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The solution is simple: build more houses to increase supply. It needs to be said: there is a drastic shortage of decent housing in the UK. The cost of building

The solution is simple: build more houses to increase supply. It needs to be said: there is a drastic shortage of decent housing in the UK. The cost of building a new house is approaching less than half the final sale price (if not even less) simply due to pressure from scarcity. Why aren’t people building as many new houses as there’s clearly demand? Numerous factors: greenbelt laws, height restrictions, “Right to light”, NIMBYism, etc. I don’t believe I’ve seen either major political party advance a policy of making it easier to build new houses - or tall tower blocks (the nice kind, not the 1960s council flag blocks), I suspect because it would result in immediate uproar from the Daily Mail-reading types who can’t bear to see their house-values fall (I think Sunday Observer types would be a bit miffed too, if not about house prices then certainly the ecological impact: having lived in multiple countries in my life I noticed the “rural-rights” types that advocate preserving hedgerows and rambling access have a considerably larger influence in UK politics compared to other countries).

NiceWayToDoIT 6y ago
It is not so simple, let me give example, in UK during pandemic prices hyped by 30%. Reason is, rich own land and properties, but they own them on account of debt and cash flow. Some people have more than 100,000 properties in their portfolio, and they relying on cash flow. So, if anything disturbing happen let say pandemic kills lots of people (or they lose their jobs) and no one rents anymore, then next thing that will collapse are banks, as Banks cannot get their money back. Next thing is government collapsing. In order to maintain this structure, or protect it from collapsing, during each economic crises government pumps more money (subsidies, interest free money, free money) to the rich. What they do? They buy even more properties. So, basically on account of the blackmail-standoff-ransom-situation, they siphoning all the properties from the market. Regardless how many properties you make in UK they will buy them all, as they buying them with additional debt - and in that way protecting their renting business. ¯\_(ツ)_/¯
deleted 6y ago
[deleted]

NiceWayToDoIT 6y ago

It is not so simple, let me give example, in UK during pandemic prices hyped by 30%. Reason is, rich own land and properties, but they own them on account of debt and cash flow. Some people have more than 100,000 properties in their portfolio, and they relying on cash flow. So, if anything disturbing happen let say pandemic kills lots of people (or they lose their jobs) and no one rents anymore, then next thing that will collapse are banks, as Banks cannot get their money back. Next thing is government collapsing. In order to maintain this structure, or protect it from collapsing, during each economic crises government pumps more money (subsidies, interest free money, free money) to the rich. What they do? They buy even more properties. So, basically on account of the blackmail-standoff-ransom-situation, they siphoning all the properties from the market. Regardless how many properties you make in UK they will buy them all, as they buying them with additional debt - and in that way protecting their renting business. ¯\_(ツ)_/¯

deleted 6y ago

[deleted]