To think the cost of living crisis isn't really a "crisis" for most people?

[buzzheath]

Not meant to be inflammatory at all. I'm well aware of the hardships that some people and families will face. But for the majority of people in the UK, will it really be a "crisis"? Isn't around half of the population middle class?

I think that's it, in a nutshell, unfortunately.

So house price growth has stalled then just as lots of people have been predicting.

Even a higher end estate agent, ie one of the people who want to talk up house prices because of their rather large stake in maintaining demand, is quoted in The Times today saying:
"The rise in house prices is partly due to slow demand in July 2021 rather than strength in sales this year, according to Lawrence Bowles, director of research at Savills, the estate agent. “In July last year the market took a brief breather after buyers sprinted to complete before the full stamp duty holiday ended in June,” he said. “Prices fell by 0.3 per cent between June and July last year.”

Another one in The Telegraph today:
'Tom Bill, of Knight Frank estate agents, said: “A slowdown is in the post. Mortgages have become notably more expensive in recent months and inflation will get worse before it gets better.”

In addition, these figures represent mortgages agreed in January-April approx. The rates have continued to go up since then and prices have increased more. As @Blossomtoes says, you can't make predictions by looking in the rear view mirror.

@Crikeyalmighty is spot on in saying that any nation relying on ever rising house prices (and by extension debt) as a key lynch pin of their economy is in serious trouble.

Ireland is the same.

House prices are still booming in Scotland, almost everythin going for 10-20% over valuation price. No signs of it slowing down.

Anything for under £200,000 locally is gone within days. 200-300 takes a week or so.

Which suggests its cash buyers still snapping up BTL’s

Why would it suggest that, as opposed to more expensive houses take slightly longer (a whole week!) because fewer people have budgets over £200,000?

Because it's always BTL landlords' fault. Have you not been on MN long? 😂

And, of course the only cash buyers are BTL landlords. Apparently.

Except I put in my details as if I was a single mum making £40k a year in my area and apparently I would get £1623 a month in benefits. 🤷🏽‍♀️

I didn't believe you and so did it for my area and it was £1297 a month for a single parent earning £40k

Then I realised it's only because rents are ridiculous and that single parent wouldn't be able to survive without it. Wages are simply too low for how much it costs to survive.

Tbh it's true in some areas.

I say this as we are buying BTL property at the moment and so are others we know. It's because anyone with a hard earned savings pot has fewer options to invest their cash right now, so the competition for BTL are keeping house prices high. It's not right for anyone, people who genuinely want to own their own home for example. There needs to be a rule where FTB get priority somehow.

I allow BTL only within fixed capped rents.

You do?

How are you policing that? Once you've sold the house, I think you'd have a hard job enforcing even a restrictive covenant that prevented the buyer charging market rent.

(Assume you're an estate agent?)

A lot of people don’t believe working people are on benefits full stop to be honest so I don’t blame you.

Oh who died and made you queen 🤣

How on earth is that enforceable? Is it even legal? If you sell someone a house, how can you dictate what they do with it once it's theirs?

It's not just basic bills like gas and electricity though. Because of that, our nursery costs (already very high for many) will rocket. Everything is going up... eating out will probably not happen as it's too much of a luxury so people will loose their jobs. Yes, we will hopefully manage, but that doesn't mean it isn't a crisis.

Top 10% here are and it affects us. We don't need to cut back personally but:
A) higher energy bills mean more stretched public services. How will an already overstretched NHS cope if it costs 3x more to heat hospitals
B) local government spend will be cut further to cope with higher wage cost and higher expenditure on fuel and heating meaning poorer services for everyone
C) expect to see more cuts in schools as higher wage bills are made out of existing budgets and heating costs bite
D) expect to see more local businesses close, crime rates increase and more disrepair
I could go on.

No-one is truly immune not even the high earners!!!

say you earn a lot as solicitor or work in pensions finance.

at first your job won’t be affected. Yes you will cut back on some luxuries such as getting nails done or having a cleaner and Gardener. You cut back the kids activities to every other week, less cinema and theatre trips. But hey it’s fine you’ll cope not like you’re choosing between hearing and eating.

but everyone else is also cutting back on luxuries so fast forward a few months and lots of those small business providing beauty treatments and cleaning services and horse riding lessons won’t be turning over enough to keep going, they will fold and have to turn to benefits.

the more people having to survive on benefits the less people wanting to sell/buy houses, and they no longer have workplace pensions to pay into.

that means the higher earners will have less clients, less people needing thier services, so sooner or later down the line some of thoses financial advisors and estate agents and solicitors will be made redundant and oh suddenly you ARE affected as you have no income and need to downsize your house to reduce the mortgage but there’s nobody buying as all the low income workers can no longer afford to buy.

the only people that are really immune are the ones that have trust funds so have a guaranteed income, those retired on private pensions and those with absolute essential jobs but even essential jobs will be cut if they can’t be funded.

Even people with trust funds may be affected. Some investments have plummeted in value recently.

Dong bd fooled …. My ISA went up 30 quid last week and I have a teeny tiny one with not a lot in it

Absolutely.

Recession is bad news for every single working person.

The the gas and electricity that is the big one for people

yes good goes up but most can survive that a few pounds extra a week

the price hike for g&e is insane

ive never known it to increase like this and neither has my dad bless him

so who will step up and say enough. Prices have to drop