How to keep house prices low for generations to come
19-11-2016, 09:45
|
#1
|
The Invisible Woman
Cable Forum Team
Join Date: Jun 2003
Location: between Portsmouth and Southampton.
Age: 71
Services: VM XL TV,50 MB VM BB,VM landline, Tivo
Posts: 40,163
|
How to keep house prices low for generations to come
http://www.bbc.co.uk/news/business-37941426
Quote:
Imagine a world in which the price of housing stopped rising as predictably as a hydrogen-filled balloon.
And imagine a country in which houses would be just as affordable in 10 years' time as they were 10 years ago.
|
Quote:
It is about to come to fruition in the East End of London, in an extraordinary experiment.
For the first time, future property prices will be tied to the rise in wages.
|
Seems a simple idea..I wonder if it can work?
__________________
Hell is empty and all the devils are here. Shakespeare..
|
|
|
19-11-2016, 09:57
|
#2
|
Still alive and fighting
Join Date: Jun 2007
Location: In the land of beyond and beyond.
Services: XL BB, 3 360 boxes , XL TV.
Posts: 56,308
|
Re: How to keep house prices low for generations to come
It would be nice if it worked as sadly as most of us know the current unaffordable housing and social housing crisis we have currently is going to take some considerable time if ever to sort out as we need policies and politicians that think of UK housing long term instead of the short term policies we sadly have had for decades.
__________________
“The only lesson you can learn from history is that it repeats itself”
|
|
|
19-11-2016, 10:54
|
#3
|
cf.mega poster
Join Date: Sep 2010
Location: Oxfordshire
Services: TV XL ,TiVo X 2,
200Mb Broadband
XL phone
Posts: 1,158
|
Re: How to keep house prices low for generations to come
I wouldn't give it more than a few years. The problem I see is that you create a 'priviledged? set' who are tied to properties that dont go up in value much and who may not be able to move out into other properties.
|
|
|
19-11-2016, 11:27
|
#4
|
cf.mega poster
Join Date: Apr 2004
Location: Northampton
Services: Virgin Media TV&BB 350Mb,
V6 STB
Posts: 7,865
|
Re: How to keep house prices low for generations to come
Probably worse than renting. The allowed increase wouldn't cover the mortgage interest due when it came to selling it. They would face a bill for that.
They are being subsidised by getting the land for free.
Quote:
In some cases land for development is given to CLTs, free of charge, by a local authority for example. In other cases CLTs may work with developers, who donate the freehold to the CLT after they have made their profits.
|
|
|
|
19-11-2016, 12:02
|
#5
|
cf.mega poster
Join Date: Jun 2003
Location: Kairdiff-by-the-sea
Age: 68
Services: TVXL BBXL Superhub 2ac (wired) 1Tb Tivo
Posts: 9,812
|
Re: How to keep house prices low for generations to come
The only way to stop the growth of the bubble would be to build more homes than were required. And with the present demand that would take a building revolution which we are always told is "planned" but never happens.
Oh, and make buy-to-let a lot less easy and lucrative for the vultures.
|
|
|
19-11-2016, 13:35
|
#6
|
Sad Doig Fan!
Join Date: Aug 2007
Location: Barry South Wales
Age: 68
Services: With VM for BB 250Mb service.(Deal)
Posts: 11,658
|
Re: How to keep house prices low for generations to come
Quote:
Originally Posted by Taf
The only way to stop the growth of the bubble would be to build more homes than were required. And with the present demand that would take a building revolution which we are always told is "planned" but never happens.
Oh, and make buy-to-let a lot less easy and lucrative for the vultures.
|
Done.
"Not long ago it was the investment for choice of the middle classes. "My buy-to-let is my pension," was the refrain of the two million strong army of small landlords.
But in less than two years this form of investment has been all but destroyed.
A series of tax and regulatory changes, spearheaded by former Chancellor George Osborne, has left landlords reeling - even though the full implications are yet to be felt.
Middle-class mortgaged landlords will be hardest hit, with the retirement plans of many thrown into disarray.
Large-scale landlords and those operating as companies will escape largely unscathed, however.
Last year the buy-to-let boom peaked, with a 26pc rise in lending to investors and £15.6bn lent to landlords to buy property. "
http://www.telegraph.co.uk/investing...-in-16-months/
|
|
|
19-11-2016, 22:47
|
#7
|
Guest
|
Re: How to keep house prices low for generations to come
Quote:
Originally Posted by Taf
The only way to stop the growth of the bubble would be to build more homes than were required. And with the present demand that would take a building revolution which we are always told is "planned" but never happens.
Oh, and make buy-to-let a lot less easy and lucrative for the vultures.
|
That'll be the "vultures" that provide millions of people with a roof over their head then.
---------- Post added at 23:47 ---------- Previous post was at 23:44 ----------
Quote:
Originally Posted by pip08456
Done.
"Not long ago it was the investment for choice of the middle classes. "My buy-to-let is my pension," was the refrain of the two million strong army of small landlords.
But in less than two years this form of investment has been all but destroyed.
A series of tax and regulatory changes, spearheaded by former Chancellor George Osborne, has left landlords reeling - even though the full implications are yet to be felt.
Middle-class mortgaged landlords will be hardest hit, with the retirement plans of many thrown into disarray.
Large-scale landlords and those operating as companies will escape largely unscathed, however.
Last year the buy-to-let boom peaked, with a 26pc rise in lending to investors and £15.6bn lent to landlords to buy property. "
http://www.telegraph.co.uk/investing...-in-16-months/
|
Making this the only type of business where you are taxed on turnover and not profit. Wonder if they'll apply the same rules to Starbucks et al...
All that's going to happen is that rents are going to sky rocket.
|
|
|
19-11-2016, 23:33
|
#8
|
The Invisible Woman
Cable Forum Team
Join Date: Jun 2003
Location: between Portsmouth and Southampton.
Age: 71
Services: VM XL TV,50 MB VM BB,VM landline, Tivo
Posts: 40,163
|
Re: How to keep house prices low for generations to come
Quote:
Originally Posted by OhReally
That'll be the "vultures" that provide millions of people with a roof over their head then.
---------- Post added at 23:47 ---------- Previous post was at 23:44 ----------
Making this the only type of business where you are taxed on turnover and not profit. Wonder if they'll apply the same rules to Starbucks et al...
All that's going to happen is that rents are going to sky rocket.
|
And this scheme..got any opinions on that?
__________________
Hell is empty and all the devils are here. Shakespeare..
|
|
|
19-11-2016, 23:45
|
#9
|
Guest
|
Re: How to keep house prices low for generations to come
Quote:
Originally Posted by Maggy J
And this scheme..got any opinions on that?
|
Clause 24? - I can't think of any other business where you don't get tax relief on a loan you took out to run the business.
There are going to be some landlords out there where the tax bill exceeds what's left after you take the interest and management fees off the rent.
Only realistic outcomes are
1. Landlords hike the rent up to at least a level where they aren't out of pocket
2. They go under, house gets repossessed and tenants get made homeless. Putting more pressure on the local authority.
Either way the real losers are the people actually renting and the rest of us paying the Council Tax.
I'm all for level playing fields, so when the government goes to the likes of Tesco, British Gas, BP et al and says
"Sorry about this, but you have to now pay tax on those interest charges for the loans you took out to buy equipment..."
Was that a squadron of stealth bomber pigs flying past my window
|
|
|
19-11-2016, 23:59
|
#10
|
cf.mega poster
Join Date: Apr 2004
Location: Northampton
Services: Virgin Media TV&BB 350Mb,
V6 STB
Posts: 7,865
|
Re: How to keep house prices low for generations to come
Taking out a loan to buy equipment is very different to a loan to buy what is seen as an asset. The house will retain or even increase its value, where equipment will depreciate in value.
As the cost of the loan is retained in the value of the house, any rent is relatively pure profit. By renting it out you are partially "selling" the house. If you sold the house you might be liable for Capital Gains tax.
Last edited by nomadking; 20-11-2016 at 00:11.
|
|
|
20-11-2016, 15:00
|
#11
|
067
Join Date: Jul 2007
Location: Middlesbrough
Age: 48
Services: Many
Posts: 4,605
|
Re: How to keep house prices low for generations to come
Quote:
Originally Posted by OhReally
That'll be the "vultures" that provide millions of people with a roof over their head then
</snip>
|
Mmm because they're in to benefit the tenants aren't they...
Wakey wakey
__________________
Nerves of steel, heart of gold, knob of butter......
|
|
|
20-11-2016, 15:36
|
#12
|
cf.mega poster
Join Date: Apr 2004
Location: Northampton
Services: Virgin Media TV&BB 350Mb,
V6 STB
Posts: 7,865
|
Re: How to keep house prices low for generations to come
Quote:
Originally Posted by mrmistoffelees
Mmm because they're in to benefit the tenants aren't they...
Wakey wakey
|
In the same way that farmers produce food only for their own benefit.
|
|
|
20-11-2016, 15:52
|
#13
|
067
Join Date: Jul 2007
Location: Middlesbrough
Age: 48
Services: Many
Posts: 4,605
|
Re: How to keep house prices low for generations to come
Quote:
Originally Posted by nomadking
In the same way that farmers produce food only for their own benefit.
|
So they do it for the good of the people and then their own financial improvement/stability secondary?
and you believe this ?
__________________
Nerves of steel, heart of gold, knob of butter......
|
|
|
20-11-2016, 15:54
|
#14
|
Sad Doig Fan!
Join Date: Aug 2007
Location: Barry South Wales
Age: 68
Services: With VM for BB 250Mb service.(Deal)
Posts: 11,658
|
Re: How to keep house prices low for generations to come
Quote:
Originally Posted by mrmistoffelees
So they do it for the good of the people and then their own financial improvement/stability secondary?
and you believe this ?
|
Anyone who works or invests does it to earn money.
QED.
|
|
|
20-11-2016, 16:00
|
#15
|
067
Join Date: Jul 2007
Location: Middlesbrough
Age: 48
Services: Many
Posts: 4,605
|
Re: How to keep house prices low for generations to come
Quote:
Originally Posted by pip08456
Anyone who works or invests does it to earn money.
QED.
|
Which was the point i was making... Profit first, care of tenants secondary. Hence my agreement of the 'vultures comment'
Whilst I'm sure there are a degree of B2L landlords who do they're best for their long term tenants. The vast majority want the maximum amount of money for the minimum amount of effort. We've all seen some of the horror stories.
So two options
1) Embark on a massive program of social/low cost affordable housing which can ONLY be purchased by the individual (not B2L)
2) Move towards a more US based model of acceptance that not everyone owns their own home.
I'd much prefer option 1, I suspect option 2 is the more likely model based on current progression.
__________________
Nerves of steel, heart of gold, knob of butter......
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
All times are GMT +1. The time now is 05:03.
|