House Price Fiasco

House prices in the UK have tripled in the last ten years. Actually, where I live they’ve tripled in the last seven years. How on Earth has this been allowed to happen? The main people to benefit from this rise are the ones who could have put a stop to it. Estate agents, mortgage lenders and, most of all, the Government. Gordon Brown goes on about how fantastic our economy has been over recent years when, in fact, he’s completely wrecked the standard of society in Britain for the foreseeable future.

How mad is it when even a well paid job cannot earn you enough money to buy any property in some areas, let alone the three bed semi which you could have bought a few years ago. Even the ones who can afford a mortgage are borrowing three times as much as they used to, only to have most of it taken away in inheritance tax once they eventually finish paying for it!

Well done Gordon Brown. Hard luck Great Britain.

3 thoughts on “House Price Fiasco”

  1. Yeah, it is a huge problem for young people like us. They let our parent’s generation buy houses, and now they have effectively removed it again.

    The economic theory is what goes up must come down but the political theory is that if house prices do not keep rising then Labour lose power, so the government has spent 10 years artificially supporting house prices.

    In the rest of Northern Europe, houses cost far less and are higher quality. One major difference is mainly due to the fact that most places have had a modern independence movement that involved land reform. So when they threw out the foreign elites, the local governments were left in control of all the land. So the government can build new houses, or sell little plots of lands at a low price and you stick your own house on it.

    In Britain most of the land is still owned by 20 families. Also if you have more than one house you get discounts on tax, while in other countries they make you pay through the nose to be able to have the second one. The ‘buy to let’ investors can move faster and get higher mortgages than first time buyers.

    In other countries the mortgages are more regulated and that keeps prices down. Here, when there are a set number of houses with no significant way to build new houses then it becomes a zero-sum game. So if you allow greater lengths of mortgages then it just pushes the price of the same houses up higher.

    British people like old broken houses and will not move out of them. In other countries, they will bash down a house and give the occupant a modern new one double the size and they will happy about it. This allows you to make a really good infrastructure and modern blocks with lots of greenery and lots of room for everyone.

    Lastly in many European countries, they also tend to build vast numbers of apartment buildings that have 4-6 floors. Here you get either terraced houses or 25 floor monstrosities.

    I’m not sure about the inheritance tax bit, many people will free up the equity in their houses rather than pass it on to their children, another sign of the times. I think more inheritance tax rather than less, that would get much of the ‘buy to let’ property back on the market.

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