To be angry that this government has further shafted everyone bar homeowners

[Kitchendisco73]

The eviction ban ends and the prediction is that about a million people who rent will be in trouble and at risk of losing their home.

Alongside that, the government has also shafted anyone who is a first time buyer by creating a fake housing boom using help to buy and the stamp duty holiday as prices have risen so much, those who it was allegedly meant to help are priced out.

In Cornwall, I read there were 10,000 air Bnb properties but 62 for long term rent for local families.

www.theguardian.com/business/2021/jun/01/bank-of-england-monitors-uk-housing-boom-as-it-weighs-inflation-risk-dave-ramsden-covid

It’s entirely possible that there is a big housing crash coming too thanks to inflationary pressures.

Aibu to be angry- it’s just truly appalling and impossible for anyone (millions of people) who can’t get on the property ladder. Surely this madness has to end soon? You can’t just protect homeowners at the expense of everyone else. I am tired of the rampant inequality in this country.

I dont think there will be a crash. A friend who works in parliment told me the gov will not allow there to be a crash. No matter the cost to society and tax payers, they will do whatever they have to to keep prices high.

Labour have the same policy.

Do I see the issue for wales, cornwall, coastal, picturesque holidaying destinations etc - yes.

The middle and upper classes have saved a lot of money the last year or so with london weighting, less travel costs and no childcare fees, no holidays etc. This was always going to be an issue regardless of any gov schemes.

Is their affordable housing all over the country? Yes there is. It just isnt where you want it to be but such is life. I have been looking in warwickshire for the last 6 months and my search band kept picking up Leicester. Theres 5/6 beds detached, huge houses with half acre gardens on the edge of that town going for 350k or less. Thats not far off what FTBs are paying for their 2/3 bed new builds these days.

People in second home places make an active choice to sell 'Outside the community'. They are getting away with no approbation - why? They are the ones making a choice in shafting their fellow villagers/neighbours. The OP could have a dialogue with any of the people with homes for sale - in any format. There are a significant amount of abandoned homes on Wales also - see my earlier post for stats - why no anger directed towards that? It's just too easy and simplistic to day it's the out of towers rah rah rah.

I dont think there will be a crash. A friend who works in parliment told me the gov will not allow there to be a crash. No matter the cost to society and tax payers, they will do whatever they have to to keep prices high

@dyslek well the government won’t be able to dictate that if the BOE have to raise rates due to inflation. I find it hilarious that people say ‘the government won’t allow it’ like they act in isolation from the global economy. If inflation becomes hyperinflation, are the government quite happy to allow a Zimbabwe like scenario with wheelbarrows of cash for a loaf of bread? You can’t pump hundreds of billions of pounds of QE into the economy and then not expect any consequences. The low interest rates we have seen since the economic crash aren’t normal.

ie... reduced today

www.rightmove.co.uk/properties/90814234#/

@Littlemoons to answer your post, it is happening in welsh communities that houses are being sold ‘internally’ in the village via closed Facebook groups but it’s not happening enough get. People are only just waking up to what is going on

@Donitta

And who sets the laws of the country that control what private businesses do? Yes, the government wanted to increase home ownership so they allowed the banks to lend money to poor people who couldn’t really afford houses. That boosted demand for houses, thus boosting prices, and subsequently caused the sub prime mortgage crisis. If the government had insisted that only the rich could buy houses then this situation would have been avoided.

Yes the current situation is the fault of the government but their motivation is absolutely nothing to do with wanting to help “poor people”.

What about the abandoned houses? What about the people who AREN'T selling like the way you side step my point, again?

@Littlemoons I don’t really get your point though. There aren’t loads of abandoned houses in the welsh town I am from- there are lots of holiday homes though if that’s what you mean? Some people might sell out of the village and the only way to stop that is to legislate and the WG might well do that the way things are going. Yes people chase cash obviously but as I said before, that’s because the housing market is full of greed and self interest too. Not everyone makes that choice tho

The same Govt you are slagging off has removed most of the incentives to be a landlord and also imposed new higher property standards and mandatory certificates
And how long before we get the threads about how people can't get anywhere to rent, the waiting lists for social housing are so long, they will never get to the top in their lifestyle and people end up homeless, and somehow, I expect it will be the fault of the landlords for being greedy and selling their property!

Being a landlord is currently being the opposite of greedy. I'm prepare to sell now, but won't unless/until my tenants inform me they want to move. Yet I'm still greedy just by nature of being a Landlord.

That boosted demand for houses, thus boosting prices, and subsequently caused the sub prime mortgage crisis

The sub prime crisis was caused by bankers gambling and over inflating the value of those mortgages. When they failed, as you’d expect, the losses were magnified because bankers had built mythical assets on top.

Banks price in the risk and loss associated with mortgages included sub prime ones. Insuring themselves against losses.

Investment bankers - like Rishi Sunak - gambled on top of those mortgages and there was layer upon layer of debt on top of it, far removed from the original mortgage.

It was disgusting and bankers got away with it, as people buy the myth it was the sub prime mortgages at fault

The same Govt you are slagging off has removed most of the incentives to be a landlord and also imposed new higher property standards and mandatory certificates

Only applies to long term tenancies, issued last year.
Low standards too.

There have been plenty of tenants who have taken advantage of the eviction ban to stop paying rent despite remaining on full income - I have no sympathy for them being evicted at all

Thats a problem but then they become homeless and the govt has promised to re home the destitute.

What if they have children? should they suffer because of their parents? .

There aren’t loads of abandoned houses in the welsh town I am from- there are lots of holiday homes though if that’s what you mean?
But this is not just about your village. There are many abandoned properties in the UK.

Tory voters are a lot more likely to be home owners so it's a chosen strategy. Air bnb etc is a disgrace and needs addressing. It has destroyed so many communities.

Only applies to long term tenancies, issued last year
Not electrical checks, these are now required on all properties.

What if they have children? should they suffer because of their parents?
So you think landlords have more of a personal responsibilities for these children than any of the other tax payers? Why?

I can’t speak for the picture on abandoned properties nationally but the handful in my area are mostly empty due to legal reasons (e.g. probate wrangles) or not habitable for reasons that are not easy to rectify, e.g. listed buildings that are not economical to restore but can’t be demolished.

YANBU - but I am a homeowner who didn't vote for this shower of cunts (or in fact any Tory ever). I don't have a second home or a buy to let, just a house to live in. I am very uncomfortable with the whole way housing is run in the UK.

@LemonSwan

Do I see the issue for wales, cornwall, coastal, picturesque holidaying destinations etc - yes.

The middle and upper classes have saved a lot of money the last year or so with london weighting, less travel costs and no childcare fees, no holidays etc. This was always going to be an issue regardless of any gov schemes.

Is their affordable housing all over the country? Yes there is. It just isnt where you want it to be but such is life. I have been looking in warwickshire for the last 6 months and my search band kept picking up Leicester. Theres 5/6 beds detached, huge houses with half acre gardens on the edge of that town going for 350k or less. Thats not far off what FTBs are paying for their 2/3 bed new builds these days.

Completely agree with this.

Outside of the South East, and some of the major cities, there are many nice areas with good schools, decent employment and reasonably priced housing. I know, because I will be moving to one of them in a couple of years. My children are well aware that if they want to live in our current area when they leave home, they'll need to rent a tiny shoebox at best, or significantly increase their earnings and even then won't have much chance of buying unless they buy with a partner and are earning 50k a year. Alternatively, if they move with me, they'll be able to afford a first home (2-3 bed house in a decent area) for around 100k, which if they have a decent deposit is affordable on a 25k salary.

Plus a significant percentage of office type work is going to be largely or entirely home based in future, Covid has proved people can work effectively from home. The household name organisation I work for (which pre March 2020 was very much against homeworking) has now embraced it fully, and is significantly downsizing it's office estate, reducing capacity to about 10%. Many other large and small companies will be doing similarly, meaning far fewer people will need to live in certain areas because of proximity to workplace or ease of commute.

@Iggly

That boosted demand for houses, thus boosting prices, and subsequently caused the sub prime mortgage crisis

The sub prime crisis was caused by bankers gambling and over inflating the value of those mortgages. When they failed, as you’d expect, the losses were magnified because bankers had built mythical assets on top.

Banks price in the risk and loss associated with mortgages included sub prime ones. Insuring themselves against losses.

Investment bankers - like Rishi Sunak - gambled on top of those mortgages and there was layer upon layer of debt on top of it, far removed from the original mortgage.

It was disgusting and bankers got away with it, as people buy the myth it was the sub prime mortgages at fault

^This - also it was a largely US-based problem. Due to different laws there, you can hand the keys back to your lender and owe nothing more, unlike here.

This is such a difficult one, and as a landlord of 2x long term rental properties, I always feel a bit torn. I think we will always need good private landlords, which I believe I am. But I admit there are a lot of issues with housing in the UK. Although renters are more protected in the form of having housing benefit available to them which people who have mortgages don't have.

What would your ideal solution be @kitchendisco73? Especially with second homes. If second homes didn't exist, and I'm including holiday lets and Air BnBs in that, what would happen to the areas where these properties are? Cornwall, your area, etc. Presumably these areas primary industry is tourism, if there were no places available to holiday in, wouldn't it effectively end tourism to them and as such make the towns destitute? Areas reliant on tourism tend to be fairly run down out of the most popular bits as it is with much of the work available in them being seasonal.

It is very easy. Most of my family always rented. My grandparents were able to buy in Bishop Auckland but probably only because my grandfather became an estate agent and was able to get money towards a small terraced house there. My parents were able to buy as they worked with 2 full time professional salaries for 10 years and put off babies until they bought a house in NE England. it was education and careers which got them the house rather than anything else and buying before you breed (always been a key thing - my grandfather was 49 when my father was born, my parents had us in their mid 30s etc)

@user123532 my ideal solution is to remove all the props holding up the market and let it adjust. It’s as simple as that. At least then it would be a free market rather than the current subsidised shit show.
To start with:

• stop help to buy and other similar schemes/subsidies
• stop right to buy

the article clearly states the loan has to be payed back and not only that, the home owner has to pay a percentage of equity back! Which means the government get more money back that they invest in!

So the tax payer may initially fund the 25% loan but money is claimed back with interest and equity.

So I’m not sure why you have a problem with help to buy scheme?

I'm not sure if you are intentionally missing the point here or just unable to connect the dots but here goes. A fictional situation.

Everybody needs 5L of water a day. Water costs £20 per 5L, and there is not enough water to go around.

So the gov could invest in the infrastructure of water to increase supply, or put limits on people who water their lawns, fill paddling pools with fresh water every day, or hoard stores of water they rarely use i.e limit demand.

The could increase supply, or limit demand, to help the situation.

What they do is give the poorest 20% of people a £1000 loan to buy water. So everyone goes to the shops to buy their daily 5L, and by 9am all the water is gone because now more people can afford it.

So tomorrow, the water seller says water is now £40/5L.

But people have money to spend, so it's all gone by 10am.

£60/5L.

£80/5L.

The £1000 loan helped the poorest 20% get their water. But now they need to pay it back. Meanwhile the 20%-40% are trying to pay quadruple water prices and struggling.

The gov still do not do anything to increase the supply of water or limit the demand of water.

Why? Why do you think that could be? Everyone needs water.

The 80%-100% realise water is now a necessity, in high demand, and largely unaffordable for the bottom 60%... i.e the perfect investment opportunity. They really want that water.

So while the gov should have been increasing the supply, and limiting the demand.... what they have actually done is decreased the supply (by loaning money to spend specifically on water) and increased the demand (necessity + affordability makes it the perfect investment opportunity).

Help To Buy Water Loans have decreased the supply and increased the demand.

And since the gov is funded by the people and businesses of the country, they have used our collective money to do it.