Priced out of the market…

FIRST time house buyers are feeling the pinch more than ever, reports the BBC, with property prices in Belfast soaring, particularly in the terraces favoured by younger potential homeowners.

  • The Landlord

    They should live with their parents or extended family.

    Post WWII there was growth and affordable housing for young couples but this is not the norm and should not have been taken for granted.

    Houses are expensive and should be not be a purchase for a young couple.

  • willis

    Watch out!

    Gordon Brown is all seeing!

  • Comrade Stalin

    There are a couple of straightforward solutions, the first being to tax properties which are allowed to sit empty, and the second to stop building all these bloody apartments which nobody wants.

  • willis

    Sadly dear Comrade if nobody wanted them they would sit unsold.

    In a lot of cases apartments are being built on brown field sites, eg Laganside, which has to be a good thing. Anyone think not?

    As the article says, the big problem is that property is a good investment at a time when shares and pensions are distinctly dodgy.

    If you could tip the scales more towards the person who wants to live in a house instead of invest in it that might be good.

  • aquifer

    Rates are not charged on houses that are empty ‘of effects’. The house’s value still depends on the water and other services that are provided by the state, so in effect speculators are being subsidised by ratepayers.

    Not that they need it.

    With a 20% deposit, or less, they can borrow the rest, so that if the price of the property goes up by 20%, they can double their money.

    It may get harder to find tenants to rent properties, so that this ceases to support the market. However a new source of money may be the residential property of deceased relatives, providing positive feedback to purchace prices.

    The young age profile of the population here is driving demand, as is divorce. Prices would have been a lot higher sooner if so many houses had not been built in previous years. To constrain prices, we need some brave planners to plan new housing areas, instead of scattering bungalows and septic tanks over the countryside.

  • Crataegus

    Need to build more units of accommodation, it is as simple as that. But of course that is going to be difficult as there isn’t the land available to build on, and while we are at it make sure there is sewerage treatment plants to service the additional houses. Of course thanks to Rooker and planning by ministerial whim the situation is worse. All you house buyers can thank him for adding a few thousand on to your house price.

    Plan new villages and hamlets in rural areas, sell off the corners of government owned land that lie all over the place and increase development densities in inner Belfast. Less of the single storey bungalows in places like Shankill. If there is no demand for social housing don’t build and sell the area off. Or perhaps some serious rezoning linear city Belfast to Carrick and Bangor and down to Dungannon?

    On taxing empty property a word of caution. This already happens with the rates on commercial property so what do the people who own it do? Demolish!!! Also what happens if you can’t sell or let the building??

    A bigger problem is the buy to let, and this is definitely shoving up prices, but as the houses increase in price what is driving this market is the increase in capital as the rents in themselves don’t give a good return. It is therefore a dangerous market

  • Comrade Stalin

    As the article says, the big problem is that property is a good investment at a time when shares and pensions are distinctly dodgy.

    What are you talking about ? The FTSE100 index in the UK is close to an all-time high; the peak was hit a couple of weeks ago.

    A house is a pile of bricks that sits there and does nothing. Money invested in shares is being put to work, invested in skills and technology, and ultimately to generate more money. I’m worried that the people who think their pile of bricks is a perpetually safe financial entity are going to be in for a bad shock.