UK house prices see 'surprise' pick-up, says Nationwide
02/03/2021 | news | business | 363
An unexpected acceleration in values last month pushed prices to a record high, the Nationwide says.
1
Ian
02/03/2021 11:35:29 126 6
bbc
When the government introduces a scheme to 'help' people to buy a home, it always has the same effect - demand goes up and house prices go up. And we're back to square one.

The only solution is to stop interfering with the market. If house prices are too high, people cannot buy and house prices will have to level off (and wait for wages to catch up) or drop.

This is simple economics.
4
02/03/2021 11:41:29 44 7
bbc
Yh they should scrap stamp duty fully then stop intervening in the market by scrapping "help to buy"
9
VoR
02/03/2021 11:45:14 3 3
bbc
It's even worse, really. Currently the deposit is the limiting factor for more buyers than the income multiple. So if you reduce the deposit required, the amount they can spend on a house (and house prices) actually goes up by more than the reducing in the deposit. e.g. 10k reduction in deposit needed might increase what they can spend on a house by about 30k.
10
02/03/2021 11:46:31 10 2
bbc
Worse, those who benefit from these schemes are not in the intended group or are among the better-off within the group.

It would be nice if stamp duty was dropped, but if it was, house prices would probably increase & take up the reduction. So unhelpful as it may be (e.g. it hits those buying not renting). Maybe it could help if it was just charged on 2nd homes (i.e. holiday or BTR).
43
02/03/2021 12:01:16 9 5
bbc
Problem is; when prices go too high there's still usually someone willing to pay the high prices.

In some parts of the country, particularly tourism hotspots; this results in the "wrong" people snapping up second homes there and forcing some who have been born and raised there out of their home area, as they can't afford the escalating prices.

Market forces sometimes require checks and balances.
81
02/03/2021 12:23:10 6 8
bbc
Double Stamp Duty. It only comes off the price. Vast capacity for tax there.
121
02/03/2021 12:42:30 8 19
bbc
I'm afraid 'simple economics' appear beyond you. House prices are high because current demand exceeds supply...simple! The solution = build more houses...simple!
126
Bob
02/03/2021 12:44:52 4 3
bbc
Unfortunately there's enough to buy-to-letters out there to sustain growth in many areas.

You need further curbs and hindrance on that market. But good luck there, most of government, and plenty in opposition, are landlords themselves.
129
02/03/2021 12:45:57 0 1
bbc
nh,it sounds too easy ,there must be a fault in your theory.
161
02/03/2021 13:07:35 10 1
bbc
The present government's initiatives are really aimed at supporting the big housebuilders (most of which are major donors to the Conservative party). If government wanted to help people needing a home, it would prioritise the provision of affordable housing for rent.
239
02/03/2021 14:23:48 1 0
bbc
This would work, if banks don't then start offering even higher mortgages, which got us in this state in the first place. Lending more & more acts as the catalyst for higher prices. Banks stopped this, and now the government are reciprocating, leveraging loans, whether "help to buy" or the new scheme - they are all designed to push prices & demand up, to secure more & more debt to fund economy!
344
03/03/2021 00:51:59 0 0
bbc
In this country, we don’t have a true free market in the housing sector. On the supply side of housing, tight planning controls throttle the building of new housing creating an artificial shortage. Meanwhile on the demand side of housing, lenders have offered every larger mortgages which fuels every increasing house prices. Result a society where many young people increasingly can’t afford a home.
353
03/03/2021 12:07:39 0 0
bbc
Tories have always interfered in the "free" market.
MIRAS. Council house discount sales. Help to Buy. Stamp duty holidays.
What's new?
2
02/03/2021 11:39:46 8 8
bbc
Here we go again, the boom and bust scenario returns to the scene.

A real shame Mrs Thatcher sold off all the housing and prevented any further house building programmes.

This is the result today, slow house building and a renting market.
12
02/03/2021 11:48:06 7 2
bbc
The reason why house prices have risen sharply over the last 3 decades is mainly due to interest rates according to the Bank of England. Interest rate used to be 15 percent in the early 1990s for a mortgage , now you can get an a mortgage with an interest rate of 2 percent. Since people are paying less interest to the bank people are willing to pay more in order to purchase a property.
21
02/03/2021 11:51:35 5 1
bbc
And you think Blair and Brown built millions of council houses in their 13 years in office, being caring, endearing Labour PMs. Council houses were generally in a poor condition in the 80’s ( after 14 years of Wilson & Callaghan’s marxist policies ) so the obvious thing, especially with no public money available, was to sell them off and let private individuals improve them at their own cost.
35
02/03/2021 11:54:50 4 1
bbc
Maggie selling off houses has nothing to do with it. Houses were plentiful and affordable until 2003/4. Then we opened the door to Europe. Up went prices, up went Buy to Lets, up went landlords with 10's and 100's of houses ( go to most cities and check the ethnicity of the big landlords, watch old runs of programmes of Homes Under The Hammer and see who bought up streets full of houses for nowt )
37
02/03/2021 11:57:15 3 1
bbc
But it was Brown and Balls who caused this. Even after Thatchers sell of prices did not increase substantially because the Bank of England and interest rates were under the control of politicians and they were able to increase interest rates to quell house price inflation. Brown and Ball wiped their hands clean of that responsibility and give it to banks.
3
02/03/2021 11:40:08 8 1
bbc
Where is the affordability map?
So disappointed that its record breaking run of monthly appearances seems to have been broken.
1
Ian
02/03/2021 11:35:29 126 6
bbc
When the government introduces a scheme to 'help' people to buy a home, it always has the same effect - demand goes up and house prices go up. And we're back to square one.

The only solution is to stop interfering with the market. If house prices are too high, people cannot buy and house prices will have to level off (and wait for wages to catch up) or drop.

This is simple economics.
4
02/03/2021 11:41:29 44 7
bbc
Yh they should scrap stamp duty fully then stop intervening in the market by scrapping "help to buy"
241
02/03/2021 14:25:05 1 1
bbc
Scrap stamp duty as a tax on buyers - replace it with 100% CGT! Make work pay and tax unearned wealth
307
02/03/2021 16:52:35 0 0
bbc
Should move it to seller side, at least double it and again for 2nd Homes BTL etc.

Still wont get back anywhere near the QE BOE have pumped into house prices.
5
02/03/2021 11:41:58 44 17
bbc
The graph must be wrong didn't house prices tank when we left the EU?
25
02/03/2021 11:52:10 26 12
bbc
LOL how true.

Don't forget the "promise" of the shortage of sandwiches too. https://www.bbc.co.uk/news/business-44960293

Thankfully I got my Brexit survival kit https://www.bbc.co.uk/news/av/uk-england-leeds-46842937
28
02/03/2021 11:53:45 3 6
bbc
A lot of us were hoping that would be a side effect. we might have democratically beaten the liberal elite, but they still control a lot of what happens in this country.
33
02/03/2021 11:54:38 6 3
bbc
The last gasp for greedy money grabbing estate agents, solicitors and builders. The whole housing market is just a money game and little to do with having a home.
93
Bob
02/03/2021 12:28:48 5 4
bbc
You really think that any consequence - regardless of your persuasion on the subject - is going to happen immediately?

The effects would occur over many years, up or down.

The only reason for a dramatic movement here is a short-term bonus from the government and a short-term realignment on the type of property people want to buy (larger, detached, countryside).
251
02/03/2021 14:43:22 1 3
bbc
Coincided with Sunak slashing stamp duty and BoE slashing interest rates to 0.1% - barely positive - then printing more money.

Hang around for a few months and the forecasts will come true. Money - and jobs and people - are already moving to the continent.

You will soon have exactly what you told us you didn’t vote for. But you did, didn’t you?
6
02/03/2021 11:42:15 103 9
bbc
Not really a good thing.

People are under the false impression that they are wealthy in the UK due to inflated house prices.

It would be better if people were obsessed with British manufacturing and innovation.

Instead of being obsessed with house prices.
31
02/03/2021 11:54:22 37 9
bbc
Manufacturing in the developed world is on a downward path .Manufacturing used to represent more than 30 percent of the German economy in 1970s now its 18 percent of GDP. The future is technology the government should try and make the UK the Silicon Valley of Europe through innovation and encouraging private investment.
32
02/03/2021 11:54:33 8 5
bbc
Not sure house prices makes one feel wealthy and in reality (if it is your home) it's wealth you can only realise if you can sell without needing to buy another (few are in that position).

As for getting people to back (invest in) innovation and manufacturing, that really only works in the same way that lottery or gambling works (i.e. for most people it simply doesn't).
34
02/03/2021 11:54:41 13 2
bbc
This is deliberate policy on behalf of the BOE - the wealth effect - google it.

They artificially support asset prices (houses mainly) by pumping cheap debt on the masses, which increases prices and as a consequence we all feel richer because our house has risen in 'value' (those lucky enough to own one).

In the real world we're all less well off and saddled with more debt - WAKE UP!!
354
03/03/2021 12:09:33 0 0
bbc
Like one of our last successful manufacturers ,Renishaw, putting itself up for sale so the Directors can pocket £300 million each.
7
VoR
02/03/2021 11:42:27 5 6
bbc
Might be because many have been doing DIY or home improvements, and increased the value of their properties.
8
02/03/2021 11:44:40 50 5
bbc
There will never be a housing bust unless interest rates go up signifcanty. Anyone who studies this can see its a massive bubble. How can house prices rise by 6 - 8% a year when salaries don't go up anywhere near this? Its not about supply as there are plenty of houses, just not where people want to live. If interest rates ever got back to normal house prices will fall
15
02/03/2021 11:49:30 31 3
bbc
Hit the nail on the head with part of your post. "...just not where people want to live..". This is what fuels the price rises. Too many dumps all over the country, full of people no-one decent wants to live anywhere near, leaves everyone falling over each other to get into the nicer areas. It's been the same for almost 20 years. And the people in those nice areas resist further development there.
20
02/03/2021 11:51:31 10 2
bbc
I agree fully the Bank of England have clearly said that the main reason for house increases over the last 3 decades has not been a lack supply , but an increase in demand because interest rates on a mortgage have fallen from 15 percent in 1990 to 2 percent in 2020.
30
02/03/2021 11:54:15 4 3
bbc
Yep, before Brown and Balls gave the Bank of England to the bankers to look after house price inflation was a political issue. House prices going up to much would involve politicians putting up interest rates to quell the inflation. Now though the bankers are in control of interest rates and just shovel cheap money onto unsustainable levels of house prices.
97
Bob
02/03/2021 12:30:50 0 1
bbc
Which is why you if you look at the regions with the highest salary to price ratios the increase in price has been slow in last last couple of years (prior to stamp duty holiday).

The north has a lot of salary headroom, so drives the overall price rise figure for the country up.
187
02/03/2021 13:43:30 3 1
bbc
Cant you read the chart with this article?? it shows an annual>>> average<<< rise of around 3%..no where near your 6-8. In fact in the 12 years it covers the biggest spike is DOWN not up. Your exaggerating the longer term ave annual inf. by over 100%
1
Ian
02/03/2021 11:35:29 126 6
bbc
When the government introduces a scheme to 'help' people to buy a home, it always has the same effect - demand goes up and house prices go up. And we're back to square one.

The only solution is to stop interfering with the market. If house prices are too high, people cannot buy and house prices will have to level off (and wait for wages to catch up) or drop.

This is simple economics.
9
VoR
02/03/2021 11:45:14 3 3
bbc
It's even worse, really. Currently the deposit is the limiting factor for more buyers than the income multiple. So if you reduce the deposit required, the amount they can spend on a house (and house prices) actually goes up by more than the reducing in the deposit. e.g. 10k reduction in deposit needed might increase what they can spend on a house by about 30k.
138
Bob
02/03/2021 12:52:43 2 0
bbc
What you say doesn't make sense at all.

Deposits for first time buyers are currently 26% of the house value. They're not depositing that much because they want to, but because they have to. They can't borrow enough. Prices are 8x salary. Income is the limiting factor.

So if, as you say, you said to someone "you need 10k less deposit", where is this mythical 30k going to come from?
1
Ian
02/03/2021 11:35:29 126 6
bbc
When the government introduces a scheme to 'help' people to buy a home, it always has the same effect - demand goes up and house prices go up. And we're back to square one.

The only solution is to stop interfering with the market. If house prices are too high, people cannot buy and house prices will have to level off (and wait for wages to catch up) or drop.

This is simple economics.
10
02/03/2021 11:46:31 10 2
bbc
Worse, those who benefit from these schemes are not in the intended group or are among the better-off within the group.

It would be nice if stamp duty was dropped, but if it was, house prices would probably increase & take up the reduction. So unhelpful as it may be (e.g. it hits those buying not renting). Maybe it could help if it was just charged on 2nd homes (i.e. holiday or BTR).
11
02/03/2021 11:46:59 10 3
bbc
Help to buy, mortgage booster, housing kick start, mortgage guarantee,...etc. Call it what you want, these schemes never seem to yield the desired outcome. First time buyers will still be unable to buy and owners hardly able to find anyone to sell to.
2
02/03/2021 11:39:46 8 8
bbc
Here we go again, the boom and bust scenario returns to the scene.

A real shame Mrs Thatcher sold off all the housing and prevented any further house building programmes.

This is the result today, slow house building and a renting market.
12
02/03/2021 11:48:06 7 2
bbc
The reason why house prices have risen sharply over the last 3 decades is mainly due to interest rates according to the Bank of England. Interest rate used to be 15 percent in the early 1990s for a mortgage , now you can get an a mortgage with an interest rate of 2 percent. Since people are paying less interest to the bank people are willing to pay more in order to purchase a property.
13
02/03/2021 11:48:16 19 5
bbc
Currently very few people are putting their house on the market due to uncertainty so there is a paltry amount on the market thus a supply issue, in 12 months that's going to be a very different story when people need to sell because they can't service their mortgage. Prices will go down.
112
02/03/2021 12:37:33 6 1
bbc
Agree they’ll be a lot of keys going back with houses being picked up at auctions by the money men
14
02/03/2021 11:49:23 17 2
bbc
Why is this a surprise to anyone?
People are racing to beat the artificial deadline to avoid paying any stamp duty - so they have inflated the prices as it is currently a sleers market.
18
02/03/2021 11:50:30 2 2
bbc
Afraid that ship has sailed
8
02/03/2021 11:44:40 50 5
bbc
There will never be a housing bust unless interest rates go up signifcanty. Anyone who studies this can see its a massive bubble. How can house prices rise by 6 - 8% a year when salaries don't go up anywhere near this? Its not about supply as there are plenty of houses, just not where people want to live. If interest rates ever got back to normal house prices will fall
15
02/03/2021 11:49:30 31 3
bbc
Hit the nail on the head with part of your post. "...just not where people want to live..". This is what fuels the price rises. Too many dumps all over the country, full of people no-one decent wants to live anywhere near, leaves everyone falling over each other to get into the nicer areas. It's been the same for almost 20 years. And the people in those nice areas resist further development there.
55
02/03/2021 12:07:13 3 1
bbc
Buying in nice (or nicer) area has always been something people hope to do, it nothing new, nor is being a nimby new. I suspect it's more about the jobs available and/or commuting costs in that locality rather than just "niceness".
203
02/03/2021 13:59:48 1 1
bbc
If you think hes accurate you need help to read the above chart..with this article because it doesnt show anywhere near 6 to 8 % A YEAR.. in fact per year it actually shows an average across the 14 years of 3%....so hes out by over a 100%.
294
02/03/2021 16:09:10 0 1
bbc
who hell would want to live by such a snob as you!
16
02/03/2021 11:49:55 30 4
bbc
Not really a ‘surprise’, the 3 month extension has created another stampede to take part in the stamp duty giveaway.
103
Bob
02/03/2021 12:33:41 10 1
bbc
Data is from before that leak. Also, the extension is said to be for those with agreed sales. You'd be cutting it very fine if you wanted to begin the process of buying after the leak came out and complete in time.

I suspect the uplift though is from people wanting to get things done before the original deadline. Sellers stalling wanting higher offers knowing the peril they put the buyer in.
202
02/03/2021 13:58:59 0 0
bbc
I'm not sure why this should alter things greatly. Anyone selling needs to move to a different property, so any gains they make on the house they sell will be swallowed up with the one they buy.
17
02/03/2021 11:50:05 20 4
bbc
With a 10% drop in the economy, a 5% increase in house prices or more is the last thing that we need. Private sector debt already stands at 220% of GDP (more than double public sector debt). Sunak needs to get his act together.
163
02/03/2021 12:51:31 7 0
bbc
Personally I would end the furlough scheme and save a few billion. Its a waste of money for ungrateful people
14
02/03/2021 11:49:23 17 2
bbc
Why is this a surprise to anyone?
People are racing to beat the artificial deadline to avoid paying any stamp duty - so they have inflated the prices as it is currently a sleers market.
18
02/03/2021 11:50:30 2 2
bbc
Afraid that ship has sailed
19
02/03/2021 11:50:49 7 6
bbc
LOOKS LIKE LEVELLING UP IS GOING WELL ...

Life long rents for the next generation .... work until you drop in a rigged Labour market...

Our kids compete for jobs with the world and we let the politiicans get away with their GDP growth scam ...

Meanwhile say goodbye to Englands Green Space as Modern Conservatives are not conservative at all .. they are NEO Liberal Greed / Developer merchants..
145
02/03/2021 12:55:12 0 0
bbc
you can't have it both ways.....you want cheap plentiful housing, you need to free up more of that green and pleasant.! Start waving.
274
02/03/2021 15:22:29 0 0
bbc
Hopefully with the closure of FOM they won't be competing with continued millions of EU citizens for the domestic jobs anymore. Nor competing for accommodation.
8
02/03/2021 11:44:40 50 5
bbc
There will never be a housing bust unless interest rates go up signifcanty. Anyone who studies this can see its a massive bubble. How can house prices rise by 6 - 8% a year when salaries don't go up anywhere near this? Its not about supply as there are plenty of houses, just not where people want to live. If interest rates ever got back to normal house prices will fall
20
02/03/2021 11:51:31 10 2
bbc
I agree fully the Bank of England have clearly said that the main reason for house increases over the last 3 decades has not been a lack supply , but an increase in demand because interest rates on a mortgage have fallen from 15 percent in 1990 to 2 percent in 2020.
58
02/03/2021 12:09:03 4 4
bbc
Houses for most are unaffordable now. Who want to borrow 10 x there salary. As is was put if interest rates go up then most house holds are a broken fridge away from defaulting on there mortgage. Everyone is extending themselves too much to get on the housing ladder. If the bubble busts then there is a lot of people going to owe a hell of a lot of money. Hence why they wont raise Interest R
2
02/03/2021 11:39:46 8 8
bbc
Here we go again, the boom and bust scenario returns to the scene.

A real shame Mrs Thatcher sold off all the housing and prevented any further house building programmes.

This is the result today, slow house building and a renting market.
21
02/03/2021 11:51:35 5 1
bbc
And you think Blair and Brown built millions of council houses in their 13 years in office, being caring, endearing Labour PMs. Council houses were generally in a poor condition in the 80’s ( after 14 years of Wilson & Callaghan’s marxist policies ) so the obvious thing, especially with no public money available, was to sell them off and let private individuals improve them at their own cost.
22
02/03/2021 11:51:50 6 3
bbc
Government throwing money at supporting the housing market with cheap loans and tax cuts, house builders reducing supply to boost profits, 300,000 Hong Kong Chinese due to come to the UK to boost demand. The government pulling money out of building council houses. A twisted and perverse planning system that stops building. It's not going to be a good year for young people wanting to set up home.
67
02/03/2021 12:15:43 2 2
bbc
Plain wrong, government eases planning every possible way they can directly so mates get millions from planning permission. Which is why they waste tax funds ramping up housing costs, and ram in more 'demand'.
104
02/03/2021 12:34:27 0 1
bbc
Was it ever,last 40 years,in council housing?
23
02/03/2021 11:51:54 66 5
bbc
I'm 61 and have given up calling out the inflated housing market. We've seen it so many times before, with prognostications of a collapse that never happens. The reason for this is that housing is seen as crucial to the health of the economy and so governments bend over backwards using public money to inflate it. Don't agree with it but I can't see it changing.
65
02/03/2021 12:13:21 12 24
bbc
Actually gives do it to hand millions to mates. It is the ‘gentlemanly' way corruption is done here. Their mates sell food growing land for development millions. Millionaires overnight for absolutely nothing.

Even if you think building on green fields morally acceptable, it is not, simply making a law that permitted use can only change while in state ownership would do the ‘economy' things still.
210
02/03/2021 14:03:23 1 0
bbc
Nothing to do with a population growth rate since Yr2000 running at fives times that of the 70's and 80's then?

Or nothing to do with historically low interest rates making good monthly affordability?
311
02/03/2021 17:10:18 1 0
bbc
Collapse that never happens? Where were you in 2007? My house lost half it's value almost overnight
24
02/03/2021 11:52:06 24 4
bbc
The trend to move from the over hyped New York style apartments to something with outside space is a big motivator for those locked up in their boxes for months
53
02/03/2021 12:06:21 17 1
bbc
Another factor is that while some have struggled in the last 12 months others have been compelled to save, there's been nothing to spend your money on.

Clearly some have taken the opportunity to build a deposit.
5
02/03/2021 11:41:58 44 17
bbc
The graph must be wrong didn't house prices tank when we left the EU?
25
02/03/2021 11:52:10 26 12
bbc
LOL how true.

Don't forget the "promise" of the shortage of sandwiches too. https://www.bbc.co.uk/news/business-44960293

Thankfully I got my Brexit survival kit https://www.bbc.co.uk/news/av/uk-england-leeds-46842937
116
02/03/2021 12:27:49 5 6
bbc
Wasn't there supposed to be a shortage of Magnum ice creams too?
218
02/03/2021 14:07:21 2 2
bbc
Don't forget the great Percy Pig disaster of 2021!
26
02/03/2021 11:51:25 2 9
bbc
It's time we introduced Land Value Taxation to capture for the benefit of the community the huge unearned wealth tied up in UK housing assets The revenue gained could be used to finance big cuts in income tax, which deter hard work and enterprise, thereby helping to boost the economy and paving the way for a post-Covid recovery.
56
02/03/2021 12:08:33 3 2
bbc
No it is plain wrong, nasty, and not used for that reason. Used to be a few obsessives pushing for it a few years ago. It is farcical.
70
02/03/2021 12:18:49 2 1
bbc
Income Tax is at historically low levels. When I started work basic rate tax was 33%.
27
02/03/2021 11:52:17 11 10
bbc
It is not a surprise. The liberal elite have a lot of money tied up in housing, so they rig the economy to keep the prices high. It is one reason why those of us who oppose the liberal elite voted for Brexit.
44
02/03/2021 12:01:17 10 6
bbc
Sounds like politics of envy to me. Are you sure you're not secretly a big leftie?
128
02/03/2021 12:45:11 1 2
bbc
Liberal elites like Jacob Rees-Mogg, who owns:

(i) Ston Easton Park (Somerset) - a 20 bedroom, 28 acre hovel on the market for £9.5m
(ii) Gournay Court Manor House (pretty nice)
(iii) Cowley St townhouse (behind Westminster Abbey) valued at £5.6m
(iv) £4m freehold of Pall Mall building
(v) £1.5m flat inside it

That's what you can find in 1 minute....

Yep, these liberal elites.
269
02/03/2021 15:18:30 1 0
bbc
Wise words, the liberal elite have done very well out of the EU and FOM - nice large CAP payments for their unused farmland and FOM meaning a pop growth rate that aids their property investments and rents. Plus Tarquin could have a delightful ski season!
5
02/03/2021 11:41:58 44 17
bbc
The graph must be wrong didn't house prices tank when we left the EU?
28
02/03/2021 11:53:45 3 6
bbc
A lot of us were hoping that would be a side effect. we might have democratically beaten the liberal elite, but they still control a lot of what happens in this country.
29
02/03/2021 11:54:14 54 6
bbc
So the housing market is fine then and needs no more govt support.
36
02/03/2021 11:55:58 21 11
bbc
So the housing market is fine because it has government support.
52
02/03/2021 12:06:19 2 2
bbc
The market is not fine it is going up. No one wold say the market is fine as food prices are going up!

No house costs a fraction to make of what you will pay for it.
8
02/03/2021 11:44:40 50 5
bbc
There will never be a housing bust unless interest rates go up signifcanty. Anyone who studies this can see its a massive bubble. How can house prices rise by 6 - 8% a year when salaries don't go up anywhere near this? Its not about supply as there are plenty of houses, just not where people want to live. If interest rates ever got back to normal house prices will fall
30
02/03/2021 11:54:15 4 3
bbc
Yep, before Brown and Balls gave the Bank of England to the bankers to look after house price inflation was a political issue. House prices going up to much would involve politicians putting up interest rates to quell the inflation. Now though the bankers are in control of interest rates and just shovel cheap money onto unsustainable levels of house prices.
6
02/03/2021 11:42:15 103 9
bbc
Not really a good thing.

People are under the false impression that they are wealthy in the UK due to inflated house prices.

It would be better if people were obsessed with British manufacturing and innovation.

Instead of being obsessed with house prices.
31
02/03/2021 11:54:22 37 9
bbc
Manufacturing in the developed world is on a downward path .Manufacturing used to represent more than 30 percent of the German economy in 1970s now its 18 percent of GDP. The future is technology the government should try and make the UK the Silicon Valley of Europe through innovation and encouraging private investment.
39
02/03/2021 11:58:39 12 1
bbc
Manufacturing technology then!

Either way, the UK has to focus on creating things the world wants to buy.
6
02/03/2021 11:42:15 103 9
bbc
Not really a good thing.

People are under the false impression that they are wealthy in the UK due to inflated house prices.

It would be better if people were obsessed with British manufacturing and innovation.

Instead of being obsessed with house prices.
32
02/03/2021 11:54:33 8 5
bbc
Not sure house prices makes one feel wealthy and in reality (if it is your home) it's wealth you can only realise if you can sell without needing to buy another (few are in that position).

As for getting people to back (invest in) innovation and manufacturing, that really only works in the same way that lottery or gambling works (i.e. for most people it simply doesn't).
5
02/03/2021 11:41:58 44 17
bbc
The graph must be wrong didn't house prices tank when we left the EU?
33
02/03/2021 11:54:38 6 3
bbc
The last gasp for greedy money grabbing estate agents, solicitors and builders. The whole housing market is just a money game and little to do with having a home.
6
02/03/2021 11:42:15 103 9
bbc
Not really a good thing.

People are under the false impression that they are wealthy in the UK due to inflated house prices.

It would be better if people were obsessed with British manufacturing and innovation.

Instead of being obsessed with house prices.
34
02/03/2021 11:54:41 13 2
bbc
This is deliberate policy on behalf of the BOE - the wealth effect - google it.

They artificially support asset prices (houses mainly) by pumping cheap debt on the masses, which increases prices and as a consequence we all feel richer because our house has risen in 'value' (those lucky enough to own one).

In the real world we're all less well off and saddled with more debt - WAKE UP!!
41
02/03/2021 11:59:14 3 2
bbc
Nearly 70 percent of the uk population are homeowners fully or with a mortgage, so when their house prices rise they feel more confident about the economy and they spend more.
2
02/03/2021 11:39:46 8 8
bbc
Here we go again, the boom and bust scenario returns to the scene.

A real shame Mrs Thatcher sold off all the housing and prevented any further house building programmes.

This is the result today, slow house building and a renting market.
35
02/03/2021 11:54:50 4 1
bbc
Maggie selling off houses has nothing to do with it. Houses were plentiful and affordable until 2003/4. Then we opened the door to Europe. Up went prices, up went Buy to Lets, up went landlords with 10's and 100's of houses ( go to most cities and check the ethnicity of the big landlords, watch old runs of programmes of Homes Under The Hammer and see who bought up streets full of houses for nowt )
38
02/03/2021 11:58:28 1 1
bbc
Mrs Thatcher encouraged a capitalist society, and by selling these council houses off to the people who could afford it, it set off the firing pistol for these buy to let landlords who scooped up these houses at dirt cheap prices.
By then not building more, as successive govts like Blair and Brown continued, we are where we are today.
29
02/03/2021 11:54:14 54 6
bbc
So the housing market is fine then and needs no more govt support.
36
02/03/2021 11:55:58 21 11
bbc
So the housing market is fine because it has government support.
45
02/03/2021 12:02:13 2 1
bbc
Yes, likewise for affordable housing.

Support to buy or rent subsidies distort the housing market yet without, it may not work any better. Damned if they do, damned if they don't.
2
02/03/2021 11:39:46 8 8
bbc
Here we go again, the boom and bust scenario returns to the scene.

A real shame Mrs Thatcher sold off all the housing and prevented any further house building programmes.

This is the result today, slow house building and a renting market.
37
02/03/2021 11:57:15 3 1
bbc
But it was Brown and Balls who caused this. Even after Thatchers sell of prices did not increase substantially because the Bank of England and interest rates were under the control of politicians and they were able to increase interest rates to quell house price inflation. Brown and Ball wiped their hands clean of that responsibility and give it to banks.
35
02/03/2021 11:54:50 4 1
bbc
Maggie selling off houses has nothing to do with it. Houses were plentiful and affordable until 2003/4. Then we opened the door to Europe. Up went prices, up went Buy to Lets, up went landlords with 10's and 100's of houses ( go to most cities and check the ethnicity of the big landlords, watch old runs of programmes of Homes Under The Hammer and see who bought up streets full of houses for nowt )
38
02/03/2021 11:58:28 1 1
bbc
Mrs Thatcher encouraged a capitalist society, and by selling these council houses off to the people who could afford it, it set off the firing pistol for these buy to let landlords who scooped up these houses at dirt cheap prices.
By then not building more, as successive govts like Blair and Brown continued, we are where we are today.
49
02/03/2021 12:04:03 3 2
bbc
No it didn't, the Buy to Let market took off in the early noughties. The people buying council houses up in the 80's stayed in them. You could only get one mortgage back then, where else were they going to live.? We are where we are today because of an open door immigration policy. 10M more people here then the 80's. No amount of building can cope with that, never mind just 'social' building.
31
02/03/2021 11:54:22 37 9
bbc
Manufacturing in the developed world is on a downward path .Manufacturing used to represent more than 30 percent of the German economy in 1970s now its 18 percent of GDP. The future is technology the government should try and make the UK the Silicon Valley of Europe through innovation and encouraging private investment.
39
02/03/2021 11:58:39 12 1
bbc
Manufacturing technology then!

Either way, the UK has to focus on creating things the world wants to buy.
46
02/03/2021 12:03:10 3 1
bbc
Manufacturing technology is not as lucrative as investing and designed the technology . Designing technology is more lucrative. For example iPhones are designed in America, but are manufactured in China where it is cheaper.
40
02/03/2021 11:59:02 6 1
bbc
It's not a surprise, many city dwellers moving to the countryside
34
02/03/2021 11:54:41 13 2
bbc
This is deliberate policy on behalf of the BOE - the wealth effect - google it.

They artificially support asset prices (houses mainly) by pumping cheap debt on the masses, which increases prices and as a consequence we all feel richer because our house has risen in 'value' (those lucky enough to own one).

In the real world we're all less well off and saddled with more debt - WAKE UP!!
41
02/03/2021 11:59:14 3 2
bbc
Nearly 70 percent of the uk population are homeowners fully or with a mortgage, so when their house prices rise they feel more confident about the economy and they spend more.
42
02/03/2021 12:00:22 1 8
bbc
Some form of tax needs to be applied to property, possibly a Capital Gains Tax so the government can claw back some of the gains made by homeowners due to a shortage of property to buy. This could be invested in more housing.

The problem will be that a fall in house prices drives many into negative equity, trapping them in their location and making them unable to move to where the work is.
47
02/03/2021 12:03:38 4 1
bbc
A form of hold-over relief could be introduced where you are not taxed on your gain if you are putting the money into buying your next home. But the problem with that is that it discourages downsizing by retired people... in any case, I think the Tories would recognise that it would be a vote-loser among their traditional voters.
1
Ian
02/03/2021 11:35:29 126 6
bbc
When the government introduces a scheme to 'help' people to buy a home, it always has the same effect - demand goes up and house prices go up. And we're back to square one.

The only solution is to stop interfering with the market. If house prices are too high, people cannot buy and house prices will have to level off (and wait for wages to catch up) or drop.

This is simple economics.
43
02/03/2021 12:01:16 9 5
bbc
Problem is; when prices go too high there's still usually someone willing to pay the high prices.

In some parts of the country, particularly tourism hotspots; this results in the "wrong" people snapping up second homes there and forcing some who have been born and raised there out of their home area, as they can't afford the escalating prices.

Market forces sometimes require checks and balances.
64
02/03/2021 12:12:54 7 2
bbc
"checks and balances" AKA a better match of supply and demand. All the schemes in the world are just sticking plaster if demand outstrips supply.
316
02/03/2021 17:20:58 0 1
bbc
Houses are sold to willing buyers at a fair market price.
27
02/03/2021 11:52:17 11 10
bbc
It is not a surprise. The liberal elite have a lot of money tied up in housing, so they rig the economy to keep the prices high. It is one reason why those of us who oppose the liberal elite voted for Brexit.
44
02/03/2021 12:01:17 10 6
bbc
Sounds like politics of envy to me. Are you sure you're not secretly a big leftie?
36
02/03/2021 11:55:58 21 11
bbc
So the housing market is fine because it has government support.
45
02/03/2021 12:02:13 2 1
bbc
Yes, likewise for affordable housing.

Support to buy or rent subsidies distort the housing market yet without, it may not work any better. Damned if they do, damned if they don't.
39
02/03/2021 11:58:39 12 1
bbc
Manufacturing technology then!

Either way, the UK has to focus on creating things the world wants to buy.
46
02/03/2021 12:03:10 3 1
bbc
Manufacturing technology is not as lucrative as investing and designed the technology . Designing technology is more lucrative. For example iPhones are designed in America, but are manufactured in China where it is cheaper.
88
02/03/2021 12:27:10 4 3
bbc
You need to do a bit of both.

Otherwise China calls the shots.
291
02/03/2021 16:04:37 0 1
bbc
But how is it relevant to house prices?
42
02/03/2021 12:00:22 1 8
bbc
Some form of tax needs to be applied to property, possibly a Capital Gains Tax so the government can claw back some of the gains made by homeowners due to a shortage of property to buy. This could be invested in more housing.

The problem will be that a fall in house prices drives many into negative equity, trapping them in their location and making them unable to move to where the work is.
47
02/03/2021 12:03:38 4 1
bbc
A form of hold-over relief could be introduced where you are not taxed on your gain if you are putting the money into buying your next home. But the problem with that is that it discourages downsizing by retired people... in any case, I think the Tories would recognise that it would be a vote-loser among their traditional voters.
48
02/03/2021 12:03:55 17 6
bbc
Good reason not to add more hand outs from the chancellor then!

Stop shovelling money up the housing chain to appropriators of public planning gain to private mate's pockets. By the millions each.

Get rates high and fast. Restrict loans to 70% of value.
133
02/03/2021 12:48:26 5 6
bbc
the irony of your comment is astounding, yet you get upvotes.! It shows how much some folk know. If you make people require 30% deposits, the only people who will be able to buy is the rich, everyone else, even those on good salaries will have to rent. The population grows faster than we can build houses, so prices will still rise, even with larger deposits. Supply and demand.
38
02/03/2021 11:58:28 1 1
bbc
Mrs Thatcher encouraged a capitalist society, and by selling these council houses off to the people who could afford it, it set off the firing pistol for these buy to let landlords who scooped up these houses at dirt cheap prices.
By then not building more, as successive govts like Blair and Brown continued, we are where we are today.
49
02/03/2021 12:04:03 3 2
bbc
No it didn't, the Buy to Let market took off in the early noughties. The people buying council houses up in the 80's stayed in them. You could only get one mortgage back then, where else were they going to live.? We are where we are today because of an open door immigration policy. 10M more people here then the 80's. No amount of building can cope with that, never mind just 'social' building.
50
02/03/2021 12:06:11 26 2
bbc
No surprise
HTB
HTB2 = £50BIllion+
Stamp Duty Reductions
£11Billion+ a year paid to Private Landlords in HB
£1,000,000,000,000,000+ in QE TSF TFSE
Money Laundering Capital of the world
Immigration
Planning run by Developers, Banks, MP's
Still waiting for promised social housing from years ago.
No building of social housing
Reduction of Developers contribution towards affordable housing
etc etc etc
146
02/03/2021 12:57:22 2 2
bbc
Well said Pete
51
02/03/2021 12:06:16 19 7
bbc
As a home owner (mortgaged) I say, let the Housing Market prices crash and burn to "reset" the system.
60
02/03/2021 12:11:21 11 2
bbc
Thats the problem. They cannot do that. Too much money is owed to the banks through mortgages. If Interest rates go up most people will not be able to pay the increase as they are already overleveraged just to buy the house they live in. Then house prices fall and they cannot sell or afford there mortgage due to negative equity
226
02/03/2021 14:11:58 2 0
bbc
Clearly not an economist.
252
02/03/2021 14:43:29 0 0
bbc
Crash house price means re-mortgage problem every few years.
261
02/03/2021 15:00:59 1 0
bbc
You're actually saying "let the economy crash and put millions out of work and millions bankrupt".
29
02/03/2021 11:54:14 54 6
bbc
So the housing market is fine then and needs no more govt support.
52
02/03/2021 12:06:19 2 2
bbc
The market is not fine it is going up. No one wold say the market is fine as food prices are going up!

No house costs a fraction to make of what you will pay for it.
24
02/03/2021 11:52:06 24 4
bbc
The trend to move from the over hyped New York style apartments to something with outside space is a big motivator for those locked up in their boxes for months
53
02/03/2021 12:06:21 17 1
bbc
Another factor is that while some have struggled in the last 12 months others have been compelled to save, there's been nothing to spend your money on.

Clearly some have taken the opportunity to build a deposit.
54
02/03/2021 12:06:49 44 3
bbc
All these various 'help' schemes do is allow people to keep paying ridiculous amounts for property. If these schemes weren't available people couldn't afford to buy, the market would stagnate and houses prices would level out or drop.
'Help' schemes keep those making money on houses (estate agents, money lenders) happy.
Homeowners do not benefit as they have to pay more for next level up.
207
02/03/2021 14:01:30 7 8
bbc
Read the chart with this properly. Over the full 14 years the AVERAGE yearly rise is 3%.
Also international charts show us mid table ..stop building the myth and understand the fact.
15
02/03/2021 11:49:30 31 3
bbc
Hit the nail on the head with part of your post. "...just not where people want to live..". This is what fuels the price rises. Too many dumps all over the country, full of people no-one decent wants to live anywhere near, leaves everyone falling over each other to get into the nicer areas. It's been the same for almost 20 years. And the people in those nice areas resist further development there.
55
02/03/2021 12:07:13 3 1
bbc
Buying in nice (or nicer) area has always been something people hope to do, it nothing new, nor is being a nimby new. I suspect it's more about the jobs available and/or commuting costs in that locality rather than just "niceness".
124
02/03/2021 12:43:09 2 2
bbc
My home city Leeds, loads of affordable houses, even more jobs, it's growing like you wouldn't believe. But house prices are rising still, because there aren't enough houses in the 'nicer' areas to accommodate those that are moving for the jobs. It is about niceness, and no, it's nothing new, but the amount of crappy areas is far higher than it was 20-30 years ago.
26
02/03/2021 11:51:25 2 9
bbc
It's time we introduced Land Value Taxation to capture for the benefit of the community the huge unearned wealth tied up in UK housing assets The revenue gained could be used to finance big cuts in income tax, which deter hard work and enterprise, thereby helping to boost the economy and paving the way for a post-Covid recovery.
56
02/03/2021 12:08:33 3 2
bbc
No it is plain wrong, nasty, and not used for that reason. Used to be a few obsessives pushing for it a few years ago. It is farcical.
57
02/03/2021 12:08:43 12 5
bbc
Why would you live in London when you can live on the Coast with virtually no knife crime !
61
02/03/2021 12:12:00 6 4
bbc
I already do! Moved from London - never looked back.
63
02/03/2021 12:12:36 3 3
bbc
Living on the coast would be wonderful if you are one of the following; Retired, A fisherman or rich. Otherwise there's not much in terms of industries and jobs.
66
02/03/2021 12:15:27 3 3
bbc
I live in London and are unaware of anyone who has been a "victim" of knife crime.
73
02/03/2021 12:20:04 4 3
bbc
This is a classic example of the way the media causes our fears to be completely out of step with reality. Statistically, by far and away the most dangerous thing in London is the air pollution. That is massively more likely to kill you than someone with a knife. Yet what is it that people fear?
20
02/03/2021 11:51:31 10 2
bbc
I agree fully the Bank of England have clearly said that the main reason for house increases over the last 3 decades has not been a lack supply , but an increase in demand because interest rates on a mortgage have fallen from 15 percent in 1990 to 2 percent in 2020.
58
02/03/2021 12:09:03 4 4
bbc
Houses for most are unaffordable now. Who want to borrow 10 x there salary. As is was put if interest rates go up then most house holds are a broken fridge away from defaulting on there mortgage. Everyone is extending themselves too much to get on the housing ladder. If the bubble busts then there is a lot of people going to owe a hell of a lot of money. Hence why they wont raise Interest R
213
02/03/2021 14:05:08 3 1
bbc
Most of my tenants could not afford to buy a house, heck they can hardly afford to pay the rent! Still, silver lining and all that.
59
02/03/2021 12:11:03 7 6
bbc
Demand massively outstrips supply and always will, due mainly to mass immigration (at least 300,000 just from Hong Kong for one example) - so why the surprise at the fact that house prices keep increasing?
71
02/03/2021 12:18:54 3 3
bbc
Prices are not driven by that demand. The Bank of England admitted it is caused by their financial measures. It is deliberate and intentional. If you could not borrow such high amounts of the 'value' at near non existent rates prices would drop demand or no demand.
76
02/03/2021 12:21:03 4 3
bbc
Over the last 60 years we've added 13 million people (births & immigration) - and 12 million more homes. Almost one each.

House prices keep increasing because a minority of people can afford to buy several each (holiday homes, city flats, investments) or retire to 5-bed family houses. Clue: they aren't the immigrants living 3 or 4 to a rented room.
51
02/03/2021 12:06:16 19 7
bbc
As a home owner (mortgaged) I say, let the Housing Market prices crash and burn to "reset" the system.
60
02/03/2021 12:11:21 11 2
bbc
Thats the problem. They cannot do that. Too much money is owed to the banks through mortgages. If Interest rates go up most people will not be able to pay the increase as they are already overleveraged just to buy the house they live in. Then house prices fall and they cannot sell or afford there mortgage due to negative equity
351
03/03/2021 08:29:35 0 0
bbc
Good point. I am old enough to remember the effects of "negative equity" on your personal finances and ability to up or downscale in the 80s, a nerve wracking nightmare we do not want to see again!
57
02/03/2021 12:08:43 12 5
bbc
Why would you live in London when you can live on the Coast with virtually no knife crime !
61
02/03/2021 12:12:00 6 4
bbc
I already do! Moved from London - never looked back.
62
02/03/2021 12:12:30 3 3
bbc
It maybe the case for whole UK data but London house prices and rentals are both dropping
White Flight. Removed
57
02/03/2021 12:08:43 12 5
bbc
Why would you live in London when you can live on the Coast with virtually no knife crime !
63
02/03/2021 12:12:36 3 3
bbc
Living on the coast would be wonderful if you are one of the following; Retired, A fisherman or rich. Otherwise there's not much in terms of industries and jobs.
115
02/03/2021 12:38:13 2 1
bbc
I think working from home will change this
154
02/03/2021 13:01:54 2 0
bbc
I live on the coast near the Lakes....sold up a 3 bed in Leeds, bought a 6 bed on the coast 2 yrs ago for half the price. I'm not rich. But I breathe fresh air daily, see virtually no crime, no speeding cars, smell no weed, see no drug dealing etc. There are jobs here, but no city life. But most people in their 20's own their homes with small mortgages and have cars less than 5 yrs old.
43
02/03/2021 12:01:16 9 5
bbc
Problem is; when prices go too high there's still usually someone willing to pay the high prices.

In some parts of the country, particularly tourism hotspots; this results in the "wrong" people snapping up second homes there and forcing some who have been born and raised there out of their home area, as they can't afford the escalating prices.

Market forces sometimes require checks and balances.
64
02/03/2021 12:12:54 7 2
bbc
"checks and balances" AKA a better match of supply and demand. All the schemes in the world are just sticking plaster if demand outstrips supply.
23
02/03/2021 11:51:54 66 5
bbc
I'm 61 and have given up calling out the inflated housing market. We've seen it so many times before, with prognostications of a collapse that never happens. The reason for this is that housing is seen as crucial to the health of the economy and so governments bend over backwards using public money to inflate it. Don't agree with it but I can't see it changing.
65
02/03/2021 12:13:21 12 24
bbc
Actually gives do it to hand millions to mates. It is the ‘gentlemanly' way corruption is done here. Their mates sell food growing land for development millions. Millionaires overnight for absolutely nothing.

Even if you think building on green fields morally acceptable, it is not, simply making a law that permitted use can only change while in state ownership would do the ‘economy' things still.
57
02/03/2021 12:08:43 12 5
bbc
Why would you live in London when you can live on the Coast with virtually no knife crime !
66
02/03/2021 12:15:27 3 3
bbc
I live in London and are unaware of anyone who has been a "victim" of knife crime.
22
02/03/2021 11:51:50 6 3
bbc
Government throwing money at supporting the housing market with cheap loans and tax cuts, house builders reducing supply to boost profits, 300,000 Hong Kong Chinese due to come to the UK to boost demand. The government pulling money out of building council houses. A twisted and perverse planning system that stops building. It's not going to be a good year for young people wanting to set up home.
67
02/03/2021 12:15:43 2 2
bbc
Plain wrong, government eases planning every possible way they can directly so mates get millions from planning permission. Which is why they waste tax funds ramping up housing costs, and ram in more 'demand'.
139
02/03/2021 12:52:55 0 0
bbc
Who gets millions from Planning.??? Before you answer, I'm in the planning game, hence I want to know if you've any idea what you're saying. I know who benefits from Planning Permission being given, and it's not "mates" as you're alluding to, so I'm interested as to who you think makes millions, and where do those millions come from.?
68
02/03/2021 12:15:58 1 4
bbc
Actually surprised the increase is as low as it is. BoE is printing money as fast as it can, Banks being encouraged to lend it with no questions asked, or given 100% cover by Government. As the BoE chief Andy Haldane points out everyone has saved thousands during covid, so they have to spend it on something.
Waiting to see what Rishi does, as house rents are not keeping pace, perhaps tax tennants?
83
Ben
02/03/2021 12:24:23 5 1
bbc
The saving built per person will be surprisingly low. I live a relatively frugal life trying to save, and the pandemic has improved that by giving me (drum roll) £2,000. £2K is pennies in the housing market. Even if every saver put aside £1K-£5k extra through lack of spending, I don't see that making a difference to their ability to buy a house... Prices are too high
92
02/03/2021 12:28:43 3 1
bbc
"everyone has saved thousands during covid" ?
SOME people have saved thousands working salaried office jobs from home without commute costs & restaurant bills
A lot more have spent their savings & gone into debt as their hours are cut, their "self-employed" work stops, their jobs vanish - but their bills keep coming.
69
Ben
02/03/2021 12:18:21 34 5
bbc
This is great news if you own and are looking to sell. Not so great if you're looking to buy.

Prices are far too artificially high and unsustainable.

I work full time with a good salary but can only dream...

A rise in house prices is not a good thing in the long-term.
91
02/03/2021 12:28:26 17 4
bbc
If you work full time on a good salary then there will be a plethora of properties up and down the country which will be affordable for you. Perhaps you are trying to purchase something in an area of the country which is out of your price range? I also earn a very much above average salary, but could only dream of living in somewhere like London, for example.
109
02/03/2021 12:36:34 6 3
bbc
If you work full time on a good salary, say £40,000, you should be able to borrow £160,000.

There are plenty of flats within 45 mins of London at that price. Saving £8,000 or 5% as a deposit isn't impossible either. What's the issue?
212
02/03/2021 14:05:02 1 1
bbc
Read the chart with this article correctly and you wil see the average yearly rise across the 14 years on it is just 3%...no more...and biggest spike DOWN not up.
If you dont like that then bring up a chart of different countries that are fairly comparable ..you will find UK mid table ..no more.
26
02/03/2021 11:51:25 2 9
bbc
It's time we introduced Land Value Taxation to capture for the benefit of the community the huge unearned wealth tied up in UK housing assets The revenue gained could be used to finance big cuts in income tax, which deter hard work and enterprise, thereby helping to boost the economy and paving the way for a post-Covid recovery.
70
02/03/2021 12:18:49 2 1
bbc
Income Tax is at historically low levels. When I started work basic rate tax was 33%.
59
02/03/2021 12:11:03 7 6
bbc
Demand massively outstrips supply and always will, due mainly to mass immigration (at least 300,000 just from Hong Kong for one example) - so why the surprise at the fact that house prices keep increasing?
71
02/03/2021 12:18:54 3 3
bbc
Prices are not driven by that demand. The Bank of England admitted it is caused by their financial measures. It is deliberate and intentional. If you could not borrow such high amounts of the 'value' at near non existent rates prices would drop demand or no demand.
72
02/03/2021 12:19:08 9 4
bbc
Give the young a chance.
Convert inner city unused office and retail space into decent starter homes for singles and childless couples. These to be sold freehold.
Stop banks issuing any new buy to let mortgages.
Pressure builders to start to build on the enormous amount of land they have been sitting on for years.
78
Ben
02/03/2021 12:21:46 4 3
bbc
There are plenty of houses available. But they sit on the market for longer and longer... It's not a lack of demand, it's the price. They need to come down.
106
02/03/2021 12:34:34 6 2
bbc
Would "the young" like the chance to wander lonely as a cloud in that green and pleasant land occasionally before you brick it over? Where food and stuff grows, before it goes in a burger? This house price rise is driven by 3 tings: Stamp Duty hols, White Flight and 4 Million Euro-peeps realise its better in UK than back home.
57
02/03/2021 12:08:43 12 5
bbc
Why would you live in London when you can live on the Coast with virtually no knife crime !
73
02/03/2021 12:20:04 4 3
bbc
This is a classic example of the way the media causes our fears to be completely out of step with reality. Statistically, by far and away the most dangerous thing in London is the air pollution. That is massively more likely to kill you than someone with a knife. Yet what is it that people fear?
158
02/03/2021 13:03:28 3 0
bbc
you don't have to physically be a victim of knife crime, to be affected by the whole crime scene that knife crime is a small part of. I've got friends from various parts of London who have moved out and within a few years do not recognise the place they left., it's gotten so bad.
62
02/03/2021 12:12:30 3 3
bbc
It maybe the case for whole UK data but London house prices and rentals are both dropping
White Flight. Removed
90
02/03/2021 12:28:14 0 1
bbc
In London?
75
02/03/2021 12:20:39 3 6
bbc
Tax mortgages, give it back out as a savings interest rate.
98
02/03/2021 12:31:37 4 1
bbc
Just need increase interest rates. Borrowing money is far too cheap.
59
02/03/2021 12:11:03 7 6
bbc
Demand massively outstrips supply and always will, due mainly to mass immigration (at least 300,000 just from Hong Kong for one example) - so why the surprise at the fact that house prices keep increasing?
76
02/03/2021 12:21:03 4 3
bbc
Over the last 60 years we've added 13 million people (births & immigration) - and 12 million more homes. Almost one each.

House prices keep increasing because a minority of people can afford to buy several each (holiday homes, city flats, investments) or retire to 5-bed family houses. Clue: they aren't the immigrants living 3 or 4 to a rented room.
186
02/03/2021 13:42:06 1 3
bbc
you haven't a clue.....the immigrants you mention are the ones buying up all the cheap terraces at auction to rent out. Both Bradford and Leeds, markets I know, the rental stock is controlled by a handful of families from south asian descent. They started buying up property in 2002 / 2003 knowing the doors were about to be opened. I'm sure it'll be the same in most major cities. They're not daft.
191
02/03/2021 13:48:24 1 3
bbc
Also, we've added 16 million people since 1960. So you're already 4 million out, without even looking at whether you're out on the number of homes built. Combine that with more single parent families etc, your numbers are way off.
77
Dai
02/03/2021 12:21:11 3 3
bbc
There is flight, certainly. Much of it to the Welsh-speaking heartland of Wales, where local people have become priced-out of their communities and irreparable social and linguistic damage is done.
100
02/03/2021 12:23:52 6 1
bbc
Same in Scotland, Shropshire, Cheshire, Yorkshire, South West England. Wales isn’t special in this respect.
72
02/03/2021 12:19:08 9 4
bbc
Give the young a chance.
Convert inner city unused office and retail space into decent starter homes for singles and childless couples. These to be sold freehold.
Stop banks issuing any new buy to let mortgages.
Pressure builders to start to build on the enormous amount of land they have been sitting on for years.
78
Ben
02/03/2021 12:21:46 4 3
bbc
There are plenty of houses available. But they sit on the market for longer and longer... It's not a lack of demand, it's the price. They need to come down.
94
02/03/2021 12:30:33 2 2
bbc
Ben. Increasing supply will cause prices to come down.
79
02/03/2021 12:21:52 38 3
bbc
So the latest scheme supports buyers to use just a 5% deposit - on houses up to £600,000.......... for which a (properly regulated) lender should need to verify a salary of more than £140,000.......... Do such people really need assistance from the state? !
86
Bob
02/03/2021 12:25:54 23 2
bbc
95% of is £570k and it is said to be modelled on the previous 95% scheme which capped lending at 4.5x salary, so £570k / 4.5 is actually £126,667.

But yes. Ridiculous, really.
89
02/03/2021 12:27:34 0 5
bbc
The lender will still verify income and regardless of any state scheme (which is only going to underwrite losses in the event of bad debt) they will not lend if the Liam is unaffordable. You really need to understand how this proposed scheme is going to work before posting
95
02/03/2021 12:30:40 0 5
bbc
Yes - many people under 30 earn over 70k each. Its called going to university and studying law, medicine, IT etc.
The more people say this the less people want to hear. Education is the key to economic freedom. Yes 1 man Pimlico dude is a millionaire out of 18000 gas engineers - woopity doo.
143
02/03/2021 12:55:01 5 3
bbc
How about buying a property somewhere cheaper - you can buy an old 2 Bed Terrace in Swindon for about £150k - might need work but would give you a starter home - there are modern 2 bed apartments for less than that. Your fist home should not be a £600k house.
306
02/03/2021 16:51:03 0 0
bbc
Dont forget you dont even need to be a permanent resident
80
02/03/2021 12:22:20 4 9
bbc
Another win-win for the have-it-all generation. Again.
87
02/03/2021 12:27:08 4 2
bbc
Ever wondered who will benefit when they die, hopefully not you!
1
Ian
02/03/2021 11:35:29 126 6
bbc
When the government introduces a scheme to 'help' people to buy a home, it always has the same effect - demand goes up and house prices go up. And we're back to square one.

The only solution is to stop interfering with the market. If house prices are too high, people cannot buy and house prices will have to level off (and wait for wages to catch up) or drop.

This is simple economics.
81
02/03/2021 12:23:10 6 8
bbc
Double Stamp Duty. It only comes off the price. Vast capacity for tax there.
82
02/03/2021 12:24:17 9 3
bbc
Here is another idea. If you want house prices to fall bring in rent controls. Thus something like 5% mark up on local authority/ social land lord price for 2nd home owners and private land lords. This would stop high rents and bring house prices down if landlords didn't want to rent properly (increase volume of property on the market hence supply hence price falls).
108
02/03/2021 12:35:40 6 2
bbc
or the government starts to seriously invest in a social housing building programme. I don't get why the local authority is paying inflated rents to private landlords
227
02/03/2021 14:12:24 1 1
bbc
There is demand-side pressure across all three main tenures, it isn't landlords creating the high rents it is overall demand pushing up rents, prices and waiting lists.
286
02/03/2021 15:46:59 1 0
bbc
It was tried before and was a total disaster. Another example of those who do not study history are condemned to repeat it
68
02/03/2021 12:15:58 1 4
bbc
Actually surprised the increase is as low as it is. BoE is printing money as fast as it can, Banks being encouraged to lend it with no questions asked, or given 100% cover by Government. As the BoE chief Andy Haldane points out everyone has saved thousands during covid, so they have to spend it on something.
Waiting to see what Rishi does, as house rents are not keeping pace, perhaps tax tennants?
83
Ben
02/03/2021 12:24:23 5 1
bbc
The saving built per person will be surprisingly low. I live a relatively frugal life trying to save, and the pandemic has improved that by giving me (drum roll) £2,000. £2K is pennies in the housing market. Even if every saver put aside £1K-£5k extra through lack of spending, I don't see that making a difference to their ability to buy a house... Prices are too high
84
02/03/2021 12:25:24 6 5
bbc
People haven't considered the amount of housing available due to Covid deaths and also the inheritance money which is being used as a deposit for their children. London still much cheaper than many big cities. Look it up.
85
02/03/2021 12:25:46 32 2
bbc
Is it really that surprising that subsidising those who can already afford a house purchase will be taken advantage of - and stimulate a market that makes profits for some, but not all?

The money would have been better spent on increasing the provision of affordable rented properties.
102
Ben
02/03/2021 12:33:21 14 1
bbc
I agree but everything you said is common sense so.... It will never happen.
314
02/03/2021 17:27:56 1 0
bbc
The money would be better spent on birth control, at the end of the day stopping population growth (or ideally reducing the population over time) it is the only solution
79
02/03/2021 12:21:52 38 3
bbc
So the latest scheme supports buyers to use just a 5% deposit - on houses up to £600,000.......... for which a (properly regulated) lender should need to verify a salary of more than £140,000.......... Do such people really need assistance from the state? !
86
Bob
02/03/2021 12:25:54 23 2
bbc
95% of is £570k and it is said to be modelled on the previous 95% scheme which capped lending at 4.5x salary, so £570k / 4.5 is actually £126,667.

But yes. Ridiculous, really.
80
02/03/2021 12:22:20 4 9
bbc
Another win-win for the have-it-all generation. Again.
87
02/03/2021 12:27:08 4 2
bbc
Ever wondered who will benefit when they die, hopefully not you!
46
02/03/2021 12:03:10 3 1
bbc
Manufacturing technology is not as lucrative as investing and designed the technology . Designing technology is more lucrative. For example iPhones are designed in America, but are manufactured in China where it is cheaper.
88
02/03/2021 12:27:10 4 3
bbc
You need to do a bit of both.

Otherwise China calls the shots.
79
02/03/2021 12:21:52 38 3
bbc
So the latest scheme supports buyers to use just a 5% deposit - on houses up to £600,000.......... for which a (properly regulated) lender should need to verify a salary of more than £140,000.......... Do such people really need assistance from the state? !
89
02/03/2021 12:27:34 0 5
bbc
The lender will still verify income and regardless of any state scheme (which is only going to underwrite losses in the event of bad debt) they will not lend if the Liam is unaffordable. You really need to understand how this proposed scheme is going to work before posting
White Flight. Removed
90
02/03/2021 12:28:14 0 1
bbc
In London?
69
Ben
02/03/2021 12:18:21 34 5
bbc
This is great news if you own and are looking to sell. Not so great if you're looking to buy.

Prices are far too artificially high and unsustainable.

I work full time with a good salary but can only dream...

A rise in house prices is not a good thing in the long-term.
91
02/03/2021 12:28:26 17 4
bbc
If you work full time on a good salary then there will be a plethora of properties up and down the country which will be affordable for you. Perhaps you are trying to purchase something in an area of the country which is out of your price range? I also earn a very much above average salary, but could only dream of living in somewhere like London, for example.
131
Ben
02/03/2021 12:47:16 2 5
bbc
Fair point, but what you're suggesting is change jobs, move away from friends and family to an area I don't know. I'm not looking a Kensington or a quaint village made up of grade listed cottages.
68
02/03/2021 12:15:58 1 4
bbc
Actually surprised the increase is as low as it is. BoE is printing money as fast as it can, Banks being encouraged to lend it with no questions asked, or given 100% cover by Government. As the BoE chief Andy Haldane points out everyone has saved thousands during covid, so they have to spend it on something.
Waiting to see what Rishi does, as house rents are not keeping pace, perhaps tax tennants?
92
02/03/2021 12:28:43 3 1
bbc
"everyone has saved thousands during covid" ?
SOME people have saved thousands working salaried office jobs from home without commute costs & restaurant bills
A lot more have spent their savings & gone into debt as their hours are cut, their "self-employed" work stops, their jobs vanish - but their bills keep coming.
111
02/03/2021 12:36:40 3 1
bbc
Bank of England says "saving has been concentrated among wealthier and less financially distressed households."
https://www.bankofengland.co.uk/bank-overground/2020/how-has-covid-affected-household-savings
5
02/03/2021 11:41:58 44 17
bbc
The graph must be wrong didn't house prices tank when we left the EU?
93
Bob
02/03/2021 12:28:48 5 4
bbc
You really think that any consequence - regardless of your persuasion on the subject - is going to happen immediately?

The effects would occur over many years, up or down.

The only reason for a dramatic movement here is a short-term bonus from the government and a short-term realignment on the type of property people want to buy (larger, detached, countryside).
287
02/03/2021 15:48:08 3 2
bbc
I didn't think that any consequence would happen immediately but we were told by the GOV and Remain that simply voting for B would result in an emergency budget, massive unemployment, and 30% fall in house prices. We then had years of - there will be food and medicine shortages.
78
Ben
02/03/2021 12:21:46 4 3
bbc
There are plenty of houses available. But they sit on the market for longer and longer... It's not a lack of demand, it's the price. They need to come down.
94
02/03/2021 12:30:33 2 2
bbc
Ben. Increasing supply will cause prices to come down.
125
Ben
02/03/2021 12:44:05 1 3
bbc
Not with the way the housing market currently is.

If the average price is (arguments sake) £200k and you decide to build 1 million homes the average price will end up being £250k.

Houses wont get built if people cant afford them now. Which is exactly what suits estate agents.
79
02/03/2021 12:21:52 38 3
bbc
So the latest scheme supports buyers to use just a 5% deposit - on houses up to £600,000.......... for which a (properly regulated) lender should need to verify a salary of more than £140,000.......... Do such people really need assistance from the state? !
95
02/03/2021 12:30:40 0 5
bbc
Yes - many people under 30 earn over 70k each. Its called going to university and studying law, medicine, IT etc.
The more people say this the less people want to hear. Education is the key to economic freedom. Yes 1 man Pimlico dude is a millionaire out of 18000 gas engineers - woopity doo.
96
02/03/2021 12:30:40 5 4
bbc
House prices kept artificially high by successive government policies; most politicians have second & third homes. They benefit from this more than the rest of the population who cannot afford high rents within private sector. It is criminal that millions of families on housing lists all over UK, with little chance to be accommodated by public sector, while landlords benefits
122
02/03/2021 12:34:38 3 2
bbc
Would you support a 10% hike in all UK tax bands to pay for all these public sector houses? I'm guessing not just like the ?? who Go on about the NHS being underfunded but don't want taxes to rise
8
02/03/2021 11:44:40 50 5
bbc
There will never be a housing bust unless interest rates go up signifcanty. Anyone who studies this can see its a massive bubble. How can house prices rise by 6 - 8% a year when salaries don't go up anywhere near this? Its not about supply as there are plenty of houses, just not where people want to live. If interest rates ever got back to normal house prices will fall
97
Bob
02/03/2021 12:30:50 0 1
bbc
Which is why you if you look at the regions with the highest salary to price ratios the increase in price has been slow in last last couple of years (prior to stamp duty holiday).

The north has a lot of salary headroom, so drives the overall price rise figure for the country up.
75
02/03/2021 12:20:39 3 6
bbc
Tax mortgages, give it back out as a savings interest rate.
98
02/03/2021 12:31:37 4 1
bbc
Just need increase interest rates. Borrowing money is far too cheap.
292
02/03/2021 16:05:41 0 0
bbc
Yes I was offering a more targeted way of doing it if the government and rich try on that the rest of business 'needs' cheap loans and to exploit savers by low rates. This would be precise and targeted at forcing house cost down and savings worth doing. Taking money from the property spivs who currently take it all.
99
02/03/2021 12:31:55 4 1
bbc
I think it'll be interesting to see how house prices change over the next 1-2 years in different regions of the country, working from home is going to be a game changer, you can now work for a company based in London with no need to live there and pay over the odds for housing. Does this mean london salaries and house prices will be a thing of the past?
230
02/03/2021 14:13:47 1 0
bbc
Companies will love it - cut the salaries and remove the London weighting too!
77
Dai
02/03/2021 12:21:11 3 3
bbc
There is flight, certainly. Much of it to the Welsh-speaking heartland of Wales, where local people have become priced-out of their communities and irreparable social and linguistic damage is done.
100
02/03/2021 12:23:52 6 1
bbc
Same in Scotland, Shropshire, Cheshire, Yorkshire, South West England. Wales isn’t special in this respect.
105
Dai
02/03/2021 12:34:28 0 2
bbc
We have to mind our language