Containg the Property Boom

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Nope, it started with Nigel fscking Lawson's announcement that joint MIRAS would be abolished for new applicants ... in six months' time.

Result: a monstrous bubble in the housing market whilst non-married couples, young professionals buying in common to beat rental prices, and any other group purchasers raided the market for anything they could find that they could get bought within that period. And despair for anyone else instantly priced out of the market whilst house prices almost doubled in a few months.

A few years later, it all collapsed again, and negative equity became a force of misery for hundreds of thousands, with follow-on effects on the domestic economy as consumers suddenly lost spending power.

Jon

I was reading a report yesterday, think it was the Council of Mortgage Lenders, that said historically the amount of BTL mortgages given out was about 28,000 per year but last year some 400,000 BLT mortgages were givern out.

I am suggesting to my BTL clients to review their portfolios to see if a pile of cash might not be a better option at the moment.

The current asset value increases mean that some of the returns have fallen below 4% p.a. even without void periods The downward pressure on rents won't help either.

No that was in August 1988. A semi in Essex was worth(at the market peak)some £80,000. One could now be sold for around £200,000 or more. The realistic value would be around £160,000.

Malcolm

This occurred in the 03/88 budget and double relief ended in 08/88.

Before this Lawson had carried out a currency fix with the Deutschmark at around DEM 3 to the pound. This occurred from around 03/87 to 03/88 and resulted in base (and exchange) rates being lower than they would otherwise have been.

So house price inflation was well and truly primed.

More info. here -

Subsequently some f****it called Major carried out another currency fix with the EMU between 10/90 and 9/92 resulting in base (and exchange) rates higher than they would otherwise have been.

So house price deflation was well and truly primed.

Daytona

thats right blame goold old John Major. the only decent PM we have had in the past 30 years.

Why do you think he's not to blame for this ?