The fall of the Tory party

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Stonehedge in reply to @andyfallsoff
This doesn’t make sense though. If property prices all go up, it doesn’t make it easier to buy a new property because the next step up is more expensive as well. It only benefits (1) mortgage availability, as you have more equity - that’s helpful but doesn’t help with prices going up; or (2) people who are trading down so the gains cover the new place.

I suppose what I'm getting at is that we should stop treating property as investments whatever the reason for doign so..whether that be needing the property market to go up 30% so that you can afford to sell your flat and buy a house to have a family in or because you're a property speculator. It is not sustainable.

I would like to see people investigating:
- Banning ownership of UK property by overseas companies. Requiring a UK company to be set up for purposes of international ownership and payment of taxes.
- Strict rent controls.
- Secure long fixed term tenancy agreements.
- No S20 evictions.
- Court regulated process for increasing rents (as seen in other EU nations)
- Banning mortgages for second homes and new BTL mortgages.
- Charging CGT on primary residences.
Honestly I don't care that it doesn't get easier to buy property if prices have gone up. Houses should be homes, not investments. We need a housing market that people gives people the home they need for their family and security once they are in it.

Full disclosure: I used to be a landlord. I hated it.

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NickCJ in reply to @Stonehedge

We need a housing market that people gives people the home they need for their family and security once they are in it.

On the flip side, we need people to be able to move flexibly both intra-nationally and internationally depending on their job / education / family circumstances. That necessitates the ability to buy and sell a house with minimal friction (tax or otherwise) and a pool of rental stock (whether publicly or privately owned) that churns quickly enough to absorb demand.

Then, to the extent that a pool of privately-owned rental stock is desirable, increasing the blended cost of capital for landlords (by banning mortgages) is going to make rents even less affordable than they are today, ceteris paribus. I think the second home thing can mostly be dealt with through a holiday let crackdown.

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Stonehedge in reply to @NickCJ

Then, to the extent that a pool of privately-owned rental stock is desirable, increasing the blended cost of capital for landlords (by banning mortgages) is going to make rents even less affordable than they are today, ceteris paribus.

I disagree, the effect of banning mortgages for 2nd homes would be to significantly reduce the value of property because fewer people would be able to afford to buy a 500k house with a 50k deposit. Prices would adjust for that. More tenants would be able to buy a home. There would be fewer tenants paying landlord's mortgages.

I do largely agree with your point though. It requires huge investment in housing to make anything like this work.

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