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How to reduce house prices!

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http://www.positivemoney.org/issues/house-prices/

[video="youtube;Y4WmDoYJhnk"]https://www.youtube.com/watch?v=Y4WmDoYJhnk[/video]

Reply 21

landscape2014

The land market is rigged in favour of the extensive land holder which ensures artificially maintained land prices. The money market is rigged in favour of large net worth individuals and organisations in particular the international PLC banks who actually run the country’s economy - the banks create 97% of the money in it for their profit not the nation’s well being. Housing provision perfectly illustrates the greed of the financial sector and the ignorance of the general public. When the property market was targeted for investment, the allowable mortgage multiplier increased from 3 to 10 (and beyond) many new customers were embraced. Still not enough demand to soak up the available money? Now (because politicians encouraged it) the ‘masters of this universe’ (the financial one that all national politicians had gifted to the plutocrats centuries before and had since steadfastly refused to accept responsibility for) offered up to 125% mortgages as an incentive to buy. Surprise, surprise, millions of new customers appeared to take advantage of (to be taken advantage of) this relaxed, loose money lending regime (loose money like loose morals necessarily exposed the participants to harmful consequences). There is a basic economic rule that this system of private money creation falls foul of with monotonous regularity – if there is a glut of a particular commodity its value falls (and prices rise). Since the inception of ‘modern’ banking over 300 years of financial history records a monotonous cycle of boom and busts along with an inexorable decline in the value of money which is pointedly telling populations this model of finance is intrinsically flawed – the public are very, very slow learners (that saving encourages stability and borrowing undermines it). Governments (of whatever complexion) are working for the man who wants a mansion or two not you.

Reply 22

saayagain

Original post by CycleofSpin

Would people still be able to rent second properties if they needed properties in different areas for their personal and business life?

Posted from TSR Mobile

Yeah. Use a hotel.

Reply 23

The_Mighty_Bush

Original post by padgett11

How can we reduce housing prices?

With more and more and people unable to afford their own home (64% of young people between the ages of 25 - 36, and 87% of people under 25) we need to find a way to reduce house prices.

There are many 'part buy' schemes at the minute that are making a small dent in helping people get on the housing market but there is no real ideas that can solve the problem.

Housing prices have risen a huge 428% in the last 30 years since the last generation, a figure that dwarfs that of inflation and wage increases.

There are many factors in this rise, none more so than the selling off of the social housing in the 80's/90's that gave rise to the landlords, eventually limiting the supply of housing stock.

What if we imposed a levy on house ownership that applies an increased rate of tax on people owning 3 or more properties?

A 50% tax on fourth properties owned by individuals and companies would release a lot of the housing stock back onto the market reducing housing to an affordable level.

I do realise the problems involved with such a scheme such as negative equity and so forth but if the scheme was phased in over a long period then maybe it's workable.

Bringing housing prices in line with earnings would also help drive lending and mortgages.

I have more to say on this matter but I have to leave at the minute.

Comments welcome.

The answer is that we need to drastically increase the supply of houses.

Reply 24

democracyforum

Original post by padgett11

How can we reduce housing prices?
With more and more and people unable to afford their own home (64% of young people between the ages of 25 - 36, and 87% of people under 25) we need to find a way to reduce house prices.
There are many 'part buy' schemes at the minute that are making a small dent in helping people get on the housing market but there is no real ideas that can solve the problem.
Housing prices have risen a huge 428% in the last 30 years since the last generation, a figure that dwarfs that of inflation and wage increases.
There are many factors in this rise, none more so than the selling off of the social housing in the 80's/90's that gave rise to the landlords, eventually limiting the supply of housing stock.
What if we imposed a levy on house ownership that applies an increased rate of tax on people owning 3 or more properties?
A 50% tax on fourth properties owned by individuals and companies would release a lot of the housing stock back onto the market reducing housing to an affordable level.
I do realise the problems involved with such a scheme such as negative equity and so forth but if the scheme was phased in over a long period then maybe it's workable.
Bringing housing prices in line with earnings would also help drive lending and mortgages.
I have more to say on this matter but I have to leave at the minute.
Comments welcome.

Homes for £1 scheme in Liverpool.

realistically , will cost about 20,000 to refurbish. so a house for 20,000 pounds

Reply 25

Flather

2 easy ways to reduce house prices: more houses, less people...

Reply 26

illegaltobepoor

The state isn't going to build any new council housing. New Labour and Tories both want to fill their owns pockets by selling off public land to private developers. This has been the case since Thatcher was in office.
And why would they be so benevolent? With all the money injected into housing prior to 2007 it means that any new loans will require further amounts of bigger debt to be created which directs more money to their housing developer friends.

I'm afraid if you want a cheap house your going to have to save the money for it or find a line of credit that appreciates your meager existence.

I would warn people not to use Help to Buy because the 20% of loaned money the Government gives you is tied with inflation. So for example. Lets say your house is worth £100,000 and inflation goes to 5%. This is 5% on top of your interest rate. We are currently in deflation and what is scary about this is it could bounce back up if some commodity becomes more expensive. Greece leaving the EU has random circumstances. Basically your be screwed. Your make friends with the foreclosure agent very fast.

Mean while I understand why the Government sold the student loan book. If a person got no better job than min wage at 40 hours a week though out their life they would leave the Government with 700 thousand to 4.5 million debt. Its a good thing students aren't liable for this. Private investors are getting royally screwed.

(edited 8 years ago)

Reply 27

Blackstarr

That's why you vote Labour for the next election and forsake the Conservatives.

Reply 28

illegaltobepoor

Original post by 08Mercyf

That's why you vote Labour for the next election and forsake the Conservatives.

I am only voting Labour if Jeremy Corbyn wins the leadership. If not Labour can sod off.

Reply 29

Blackstarr

Original post by illegaltobepoor

I am only voting Labour if Jeremy Corbyn wins the leadership. If not Labour can sod off.

Why when all the Labour party members hold the same views?

Reply 30

illegaltobepoor

Original post by 08Mercyf

Why when all the Labour party members hold the same views?

that is a generalisation. what should i be voting for?

Reply 31

L i b

Original post by padgett11

There are many 'part buy' schemes at the minute that are making a small dent in helping people get on the housing market but there is no real ideas that can solve the problem.

No real ideas? How about building more houses?

There are many factors in this rise, none more so than the selling off of the social housing in the 80's/90's that gave rise to the landlords, eventually limiting the supply of housing stock.

You think allowing people to buy their own homes, leading to a huge increase in home ownership across this country rather than being tied in to renting, is what is limiting housing stock? That's perverse. If social housing wasn't sold off under Right to Buy, home ownership would not be a reality for the working classes.

What if we imposed a levy on house ownership that applies an increased rate of tax on people owning 3 or more properties?