Is 'Help to Buy' bribe the culprit for the house price boom? - HotUKDeals
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Is 'Help to Buy' bribe the culprit for the house price boom?

kaku_lala Avatar
2y, 2m agoPosted 2 years, 2 months ago
Folks, house prices are at an all time high and I feel there will me many more all time highs in the coming months/years, as government will not stop the help to buy bribe anytime soon (same as record low interest rates have been left untouched for years).

There was hardly any interest in the market before the help to buy scheme.
kaku_lala Avatar
2y, 2m agoPosted 2 years, 2 months ago
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#1
What about the Chinese and Russian investors buying into london property instead of putting their money into stocks and shares, they are pushing it up too.

Edited By: Error440 on Jul 02, 2014 20:25
3 Likes #2
There will be another crash soon. Chinese market is about to crash which will take all other property bubbles with it.No one will talk about it untill it happens. Get ready sheepeople.
#3
The real house price boom has mainly been confined to the London area.High risk Mortgages have been cut as Interest rates can going only one way now
#5
An average 3 bed semi in my area is nearly £300,000, with even 10% deposit and an interest rate of 4.79%, the monthly repayment is around £1631.40. This is when base rate is at all time low. Not clear that this is Disaster recovery or Disaster recipe.



Edited By: kaku_lala on Jul 02, 2014 20:37
1 Like #6
The real culprits are the house builders . They have huge land banks with planning permission but only build a few houses to keep demand (hence prices up). If a way were found to force them to build (eg withdraw the planning permission after say ,2 years ) then house price rises would moderate - more construction workers would be employed -local economies would gain ! but that's not in the interests of the housebuilders who need to keep supply low ,hence demand and prices high.
2 Likes #7
Help to buy and other tricks are nothing more than shameless ploys to boost GDP and promote a feel good factor ahead of the looming General Election. There is more pain on the way.
#8
That would be simple to solve - Once expired you would be unable to reapply for 2 years .
#9
whatsThePoint
rogparki
That would be simple to solve - Once expired you would be unable to reapply for 2 years .

and that would be simple to get around, wait the 2 years to increase demand and value or sell/swop some land and make a fresh application
Not perfect I admit ,but it would slightly curb their ability to manipulate the market as they do now .
#10
rogparki
The real culprits are the house builders . They have huge land banks with planning permission but only build a few houses to keep demand (hence prices up). If a way were found to force them to build (eg withdraw the planning permission after say ,2 years ) then house price rises would moderate - more construction workers would be employed -local economies would gain ! but that's not in the interests of the housebuilders who need to keep supply low ,hence demand and prices high.

I agree as Persimmon Homes have had a "coming soon" sign up near me since before xmas and still not a sign of them even cutting the ground

Note sure what "soon" means to them
#11
Not sure whether to continue burning money renting or pay for a overpriced property and burden myself with a hefty mortgage.
#12
whatsThePoint
rogparki
whatsThePoint
rogparki
That would be simple to solve - Once expired you would be unable to reapply for 2 years .
and that would be simple to get around, wait the 2 years to increase demand and value or sell/swop some land and make a fresh application
Not perfect I admit ,but it would slightly curb their ability to manipulate the market as they do now .
it would create far more problems and an even higher lack of homes, so not even worth considering
Disagree , if They were forced (in whatever way ) to build on their land banks it would produce more housing stock and help stabilise the bubble (yes it is a bubble) in house prices . To deny that fact is to not understand the age old law of supply and demand .
#13
All I see round here is luxury apartments, endless buildings going up with the words luxury apartments on the door, the first one I remember seeing that said that, still says outside of it apartments available and it was built over ten years ago. Its like all these office blocks that get built and just left empty.

Meanwhile the council housing list is shockingly long and you have people living in illegally converted garages and sheds.

we looked at part rent, part buy properties a few years ago, complete joke, tiny little overpriced places with no guarantee they won't increase the service charges to stupid levels.

Edited By: Error440 on Jul 02, 2014 22:06
#14
whatsThePoint
rogparki
whatsThePoint
rogparki
whatsThePoint
rogparki
That would be simple to solve - Once expired you would be unable to reapply for 2 years .
and that would be simple to get around, wait the 2 years to increase demand and value or sell/swop some land and make a fresh application
Not perfect I admit ,but it would slightly curb their ability to manipulate the market as they do now .
it would create far more problems and an even higher lack of homes, so not even worth considering
Disagree , if They were forced (in whatever way ) to build on their land banks it would produce more housing stock and help stabilise the bubble (yes it is a bubble) in house prices . To deny that fact is to not understand the age old law of supply and demand .
make your made up, first they can sit and wait for the land to increase in value and now you are saying you will force them to build
I didnt say that , please pay attention before misquoting ! they can control the supply and hence the price of the finished house . There is only so much developeable land in the UK and the builders already own a large chunk of it .Work it out for yourself .
2 Likes #15
Or you could leave Europe, meaning 3 million have to leave the country and kick out the 3 million illegals which would burst the rental bubble, helping the NHS, helping primary schools, law & order,reducing housing benefit bills, making the country less crowded and giving the British people their country back.
Not my own personal viewpoint but just sayin........ oO
#16
whatsThePoint
rogparki
whatsThePoint
rogparki
whatsThePoint
rogparki
whatsThePoint
rogparki
That would be simple to solve - Once expired you would be unable to reapply for 2 years .
and that would be simple to get around, wait the 2 years to increase demand and value or sell/swop some land and make a fresh application
Not perfect I admit ,but it would slightly curb their ability to manipulate the market as they do now .
it would create far more problems and an even higher lack of homes, so not even worth considering
Disagree , if They were forced (in whatever way ) to build on their land banks it would produce more housing stock and help stabilise the bubble (yes it is a bubble) in house prices . To deny that fact is to not understand the age old law of supply and demand .
make your made up, first they can sit and wait for the land to increase in value and now you are saying you will force them to build
I didnt say that , please pay attention before misquoting ! they can control the supply and hence the price of the finished house . There is only so much developeable land in the UK and the builders already own a large chunk of it .Work it out for yourself .
so you didn't say planning permission to only last 2 years and then wait 2 years to apply again?are you also going to have a time limit on how fast any house must be finished and sold while controlling the price they can offer it at
Yes ! to get them to build more houses now , and to take away from them some of the contol they have over the supply and hence price of housing stocks . Not a full solution but at least it would make them think twice before sitting on developement land . I personally think the reason they dont develop is because its in their interests for there to be a shortage of housing stock .

Edited By: rogparki on Jul 02, 2014 22:29: spelling
#17
Were I a Lefty "which I'm not " it could be said that any land not developed within 2 years of getting planning permission (without a very good excuse) should be compulsory purchased and used to build Social Housing . That would be a good stick but would open up so many cans of worms .
#18
whatsThePoint
rogparki
whatsThePoint
rogparki
whatsThePoint
rogparki
whatsThePoint
rogparki
whatsThePoint
rogparki
That would be simple to solve - Once expired you would be unable to reapply for 2 years .
and that would be simple to get around, wait the 2 years to increase demand and value or sell/swop some land and make a fresh application
Not perfect I admit ,but it would slightly curb their ability to manipulate the market as they do now .
it would create far more problems and an even higher lack of homes, so not even worth considering
Disagree , if They were forced (in whatever way ) to build on their land banks it would produce more housing stock and help stabilise the bubble (yes it is a bubble) in house prices . To deny that fact is to not understand the age old law of supply and demand .
make your made up, first they can sit and wait for the land to increase in value and now you are saying you will force them to build
I didnt say that , please pay attention before misquoting ! they can control the supply and hence the price of the finished house . There is only so much developeable land in the UK and the builders already own a large chunk of it .Work it out for yourself .
so you didn't say planning permission to only last 2 years and then wait 2 years to apply again?are you also going to have a time limit on how fast any house must be finished and sold while controlling the price they can offer it at
Yes ! to get them to build more houses now , and to take away from them some of the contol they have over the supply and hence price of housing stocks . Not a full solution but at least it would make them think twice before sitting on developement land . I personally think the reason they dont develop is because its in their interests for there to be a shortage of housing srock .
its a plan no one would be foolish enough to mention let alone try to put into practise X)
You should read the papers -its been very widely mooted ,or variations on the theme . I'm not clever enough to have thought it up myself -just repeating a widely reported idea (obviously not widely reported enough ).

Edited By: rogparki on Jul 02, 2014 22:37
#19
rogparki
Were I a Lefty "which I'm not " it could be said that any land not developed within 2 years of getting planning permission (without a very good excuse) should be compulsory purchased and used to build Social Housing . That would be a good stick but would open up so many cans of worms .

They wouldn't apply for planning though so not an issue. Even if you forced a time scale for them to apply they would just submit plans they know would be reduced.

Besides if you forced building on brown field sites it would be the council at the top of the list. So would there be fines for none compliance? Everybody loses out.

Is the issue actually availability or just price? If more new houses are built in the area would it lower prices or would it just attract buyers from outside the area?

Maybe (like me and many others) move to a more affordable area.
1 Like #20
Social Housing is getting thrown up anywhere there is space up here.
And right-to-buy is ending, which if Labour had been anywhere near left-leaning anymore, they would have done years ago to protect the remaining stock.

Increased supply of affordable homes, eases the demand, and hopefully we will escape the catastrophe which is brewing.
1 Like #21
Why dont they build high rise blocks anymore? Quick fix to the lack of housing. You have 8-10 storey expensive flats in places like Edinburgh so why not build more.

Just make them owner occupier, anti socials get thrown out promptly,design them with a bit of stlye,insulate well and keep them properly managed and they will work a treat.
#22
hooray henry
Why dont they build high rise blocks anymore? Quick fix to the lack of housing. You have 8-10 storey expensive flats in places like Edinburgh so why not build more.

Just make them owner occupier, anti socials get thrown out promptly,design them with a bit of stlye,insulate well and keep them properly managed and they will work a treat.

Its not that they are not being built its just the want to charge what I consider silly prices for pokey little flats. The development near me (50 yards away) on the other side of the fence are small 2 bed (the seconds is only a single or guest small double at a push) are 40% more than the 3 bed town houses on my street.

A few have sold to owner occupiers but most have been bought for rental. Will building more help? Well maybe the renters will get a slightly better deal.
1 Like #23
Good sized 2 and 1 bed flats not for buy to let market in blocks of say 100 flats. 10 flats per storey x 10 x 5 blocks in landscaped gardens = 500 flats.
Do that in every neighbourhood that needs housing and the housing crisis is eased.
1 Like #24
GAVINLEWISHUKD
hooray henry
Why dont they build high rise blocks anymore? Quick fix to the lack of housing. You have 8-10 storey expensive flats in places like Edinburgh so why not build more.

Just make them owner occupier, anti socials get thrown out promptly,design them with a bit of stlye,insulate well and keep them properly managed and they will work a treat.

Its not that they are not being built its just the want to charge what I consider silly prices for pokey little flats. The development near me (50 yards away) on the other side of the fence are small 2 bed (the seconds is only a single or guest small double at a push) are 40% more than the 3 bed town houses on my street.

A few have sold to owner occupiers but most have been bought for rental. Will building more help? Well maybe the renters will get a slightly better deal.

Hence social housing.
Affordable homes for rent on one end, and since homes arent getting solely built to supply the buy-to-let market, the pokey wee flats as rental incomes deem it pointless, it allows people to buy at a decent rate, homes which are actual homes.
#25
I paid of 4 of my mortgages this week so am debt free.

Bring on the interest rate rises so I can get a decent return on my savings.

I thought the price rises were mainly in London?
#26
donaldduck2
I paid of 4 of my mortgages this week so am debt free.

Bring on the interest rate rises so I can get a decent return on my savings.

I thought the price rises were mainly in London?

Rub it in..;)
#27
kaku_lala
donaldduck2
I paid of 4 of my mortgages this week so am debt free.

Bring on the interest rate rises so I can get a decent return on my savings.

I thought the price rises were mainly in London?

Rub it in..;)

Not al all I worked ridiculously hard and made maybe too many sacrifices to achieve it.

House prices are always a concern and the Government / Bank of England are acting to try and keep some sort of control.

I wonder if limiting the amount a house can rise in value per year would be sensible. A houses price rise could be linked to the rate of inflation so then there would be no massive rises as we are seeing in London.
#28
It's not just in London, I bought a new build in the NW a few months ago, not yet moved in (one of the last 3 to be built), but already gone up 5k.

Got to agree about the help to buy scheme though, could never have moved to this area without that, similar sized 4 bed detached, 15 mins away, just over twice the price. Only went for it due to that scheme tbh.
1 Like #29
hooray henry
Or you could leave Europe, meaning 3 million have to leave the country and kick out the 3 million illegals which would burst the rental bubble, helping the NHS, helping primary schools, law & order,reducing housing benefit bills, making the country less crowded and giving the British people their country back.
Not my own personal viewpoint but just sayin........ oO

And where are the 2 million Brits living in Europe going to go when they get kicked out of the other EU countries? (Not that your figures are remotely accurate as I'd imagine a large number of them would now qualify for residency anyway - plus EU immigrants in is roughly equal to UK emigrants to the EU, so your figures are grossly exaggerated, strange for someone claiming not to actually have those views...) Plus, if it's so simple to kick out illegal immigrants do you not think it would have been done already? Funnily enough, illegal immigrants tend not to inform the government where they're staying...

As to people blaming the help to buy scheme on house price increases - that's absurd. 20,000 properties have been bought via the scheme,a negligible amount.
#30
callum9999
hooray henry
Or you could leave Europe, meaning 3 million have to leave the country and kick out the 3 million illegals which would burst the rental bubble, helping the NHS, helping primary schools, law & order,reducing housing benefit bills, making the country less crowded and giving the British people their country back.
Not my own personal viewpoint but just sayin........ oO

And where are the 2 million Brits living in Europe going to go when they get kicked out of the other EU countries? (Not that your figures are remotely accurate as I'd imagine a large number of them would now qualify for residency anyway - plus EU immigrants in is roughly equal to UK emigrants to the EU, so your figures are grossly exaggerated, strange for someone claiming not to actually have those views...) Plus, if it's so simple to kick out illegal immigrants do you not think it would have been done already? Funnily enough, illegal immigrants tend not to inform the government where they're staying...

As to people blaming the help to buy scheme on house price increases - that's absurd. 20,000 properties have been bought via the scheme,a negligible amount.

Using government resources in order to help people onto a property ladder, which is going to burst, isn't the best allocation of funds.

Just checking, we are building approx 1000 council homes a year, still not enough but with 8.4% of the uk population, that would be the equivalent of 11000 to 12000 being built in the rUK, each year.
And theres about 3000 Housing Association homes a year on top of that, also with help to buy for the buyers.

The UK Gov aren't interested in solving the housing crisis, they have to keep the bubble going or it will burst, and we are in a hell of a position now for another crash which would inevitably follow.
Keep people going to buy homes, getting into perilous debt, and keep interest rates low to keep it all exploding in their faces.
#31
HaggisHunter
callum9999
hooray henry
Or you could leave Europe, meaning 3 million have to leave the country and kick out the 3 million illegals which would burst the rental bubble, helping the NHS, helping primary schools, law & order,reducing housing benefit bills, making the country less crowded and giving the British people their country back.
Not my own personal viewpoint but just sayin........ oO

And where are the 2 million Brits living in Europe going to go when they get kicked out of the other EU countries? (Not that your figures are remotely accurate as I'd imagine a large number of them would now qualify for residency anyway - plus EU immigrants in is roughly equal to UK emigrants to the EU, so your figures are grossly exaggerated, strange for someone claiming not to actually have those views...) Plus, if it's so simple to kick out illegal immigrants do you not think it would have been done already? Funnily enough, illegal immigrants tend not to inform the government where they're staying...

As to people blaming the help to buy scheme on house price increases - that's absurd. 20,000 properties have been bought via the scheme,a negligible amount.

Using government resources in order to help people onto a property ladder, which is going to burst, isn't the best allocation of funds.

Just checking, we are building approx 1000 council homes a year, still not enough but with 8.4% of the uk population, that would be the equivalent of 11000 to 12000 being built in the rUK, each year.
And theres about 3000 Housing Association homes a year on top of that, also with help to buy for the buyers.

The UK Gov aren't interested in solving the housing crisis, they have to keep the bubble going or it will burst, and we are in a hell of a position now for another crash which would inevitably follow.
Keep people going to buy homes, getting into perilous debt, and keep interest rates low to keep it all exploding in their faces.

I didn't say it was "the best" use of resources - I said it doesn't have any significant impact on house prices.

Of course they're "Interested" in solving a crisis, they merely don't know how to do it. While you seem to be suggesting that the government burst the housing bubble now just because it might burst in the future (it's not "inevitable" - growth will certainly slow and there may be a slump, but a "crash" can certainly be avoided), you seem to be ignoring the dire consequences that would have on a large number of people.
1 Like #32
In Bristol where I am I have viewed 2 houses yesterday, both which have gone up 50k since they were bought in 2008. Things are selling fast and agents are pushing the price with every new instruction.

Frustrating. I'm already having to borrow to boost my deposit to make it more affordable. I just want a house for my family not to bankrupt myself!! Frustrating.
1 Like #33
callum9999
HaggisHunter
callum9999
hooray henry
Or you could leave Europe, meaning 3 million have to leave the country and kick out the 3 million illegals which would burst the rental bubble, helping the NHS, helping primary schools, law & order,reducing housing benefit bills, making the country less crowded and giving the British people their country back.
Not my own personal viewpoint but just sayin........ oO

And where are the 2 million Brits living in Europe going to go when they get kicked out of the other EU countries? (Not that your figures are remotely accurate as I'd imagine a large number of them would now qualify for residency anyway - plus EU immigrants in is roughly equal to UK emigrants to the EU, so your figures are grossly exaggerated, strange for someone claiming not to actually have those views...) Plus, if it's so simple to kick out illegal immigrants do you not think it would have been done already? Funnily enough, illegal immigrants tend not to inform the government where they're staying...

As to people blaming the help to buy scheme on house price increases - that's absurd. 20,000 properties have been bought via the scheme,a negligible amount.

Using government resources in order to help people onto a property ladder, which is going to burst, isn't the best allocation of funds.

Just checking, we are building approx 1000 council homes a year, still not enough but with 8.4% of the uk population, that would be the equivalent of 11000 to 12000 being built in the rUK, each year.
And theres about 3000 Housing Association homes a year on top of that, also with help to buy for the buyers.

The UK Gov aren't interested in solving the housing crisis, they have to keep the bubble going or it will burst, and we are in a hell of a position now for another crash which would inevitably follow.
Keep people going to buy homes, getting into perilous debt, and keep interest rates low to keep it all exploding in their faces.

I didn't say it was "the best" use of resources - I said it doesn't have any significant impact on house prices.

Of course they're "Interested" in solving a crisis, they merely don't know how to do it. While you seem to be suggesting that the government burst the housing bubble now just because it might burst in the future (it's not "inevitable" - growth will certainly slow and there may be a slump, but a "crash" can certainly be avoided), you seem to be ignoring the dire consequences that would have on a large number of people.

By avoiding building homes, it continues the housing bubble.

With affordable homes being built in Scotland (yes, still not enough, but it's a try) the prices don't face the same pressure and resulting growth. Same for rental, with new council rentals on the scene, people are more willing to wait, than spend double the money on private rental. This forces rental prices down, or people to just give up the private rental stream as a source of income, buy-to-let etc.

I'm not advocating a crash at the moment, as a crash isn't happening in Scotland, and we are building affordable homes, which i much prefer resources to go on.

I told everyone when prices went sky high before, that it wasnt sustainable, and atm it is unsustainable, so a crash is going to occur.
It's all a matter of when, and how many people take out unaffordable mortgages in the meantime, plunging them into a near lifetime of negative equity or bankruptcy.

People are going to take a hit, and when interest rates go back up, so will bankruptcy.
Yes it's sad, but it's still going to happen.
The bubble can't last forever, and prices can't rise forever, it will burst.
#34
HaggisHunter
callum9999
HaggisHunter
callum9999
hooray henry
Or you could leave Europe, meaning 3 million have to leave the country and kick out the 3 million illegals which would burst the rental bubble, helping the NHS, helping primary schools, law & order,reducing housing benefit bills, making the country less crowded and giving the British people their country back.
Not my own personal viewpoint but just sayin........ oO

And where are the 2 million Brits living in Europe going to go when they get kicked out of the other EU countries? (Not that your figures are remotely accurate as I'd imagine a large number of them would now qualify for residency anyway - plus EU immigrants in is roughly equal to UK emigrants to the EU, so your figures are grossly exaggerated, strange for someone claiming not to actually have those views...) Plus, if it's so simple to kick out illegal immigrants do you not think it would have been done already? Funnily enough, illegal immigrants tend not to inform the government where they're staying...

As to people blaming the help to buy scheme on house price increases - that's absurd. 20,000 properties have been bought via the scheme,a negligible amount.

Using government resources in order to help people onto a property ladder, which is going to burst, isn't the best allocation of funds.

Just checking, we are building approx 1000 council homes a year, still not enough but with 8.4% of the uk population, that would be the equivalent of 11000 to 12000 being built in the rUK, each year.
And theres about 3000 Housing Association homes a year on top of that, also with help to buy for the buyers.

The UK Gov aren't interested in solving the housing crisis, they have to keep the bubble going or it will burst, and we are in a hell of a position now for another crash which would inevitably follow.
Keep people going to buy homes, getting into perilous debt, and keep interest rates low to keep it all exploding in their faces.

I didn't say it was "the best" use of resources - I said it doesn't have any significant impact on house prices.

Of course they're "Interested" in solving a crisis, they merely don't know how to do it. While you seem to be suggesting that the government burst the housing bubble now just because it might burst in the future (it's not "inevitable" - growth will certainly slow and there may be a slump, but a "crash" can certainly be avoided), you seem to be ignoring the dire consequences that would have on a large number of people.

By avoiding building homes, it continues the housing bubble.

With affordable homes being built in Scotland (yes, still not enough, but it's a try) the prices don't face the same pressure and resulting growth. Same for rental, with new council rentals on the scene, people are more willing to wait, than spend double the money on private rental. This forces rental prices down, or people to just give up the private rental stream as a source of income, buy-to-let etc.

I'm not advocating a crash at the moment, as a crash isn't happening in Scotland, and we are building affordable homes, which i much prefer resources to go on.

I told everyone when prices went sky high before, that it wasnt sustainable, and atm it is unsustainable, so a crash is going to occur.
It's all a matter of when, and how many people take out unaffordable mortgages in the meantime, plunging them into a near lifetime of negative equity or bankruptcy.

People are going to take a hit, and when interest rates go back up, so will bankruptcy.
Yes it's sad, but it's still going to happen.
The bubble can't last forever, and prices can't rise forever, it will burst.

rough estimate on time frame? im seriously considering buying a house (mortage)
1 Like #35
professorEX


rough estimate on time frame? im seriously considering buying a house (mortage)

This will sound cold hearted but meh, keep an eye on interest rates, when they creep up snap up a repossession.

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