprits are banks giving money for 2nd home purchases which inevitably drives up property prices thereby making housing unaffordable for local persons which as a consequence leaves our friend paying £900 pm because someone else with the connivance of a bank took the house that was really meant for him.
31
05/02/2021 15:16:26 14 10
bbc
And how many people who be forced into negative equity by a 50% fall? Some may effectively trapped in a home which is not fit for purpose due to changes in their lifestyle (kids, moving for a new job, etc).
63
05/02/2021 15:20:11 22 6
bbc
They would still be in a better place than those who are not able to get on the ladder because of obscenely priced properties.
64
05/02/2021 15:29:02 28 14
bbc
Can we get a 25% reduction please. High house prices benefits nobody other than those inheriting estates.
100
VoR
05/02/2021 15:37:19 19 9
bbc
Well, it does (a) allow the release of equity from houses which can then be ploughed back into the economy, and (b) increase the security of relatively mature mortgages because the amount loaned is a smaller proportion of the asset backing the loan, which then makes lower interest rates available on mortgages.
107
05/02/2021 15:39:03 4 2
bbc
which will be millions of people
377
05/02/2021 17:19:04 1 1
bbc
and not even those, as it pushed more estates past the stamp duty threshold, leaving people facing a tax bill or potentially moving out of the house they are already living in.
510
05/02/2021 19:23:11 1 0
bbc
Oh dear yet another poster who erroneously believes we have hyper inflated house prices. PLEASE PLEASE PLEASE go and look at the three charts..O>N>S halifax..or nationwide..read them correctly..please..because the actual average per ann across the last 20 years..IS just 3%..perfectly normal and in FACT biggest single spike was DOWN!.
36
05/02/2021 15:19:32 8 5
bbc
House prices are self regulating. If they drop significantly people stop selling them. As a result there isn’t enough brick on the market so prices soar. Rightly or wrongly it will never change.
65
05/02/2021 15:21:32 1 0
bbc
Precisely. Demand will always outstrip supply on an over populated Island.
27
05/02/2021 15:15:16 80 19
bbc
That wouldn't be particularly good news for those that then end up in negative equity....
66
05/02/2021 15:21:54 16 6
bbc
Negative equity isn’t relevant for many, if not most people who just want a home to live in.
391
05/02/2021 17:27:02 5 0
bbc
If they're not looking to sell then negative equity doesn't matter. It's only worth what someone wants to pay for it. If you stay where you are instead of moving to another over-priced property you're fine
67
05/02/2021 15:29:14 12 2
bbc
Running of of Steam - Coz it full of HOT AIR,
People have lost jobs. personal debt is high,
Clearly this doesn't add up, for Prices to be Sky high
519
05/02/2021 19:38:24 1 2
bbc
They arent sky high..read the charts !! any one of the three sources and read them correctly.
42
05/02/2021 15:21:36 76 24
bbc
The government must stop meddling in the housing market Ponzi scheme. The only thing keeping house prices rising are the government's own subsidies to the housing cartel...Stamp Duty breaks, Help to 'Sell' etc. driving up asking prices and lumbering young people with enormous mortgages! Nothing short of a Tory bung to their biggest donors!
68
05/02/2021 15:29:19 55 10
bbc
The housing market is like all markets. Rigged. No such thing as a free market, right?

No modern govt. will let housing fail for fear of the repercussions. You must know that? No chance that they will keep their noses out and as usual they feather their own nests first.
52
05/02/2021 15:23:44 8 3
bbc
Stamp duty holidays and Lifetime and Help to Buy ISAs are just tinkering with the symptoms and inflating pricess. The only way to sort out the problem is to build more houses...
69
05/02/2021 15:29:40 12 2
bbc
....and breed less. The planet is Over populated and Overcrowded.
84
05/02/2021 15:34:19 0 3
bbc
Yes, I know of 1 too many now!
89
05/02/2021 15:34:52 0 4
bbc
Yawn.
70
05/02/2021 15:29:47 11 4
bbc
House prices needed to run out of steam 15 years ago, but there’s too much money in it for estate agents. Since Covid in my local area, one estate agent has created a property boom by hiking up prices and then only letting people in to view once every two weeks on the same day and it’s worked. I asked him to value my house and he gave it 30% more that it was valued at 18 months ago. Ridiculous.
71
col
05/02/2021 15:30:03 4 1
bbc
As a trained economist & accountant with quals in Business, law and banking i have watched the housing market for many years.

I have run the numbers many times & always come back to the same position.

The only way the UK could sustain such a price level is with a massive black economy, Crime, Tax evasion,& largest of all hidden work.

The UK economy has to be 60-80% bigger than the official GDP
91
VoR
05/02/2021 15:35:14 0 0
bbc
You may be right, but don't forget that a lot is funded by gov't debt (subsidies to first time buyers etc) and personal debt (banks being willing to lend more).

The black economy is pretty big though, given how often I bump into it without trying. About half the builders/workmen that I've used tried to get me to pay into their wife or kid's account instead of pay to their business account.
144
05/02/2021 15:50:14 0 0
bbc
Hardly, it is just the law of supply and demand. The fact is that the UK has not built sufficient homes to keep up with demand for decades, we are at least 1.5 million homes short.

Then there is the fall in interest rates coupled with rise in salaries. Even without the supply shortfall, prices would have risen 4 fold, which is very close to the actual rise in average prices
213
05/02/2021 16:15:26 0 0
bbc
Don't forget that you have wealthy Russians, Hong Kong Chinese, etc buying UK property, plus inheritance money propping up the system.
72
05/02/2021 15:30:37 16 9
bbc
Good! Houses are supposed to be affordable to young people starting off in life. They are not designed to enable Boomers to wring EVEN MORE money out of the younger generations
80
05/02/2021 15:32:33 14 4
bbc
And they moan that no one can afford to buy their £350k house they bought for £1000
517
05/02/2021 19:37:29 1 0
bbc
Mortgages have never ever been cheaper and despite all the hype house prices are perfectly normal over the long term.Look at any of the three sources charts and you will..if you can read a chart..see the long term ave per annum has been just 3 % over those 20 years
73
05/02/2021 15:30:37 60 3
bbc
Obviously house prices rose even MORE than they normally rise during the stamp duty holiday. Sellers increased their asking prices (urged on by estate agents) to take the stamp duty taxpayer-funded giveaway.
Which meant most buyers ended up paying the same amount as they would have done without the holiday.
92
05/02/2021 15:35:38 46 6
bbc
Most people paid more money than if the Stamp Duty holiday had stayed in place. It was a self-defeating policy for the government and buyers!
74
05/02/2021 15:31:04 9 0
bbc
"...and their home looks like a bomb has hit it."

Its called living. Buyers should not expect every place they visit to look like a soulless show home!
75
05/02/2021 15:31:09 3 1
bbc
"House price rises 'could be running out of steam’"
No the steam will NOT run out. Too many WAIL readers will be upset and blowing their collective tops.
Their "something for nothing" losing "value" will not make them happy, not that their property has any value. It only has when they are selling and only what someone is prepared to pay.
No steam isn't running out just follow the wail readers
16
05/02/2021 15:11:20 58 33
bbc
Simply put we should devalue house prices. They should be re labelled as Homes - they should be one of life's necessaries not a means to make money. The buying and selling of houses is of no benefit to the country - just the wombats that run it.
76
05/02/2021 15:31:20 49 33
bbc
The buying and selling of property generates income, spending and taxes. It has a great benefit to the country
274
05/02/2021 16:33:58 7 2
bbc
Therein lies the problem. Property has become an investment rather than a home.
77
05/02/2021 15:31:28 5 4
bbc
Why are house price inflation not subject to capital gains tax. The inflation is unearned income. I bought my first house for £5250 and sold my last for over £70,000; I did nothing other than routine maintenance to bring this about
Housing is a functional need and use of it as an investment should be discouraged.
90
05/02/2021 15:34:53 2 1
bbc
only your primary residence is CGT exempt.
101
05/02/2021 15:37:38 0 0
bbc
Houses that aren't your primary residence are subject to CGT.
111
05/02/2021 15:39:23 0 0
bbc
Well that would seize up the housing market, as if stamp duty isn’t a big enough chunk. You pay capital gains on second homes and investment properties.
208
05/02/2021 16:13:21 2 0
bbc
How would you be able to afford to move if you had to pay CGT?
78
05/02/2021 15:32:04 54 14
bbc
Why is the solution for people wanting to own a home to live in always increasing borrowing and debt? The market is now largely unaffordable to younger generations of ordinary working people. Stop land banking, build council houses, stop right to buy, introduce rent controls, tax buy to let portfolios. Then the market can adjust to a more sensible level. Either that or wait for another big crash.
93
05/02/2021 15:36:32 51 13
bbc
Buy to let is already HEAVILY taxed. Guess who that tax is passed on to? Renters. Be careful what you wish for.
106
al
05/02/2021 15:38:50 13 1
bbc
I would add to those, better control of quality of new housing (most new builds are extremely poor quality), including materials, insulation, but also size of rooms - how can you call a bedroom a box where you can barely fit a single bed? Developers are extorting money from genuine people!
308
Alf
05/02/2021 16:42:13 12 4
bbc
Buy to let is already taxed to hell and back, which has seen quite a lot of landlords leave the market this year, reducing supply and guess what, increasing rent as a result.
497
05/02/2021 19:09:35 5 4
bbc
Buy to let IS massively taxed already..even the finance COSTS on buy to let are taxed..plus rent... plus 28% capital gains which is infinitely bigger than the ZERO private home owners pay. Check your facts.B to L people are comparatively huge contributors to our tax system. AND The market has averaged just 3% inflation per annum across last 20 years FACT.
22
05/02/2021 14:59:54 102 48
bbc
Falling house prices is good news because they become more affordable. Be good if prices fell by 50 per cent. Houses are places to live, not investments particularly as the UK has decided not to build enough houses for those who would wish to have one.
79
05/02/2021 15:32:16 15 15
bbc
absolutely clueless.

Mortgages as a percentage of income prior to pandemic (possibly still are) are pretty much historic low.

Lower house prices does not mean they are more affordable. Lower house prices would be a result of pricier mortgages and could mean houses are more expensive not less.

Deposits are expensive but once you own the property they are cheap by historic standards.
617
06/02/2021 10:14:36 0 0
bbc
It is not the cost of mortgages which is important but the relative price of houses. In 1960 mortgages were restricted to 2.5 time a single income. Now they are 8 to 10 times and both partners have to earn. In the 1930s Local Authorities were allowed to offer mortgages at a fixed interest rate over 25 years. This stability has gone because of spivs in the City and compliant governments.
72
05/02/2021 15:30:37 16 9
bbc
Good! Houses are supposed to be affordable to young people starting off in life. They are not designed to enable Boomers to wring EVEN MORE money out of the younger generations
80
05/02/2021 15:32:33 14 4
bbc
And they moan that no one can afford to buy their £350k house they bought for £1000
81
05/02/2021 15:32:59 12 5
bbc
Rumours that council tax and Stamp Duty for properties under £500k will be abolished. This gives first-time buyers a better opportunity to buy properties at a reduced price and incentivises older people to downsize too. Either way, prices are too high and need to come down.
318
05/02/2021 16:48:15 9 0
bbc
Woo hoo! I would welcome the abolition of council tax for properties below £500k!! Saves me £2k+ pa.

EXCEPT that would mean extremely little in council tax being paid in my area (I'm Band E and my house is worth £400k). Given our council has received the highest level of central government cuts, and we have high levels of social care spending, there's no money in the pot as it is.
676
06/02/2021 15:33:12 0 0
bbc
95% of houses in my area are under £500k.
It'll cost the government billions to fund councils in poorer areas.
It's a complete no goer.
2
05/02/2021 14:59:00 114 31
bbc
The bubble was always going to burst as the prices being paid for houses has become unsustainable. Some form of reality has to return to the housing market.
82
05/02/2021 15:33:29 13 5
bbc
The bubble isn't going to burst - All that will happen is house price rises will slow down a bit - shows how regressive Stamp Duty is - was originally meant to only effect the rich, now it traps anyone who is fortunate to afford a house in the south east.

fundamentally the demand for house hasn't changed - the population is increasing and we are not building enough.....
159
05/02/2021 15:55:24 7 1
bbc
Absolutely. Despite a global financial crash and a pandemic here we are with property prices as high as ever. Prices will not collapse for as long as there is so much pent up demand and if the base rate goes negative then mortgage availability will increase significantly.
61
05/02/2021 15:28:02 1 4
bbc
Lol.
3D printers will be churning them out everywhere sooner than almost anyone realises. They already are in a couple of places at half the cost of neighbouring properties. Half the cost. Already. If pundits called #GME a bubble then they'll need a new vocabulary for property speculation.
83
05/02/2021 15:33:47 1 1
bbc
You think the Tory party and their property investment donors will allow that?
113
05/02/2021 15:39:37 0 1
bbc
Considering that no party has shafted property investors as badly as the Tories, I find your statement hard to believe.
123
05/02/2021 15:42:29 1 0
bbc
You have a point. We have the politicians we deserve.
69
05/02/2021 15:29:40 12 2
bbc
....and breed less. The planet is Over populated and Overcrowded.
84
05/02/2021 15:34:19 0 3
bbc
Yes, I know of 1 too many now!
85
05/02/2021 15:34:20 9 0
bbc
It's a con. One of the biggest. Wish I had known that earlier on
55
05/02/2021 15:26:00 5 1
bbc
Just limit the max mortgage to five times salary. In the 1960/70 the limit was three to three and a half times salary, house prices kept in line with inflation not rampant increase.
86
05/02/2021 15:34:36 0 3
bbc
But only those with a house could afford them. Or the north would be overrun with Londoners.
329
Dee
05/02/2021 16:54:39 0 0
bbc
Er, not yet but it’s coming.
87
05/02/2021 15:34:41 3 1
bbc
That sounds good. The stamp duty reduction those who can afford expensive houses isn't fair to renters and those on low incomes.
110
05/02/2021 15:39:16 0 0
bbc
Not good for renters as landlords will just increase the rent to cover their loss.
60
05/02/2021 15:27:17 21 1
bbc
The population has grown because U.K. PLC does not do productivity growth, it just relies on cheap labour.
88
05/02/2021 15:34:44 14 4
bbc
Indeed, and will continue to after Brexit, only from India/China/anywhere other than Europe.

Population is only a problem because successive gov'ts (over decades) have failed to build. May's gov't said they would build 200,000 starter homes, and spent ~£200m in taxes preparing the land, before siphoning off the building money and building precisely 0. And the ones they do build are too expensive.
69
05/02/2021 15:29:40 12 2
bbc
....and breed less. The planet is Over populated and Overcrowded.
89
05/02/2021 15:34:52 0 4
bbc
Yawn.
77
05/02/2021 15:31:28 5 4
bbc
Why are house price inflation not subject to capital gains tax. The inflation is unearned income. I bought my first house for £5250 and sold my last for over £70,000; I did nothing other than routine maintenance to bring this about
Housing is a functional need and use of it as an investment should be discouraged.
90
05/02/2021 15:34:53 2 1
bbc
only your primary residence is CGT exempt.
103
05/02/2021 15:37:48 0 0
bbc
Why one anyway; should apply to all
71
col
05/02/2021 15:30:03 4 1
bbc
As a trained economist & accountant with quals in Business, law and banking i have watched the housing market for many years.

I have run the numbers many times & always come back to the same position.

The only way the UK could sustain such a price level is with a massive black economy, Crime, Tax evasion,& largest of all hidden work.

The UK economy has to be 60-80% bigger than the official GDP
91
VoR
05/02/2021 15:35:14 0 0
bbc
You may be right, but don't forget that a lot is funded by gov't debt (subsidies to first time buyers etc) and personal debt (banks being willing to lend more).

The black economy is pretty big though, given how often I bump into it without trying. About half the builders/workmen that I've used tried to get me to pay into their wife or kid's account instead of pay to their business account.
73
05/02/2021 15:30:37 60 3
bbc
Obviously house prices rose even MORE than they normally rise during the stamp duty holiday. Sellers increased their asking prices (urged on by estate agents) to take the stamp duty taxpayer-funded giveaway.
Which meant most buyers ended up paying the same amount as they would have done without the holiday.
92
05/02/2021 15:35:38 46 6
bbc
Most people paid more money than if the Stamp Duty holiday had stayed in place. It was a self-defeating policy for the government and buyers!
78
05/02/2021 15:32:04 54 14
bbc
Why is the solution for people wanting to own a home to live in always increasing borrowing and debt? The market is now largely unaffordable to younger generations of ordinary working people. Stop land banking, build council houses, stop right to buy, introduce rent controls, tax buy to let portfolios. Then the market can adjust to a more sensible level. Either that or wait for another big crash.
93
05/02/2021 15:36:32 51 13
bbc
Buy to let is already HEAVILY taxed. Guess who that tax is passed on to? Renters. Be careful what you wish for.
94
05/02/2021 15:36:38 1 2
bbc
Encouraging a house price bubble is utter madness and morally bankrupt. Simply owning a home shouldn't significantly increase your wealth compared to those who can't get on the ladder and driving behaviour to max out on low interest borrowing to profit from a rising market is so short term. The BoE know even small increase in rates will pop the bubble but it's now so big their hands are tied
27
05/02/2021 15:15:16 80 19
bbc
That wouldn't be particularly good news for those that then end up in negative equity....
95
Bob
05/02/2021 15:36:43 12 3
bbc
Negative equity is only an issue when you come to sell or need to remortgage.

Given the average equity and the new protections introduced since the issues following the financial crash in 2008 it is kind of a non-issue these days for remortgaging.
225
05/02/2021 16:19:41 4 0
bbc
AND negative equity isn't the problem like in the 1980's / 1990's because the vast majority of mortgages are REPAYMENT so as long as you keep up payments , the debt WILL reduce ..................
96
05/02/2021 15:36:44 3 1
bbc
Expect Government & its BoE lackeys to step in and support the Ponzi UK housing bubble.

Seen it all before. Abnormal base rates, QE, Funding for Lending, ridiculous Help-to-Buy schemes.

Feckless borrowers and irresponsible lenders bailed out as savers hammered - for about the last 13 years.
46
05/02/2021 15:22:31 21 28
bbc
Houses aren't "over expensive". They're exactly the price they should be based on demand heavily outstripping supply.

If you don't want to live in a market-driven economy don't vote Tory at the next election. Vote Green like I do.
97
xlr
05/02/2021 15:36:49 14 3
bbc
I'm perfectly fine with a market-driven economy, I just think that uncontrolled buying to let and Right-To-Buy have skew the system away from a free market and ultimately towards a two tier system where a small minority own very expensive property which the vast majority could never hope to buy.
170
05/02/2021 15:59:00 12 2
bbc
Buy to let is not necessarily uncontrolled, there is additional Stamp duty and tax breaks that used to apply are no longer available. This means that quite a few buy to lets are no longer viable for landlords.
Trouble is, when interest rates for money in the bank are 0.05 percent & there is no real incentive to invest in your pension fund (thanks G Brown). may as well leave it in bricks and mortar
628
06/02/2021 11:14:49 1 0
bbc
RTB and BTL merely change the tenure of ownership - all three main tenures (social rent, private rent, owner occupied) have demand-side pressures on them showing a fundamental demand driving up prices, rents and waiting lists.
11
05/02/2021 15:07:40 110 5
bbc
The recent rise of prices was largely just the transfer of stamp duty onto asking price. This year prices will drop once we start paying for covid through all the tax rises coming our way
98
05/02/2021 15:36:57 61 40
bbc
It needs a massive cut, in the order of 50%. People need homes, they should not been assets or retirement plans.
130
05/02/2021 15:45:10 15 4
bbc
when houses were "cheap" in the 80's as a percentage of a persons income how much did their mortgage cost?

Way more than now!!
182
05/02/2021 16:01:15 19 9
bbc
Why shouldn't they be retirement assets? This is certainly on my plan.
188
SOH
05/02/2021 16:05:01 0 3
bbc
Would removing the exemption from Capital Gains Tax for a main residence have any impact?
Once it is purchased, house value tends to increase over time. Also, maybe stamp duty could go?

A double simplification of the tax system.

Just a non expert thought.
198
05/02/2021 16:11:07 14 7
bbc
Couldn't agree more! The point of a dwelling should be that it's somewhere to live - not yet another opportunity for people to make money.
251
05/02/2021 16:26:51 15 4
bbc
People do need homes, you are right, but people also need money to see them through retirement, especially when their pensions have been stolen!
288
05/02/2021 16:36:56 13 2
bbc
Pensions are poor. Who wants to be in poverty at a time in their life when they can do nothing about it ? Of course people are going to use property as a pension plan. They have no alternative.
302
05/02/2021 16:41:27 11 0
bbc
I may well need my home to fund my care in old age. I am not sure with 2008 crash and now Covid that the Gov in 40 years will be able to care for me or my wife if needed.
428
05/02/2021 18:02:48 3 1
bbc
I couldn't agree more . If people use houses as investments then they have to accept they may make losses - cut house prices 50%
492
05/02/2021 18:57:15 2 0
bbc
So you decide what people can and cant do for their retirement income...this is a democracy and free enterprise country kuropon.
54
05/02/2021 15:24:58 3 0
bbc
Your house is worth £1.8 million?
99
05/02/2021 15:37:03 2 0
bbc
In SW London it is more than likely
64
05/02/2021 15:29:02 28 14
bbc
Can we get a 25% reduction please. High house prices benefits nobody other than those inheriting estates.
100
VoR
05/02/2021 15:37:19 19 9
bbc
Well, it does (a) allow the release of equity from houses which can then be ploughed back into the economy, and (b) increase the security of relatively mature mortgages because the amount loaned is a smaller proportion of the asset backing the loan, which then makes lower interest rates available on mortgages.