The UK Boom and Bust cycle is a property cycle, it has life cycle of 10-14 years. The UK is going through another property boom, which will make money for those who buy right or sell before the crash. For the majority of people it will bring misery, unaffordable property prices and high rents.
Successive governments have used the high prices of property as a feel good factor to get themselves elected. In the last election which was won by the Conservatives, they did two things (1) they propped up the property market by subsidizing first time buyers with deposit insurance, which actually raised house prices as the government covered large portion of the deposit. The second it ensured austerity cuts did not apply to pensioners as they are most likely to vote, pensioners benefits have remained intact and inflation proof
So you have the situation where the government used tax payers money (that’s your money) to get themselves elected and you the vote paying public also known as TAX MUGS voted for this, with or without your knowledge or consent.
In the UK the main way for people to get rich is not by making something of value or a service of value to society, but through land and property speculation, so peoples main asset their house is their means of making money, and we expect our house prices to go upwards regardless of the economic consequences to the rest of the economy.

                                               People in the UK are obcessed with property,there are so many property progams on the televison,it is pornagraphic in content,it seems people cannot get enough of property programs,How you buy a property spend a little money on making it look nice,and then you sell it at a  higher price.These programs encourage people to go in to the property market, as easy money to be made.To enter the property you need little expertise or knowledge,any one can become a property tycoon.
It is seen as act of faith that property prices can only go up, remember the property owning democracy In the UK is the middle Class, and we know “God intended” the middle classes to be rich. As the battle ground of British politics is satisfying middle class aspirations, they are a “force to be reckoned” with, and property for them sacrosanct
Because successive governments treat land and property like any other commodity the assumption is in the free market supply and demand will meet equilibrium, as I explained in my introductory article, why land and property is not like any other asset. Supply and demand cannot reach equilibrium if the planning system regulates, restricts what can be built, where it can be built, what type buildings are allowed and a host of other local and environmental factors need to be taken into consideration, and this only right otherwise you will have urban sprawl.

There are many factors that determine demand for property, migration, more people living on their own, whether your property market is open to foreign buyers, the number of houses built to meet demand and the shortfall, resistence from existing property owners etc.
There is no single factor in housing that can be blamed, this is a system problem which needs to be tackled at source, and ultimately governments need to decide what property is for and what functions of property are permissible i.e. Use value or Exchange value .
I would like to propose some questions for my readers:-
• Should domestic property be only used for people to live in
• Should people be allowed to make money from the increase in their property value which is not related to any meaningful economic activity beneficial to society?
• Should we tax house inflation domestic or commercial
• Should we only allow people to sell their property at which it would cost to rebuild, as that is what its real value is? When you insure property it is the rebuild cost you insure it for, not what you have paid for it
• If we only allow property to be sold for its rebuild cost, the assumption is property will be built for their use value not exchange value, which would mean better properties, lower cost, based on need not speculation, fewer empty properties
• Should we stop foreign buyers unless they live at least 8 months of the year in the property, otherwise we tax them very highly for non use
• Should rents be based, not on fictitious market rents but on ability to pay which can be linked to average wages in an area so it generally assumed you should not pay more than 30% of income towards rent or property loan, which in the UK would be a maximum £650 per month (based on the average wage £26,000)
• By fixing rents as a percentage of the average wage, which would vary by area, it will automatically get rid of house inflation and property prices will be stable.
• By taxing property inflation people can still pay more for any property they like, it would mean they would have to decide the use value, will their asset generate sufficient income to justify the high price ,as they will not be able to make money by selling at a higher price. The assumption is property will be bought for longer time period, profit will come from its use value not exchange value

• The present situation is not working we have the highest house prices in the world with the exception of Monaco. In Japan and Germany house prices have come down
• Should we restrict how many properties landlords can buy, ensure that any new or old properties are available to first time buyers, to stop property flipping after a few years, we will tax them heavily if they sell within five years
• The present situation of property speculation means you have over 500,000 empty properties, land hoarding. The average house price in London will be £1 million by 2020.The average wage in London at present is £30,000+ .People in London are having to borrow 12X their income, this is ridiculous, it is not sustainable
• The present situation is a shambles, as most of the lending in this country is against property which is non productive asset, generates very few jobs. I know someone who owns 70 properties, they employ one handyman
• Some children, who are adults, are moving back with their parents, as they cannot afford to buy or rent. This may be good for family values but restricts social mobility, some employers to attract workers have to subsidize their accommodation.

My list is not exhaustive it is for debate, my personal view is that people become emotionally attached to land and property as a consequence it affects their rational judgement.
I did an experiment once explained all of the above, that an increase in property value that is not the result of any direct input of the owner is pure inflation and must be taxed away. The victim of my experiment did not buy my argument, despite being told everybody would be subject to the same law, everybody would be taxed on property inflation. To me the UK’s addiction to property can be best as PROPERTY PORN, in the long run not healthy for our concept of The Good Society.
WE HAVE A BIG BIG BIG PROBLEM....in housing, we need help our governments will not do anything, and the property owing population have mental health issues!!!!!.
Kind Regards Tiger Moto

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