London: the city that ate itself

Re:London: the city that ate itself by gammarator on Tuesday June 30, 2015 @12:25AM (#9802949)

it's happening in almost every major city

Agreed. Here, for example, is an excellent article about these effects in Portland, Oregon: http://www.invw.org/cash

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Re:London: the city that ate itself by _yosefk on Tuesday June 30, 2015 @02:05AM (#9803235)

Widespread building restrictions limiting supply and huge subsidies for those holding financial assets ("QE") together with low yields caused by near-zero interest rates fueling demand will do that. (How it will end I can't imagine. I'm amazed at how calmly people are taking it, and at the kind of countermeasures they propose (usually rent control or other foot shots.))

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Re:London: the city that ate itself by wmil on Tuesday June 30, 2015 @10:24AM (#9805408)

What gets me is that the problem is very easy to solve. Bring in property tax brackets, increase the top rate.

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Re:London: the city that ate itself by tormeh on Tuesday June 30, 2015 @07:38AM (#9804443)

QE is just a handout for private individuals who sell government bonds on the second-hand market; it doesn't really have anything to do with real estate.

But yeah, near-zero interest rates right now and borrowing costs being tax-deductible contribute to housing bubbles.

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Re:London: the city that ate itself by tonyedgecombe on Tuesday June 30, 2015 @07:54AM (#9804528)

Yes, I'm not sure why we let landlords expense mortgage interest but not home owners (in the UK) but it would be a good idea to get rid of this loophole.

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