Petem95

http://www.telegraph.co.uk/finance/p...one-month.html

So the debt-fueled utter madness continues.

The difference to the last Labour fueled houseprice bubble is the average person appears much more clued up and doesn't see this as a good thing anymore, it's growth based purely on debt and cheap credit.

I just don't see how they can continue with this for much longer - where will the required money keep coming from? Reduce interest rates to zero? Even more QE?

They've already effectively let people take their pension money out so they can put this into property and keep it pumped up, and also extended the 'help-to-keep prices up', sorry 'help-to-buy' scheme until 2020.

Is there anyone who still thinks this is a good thing, and actually sustainable?!!...

f1_fan

iTrader: (9)

Nope, but I said 2 years ago it wasn't going to be! The Tory voters on here, however, think otherwise, but that is probably why they vote Tory if you get my drift!

Petem95

I voted Tory in the last general election as I was believed Osbourne when he said he'd bring in austerity and reduce the national debt. That was a massive lie - national debt has continued increase and shockingly at an even faster rate than under Labour.

All I can say is I won't be repeating the same mistake in next years general election.

f1_fan

iTrader: (9)

Yep and this is why I will end up voting UKIP as Labour and the Tories just continually lie. Maybe UKIP will be the same, but definitely a rare case of better the devil you don't know for me!

Petem95

I'm going for UKIP too. The others have had their chance and have proven to be liars. They can expect to lose support if they keep treating the voters like fools.

At least UKIP will reduce immigration which reduces pressure on housing demand - that's a key part of the jigsaw for Labour/Tories.

jonc

No, Osborne's pre-election pledge in 2010 was to cut the deficit, not debt, which he as done, by a third since 2010.

Petem95

It went down from 2010-2012, but since 2013 is increasing again and forecast to continue increasing.

ditchmyster

iTrader: (7)

Wooooooohoooooooo i'm considerably richer than I was last month.

Better call the bank and re-mortgage to take advantage of my new found wealth, ferrari or porsche.

dpb

But nobody's going to pay that extra 7k....

As far as I can tell

Henrik

iTrader: (5)

It's utter madness, however I don't think you can just blame the Tories for the price increases... Ok, they've introduced a load of stupid policy surrounding this (HTB1, HTB2 etc), but nobody has (yet) forced anyone to take on a mortgage - that's all down to people buying houses.

I also don't believe there is a genuine housing shortage in the country, otherwise there'd be a lot more people living on the streets. I think it's an artificial supply issue due to BTL.


I hope prices crash hard all over, especially in London and surrounding areas, and I say that as an "owner" (well, bank owns it, of course, i just pay for the maintenance). If they don't, my kids will be screwed when they grow up.

tony de wonderful

BTL has certainly inflated prices.

The boom in BTL is one of the most ugly things about modern Britain.

A form of human farming.

ALi-B

iTrader: (1)

British housing in a nutshell:

Your house is worth £7K more. Woohoo. You can sell your poxy 2005 new build 3 bed (one main bedroom, with two tiny box rooms that can barely fit in a single bed) and buy something better....

Oh, no wait, A better house is also £7k more, so you need to max out the mortgage more, but that's no good anyway as you can't sell the current house and 1st time buyers can't afford to get on the ladder which mean those further in teh chain can 't buy your house. Oh dear, what a quandary. .

f1_fan

iTrader: (9)

Love your work Tony

jonc

Really? Where did you get that from or did you just make that up? The official forcast is for growth to increase and public borrowing is to go down.

jonc

How is the HTB policy stupid? It helped 27000 people with 85% of those first time buyers to get on the housing ladder.

tony de wonderful

At the expense of taxpayers and FTB'ers who actually bothered to save a deposit.

f1_fan

iTrader: (9)

Because the real fix is to get property prices to come down whereas HTB is doing the opposite!

jonc

I think you were one of a number of others on here in the past who has pointed out the Government aren't doing anything to help FTB'ers like yourself. The current Government has introduced a scheme to help people like yourself to get on the housing ladder and yet you still choose to perpetuate the very thing you dispise so much by continuing to rent off private landlords whilst also looking at ways to evade paying your tax.

jonc

HTB has had little if any impact in the overall house price increase. Most of those to took advantage of the scheme were from well past north of London and the southern counties and those that did only made up 4% of total FTB'ers purchases in the UK.

f1_fan

iTrader: (9)

Be that as it may it is certainly not doing anything to pull prices the other way.

Until house price rises stop outstripping wage rises there will be no fix for the housing situation in the UK and even then it will take years if not decades!

The trouble is (as Ali pointed out) everyone thinks if their house is worth £7K more than last year they are somehow better off, where in reality they are no better off than they were unless they want to sell up and live in a tent!

The Tories have been selling this lie since 1979 and it's wearing rather thin!

Cocker

iTrader: (3)

My cousin has just sold her bungalow for £82,000 over the asking price. Had 4 couples in a bidding war over it!

2 years earlier at £50,000 less that the asking price now, she didn't have a sniff

hodgy0_2

when capital invests in uneconomically productive asset classes like property, (because they get the best return)

the knock on effect is that economically productive asset classes - like industry (heavy/light/service etc) have to supply ever increasing returns

this can only be done with a relentless downward pressure on costs - and this is most likely labour cost - which are inevitably driven down

so wages go down, real spending power goes down and "growth" is only sustainable by debt

as an addendum

some economist agree that a large part of our "growth" has been the 30 billion injected by PPI claims - wooohoww got a couple of grand lets spunk it on a new car

jonc

That's not what HTB is designed to do, it's to help first time buyers buy a home for themselves and as it turns out, with minimal impact to house prices.

Ironically, dispite your anti-tory stance, you're most certainly going to benefit from the Tories when you come to sell up right before you move to Australia!

dpb

Hang on, her bunglooo has risen in 'value' 130 k in two years

f1_fan

iTrader: (9)

Actually the biggest rise in the price of my house came under Labour who were no better than the Tories in this respect so if I should thank anyone it should be.... maybe not!

However, sadly Western Aus has an even more out of control property market than here and hence since the time I first seriously started thinking of going I now can get 25% less for my money such have been the rises there

Chip

Surely not, I thought everything about Oz was just so perfect

dpb

The Kimberly probably bit cheaper?

mamoon2

They came down!! Massively!!

I filled my boots

Roll on the rise..... Then i'm selling up and fukcing off!

tony de wonderful

I'm not a first time buyer with no deposit though.

HTB has increased demand thus increasing prices for people such as myself.

So it's helped some people but hurt others.

Dingdongler

With some of London excepted, things might be calming down a bit already.

http://www.ft.com/cms/s/0/ba27dc6c-d...#axzz33mORJUEx

http://uk.reuters.com/article/2014/0...0ED0XQ20140602

http://www.bbc.co.uk/news/business-27223041


Banks seem to be taking some responsible action

http://www.theguardian.com/business/...le-house-price



However feel free to ignore any of these facts