House Price Inflation Checker.

[tek-monkey]

Housebuilder sees rise in 36-year mortgages

More Taylor Wimpey customers are taking longer mortgages to make monthly repayments more affordable, providers say.

www.bbc.co.uk

(very) roughly this year will be 500m profit on 10,000 houses, so an average profit of 50k for every plot. How many new houses have gone up lately in Stafford, and why can't we afford any infrastructure?

 

[Carole]

And isn't the rise in rented house partly due to so many people buying to rent out rather than just putting their savings into a building society ?

Not really.
A while back it was advantageous for those who had money to invest to buy a house and rent it out.
The rent covered the mortgage, and the property would most likely go up in value. There were so many properties to rent that rent prices were stable.

Then the Government started to make life difficult for landlords and gradually over a period of time owning a buy to let became less attractive. This year there have been so many hoops to jump through and regulatory changes that most landlords have decided that it’s just not worth the bother and have sold off their properties in droves.

Result? A massive shortage in properties to rent which in turn puts the prices up.

 

[Mudgie]

Not really.
A while back it was advantageous for those who had money to invest to buy a house and rent it out.
The rent covered the mortgage, and the property would most likely go up in value. There were so many properties to rent that rent prices were stable.

Then the Government started to make life difficult for landlords and gradually over a period of time owning a buy to let became less attractive. This year there have been so many hoops to jump through and regulatory changes that most landlords have decided that it’s just not worth the bother and have sold off their properties in droves.

Result? A massive shortage in properties to rent which in turn puts the prices up.

But "sold off their properties in droves" will have meant "droves" more properties on the market and so more affordable homes for first time buyers, unless there are other factors to be considered.

 

[Carole]

But "sold off their properties in droves" will have meant "droves" more properties on the market and so more affordable homes for first time buyers, unless there are other factors to be considered.

Yes, more properties available to buy but not to rent.

Also, not everyone has the deposit to buy a house, which is why they rent.

So, to simplify, landlords selling properties means less properties available for the rental market.

 

[Mudgie]

Yes, more properties available to buy but not to rent.

Also, not everyone has the deposit to buy a house, which is why they rent.

So, to simplify, landlords selling properties means less properties available for the rental market.

Yes, I don't disagree with those three statements but believe that the more profits being made by landlords from the rents that they take means less money available towards a deposit and a mortgage.

 

[Carole]

Yes, I don't disagree with those three statements but believe that the more profits being made by landlords from the rents that they take means less money available towards a deposit and a mortgage.

So what is the answer then?

Because no landlord will put up with the kerfuffle of renting unless they are making a profit.
It’s a business decision, not a charity.

Its always been the case that if someone is saving up for a deposit then they stay at home with their parents (or whoever) and save their deposit quicker, or move out, become independent, rent somewhere and take longer to save for the deposit.

As I said in an earlier post, the Government have had a war on landlords, making it not worth their while.

A sudden decrease in properties available, coupled with an increase in demand, (demand outstripping supply) means increased rents.

People have perhaps unfairly criticised those who bought houses to rent out, but those people provided a solution and a service. Now that a huge majority have withdrawn that service, there is a massive shortage of rental properties available.

 

[Mudgie]

So what is the answer then?

Because no landlord will put up with the kerfuffle of renting unless they are making a profit.
It’s a business decision, not a charity.

Its always been the case that if someone is saving up for a deposit then they stay at home with their parents (or whoever) and save their deposit quicker, or move out, become independent, rent somewhere and take longer to save for the deposit.

As I said in an earlier post, the Government have had a war on landlords, making it not worth their while.

A sudden decrease in properties available, coupled with an increase in demand, (demand outstripping supply) means increased rents.

People have perhaps unfairly criticised those who bought houses to rent out, but those people provided a solution and a service. Now that a huge majority have withdrawn that service, there is a massive shortage of rental properties available.

Carole,
The answer would have been for the Tories not to have sold off council housing.
Of course a private landlord makes a profit rather than being a charity but it's unfortunate that so many residents nowadays pay in rent over forty years twice the value of the property rather than being able to get a mortgage that's paid off before then.
Your knowledge of this subject might suggest that you have a particular interest in the property market.

 

[tek-monkey]

There is a deliberate situation where demand always outstrips supply, to maintain prices. More people means more houses needed, and as people escape the cities now they're no longer chained to offices we'll keep seeing an influx.

The higher house prices are the less likely people can get a deposit, so are forced to rent. But rent is more than a mortgage, so it's much harder to save a deposit especially as prices keep rising.

One 'fix' would be for the government to lend the deposit, I used an old labour scheme where that happened, but it got scrapped and tories only ever offered help on new builds and quickly moved that onto developers. Of ourselves this would likely force prices up if widely available.

Renting isn't really an issue as such, lots of Europe rent, but they have much better laws protecting the tenant than the uk does so people see it as their home.

 

[Mudgie]

Isn't it just capitalism at its worst, the rich getting richer and the poor getting poorer ?
As I understand it fifteen years ago predatory lending targeting low-income homebuyers and excessive risk-taking by financial institutions caused the Global Financial Crisis. The banks were of course bailed out by us taxpayers for the benefit their shareholders. Interest rates plummeted and rather than just get 1% interest a year from their building society deposit accounts the upper middle classes bought millions of houses, one at £120,000 with a rent of £500 per month yielding them the 5% they were accustomed to and somehow expected. Millions of houses so bought meant millions less available for first time buyers, the laws of supply and demand of course meaning that prices rose and getting a mortgage became even less of a possibility. The housing shortage meant that rents increased and the landlords did very nicely.
I doubt if anyone on here seriously believes that Britain is a better place to live in now with a third of the population in private rented accommodation than it was before the Thatcher era with a third in local authority accommodation. And some people still vote Tory.

 

[gilbert grape]

I guess, somewhere in my point was, if you have to sell your home because time has caught up and you struggle with your mortgage and debts, if the price falls you don't make any profit to start over. That is the dire reality for many.

 

[Theresa Green]

Carole,
The answer would have been for the Tories not to have sold off council housing.
Of course a private landlord makes a profit rather than being a charity but it's unfortunate that so many residents nowadays pay in rent over forty years twice the value of the property rather than being able to get a mortgage that's paid off before then.
Your knowledge of this subject might suggest that you have a particular interest in the property market.

Oh that’s just typical!

Blame the Tories for everything why don’t you

 

[Mudgie]

Oh that’s just typical!

Blame the Tories for everything why don’t you

I'm sure I'm not alone on here in thinking that the Tories should not have sold off council housing.

 

[Theresa Green]

House Price Deflation Checker , Shirley

Commercial property has tanked since Covid, residential property is having an extensive slow motion tank

50 graduates seeking each job vacancy next year

Oil prices could double if Middle East wars continue

Inflation to return to double figures



I wonder what else is to come…..





Gambling and Drinking if George Orwell was right

I bet you a pint that he was right

Trebles All Round!!!