To think saying house prices could crash if we brexit will be a plus for many

[feellikeahugefailure]

The BoE and other banks say this as if it is universally bad news. If it stops the vast amount of foreign speculation on UK property then many will see it as a good thing.

Even if you own your own home, its paper gains unless you sell it. So even homeowners might want prices to fall as otherwise their children may never own a home.

Hopit you need to leave London.
London is just like every other capital city ( Paris, newyork) stupidly expensive.

You could move out and your DH could commute in. My DH commuted into London for years from the north!
Move your parents.

There's a 2 bed massionette on sale (zoopla) with a garden on Edmonton, North London for £259k. There are many 2 bed properties for under £290k. Houses start at £305k, 3 beds at £315k. There are still affordable areas in London.

Milly are you unaware of all the other changes which will impact on property speculators?

A change in property prices will change LTV and that will impact the serviceability of mortgages

I don't live in London!

Hopit, the bank decides the amount if your loan based on your income, not on your cash assets (ie. deposit). I could only get 215k of a loan even with 170k of a deposit.

BTL is also a legitimate job and business. They are not just greedy professionals making cash on the side. Some people have raised their families solely working as landlords. My FIL did and worked bloody hard for many years. It is a job not dissimilar to other jobs.

Yes I am, it won't change though. It's less attractive for new btl landlords but existing ones will ride the storm.

It's just become a long term plan.

Set up a limited company and you can circumvent some of it.

So where do live where a house costs £1.6m??

Don't forget btl pick up a lot of the slack of the lack of social housing. That's why it's been so encouraged.

you

Btl is classed as an investment activity by hmrc, not a business activity
It is an inherently predatory activity

Sorry I mean parasitic

If only it were that simple
Btl business model is bust
The writing is on the wall, the noose is tightening

As long as real estate provides a good long term investment prospect, where running costs go up, and there is a way to pass on that cost, then that is, largely, what will happen.

Some small landlords may be persuaded to sell their btl, or not buy another, but thinking that the recent tax changes massively changes the market is overestimating the impacts, by a considerable margin. Most landlords will not be forced to sell as a result.

As for "writing on the wall" etc, the recent changes were a pacifier to those disaffected by the market, and will raise a bit of much-needed revenue, but they were never intended to drastically alter the housing or btl market.

Suzanne, most if not nearly all business could be classed as a predatory or parasitic activity:)

It is an inherently parasitic activity

Arf! What, you mean like the retailing of food for profit, or water for profit, or clothes for profit, or energy for profit, all of which are necessary for human survival?

It doesn't cost 1.6 million arggghhhhhh!!!
we went to natwest they would lend us £250,000 with an £80,000 deposit. I can only you tell it how it was when we tried to get a mortgage in the past 3 months!

There was a house I saw on right move last night actually 2 hour commute away it was £258,000 they had taken an offer of £273,000 and were inviting higher. It wasn't flash, it was a small 2 bed in probably the closest affordable town (which features heavily on the news).

Don't forget when you have kids you can't just sleep on a mattress and buy 'anywhere'. I would never have chosen to have my daughter yet, there's no way I'd have chosen to bring her into this shitty rental life. But sometimes despite using 2 types of contraception she had other ideas

Name the town Hopit maybe someone can look at it from a different angle...

Rotherham?

Rentier activity is not the same as producing and selling a product

Btl is classed as income from property by HMRC, not investment.
Landlords are taxed on the difference between revenue and costs.

In addition they are taxed on capital gains if they sell an asset, just like any other business. It's true that most domestic landlords won't benefit from roll over relief on cgt in the way that some businesses do, but roll over relief just defers tax. eventually if you stop rolling over, you pay all the tax.

essentially when a bank lends money to somebody so that they can buy a house, they are also investing money.

Meanwhile most businesses need investors and many people start a business with the aim of selling it at a profit.

Renting space is as much a trade as renting cars or renting lawnmowers.

People don't always want to buy a product, sometimes they want to rent it.

It's true that at the moment there is a gap between what society needs and what the market provides. However that doesn't change the fact that sometimes people just want to rent a house.

hopit I do understand its about affordability multiples. But there are still lots of places where you don't have to spend £250k to get a 2 bed flat. If you're not in London then I'm struggling to think where you might be in the UK that this is your entry level housing.

Rentier activity is not the same as producing and selling a product

In which case, you will be able to explain the differences?

Rentier activity is not the same as producing and selling a product

It supplies a home for someone to live in.

Redhat, Alderly edge or sandbanks, but you could move outside each area.

You could move to Bolton City Centre OP.

Prices there are lower than they were in 2000.

uk.finance.yahoo.com/news/worst-place-country-bought-house-143645056.html?cache=clear