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Old 1st December 2021, 21:35   #41
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I fear that you fellow peasants are failing to appreciate the direction of travel insofar that the housing market and property ownership is concerned.

At the moment, roughly 5% of the UK population are in the £1m asset/savings category and about 2% in the super-rich category. These 2% derive vast incomes from their multi-million assets. I see us moving towards 100-year mortgages (as in Japan) where a person hands down his home and associated mortgage at death.

Beyond that, ultimately, I see that all property will be owned by the top 2%, thus securing relatively high and stable long-term returns whereas we peasants (the masses) will be long-term tenants. Welcome back Victorian demographics.

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Old 1st December 2021, 22:24   #42
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So that says it all then, not much has changed since the Norman invasion, no wonder people have nowhere to live, afterall the Crown need more than a quarter of a million acres of land in order to do their weekend deer hunting.
I seem to recollect reading that he Crown Estate is 85% owned by the government, or 85% of the income from the estate went to the government. One of our previous monarchs was bailed out by parliament and that was their price for the rescue.
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Old 3rd December 2021, 12:47   #43
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I fear that you fellow peasants are failing to appreciate the direction of travel insofar that the housing market and property ownership is concerned.

At the moment, roughly 5% of the UK population are in the £1m asset/savings category and about 2% in the super-rich category. These 2% derive vast incomes from their multi-million assets. I see us moving towards 100-year mortgages (as in Japan) where a person hands down his home and associated mortgage at death.

Beyond that, ultimately, I see that all property will be owned by the top 2%, thus securing relatively high and stable long-term returns whereas we peasants (the masses) will be long-term tenants. Welcome back Victorian demographics.

Rees-Mogg dresses as he does knowing our and his destiny!

very surprised it is only about 5% of the UK population is worth a million, but looking at the internet you are indeed right.

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Old 3rd December 2021, 14:15   #44
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Thing to remember about those "worth a million", is that some are asset rich and cash poor. It is the second million of worth that is the difficult part.
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Old 3rd December 2021, 14:45   #45
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House prices appreciating is more to do with currency depreciation and financial manipulation than actual capital appreciation.
Each time interest rates dropped, that guaranteed that house prices would go up. I read that there could be as many as 1 million interest only mortgages out there. It's amazing how high a bid you can put in if you have access to a large loan at a very low rate. The only way though for most of those folk to pay off their mortgages will be to downsize and hope the sale price has enough 'capital appreciation' to afford a house somewhere in the UK. If you were lucky/clever enough to buy in London thirty years ago you can move pretty much anywhere and have change left over. Not so much if you bought in many other areas.
With our current two party 'democracy', candidates for government get elected by outbidding the other candidates with the most appealing promises. Over promising leads to overspending which leads inevitably to overborrowing. Usually a conservative government tries to balance the books by applying fiscal prudence. They get accused of 'austerity', become unpopular and get booted out. Labour usually loosens fiscal policy, confuses investment with divestment, sells our gold for $300/ounce and leaves a note saying there is no money. Incredibly, despite there being no money and no magic money tree (Teresa May to the nurses ), Boris has thrown all caution to the wind and found £500 billion somewhere. Even more incredibly, after announcing £94 billion in improvements to the rail network, it's labelled ' not enough'.
We are heading inevitably for inflation well above the Bank of England target rate of 2%. Labour would be well advised to take a rain check at the next election, because the chickens will come home to roost in 2024-25, and the new government will have a rather large poisoned chalice.
It is inflation, compounded annually, which inexorably drives up the cost of housing and simultaneously depreciates the spending power of a currency. This in turn inexorably batters down the poorest and most vulnerable in our society. Why not target 0% inflation and stable prices? Letting inflation rip is dangerous. The most modern example of inflation spiralling out of control is of course Venezuela, lauded not that long ago by Mr Corbyn et al as a great modern example of what a socialist economy can achieve.
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Old 3rd December 2021, 15:27   #46
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. . . a great modern example of what a socialist economy can achieve.
Well, the socialist govt of Clement Attlee did build over 1 million houses 1945 - 1951 when we were supposed to be bankrupt. Not bad going.
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Old 3rd December 2021, 16:07   #47
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House prices appreciating is more to do with currency depreciation and financial manipulation than actual capital appreciation.
Each time interest rates dropped, that guaranteed that house prices would go up. I read that there could be as many as 1 million interest only mortgages out there. It's amazing how high a bid you can put in if you have access to a large loan at a very low rate. The only way though for most of those folk to pay off their mortgages will be to downsize and hope the sale price has enough 'capital appreciation' to afford a house somewhere in the UK. If you were lucky/clever enough to buy in London thirty years ago you can move pretty much anywhere and have change left over. Not so much if you bought in many other areas.
With our current two party 'democracy', candidates for government get elected by outbidding the other candidates with the most appealing promises. Over promising leads to overspending which leads inevitably to overborrowing. Usually a conservative government tries to balance the books by applying fiscal prudence. They get accused of 'austerity', become unpopular and get booted out. Labour usually loosens fiscal policy, confuses investment with divestment, sells our gold for $300/ounce and leaves a note saying there is no money. Incredibly, despite there being no money and no magic money tree (Teresa May to the nurses ), Boris has thrown all caution to the wind and found £500 billion somewhere. Even more incredibly, after announcing £94 billion in improvements to the rail network, it's labelled ' not enough'.
We are heading inevitably for inflation well above the Bank of England target rate of 2%. Labour would be well advised to take a rain check at the next election, because the chickens will come home to roost in 2024-25, and the new government will have a rather large poisoned chalice.
It is inflation, compounded annually, which inexorably drives up the cost of housing and simultaneously depreciates the spending power of a currency. This in turn inexorably batters down the poorest and most vulnerable in our society. Why not target 0% inflation and stable prices? Letting inflation rip is dangerous. The most modern example of inflation spiralling out of control is of course Venezuela, lauded not that long ago by Mr Corbyn et al as a great modern example of what a socialist economy can achieve.

This government had done everything possible to maintain house price inflation, including the use of tax payer's money to do so through the stamp duty holiday.

If I was leader of the Labour party, I would take a little step back at the next election on the basis that having made an excellent job of managing the Covid situation, the Tories deserve to reap the fruits of their successes and be given the opportunity to do the same for the economy over the following term.
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Old 3rd December 2021, 16:53   #48
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Thanks Martin (Edwardmk) for post 45. May I add?

The one thing that's missing, to bring a bit of levelling up in a grossly exaggerated market, and to alleviate family hardship, is a return to the building of council houses. But without the wholly unnecessary Right to Buy. There is so much derelict ex-industrial wasteland in this country it's embarrassing. Incredibly cheap as well.
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Old 3rd December 2021, 17:47   #49
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This government had done everything possible to maintain house price inflation, including the use of tax payer's money to do so through the stamp duty holiday.

Absolutely correct.We now have a housing market with hugely over inflated prices offering poor value for money.These reckless actions have pushed home ownership even further out of reach for most first time buyers.It has also had a knock on effect in the rental market where prices are frankly obscene due to high demand.Renting is the only option for many as both the deposit for a mortgauge,or ridiculously high asking prices, have pushed ownership beyond their means.Well done Boris and co.
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Old 3rd December 2021, 19:26   #50
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Well, the socialist govt of Clement Attlee did build over 1 million houses 1945 - 1951 when we were supposed to be bankrupt. Not bad going.
I don't disagree with socialism, I support it, but it can't exist without entrepreneurs producing more than they need, which is where capitalism comes in. Ted Heath referred to the 'unacceptable face of capitalism', and there are many unacceptable faces that I can see operating which I'd love to see reformed or stopped completely. However, as Margaret Thatcher once said, the problem with socialism is that eventually you run out of other peoples' money. I think the debate about where the correct balance lies is where the differences and frustrations occur.
Imho, with my great benefit of hindsight, she was wrong to sell off council houses. And the 'right to buy' them has to stop if there is ever going to be sufficient council housing in the future.
How many council houses could we have built with the £400 billion poured into 'fighting Covid' thus far, and does it truly represent value for taxpayers' money in the longer term?
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