However the main problem for a large percentage of the people in the UK is a housing crisis above anything else and this is being forgotten in all the other noise.
Working people were on the brink already and the increases in first the general cost of living plus now the extreme increases in energy costs are made so much worse by the cost of housing vs the wages here.
We will need short term fixes for this particular crisis but long term a proper government needs to come in and properly regulate housing.
What is the real downside to the price of housing being back to what it was in the early 90s (with regulation to stop wealthy people again turning into a commodity)?
Well people who bought homes with massive debt will be effected but they received mortgages based on what they could afford so nothing really changes for them except they'll feel very hard done by as they continue to pay higher rates than everyone else.
Landlords with debt will be worst effected if rental prices come down, oh well, they played the game of housing as a commodity and lost. That's business, not like video rental stores were propped up when streaming became a major player.
There will be inflation and price pressures throughout the next decades and beyond. What we need to move away from is a housing market that squeezes every possible pound out of people just to have a roof over their head. It's a bubble, what people pay is largely the artificial price based on nothing but speculation above anything else and that needs to change.
A lot of talk about the energy crisis...
posted on 27/8/22
can’t* even afford
posted on 27/8/22
comment by Vladimikel Artutin - committing war crimes against football since 2019 (U18355)
posted 9 minutes ago
Well I’m not moaning. The system is there and I utilised it to my advantage. I know I can’t compete with big shots and that’s fine. But if someone like myself in a healthier financial position than the majority of first time buyers and even afford to buy a tiny one bedroom apartment overseeing a mini landfill then surely something isn’t right.
Also, putting rent caps on properties would stop people like me from ever investing again and taking properties off the market that more needing people could instead be living in.
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Appreciate this comment. At least you acknowledge you took advantage of a flawed system while noting it would be better for the majority of people if said system wasn't the way it is.
One solution might be to create a non market based sector for housing. Where people can still buy their home (owning a home is hugely important for many reasons, including mental health not just the obvious ones).
If masses of government funded housing was built or even bought and modernised then sold at genuinely affordable prices (sub 100k for a start) then capped at both rent and by prices only being able to increase in value based on increases to mode wages. You'd have a system that could counter balance the current one and eventually bring the general housing market inline perhaps without a major crash.
posted on 27/8/22
One solution might be to create a non market based sector for housing. Where people can still buy their home (owning a home is hugely important for many reasons, including mental health not just the obvious ones).
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Is it though?
About 80% of Germans rent and they're generally a happy bunch.
Difference there is that there are strict rent controls and good tenants rights.
posted on 27/8/22
comment by Boris 'Inky’ Gibson (U5901)
posted 1 minute ago
One solution might be to create a non market based sector for housing. Where people can still buy their home (owning a home is hugely important for many reasons, including mental health not just the obvious ones).
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Is it though?
About 80% of Germans rent and they're generally a happy bunch.
Difference there is that there are strict rent controls and good tenants rights.
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I honestly don't know true that is now. I lived in Austria (I know different country) and know lots of Germans who would much rather own homes.
Renting is not some beloved system, it's just one they've become accustomed to and it's fortunately not yet as exploitative as the UK market. One amazing thing about Germany that I'd forgotten, hopefully it's still true is you can get a rail card for 7euro per month that allows unlimited travel. Made me laugh after visiting the UK recently and paying more than that to travel a 15 minute journey
posted on 27/8/22
The advantages the Germans have is huge job security, the Gig Economy is practically non-existent.
Rents are capped on a zoning system and you pay by the square metre with heating usually included.
Flats/Appartments are usually rental, houses private ownership.
Singles, couples with no or 1 kid prefer renting, larger families go for houses which are usually out in the 'burbs.
posted on 27/8/22
comment by Boris 'Inky’ Gibson (U5901)
posted 3 minutes ago
The advantages the Germans have is huge job security, the Gig Economy is practically non-existent.
Rents are capped on a zoning system and you pay by the square metre with heating usually included.
Flats/Appartments are usually rental, houses private ownership.
Singles, couples with no or 1 kid prefer renting, larger families go for houses which are usually out in the 'burbs.
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Basically people rent apartments in cities but when they want to settle down they look to buy.
You also have rental schemes where you buy from the government over the long term, at least in Austria that's still the case.
You have to ask though, if you intend to live somewhere long term what is the possible benefit of paying off someone else's mortgage when you could instead be paying off your own and ending up with an asset after a certain period of time?
posted on 27/8/22
Comment Deleted by Site Moderator
posted on 27/8/22
comment by United we win (U19958)
posted 44 seconds ago
Buying a house is not everything. If you are doing it on a massive mortgage then it’s pointless. For me I’d only ever buy a house if I could outright with cash. No debts or banks etc. forget that.
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posted on 27/8/22
comment by Vladimikel Artutin - committing war crimes against football since 2019 (U18355)
posted 1 hour, 5 minutes ago
Well I’m not moaning. The system is there and I utilised it to my advantage. I know I can’t compete with big shots and that’s fine. But if someone like myself in a healthier financial position than the majority of first time buyers and even afford to buy a tiny one bedroom apartment overseeing a mini landfill then surely something isn’t right.
Also, putting rent caps on properties would stop people like me from ever investing again and taking properties off the market that more needing people could instead be living in.
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Yep and you sound like you have done well for yourself and fairplay 👍
I don’t begrudge you it at all
The term big shot though is relative isn’t it
I don’t own a property so in comparison you are a big shot to me
posted on 27/8/22
comment by United we win (U19958)
posted 2 hours, 28 minutes ago
Buying a house is not everything. If you are doing it on a massive mortgage then it’s pointless. For me I’d only ever buy a house if I could outright with cash. No debts or banks etc. forget that.
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At the rate Fiat currency is devaluing, taking a mortgage out makes more sense than ever now. Just get a mortgage for as long as possible. All my mortgages are 33 years long, with fixed interest rates of 3.65% for 20 years. The money I’m paying back sounds crazy now but in 20-30 years it won’t feel like much at all seeing how quickly money is devaluing