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!

Yeah, they said that about the credit crunch in 2008, and yet here we are

Didn't they cut rates though then?

And yet taxpayers are expected to fund housing benefit for a massive proportion of renters.

@troubg yes - they don’t have the same fiscal levers this time round. And it’s not a credit crunch- it’s the normalisation of rates after a 15 year low rate experiment

The difference is that isn’t funding a long term appreciating capital asset.

Of course it is, it’s just not for the benefit of the person living in it 🙄
That’s what you objective, I presume anybody having a long-term appreciating capital asset ?

Housing benefit goes to landlords - by definition these are homeowners.

Can you folks not even do a modicum of research?

The lack of financial and economic understanding shown in this thread is off the scale.

It also shows the massive entitlement attitude that has permeated the UK over the last 20 years

Nobody owes you a living or a house (try not paying council tax and you will see how fast that house evaporates).

Take some personal responsibility and fix your own problems.

And yes, these problems are fixable but they will require effort and sacrifice on your part.

Anecdotally, I know somebody who hasn’t pay council tax in eight years. He’s not in jail.

Housing benefit and housing element is funding a landlord’s second/third or possibly fourth property 🤷🏻‍♀️

Lol, you’re a joke playing the victim card.
I’m just going to keep pointing it out every time you launch a personal attack on someone. Or promote your property “expert” mate’s YouTube channel, because that happens almost every thread too.

The law was specifically changed a few years ago to ensure that landlords couldn't legally refuse to rent to people on benefits. That was a change that benefit claimants and organisations representing them explicitly campaigned for. So now complaining that landlords accept housing benefit is a bit much.

And what’s his credit rating like then ?!

It will be absolutely fine it’s a little known fact, council tax debt isn’t recorded in the same way that for example a credit card would be. If you check on your credit report it has utilities i.e. water in your gas and electric no mention of your council tax

This with bells on
oh and who remembers 15% interest rates in the late 1980’s/early 1990’s? We certainly had to tighten our belts , nobody bailed us out then so why is it different t now. Are adults no longer responsible for their lives; when did the nanny statue take over?

*state 😂😂😂

I remember it. But there were thousands of repossessions at that time and I’m not sure the government could cope with all the unpopularity that would bring them, in addition to all the other things people are upset about!
Wouldn’t be a good look for the Tories or Labour, if they get in. Which is why I think they will put a lot of pressure on the banks not to repossess homes without trying a wide range of other measures first.

@te

@Twiglets1 its not that it’s unpopular.

It’s morally wrong and they can’t afford it without making inflation worse!

Well it would be unpopular with all the people in fear of being repossessed, mainly younger people I imagine who haven’t yet built up much equity or maybe in negative equity.

Yes, and I remember the repossessions, but no one thought taxpayers should bail out anyone with a private asset.

My parents and I literally had to feed my brother and his family, as they had to pay the mortgage, no matter what.

I think the banks should offer low interest loans to get people through this though.

The financial analysts think this could last 3-4 years.

Can it be somebody else’s turn to mention MIRA’s at this point I’m a bit busy ?

I'll mention it, but it was still 15% interest at some points. We are currently at the point of about 6% - bit of a difference. And, to be fair, they weren't able to get funding for childcare/nursery placements etc.🙄

They didn’t need childcare assistance. The houses were bought on the basis of the borrowing of one persons salary x 3. As for 15% it was a matter of days. This is just going round and round in circles. You did not have it harder than People today. That is an economic fact the numbers prove.

And if you did lose your house in the 80s and the 90s, I’m really sorry that’s absolutely terrible. Your stance should be all the more determined that that never happens to anybody else.

laughing no you miss the point
My response was it's an investment so ergo you make lose money that's the risk you take I then made the point that a pension portfolio is often made up of property and you would not want to lose that I'm sure * *

Lot of displays of casual ageism on this thread. You're all going there, all going to be 'sat dribbling in your chairs' and it'll happen a lot sooner than you think. You'd better hope to God that your kids or grandkids are less vindictive than you are. Re the economy - it might help if people stopped voting Tory. Especially for the most right wing bunch of Tories in history, and that probably means even more right wing than Thatcher, although she was the one who sold off council house stock and didn't replace and increase it - which was what was meant to happen. It amazes me how many people can't get it through their heads that people are, on the whole, better off in countries where people pay reasonable taxes and get significant benefits for those taxes - good state schools, affordable nurseries, a functioning health service etc etc. This isn't communism. Just a decent centrist government that will have its faults but doesn't inflict the hardest possible Brexit on its citizens, and then crash the economy so that a bunch of cronies can make millions.

@QueenMegan still not the job of the government to use public money to bail people out regardless. As I said, if I defaulted on a car loan, no one would bail me out. It’s insane that it’s even been mooted as a vague possibility.