Re:London Rents Eating Up 57% of Twentysomethings’ Income
by imtringued on Wednesday June 15, 2016 @05:53AM
(#11908191)
If housing prices didn't rise then nobody would speculate. The foreign investments are just the symptom amplifying the original problem.
Re:London Rents Eating Up 57% of Twentysomethings’ Income
by TheOtherHobbes on Wednesday June 15, 2016 @06:29AM
(#11908339)
House prices rises are engineered. The latest bubble was created by offering huge tax breaks to landlords who would take on a mortgage on buy-to-let property.
This is easy money for the banks. They get most of the rental income in mortgage payments on a secured loan, while using the landlords as agents.
Foreign investors go where the bubbles are, and leave when the bubbles pop - which the London bubble is doing now.
Anyone who got in after 2008 made out like a bandit. But the party is over now, and we could be moving into hangover territory.
Re:London Rents Eating Up 57% of Twentysomethings’ Income
by wavefunction on Wednesday June 15, 2016 @06:31AM
(#11908349)
A house's primary purpose is to provide housing. Speculation by capital should be the lowest priority of anyone's concern while formulating a housing strategy.
There is even a huge amount of vacant property in London, most of it owned by large landlords who don't need the incremental income and associated hassle, as just sitting on vacant properties waiting for the market to rise is enough.
No, the problem is not migrants placing demand on housing stock - it is those that are telling you these fabrications, and the completely broken housing market that they built while you and I were still suckling our mothers' teats.