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Started by Brunothecat on Sep 16, 2015 3:23:52 PM
Why are houses so expensive?

here’s a sizeable chance that many people born before me in the late 1980s – and far more who were born after me – will never own their home in the UK. The goal for most people is now to get on “the housing ladder”: buy a small house or flat, and gradually move to a nicer area and bigger home as your profits increase. This wasn’t always the case. Back in the early 1980s, around half the population of the country owned their own home, and half rented – 30% in social housing, from their local council, and 20% from private landlords.

Ginmonkey - 17 Sep 2015 11:49:41 (#1 of 17)

East credit, restricted building, lack of viable alternatives to owning, government policies that favour housing over other investments, creation of more households through family break up, decline in multi generational households.

rgtstoppedcounting - 17 Sep 2015 11:50:03 (#2 of 17)

Not enough of them.

Yammoto - 17 Sep 2015 11:57:12 (#3 of 17)

End of thread?

BallyMoney - 17 Sep 2015 11:59:27 (#4 of 17)

rest of the world viewing UK housing as a reserve currency, property hoarding, inequality to add to Gin's reasons

Andyourpointis - 17 Sep 2015 12:00:28 (#5 of 17)

Why are houses so expensive?

The Barclay Brothers?

Agaliarept - 17 Sep 2015 12:01:18 (#6 of 17)

Is there any way we can put at least some of the blame on estate agents?

I hate estate agents.

ScalloperJack - 17 Sep 2015 12:02:48 (#7 of 17)

Mylene Klass. And Antanddec.

Brunothecat - 17 Sep 2015 12:02:55 (#8 of 17)

Hey you can shoot them regardless. Nobody will miss them.

Brunothecat - 17 Sep 2015 12:03:17 (#9 of 17)


Fine cross post there.

MaisonLazlique - 17 Sep 2015 12:03:29 (#10 of 17)

Sarah Beeny and that horrible Toddler-Woman.

GreenFuture - 17 Sep 2015 12:03:48 (#11 of 17)

One overlooked aspect of the housing boom, going back more than a generation now, is that pensions were seen as a rip off (they broadly are, and scandals like Equittable Life hardly helped)

So it wasn't just greed to see where you lived as a money box, but a demonstrable strategy, talked up by government and media as a feel good thing.

Then a new rentier class was born with B2L

More recently, the whole thing is inflated as properties are used to launder the proceeds of global crime and general skullduggry.

xDiggy - 17 Sep 2015 12:04:48 (#12 of 17)

The privileged tax status of housing of an asset class.

BallyMoney - 17 Sep 2015 12:06:25 (#13 of 17)

The gearing of the UK economy to South east and the ongoing love affair with houses rather than aprtments.

Ending these two things would go someway to solving some of the problem.

BasilSeal - 17 Sep 2015 13:52:59 (#14 of 17)

The privileged tax status of housing of an asset class.

see also, farm land.

The problem is, for years now we've had govt economic policy based on consumer spending, fuelled by cheap credit, backed by ever increasing property prices, the housing market has been used to create money.

That's clearly unsustainable and short-termism, but what govt doesn't look at things in the short term?

The obvious answer is for houses to be cheaper, but what govt would ant to preside over a house market returning to a sustainable level and dropping a load of mortgaged home owners in the shit from a great height? so instead we have policies that tinker with the symptoms rather than addressing the cause directly.

BallyMoney - 17 Sep 2015 13:53:44 (#15 of 17)


problem is you can stretch out the short term for a very long time....

tasselhoff - 17 Sep 2015 13:55:21 (#16 of 17)

#14 Quite, Basil. And if money supply is directly related to real estate price inflation we'd need to change how the money supply works if we want affordable housing.

BasilSeal - 17 Sep 2015 13:55:50 (#17 of 17)

Indeed Bally, they're fiddling with policy to try and make the high property prices manageable, it's like a doctor who gives his obese patient the number of an outsize tailor instead of telling them to lose weight.

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