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Housing market

I use Tenancy Deposit Scheme for the deposits I hold and pay a small premium every time I issue a new AST. I didn't realise there was a free way.

If you’re a landlord who’s taken a security deposit for a new tenancy, you must protect it with a government-approved deposit protection scheme like ours within 30 days of receiving it.

We’re authorised to protect deposits for tenancies in England and Wales and offer a choice of two types of protection - Custodial protection, a free service where we hold the deposit for the duration of the tenancy, and Insured protection, where you hold the deposit and pay us a fee to protect it.

As the biggest provider of deposit protection in the UK, we’ve been helping landlords for over 10 years, so you can rely on us for all your deposit protection needs.

https://www.depositprotection.com/im-a-landlord/
 
Persist, Matt, you'll get there in the end. The feature of renting in the current market is that rents will double every 15 years of so, your mortgage won't. Therefore a typical rent of say £700 a month will be nearer £1500 by 2037. Unless interest rates double plus a bit your mortgage to the same amount won't. You can then pay it off sooner if you want or need to. Likewise most pension plans allow you to take a chunk at the start for precisely this purpose.

My rent is the same as it was 6 years ago, thankfully.

I barely have a pension worth mentioning either so there's no lump sum coming my way. In fact the more I think about it I might as well spend everything I earn now and then just walk off a pier when I retire.
 
I didn't realise there was a free way.

Yes, the D.P.S. is quick, easy (even for me !!!!) and has a logical resolution scenario and they're approachable on the phone. I've had awkward and time-consuming situations with agents' schemes (T.D.S. ?) and the fact that they seem to have varied fees indicates that it's a money-making scheme for them (on top of their charges !). The gov't scheme is totally free but of course the interest pays for their admin.
 
My rent is the same as it was 6 years ago, thankfully.

I barely have a pension worth mentioning either so there's no lump sum coming my way. In fact the more I think about it I might as well spend everything I earn now and then just walk off a pier when I retire.
Well, I'd suggest that if you don't do something about a pension then walking off a list may be the only option, because in x years time and a continuation of our government the level of social provision will be on a par with Victorian England.
 
Well, I'd suggest that if you don't do something about a pension then walking off a list may be the only option, because in x years time and a continuation of our government the level of social provision will be on a par with Victorian England.

I mean I have one, but it isn't going to be much good due to my sporadic employment history. Certainly nothing on par with previous generations by a long shot, if I get a couple of months fancy holiday out of it I'll be happy.

So just the two things I need then, a shit load of money to pile into a pension and a shit load of money to buy a house.
 
True, as always. Happened in the early 90s, and again in 2008-10. Interestingly, the 88-90 onwards crash preceded 10 years of very cheap housing. In 1995 I bought my first house and went from paying £350 pm for a rente flat to £220 a mnth (ish) for a bigger house. That was a very common story amongst my friends and contemporaries. It didn't happen in 2008, the rise continued after a brief dip.

For sure, but that's all houses. The poor, as ever, will be hit worst because it doesn't cost twice as much to heat 100sqm as it does 50sqm, mostly because you don't heat the whole place all the time.

That is interesting, however you're forgetting that that will only last until the first time you walk into the building and smell someone else's cooking and your oh-so-snooty "friend" says "Oh this is nice. Yes, I remember when we *had to* live in a flat. Still, it gets you on the ladder, doesn't it?"


They will. The UK has a funny relationship with housing. It has nothing to do with rational thinking and everything to do with using it as a barometer for the economy. The British public knows *nothing* about economics but it does think it knows about housing. "Well, it's bricks and mortar, innit? You know where you are with housing. Stanstereason dunnit?" The same public will put up with any degree of financial hardship provided their precious semi goes up more every year than inflation. Because that way they've "made money", haven't they? Well, if they hadn't paid interest on a loan and if everything else hadn't gone up, yes. But in fact not. But that's not the perception. The press reinforce this day in, day out.

So you are absolutely right. It's long overdue that we start living in smaller places. But we won't. Because if you live in a smaller place you are poor. If you live in a newer place, you are poor. If you want to be successful in the UK you need to have a new car and an old house. Erm, what? Well, old houses have character. So old cars don't? Yes but old cars are expensive on fuel. Right, and old houses...aren't? And old cars break down and need fixing. Riiiight, a bit like old houses then?

It makes no bloody sense. House builders advertise "starter homes" with 3 bedrooms "from £250,000". Starter, with 3 beds? Why? If you live on your own, or as a couple, why on earth would you need 3 beds? See above. If you don't have 3 beds, you're poor. Who wants to be poor? It will be a long, long time, and take a LOT of cultural change, before people in the UK will choose to live in a 40 sqm 1 bed flat through choice. I've said here before, there's no (effective) taxation on housing, there's no significant penalty to owning a bigger place, other than actually buying the joint. After that, it's gravy. I know, I moved from a 2 bed rented semi to a 4 bed family house. Did I need to buy anything so big? No. However given that I had the money, I'd be a mug not to.

Well, this isn’t going to help the housing market:

https://www.theguardian.com/money/2...ing-rises-at-fastest-annual-rate-for-17-years

Anecdotally, I experienced several examples of inflation today. Filled the car up, 14p a litre more than last time. Flea treatment and wormer for the dog, circa 20% increase. Some food shop items I buy circa 15% increase. This stuff can’t carry on without an impact on big ticket items such as houses (and cars), simple as that.
 
I mean I have one, but it isn't going to be much good due to my sporadic employment history. Certainly nothing on par with previous generations by a long shot, if I get a couple of months fancy holiday out of it I'll be happy.

So just the two things I need then, a shit load of money to pile into a pension and a shit load of money to buy a house.
Sure, but one of these you can fix now without the need for a bloody big deposit. Freestanding AVC s, a few quid a month. Tax free. You choose.
 
Keep yer chin up @matt j something will turn up! We just got the keys last week of our 'new' house (built 1760) the sale was agreed on the 12th December, just a 6 month wait:eek: , that was after we had three 'sale agreed' fall through. As I always say 'what's for you will not go past you' ;)
 
Well, this isn’t going to help the housing market:

https://www.theguardian.com/money/2...ing-rises-at-fastest-annual-rate-for-17-years

Anecdotally, I experienced several examples of inflation today. Filled the car up, 14p a litre more than last time. Flea treatment and wormer for the dog, circa 20% increase. Some food shop items I buy circa 15% increase. This stuff can’t carry on without an impact on big ticket items such as houses (and cars), simple as that.

The latest figures I can find are for Feb 22. They show that although credit card transactions were growing, the value of interest bearing balances was declining. People were paying off the increased debt. Of course things may have changed, but I haven’t been able to find the data as I say.

https://www.ukfinance.org.uk/system/files/2022-05/Card Spending Update - February 2022.pdf
 
The latest figures I can find are for Feb 22. They show that although credit card transactions were growing, the value of interest bearing balances was declining. People were paying off the increased debt. Of course things may have changed, but I haven’t been able to find the data as I say.

https://www.ukfinance.org.uk/system/files/2022-05/Card Spending Update - February 2022.pdf

What’s also interesting is that those who can are saving more. Not good news for consumer spending and confidence but a good move for them!

https://www.yourmoney.com/saving-banking/divided-nation-debt-up-but-savings-also-rise/
 
What’s also interesting is that those who can are saving more. Not good news for consumer spending and confidence but a good move for them!

https://www.yourmoney.com/saving-banking/divided-nation-debt-up-but-savings-also-rise/
Of course they are. It's a standard principle of economics that it you give £100 to the poor they take it to the supermarket, clothes shop, pub, they put it straight back into the economy and it goes round the money cycle a few more times. Give a wealthy or even middle class person the same and it goes in the bank and sits there. It's a waste of time to the economy. Wealthy people already have money, giving them £100 doesn't change their behaviour. From an economist's point of view money's wasted on the rich.
 
The latest figures I can find are for Feb 22. They show that although credit card transactions were growing, the value of interest bearing balances was declining. People were paying off the increased debt. Of course things may have changed, but I haven’t been able to find the data as I say.
February being before Ukraine and fuel prices exploding
A tank of fuel in the UK can cost what about what one of my security guards earned in a month until a hike in minimum wage a month ago
 
Of course they are. It's a standard principle of economics that it you give £100 to the poor they take it to the supermarket, clothes shop, pub, they put it straight back into the economy and it goes round the money cycle a few more times. Give a wealthy or even middle class person the same and it goes in the bank and sits there. It's a waste of time to the economy. Wealthy people already have money, giving them £100 doesn't change their behaviour. From an economist's point of view money's wasted on the rich.

Have you considered that people (rich or otherwise) save money to ensure they have some financial resilience when times are difficult?
 
Have you considered that people (rich or otherwise) save money to ensure they have some financial resilience when times are difficult?
Yes. I have. Have you considered that some people are so preoccupied with wasting money on food, housing and getting to work that they don't have anything left to save?
 
Yes. I have. Have you considered that some people are so preoccupied with wasting money on food, housing and getting to work that they don't have anything left to save?

Of course, which is why for those without savings / financial resilience, the right help needs targeting at the right people, rather than politically motivated helicopter money to people who don’t really need it, which contributes to pushing up prices for those who can least afford it.
 
Of course, which is why for those without savings / financial resilience, the right help needs targeting at the right people, rather than politically motivated helicopter money to people who don’t really need it, which contributes to pushing up prices for those who can least afford it.
Of course. I think we all know this. Now who's going to tell Boris and Rishi? Or are they still feeling a bit rough after last night's session on the Tennents and Pinot Grigio?
 
Of course. I think we all know this. Now who's going to tell Boris and Rishi? Or are they still feeling a bit rough after last night's session on the Tennents and Pinot Grigio?

I suspect Rishi’s wine cellar is somewhat more sophisticated! Not sure about Boris, he always looks like he’s had a bad night on the Super T.
 
Latest residential research update from Savills just landed. Summary as follows:


Up and up, but for how long?
With Nationwide reporting that annual house price growth remains as high as 11.2%, we’ve revised our mainstream house price forecasts. In summary:

  • We expect the supply and demand imbalance to cause house price growth of 7.5% over the course of 2022 – even accounting for a marked slowdown in price growth over the remainder of the year.
  • In 2023, we anticipate that the combination of higher interest rates and the cost of living squeeze will cause house prices to dip by 1%.
  • From there, we expect modest single digit growth over the remaining three years of our forecast period. While the proposed relaxation of mortgage regulation would provide some upside to these figures, it is still sensitive to the path of interest rates.
 


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