RedAsABeetroot
Well-known member
I'd argue that house prices falling significantly would produce a better long term effect.
Inflation down to 4.6%
- Thread starter MolteniArcore
- Start date
r00fie1
Well-known member
Redwurzel
Well-known member
We currently have deflation in the housing to purchase market as prices are lower than last year.
Its interesting to me that when people see a headline that says house prices have risen 15% they say yipee, but if they see a headline that says official inflation is 10% its all doom and gloom - both are inflation figures. The ideal for me is for house prices to go up with inflation, no more, no less.
I disagree with subsidies given to house buyers as to me its just inflated house prices and in the long run made it harder for first time buyers and directed money in the wrong direction i.e. better to use the cash to raise tax threshold especially the basic one which is too low at £12,570 to increase take home pay. Subsidies include heavily discounted prices on council properties for older purchases, Help to Buy and Lifetime ISAs, First time buyer government discounts, relatively high thresholds for any stamp duty to be paid. (1989 it was £30k, today it is £250k outside London and £450k in London). £30k from 1989 is about £90k today. The single persons personal allowance has risen for £2,675 to £12,570 about 3.7 times and stamp duty by 7.3 times or 14 times for London. If the personal allowance had risen 7.3 times it would £19,528 today.
Its interesting to me that when people see a headline that says house prices have risen 15% they say yipee, but if they see a headline that says official inflation is 10% its all doom and gloom - both are inflation figures. The ideal for me is for house prices to go up with inflation, no more, no less.
I disagree with subsidies given to house buyers as to me its just inflated house prices and in the long run made it harder for first time buyers and directed money in the wrong direction i.e. better to use the cash to raise tax threshold especially the basic one which is too low at £12,570 to increase take home pay. Subsidies include heavily discounted prices on council properties for older purchases, Help to Buy and Lifetime ISAs, First time buyer government discounts, relatively high thresholds for any stamp duty to be paid. (1989 it was £30k, today it is £250k outside London and £450k in London). £30k from 1989 is about £90k today. The single persons personal allowance has risen for £2,675 to £12,570 about 3.7 times and stamp duty by 7.3 times or 14 times for London. If the personal allowance had risen 7.3 times it would £19,528 today.