To think no one has a right to make money off their house

[Laughingstock1991]

The general consensus among financial commentators this week has been that the housing market has turned. Interest rates are still going up and are unlikely to come down for a few years. The low interest rate financial experiment that has been in place since 2008 has ended and it’s unwinding is going to be painful. The housing boom was based on cheap credit.

My mortgage is likely to go up about 400 a month. Lots of commentators reckon we are in for a big fall in house prices. Good thread here:
https://twitter.com/EdConwaySky/status/1668987423643119623

What pisses me off is the absolute assumption made by some people (like my friend today) that the government should use public money to bail out mortgage holders. Most people were stress tested on their mortgage- I was- and yes it’s going to be tough but do I think public Money (renters money) should be used to bail out mortgage holders- fuck no! The Lib Dems have raised this also today.

House equity is unearned wealth. There are no guarantees. We have been through a boom and now it’s going bust. Hopefully sanity will return & housing will be seen as a home again- not an investment. Its not a ‘market’.

And I say all of this as a homeowner who is going to have to pay a lot more. I want everyone to be able to afford a decent home- not just those with money.

I don’t think that’s unreasonable!

Ok @rainingsnoring how about non car drivers having their taxes fund motorway development? Or tee total people having their taxes fund liver transplants on the NHS for alcoholics?

The point is taxes go towards the greater good, be that schools, benefits or programs to boost the economy for all. House price adjustment is par for the course and house prices are way too high, we can all agree that, but soaring interest rates have a cumulative and knock on effect on so much more than home owners.

Where do you think these people are going to downsize to? It's not like your average home owner in risk of losing their home due to increased mortgage rates is living in a house too big for their family.

This is the truest thing I have seen- we don’t live in a functioning economy because the housing boom has eaten the country alive

Even if house prices do come down I think the market is likely to remain pretty buoyant as there's a shortage of housing in this country and its a basic rule of economics that when there's a shortage prices go up or stay high. So public money would be well spent in investing in housing that would benefit everyone. I think that would be a better use of public money than a mortgage bail out but I do think more needs to be done generally to help low income families in whatever housing with the rising cost of living.

For me I'm working towards the end of my mortgage and retirement. I have benefited from equity growth in my previous home - which rose in value from £380K in 2001 to £1.4m in 2020. That equity was shared between me and my ex husband. I know that's a huge benefit but I didn't only pay the mortgage with interest despite going through a couple of redundancies but I invested a lot of money in improving the property (it was a wreck when we bought it) and maintaining it over the years which was not always easy as a single parent. So a considerable amount of the increase in value was down to that investment turning 7 bedsits and a flat with no central heating or suitable wiring into a home.

My current home will be paid off in 7 years, it may grow or fall in value but I'm not bothered as its value to me is is that I plan to live in it for as long as possible before I die. What seems very unfair is that my children will benefit in a big way from a significant inheritance from their parents and that adds up to reinforce the huge inequality within and between generations.

I’ll take my chances with the bank thank you very much. Having seen the Property Maintainence that doesn’t get done by landlords big and small.

I am moving to a bigger house and have just secured my new mortgage. My broker told me to wait until Thursday as rates were going down and they did. Mine dropped 0.3%, so they aren't constantly rising.

The problem is geographical housing stock supply, not just cheap credit. If the Gov/BofE are increasing interest rates to choke inflation of course they shouldn’t be subsidising mortgage increases but that’s easier said - when there is genuine hardship, it doesn’t seem like the poorest and vulnerable should be used as economic pawns.

Again, this just makes me laugh out loud because our Charlie is an estate agent who literally makes money whether the markets up or whether it’s down. I bet he didn’t say no when the boom was in full swing.

The trend is upwards, they overshoot and correct - hence your 0.3% drop but they are going up - unfortunately.

@3BSHKATS but it’s still right

It's a bullshit soundbyte with little meaning, targeted at people who love regurgitating soundbytes. And from an EA with skin in the game 🤣

House prices will never come down when their is more demand than houses. They would be nuts. Brexit has made us more expensive inflation has gone down in America, France and China but not here.

And nobody is disagreeing with that. If people didn’t have to spend so much money on housing, be that via rent or mortgage payments, i.e. interest, everybody will be enjoying a better quality of life.

But the decision was made, and now we’re all going to have to live with the consequences. The UK needs to become a higher wage economy. We need to stop relying on the service industry. But I’m afraid we cooked a goose, when manufacturing was thrown to the wolves along with mining. All roads lead back to one person I’m afraid.

And I remember seeing the footage when she was first elected about how being a woman she’ll be used to managing the family finances, so she’ll be a great prime minister. Just demonstrates how genuinely thick most people are that they think running a countries budget is the same as balancing a families.

So OP I hope when you come to sell if you really are a home owner your going to put it on the market for what you paid for it not what it's worth now?

Nope thought not 🤣

If people like you are so bothered sell your homes for the price you paid stop claiming unearned wealth give others a chance or your all hypocrites. The only others supporting you are most likely renting.

Haven't read the full thread but the uk population was 56 million in 1979 and is 67 million now. That's not double.

Oh okay, then I’m sure that makes all the difference 🙄 it certainly feels more crowded.
But let’s compare our population, which apparently is within a few hundred thousand the same as France with their landmass.

Landlords will just put the rents up to match the hike in mortgages- I'm sure there'll be plenty of renters who cannot afford that. Question is where does this swathe of society who cannot afford to buy, cannot afford to rent and aren't eligible go to live? If people have their homes repossessed chances are the stock will be hoovered up by affluent people who can already well afford to buy more properties and hence exasperating the issue.

Right now I’m image tent cities like in the US. Literally where are we going to house people? What happened to people in the 80s? I suppose we had way more social housing stock then?

Alcoholics don't get liver transplants on the NHS!
I agree that taxes should go towards the greater good, exactly as you say. I fully agree with everyone supporting schools, infrastructure, people with disabilities and chronic illness, etc.
Clearly the government are looking at the mortgage issues. I would say that they are the BOE have been sweating over it for a long time. I don't agree that bailing out mortgage holders is the right thing to do for many reasons.
I already said in previous comments that I think the government will apply pressure to banks to show forbearance. Perhaps a scheme where the mortgagee pays rent to the bank and effectively rents from the bank with the option to buy it back later on if this is possible. They would effectively be like renters who currently pay private landlords but would stay in their homes and we would not face mass homelessness. I do think we are moving towards corporate landlords anyway. This would probably provide a lot more stability to the rental sector as opposed to private landlords who suddenly sell up because they have over leveraged or needing to move back because they have split up with their partner; this is terrible for renters.

@SamanthaCaine but so what? It’s still right- this thread is full of unbelievable entitlement.

I have friends who have moved over and over again due to shitty rental conditions- unfair section21s - all of it.

I see my house as a home for my kids not as a fucking bank. And everyone has the right to that. It’s a basic bloody human right in a decent functioning society.

Absolutely! My neighbours one is a nurse and one is a junior doctor, they have a small 2 bed and scrape by. Ridiculous.

Fair enough!

@chupachucks yes I am ‘really’ a home owner and I will ride the storm like everyone else but hopefully with a bit less entitlement

Er. House prices have already come down significantly and considerably in real terms.

@rainingsnoring Alcoholics don't get liver transplants on the NHS

of course they get transplants and all the medical needs met. Hospital staff have to push people on oxygen tanks in wheelchairs dying of COPD downstairs for a ciggy. They perform CPR on drug addicts when their hearts fail. If we’re going to start being brutal and saying no self-inflicted person deserves help, it’s all gonna get quite messy. All the obese people will be freeing up their homes fairly quickly.

He isn't an estate agent.