Spotted by Lola at Money Age:
The ‘Bank of Mum and Dad’ (BoMaD) will be a driving force behind the recovery of the UK’s housing market in the wake of the COVID-19 crisis, according to new research from Legal & General and CEBR.
L&G revealed that almost one in four housing transactions (23%) will be backed by the BoMaD in 2020, with 24% of borrowers now more reliant on financial support from family and friends.
From The Telegraph, via MSN:
Average house prices rose by a little over £3,000 in August as the property market reversed losses made during the pandemic and hit a new all-time high.
The cost of a home in the UK hit £224,123 in August, a 2pc increase from the month before, according to the Nationwide building society. It also marks a rise of 3.7pc compared to August last year.
Wednesday, 2 September 2020
Set the controls for the heart of the next crash!
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10 comments:
Amazing how hard it is to explain to people that rising prices are only to your advantage if you are downsizing or have more than one home. Even then, if you have kids or anyone else you need to help onto the gottverdammte 'ladder' it's one step forward, two steps back unless you have more homes than people you need to help out
M, it is indeed:
"But now our house has gone up in value, we can do a remortgage and give that money to our kids to buy their own homes! Isn't it wonderful?"
"No, it's fucking horrible."
"The cost of a home in the UK hit £224,123 in August,"
Interesting that they say "cost", not "value".
Rishi Sunak is doing an excellent job as the Chancellor. Much better than his predecessor. Making everybody rich. Well, everybody that matter - homeowners. Well, at least most homeowners think he is making them rich (he is really not, as M said).
I had thought house prices is used as an indicator tracking the economy, but I was wrong - it is THE economy.
B, a subtle change of emphasis?
PW, "house prices is THE economy"
Yes, that's Home-Owner-Ist economics in a nutshell.
PW, that's where the juju comes in. Everyone thinks that house prices are under the control of the government, but by and large they are not. Unless we have a large war, they follow an eighteen year cycle, and unless we have a small war, the Tories that are in power when the prices drop get kicked out for the other set of Tories when they get caught by the downturn.
Will there be lots of deprevation of capital cases in future when someone dumps themselves on the taxpayer in old age but it turns out that they bunged their kids or others six figures?
B: "Everyone thinks that house prices are under the control of the government, but by and large they are not"
They are very much under the control of the government. They can keep prices and rents low with Georgism Lite or they can keep them high with Home-Owner-Ism. They can't do much about the 18-year cycle, but they can dampen the swings a lot (what doesn't go up can't come down).
M, probably.
M, I was talking about whether they rise or fall. People don't really want high house prices, in fact they dislike high house prices. What they want is rising house prices, the promise of being able to make money without actually doing anything.
B, more splendid Homey DoubleThink - we want low prices that are permanently increasing.
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