Housing

[Ozyhibby]

This quote is hidden because you are ignoring this member. Show Quote

The hedge fund types are not the only people in the equation here. Do you seriously belive that the Tories would turn their back on homeowners? Who presented Truss and Kwarteng as competent - certainly not Sunak.

I think it’s possible they turn their back on mortgage holders. Only 30% of householders have a mortgage these days. That’s a lot lower than previously.


Sent from my iPhone using Tapatalk

[Ozyhibby]

This quote is hidden because you are ignoring this member. Show Quote

The press presented Truss as competent, the Tory Party presented her as their leader. Don't you remember?

Gove was on the telly this morning assiduously avoiding the question as whether the govt will help home owners.

What help do you think they will make available?

Sent from my SM-A528B using Tapatalk

They can’t really help directly. That would be horrendously unfair on non mortgage holders. They might take back control of interest rates and devalue the pound though.


Sent from my iPhone using Tapatalk

[archie]

This quote is hidden because you are ignoring this member. Show Quote

I think it’s possible they turn their back on mortgage holders. Only 30% of householders have a mortgage these days. That’s a lot lower than previously.


Sent from my iPhone using Tapatalk

In the run up to an election the Tories will turn their back on home owners with a mortgage - really? Also, peoplecwhobown without a mortgage still have an interest in house prices. Many envisage using the value of their house to buy care when they need it.

[Ozyhibby]

This quote is hidden because you are ignoring this member. Show Quote

In the run up to an election the Tories will turn their back on home owners with a mortgage - really? Also, peoplecwhobown without a mortgage still have an interest in house prices. Many envisage using the value of their house to buy care when they need it.

The only way I can see them helping is by cutting interest rates, taking away BofE independence and devaluing the currency. There is no other way to help? I just can’t see them doing that but I wouldn’t rule it out either.


Sent from my iPhone using Tapatalk

[archie]

This quote is hidden because you are ignoring this member. Show Quote

The only way I can see them helping is by cutting interest rates, taking away BofE independence and devaluing the currency. There is no other way to help? I just can’t see them doing that but I wouldn’t rule it out either.


Sent from my iPhone using Tapatalk

There's no way they would go for BoE independence before an election. Also, interest rate rises are to control inflation. That's a worldwide phenomenon. Rates will come down. The longer term issue is how we set rates for mortgages.

[Ozyhibby]

This quote is hidden because you are ignoring this member. Show Quote

There's no way they would go for BoE independence before an election. Also, interest rate rises are to control inflation. That's a worldwide phenomenon. Rates will come down. The longer term issue is how we set rates for mortgages.

Agree, they won’t do it. I think there is no help coming for mortgage holders.


Sent from my iPhone using Tapatalk

[Andy Bee]

Tax relief on mortgage interest would be a start, they wont do that either though. Mortgage holders are in for a whole world of pain shortly if not already along with renters in the short term. Property prices will fall and there'll be a new wave of buy to let landlords buying them up at cheaper prices.

I didn't actually realise how much property prices had gone up in the last 2 - 3 years, properties in my area which were selling at around the £175k mark are now well over £220k at the moment, no idea if they're selling though.

[wookie70]

This quote is hidden because you are ignoring this member. Show Quote

I think donations to political parties from house builders might be a factor.


Sent from my iPhone using Tapatalk

Lobbying(that is the kind way to say bribing or buying off) is democracy in the UK. Housebuilder have ridiculous profits for what they actually do and I would strongly argue that they cost far more again as most estates appear to screw up local infrastructure so are negative for stretched services

[Smartie]

The only help the Tories will be giving to anyone will be by getting booted firmly out at the next election.

They might come up with some sort of wheeze in the meantime to make some of themselves and their pals rich.

I’m led to believe that the problems we’re currently experiencing are to do with “the supply side” so I’m not sure what they can really do to help anyway.

[DH1875]

We just offered £25k over the asking price on a property and according to the agent there were 4 other bids that were higher than hours. This has happened a few times now so property is defo still selling. What I don't get is how so many people are affording the high mortgage rates and deposits as its getting crazy now.

[Since90+2]

This quote is hidden because you are ignoring this member. Show Quote

We just offered £25k over the asking price on a property and according to the agent there were 4 other bids that were higher than hours. This has happened a few times now so property is defo still selling. What I don't get is how so many people are affording the high mortgage rates and deposits as its getting crazy now.

House prices have went up enormously in the last 7 or 8 years.

They'll be a lot of people who've seen the value of their current home increase massively in that time period meaning the profit made will offset the higher rates, as their initial down deposit will likely be pretty large.

[Skol]

I wouldn’t be surprised if when the interest rates increase start to bit as people come off cheaper fixed rate deals that we see a house price correction take place.

[archie]

This quote is hidden because you are ignoring this member. Show Quote

Tax relief on mortgage interest would be a start, they wont do that either though. Mortgage holders are in for a whole world of pain shortly if not already along with renters in the short term. Property prices will fall and there'll be a new wave of buy to let landlords buying them up at cheaper prices.

I didn't actually realise how much property prices had gone up in the last 2 - 3 years, properties in my area which were selling at around the £175k mark are now well over £220k at the moment, no idea if they're selling though.

I couldn't support tax relief on mortgages. It would just drive house price inflation.

[Ozyhibby]

This quote is hidden because you are ignoring this member. Show Quote

I wouldn’t be surprised if when the interest rates increase start to bit as people come off cheaper fixed rate deals that we see a house price correction take place.

As soon as night follows day that’s what will happen.


Sent from my iPhone using Tapatalk

[Moulin Yarns]

This quote is hidden because you are ignoring this member. Show Quote

I think donations to political parties from house builders might be a factor.


Sent from my iPhone using Tapatalk

Pretty sure Springfield, based in Elgin I think, are donators to the SNP. Building 3,500 houses north of Perth with more than the obligatory 25% affordable housing. Some housing association for rent as well.

[Gatecrasher]

I would rather prices were coming down via policies rather than a bust but they need to come down regardless, I'm not going to shed a tear for those losing out, houses should be for living in not an investment. It's a total shambles folk can abuse the property market for their own gain.

[Ozyhibby]

https://twitter.com/resi_analyst/sta...dxJXScFNwz8V4A


Sent from my iPhone using Tapatalk

[Skol]

This quote is hidden because you are ignoring this member. Show Quote

I would rather prices were coming down via policies rather than a bust but they need to come down regardless, I'm not going to shed a tear for those losing out, houses should be for living in not an investment. It's a total shambles folk can abuse the property market for their own gain.

I agree. I moved to my current place in 1998. I paid over the odds and stretched myself to the max having list out on five other places.

It was tough at the time but now 25 years on I am sitting on a very nice profit on paper. Albeit I would have to sell to realise it and pay over the odds for something else.

If I was buying today I couldn’t afford my current home. The situation for those starting out is pretty grim.

[DH1875]

This quote is hidden because you are ignoring this member. Show Quote

I agree. I moved to my current place in 1998. I paid over the odds and stretched myself to the max having list out on five other places.

It was tough at the time but now 25 years on I am sitting on a very nice profit on paper. Albeit I would have to sell to realise it and pay over the odds for something else.

If I was buying today I couldn’t afford my current home. The situation for those starting out is pretty grim.

Yeah I've no idea how first time buyers or young folk are supposed to afford it. We are looking the now to buy but even with an £80k deposit on a £200K property we are looking at a £700 per month mortgage. If we only had 5% deposit you'd be talking a mortgage of about £1110 per month. I'm tempted to just stay put and wait it out as we ain't even getting a great house for the £200k.

[Since90+2]

This quote is hidden because you are ignoring this member. Show Quote

Yeah I've no idea how first time buyers or young folk are supposed to afford it. We are looking the now to buy but even with an £80k deposit on a £200K property we are looking at a £700 per month mortgage. If we only had 5% deposit you'd be talking a mortgage of about £1110 per month. I'm tempted to just stay put and wait it out as we ain't even getting a great house for the £200k.

If you are getting a half decent house for £200k thats brilliant compared to Edinburgh. Edinburgh salaries are comparable to Glasgow, but our house prices are probably atleast 50% higher.

[AgentDaleCooper]

i was having a look at a mortgage calculator the other day, and i'm basically completely hooped for the foreseeable future. My choice is pay off someone else's mortgage and save minimally, or live at home (bare in mind I'm 35), and save much more - but even then, it would take me about 5 years wages, with zero outlays, to get even close to a deposit big enough for me to be able to afford somewhere close to my family south of Edinburgh, or my friends in Glasgow, and even then, the mortgage would be very close to unpayable.

IMO, there's a few things that need to happen:

Government policy needs step in to stop the upward spiral by putting a stop to property investment on a big scale.

People need to recognise that rent paid to landlords is almost 100% profit, not whatever % is above the price of the mortgage. Even when done honestly and with the best intentions, landlordism is, fundamentally, a pretty dismal business, especially modern short-term lets, which are destroying communities all over the world.

Ultimately, though, stopping the prices soaring, notwithstanding an unprecedented rise in wages for care workers like myself, simply isn't going to solve matters - prices need to plummet.

[hibee]

We’re moving to a new build next month and there still seems to be a steady stream of houses being sold there, also around 60 council houses being built across the road.

We’ve sold ours to a first time buyer but as others have said I’m not sure where they are getting the money from, one of the reasons we are buying a bigger house is I can’t see our teenagers moving out any time soon!

It’s not just the house prices, the stamp duty or whatever it’s called now is expensive here too, nearly £15k but would only be around £8k in England for the same house. Just another tax on our earnings that have already been taxed.

[danhibees1875]

Are 95% or even 100% mortgages a thing at the moment? I feel like I see them advertised every so often but never looked into them - they might be a way to get a foot in the door for those struggling to get the deposit together.

LBTT is quite a chunky outlay too. There's some relief for first time buyers but I'm not sure there's much. A plus side to buying in the current conditions is that I've seen houses going with the builder paying the LBTT - as much as a £20k upfront saving.

[easty]

This quote is hidden because you are ignoring this member. Show Quote

Are 95% or even 100% mortgages a thing at the moment? I feel like I see them advertised every so often but never looked into them - they might be a way to get a foot in the door for those struggling to get the deposit together.

LBTT is quite a chunky outlay too. There's some relief for first time buyers but I'm not sure there's much. A plus side to buying in the current conditions is that I've seen houses going with the builder paying the LBTT - as much as a £20k upfront saving.

For a first time buyer, LBTT can be fairly small. £200k property, you’d only pay £500.

[Ozyhibby]

Here is the effect of the SG’s idiotic rent freeze policy. It’s an absolute disaster for tenants, especially younger ones who change tenancy frequently.


Sent from my iPhone using Tapatalk

[Just Alf]

This quote is hidden because you are ignoring this member. Show Quote

Here is the effect of the SG’s idiotic rent freeze policy. It’s an absolute disaster for tenants, especially younger ones who change tenancy frequently.


Sent from my iPhone using Tapatalk

The Glasgow and Edinburgh average has been driven up by increasing student accommodation costs (your right about the younger ones being hit more).

For those not changing regularly changing accommodation, so most of the rest of the market, currently the max increase is 3% a year, unless the Landlord's got a mortgage that's jumped up when it could be up to a 6% increase.
Still an ouch tho ..

[Ozyhibby]

This quote is hidden because you are ignoring this member. Show Quote

The Glasgow and Edinburgh average has been driven up by increasing student accommodation costs (your right about the younger ones being hit more).

For those not changing regularly changing accommodation, so most of the rest of the market, currently the max increase is 3% a year, unless the Landlord's got a mortgage that's jumped up when it could be up to a 6% increase.
Still an ouch tho ..

And that is the start of a two tier market. It makes the problem worse in the long run. Established older residents have cheap rent and younger newer residents have to pay more.

https://www.bbc.co.uk/news/business-47028342.amp


Sent from my iPhone using Tapatalk

[Just Alf]

This quote is hidden because you are ignoring this member. Show Quote

And that is the start of a two tier market. It makes the problem worse in the long run. Established older residents have cheap rent and younger newer residents have to pay more.

https://www.bbc.co.uk/news/business-47028342.amp


Sent from my iPhone using Tapatalk

.... hence the "ouch" ..... probably worse than that to be fair.
Imagine someone renting long term having to move because the Landlord is moving in or selling etc, there would be a sudden hike in rent on any new tenancy.

[Ozyhibby]

Sent from my iPhone using Tapatalk

[danhibees1875]

This quote is hidden because you are ignoring this member. Show Quote

For a first time buyer, LBTT can be fairly small. £200k property, you’d only pay £500.

Looks like it's a £600 reduction on the LBTT amount for first time buyers. So not a huge amount, but it's also not a huge burden at the lower end of the market either, no.

I don't think the thresholds have been adjusted over the years, so like income tax there's a big degree of fiscal drag at play too.

Anything above £325k being hit with 10% is a big hit.