6 thoughts on “The hidden costs of the housing crisis”

  1. Posted 23/09/2018 at 10:25 | Permalink

    Very true people are finding it harder to move out and start families and it probably has a negative affect on the economy.

  2. Posted 23/09/2018 at 11:55 | Permalink

    I would also mention rising living costs outside of just rent and bills. For example if restaurants, shops, cinemas etc also by implication have over-priced property values, rental costs and business rates then it costs more even to live even if you own a house with a paid-off mortgage, such as a pensioner envied by generation Y since said places will pass on the cost to consumers.

    The only people to benefit from high house prices are people who own more than one house. Anyone who believes they have ‘made’ money from owning only one misses the fact that they will always need somewhere to live, and their next house has just gotten more expensive.

  3. Posted 23/09/2018 at 19:54 | Permalink

    At least your mum isn’t the one with the avocado bathroom suite.

  4. Posted 24/09/2018 at 11:34 | Permalink

    Madeline. You say in respect of housing costs paid “In practice, this equates to billions in lost consumer spending as people forego luxuries by necessity”. Accepting there will be some friction in the transactions, the money still goes back into economic activity in the form of wages paid to council employees (council tax), and cash paid to landlords (rent) and the mortgage holders who will in turn spend the money.

    A bit like energy – this capital is not destroyed it is just distributed in a different way – and some would argue on things that have much more benefit to the economy (jobs, local infrastructure) rather than often imported luxury consumer goods.

    Graham H

  5. Posted 26/09/2018 at 03:17 | Permalink

    You mention less disposable income: and some of this would likely be invested in ongoing learning. We therefore end up with a less skilled populace.

    I would also add that lower birth rates = reduced future tax base/increased pressure for immigration increase and more Brexit-like social tension.

  6. Posted 23/10/2018 at 12:55 | Permalink

    Imagine Madeline is a lovely privileged person wearing rose tinted specs.. A landlords’ ideal tenant …if only. I once- hesitatingly agreed to accept a tenant ‘with a small dog’. Never again he used it to intimidate me.( 26‘ balcony decking replacement necessary ++!) TDS is what it says – protection of Tenant ! I recall in the late 50’s my German friend commented “.in Germany very few people 12% (?) own their own home -Most people rent”. I presume greater respect for legislation there which ensures Tenants accept the necessity to comply & respect . Landlords provide homes & take Agents advice ‘it’s easier to let corporate image’ & charge *fair & reasonable* rents . That -for the landlord is based on calculations of his own costs :-Agents;Solicitors ; Accountants fees. Health & Safety certs ; Insurance(s). maintenance + repair + replace. New legislation now requires Landlords to check immigration status. These charges determine a viable Rental .
    What is never mentioned are the ADVANTAGES of renting -FLEXIBILITY affords young aspiring folk to accept the right job on offer . No ties other than a Contract of Notice, usually 2 months.
    If looking to buy in a certain area why not rent there ! You get the bigger picture; to select the best location you can afford *before committing *.

    comes first …Young by taking into account ultimate penalties of further taxation IHT: Capital Gains against the value of their asset .
    are better observed enforces

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