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House prices face 18% hit if Britain quits EU, says George Osborne

http://www.theguardian.com/politics/2016/may/20/eu-referendum-george-osborne-house-prices-brexit


Oh no! House prices may go down???? How terrible! :eek3:

How ever will home owners manage.

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Original post by ChaoticButterfly
http://www.theguardian.com/politics/2016/may/20/eu-referendum-george-osborne-house-prices-brexit


Oh no! House prices may go down???? How terrible! :eek3:

How ever will home owners manage.


Why would anyone want to see the value of their property fall?
Original post by epic within
Why would anyone want to see the value of their property fall?


So other people can actually own a home?
See I'm a capitalist, but I do think we need some control on house prices, so they're not astronomically high. I think Norway has the right idea. Their wages are higher sure, but even in Oslo, houses cost some £200-300K which isn't all that bad, when you consider that their wages are also higher.

Not many capital cities allow people not from the capital to own property there. It's getting pretty bad for the entire south east.

This being said, I highly doubt leaving the EU would do any thing really for house prices, especially as you'll still have foreign investors. I'm all for foreign investment, but tbh, this isn't providing jobs - it's taking money from the UK, to someone abroad, who then pays for things in their own country. It's not how foreign investments used to be ie: invest in a company, make a profit, and employ people at the same time.
(edited 7 years ago)
Reply 4
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Reue
20
Good, they should go down, and this is speaking as a home owner.
Reply 5
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Reue
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Original post by The_Internet
Not many capital cities allow people not from the capital to own property there. It's getting pretty bad for the entire south east.


Agreed, but im not sure how best to limit it.
Original post by ChaoticButterfly
So other people can actually own a home?


Either way, barely anything is going to change
Original post by epic within
Why would anyone want to see the value of their property fall?


assuming they have only one house and are not seriously thinking about emigrating, I wonder how much it matters.

If the sale value of my home falls by 18% and so does the sale value of every other home in the UK then I can either continue to live in my house as is or can move to another British home.

If specifically my home loses value because of knotweed, that's a small disaster. If it does because all homes do, that is something or nothing.
Reply 8
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inhuman
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Original post by The_Internet
See I'm a capitalist, but I do think we need some control on house prices, so they're not astronomically high. I think Norway has the right idea. Their wages are higher sure, but even in Oslo, houses cost some £200-300K which isn't all that bad, when you consider that their wages are also higher.

Not many capital cities allow people not from the capital to own property there. It's getting pretty bad for the entire south east.


Oslo is huge. Area compared to population. So many people want to live in London but few do. So many rich foreigners want a nice apartment in London. New buildings being built cost, a lot. Who will buy the land, build, and then sell cheap. Even if the land were cheap, who would build cheap stuff? Expensive things cost more to make but you can charge a higher margin. You don't need to control prices as much as provide them yourself.
Well, good, right?
Original post by cambio wechsel
assuming they have only one house and are not seriously thinking about emigrating, I wonder how much it matters.

If the sale value of my home falls by 18% and so does the sale value of every other home in the UK then I can either continue to live in my house as is or can move to another British home.

If specifically my home loses value because of knotweed, that's a small disaster. If it does because all homes do, that is something or nothing.


do you really think that brexit is going to reduce house prices especially in London?
Original post by inhuman
Oslo is huge. Area compared to population. So many people want to live in London but few do. So many rich foreigners want a nice apartment in London. New buildings being built cost, a lot. Who will buy the land, build, and then sell cheap. Even if the land were cheap, who would build cheap stuff? Expensive things cost more to make but you can charge a higher margin. You don't need to control prices as much as provide them yourself.


Perhaps so. The popultion density in the UK in general is pretty bad, more so in London. I guess in London, especially the only way to build is..up. Then there's the infrastructure costs after that as well.

The whole of Norway is pretty huge, compared to the population size!
Reply 12
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Reue
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Original post by epic within
Why would anyone want to see the value of their property fall?


Why wouldn't we?
If all property falls by an equal percentage:

My £200k house goes down by £20k

The £400k house I want to move into goes down by £40k.

So house value drops benefit anyone wanting to either get on or move up the property ladder.. which will be the huge majority of users on here if not the entire UK population.
Original post by Reue
Agreed, but im not sure how best to limit it.


See a "knee jerk" reaction would be something like "Lets increase wages in London ten fold" or something really high. Of course, goods would also cost ten times as much too, but if milk was £10, that's not as bad as houses suddenly looking cheap, but that's a stupid policy, because it has huge knock on effects - like people commuting out of London, house prices also going up 10x etc..
Reply 14
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Reue
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Original post by The_Internet
See a "knee jerk" reaction would be something like "Lets increase wages in London ten fold" or something really high. Of course, goods would also cost ten times as much too, but if milk was £10, that's not as bad as houses suddenly looking cheap, but that's a stupid policy, because it has huge knock on effects - like people commuting out of London, house prices also going up 10x etc..


I think one way would be for new developments to only be allowed to sell to 'local' buyers?
Original post by epic within
do you really think that brexit is going to reduce house prices especially in London?


I have no idea, nor any skin in that game.

The whole of my point is that even if there were some copper-bottomed guarantee that this would happen, still this is a rhetorical trick being played on home owners, who are encouraged to reflect on the disaster of seeing specifically the value of their own homes fall without reflecting on how much that would matter in the case of this applying as a general circumstance. No-one says "God, I'm glad it isn't 1988, my house would be worth only 80 grand", and that because having a house worth 80 grand wasn't then a problem, since the move you fancied was to a home costing 10 grand more than that.
Original post by Reue
Why wouldn't we?
If all property falls by an equal percentage:

My £200k house goes down by £20k

The £400k house I want to move into goes down by £40k.

So house value drops benefit anyone wanting to either get on or move up the property ladder.. which will be the huge majority of users on here if not the entire UK population.


Except certain areas like London and the south east will always be high in demand regardless of the outcome of the election, brexit is not going to stop Russian oligarchs buying property in London.
Original post by cambio wechsel
assuming they have only one house and are not seriously thinking about emigrating, I wonder how much it matters.

If the sale value of my home falls by 18% and so does the sale value of every other home in the UK then I can either continue to live in my house as is or can move to another British home.

If specifically my home loses value because of knotweed, that's a small disaster. If it does because all homes do, that is something or nothing.


You also get it being beneficial for tax purposes, cheaper house means lower inheritance tax.
Highly unlikely. Where will all these people live? There are so many new developments going up where I live and developers are savvy bunch and would not invest if this was the case.
Original post by cambio wechsel
I have no idea, nor any skin in that game.

The whole of my point is that even if there were some copper-bottomed guarantee that this would happen, still this is a rhetorical trick being played on home owners, who are encouraged to reflect on the disaster of seeing specifically the value of their own homes fall without reflecting on how much that would matter in the case of this applying as a general circumstance. No-one says "God, I'm glad it isn't 1988, my house would be worth only 80 grand", and that because having a house worth 80 grand wasn't then a problem, since the move you fancied was to a home costing 10 grand more than that.


The second someone things, I'm going to move to a nicer house that is only going to increase demand for houses and the price

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