How to keep house prices low for generations to come
 

http://www.bbc.co.uk/news/business-37941426

Seems a simple idea..I wonder if it can work?

Re: How to keep house prices low for generations to come
 

It would be nice if it worked as sadly as most of us know the current unaffordable housing and social housing crisis we have currently is going to take some considerable time if ever to sort out as we need policies and politicians that think of UK housing long term instead of the short term policies we sadly have had for decades.

Re: How to keep house prices low for generations to come
 

I wouldn't give it more than a few years. The problem I see is that you create a 'priviledged? set' who are tied to properties that dont go up in value much and who may not be able to move out into other properties.

Re: How to keep house prices low for generations to come
 

Probably worse than renting. The allowed increase wouldn't cover the mortgage interest due when it came to selling it. They would face a bill for that.

They are being subsidised by getting the land for free.

Re: How to keep house prices low for generations to come
 

The only way to stop the growth of the bubble would be to build more homes than were required. And with the present demand that would take a building revolution which we are always told is "planned" but never happens.

Oh, and make buy-to-let a lot less easy and lucrative for the vultures.

Re: How to keep house prices low for generations to come
 

Done.

"Not long ago it was the investment for choice of the middle classes. "My buy-to-let is my pension," was the refrain of the two million strong army of small landlords.

But in less than two years this form of investment has been all but destroyed.

A series of tax and regulatory changes, spearheaded by former Chancellor George Osborne, has left landlords reeling - even though the full implications are yet to be felt.

Middle-class mortgaged landlords will be hardest hit, with the retirement plans of many thrown into disarray.

Large-scale landlords and those operating as companies will escape largely unscathed, however.

Last year the buy-to-let boom peaked, with a 26pc rise in lending to investors and £15.6bn lent to landlords to buy property. "

http://www.telegraph.co.uk/investing...-in-16-months/

Re: How to keep house prices low for generations to come
 

That'll be the "vultures" that provide millions of people with a roof over their head then.

---------- Post added at 23:47 ---------- Previous post was at 23:44 ----------

Making this the only type of business where you are taxed on turnover and not profit. Wonder if they'll apply the same rules to Starbucks et al...

All that's going to happen is that rents are going to sky rocket.

Re: How to keep house prices low for generations to come
 

And this scheme..got any opinions on that?

Re: How to keep house prices low for generations to come
 

Clause 24? - I can't think of any other business where you don't get tax relief on a loan you took out to run the business.

There are going to be some landlords out there where the tax bill exceeds what's left after you take the interest and management fees off the rent.

Only realistic outcomes are

1. Landlords hike the rent up to at least a level where they aren't out of pocket

2. They go under, house gets repossessed and tenants get made homeless. Putting more pressure on the local authority.

Either way the real losers are the people actually renting and the rest of us paying the Council Tax.

I'm all for level playing fields, so when the government goes to the likes of Tesco, British Gas, BP et al and says

"Sorry about this, but you have to now pay tax on those interest charges for the loans you took out to buy equipment..."

Was that a squadron of stealth bomber pigs flying past my window :Yikes:

Re: How to keep house prices low for generations to come
 

Taking out a loan to buy equipment is very different to a loan to buy what is seen as an asset. The house will retain or even increase its value, where equipment will depreciate in value.

As the cost of the loan is retained in the value of the house, any rent is relatively pure profit. By renting it out you are partially "selling" the house. If you sold the house you might be liable for Capital Gains tax.

Re: How to keep house prices low for generations to come
 

Mmm because they're in to benefit the tenants aren't they...

Wakey wakey

Re: How to keep house prices low for generations to come
 

In the same way that farmers produce food only for their own benefit.:rolleyes:

Re: How to keep house prices low for generations to come
 

So they do it for the good of the people and then their own financial improvement/stability secondary?

and you believe this ?

Re: How to keep house prices low for generations to come
 

Anyone who works or invests does it to earn money.
QED.

Re: How to keep house prices low for generations to come
 

Which was the point i was making... Profit first, care of tenants secondary. Hence my agreement of the 'vultures comment'

Whilst I'm sure there are a degree of B2L landlords who do they're best for their long term tenants. The vast majority want the maximum amount of money for the minimum amount of effort. We've all seen some of the horror stories.

So two options

1) Embark on a massive program of social/low cost affordable housing which can ONLY be purchased by the individual (not B2L)

2) Move towards a more US based model of acceptance that not everyone owns their own home.

I'd much prefer option 1, I suspect option 2 is the more likely model based on current progression.