Todays budget

[Jaymo]

47 minutes ago, 12gauge82 said:

Has it? Although interest rates have been much higher, the average wage vs house value has never been so steep, a 7 or 8% mortgage today would probably be more unaffordable for a first time buyer than a 17% one several decades ago. 

We’re talking interest rates, not the ratio of house prices versus interest rates weighted to reflect changes in wages over the past billion years. 
 

The graph shows rates only, no other factors.

[12gauge82]

12 minutes ago, Jaymo said:

We’re talking interest rates, not the ratio of house prices versus interest rates weighted to reflect changes in wages over the past billion years. 
 

The graph shows rates only, no other factors.

I replied to Mice regarding the young today trying to make there way in life. Property affordablity is a huge part of that and is obviously seriously affected by interest rates. 

[Wilts#Dave]

4 hours ago, Jaymo said:

We’re talking interest rates, not the ratio of house prices versus interest rates weighted to reflect changes in wages over the past billion years. 
 

The graph shows rates only, no other factors.

So that graph in relation to buying a house then/now is pretty irrelevant. 
House prices are the issue now more so than interest rates as the ratio between the prices and wages has gone crazy……they’re not seen as just ‘somewhere to live’ but the one place to put your money that’s a guaranteed pension pot so to speak. 
It’s always been and always will be a struggle to get on the ladder, but it does get easier the further down the line you get.
Those who own their home / are now comfortable with their mortgage will never want house prices to drop which keeps prices climbing seemingly indefinitely. 
Everyone has got comfortable with such easy and cheap borrowing of money this is going to hit hard……huge car loans, flash holidays / gadgets / tech and all the big home extensions on the mortgage will now suddenly get a LOT more expensive! 

Edited October 1, 2022 by Wilts#Dave

[JohnfromUK]

In past days when the interest rate was higher, mortgages to buy your house had tax relief on the interest incurred.  This was deducted at source and called MIRAS, (Mortgage Interest Relief At Source) and introduced in 1983 (under Thatcher).  I believe prior to MIRAS, it had been possible, but rather more complex to reclain tax relief on mortgage interest.  It in effect made the interest rate (for those paying tax) on buying a house straightforward and considerably cheaper than other interest rates (such as car loans etc.).  This was intended to help and encourage people to get on the property ladder.  It was capped, so those buying very big or expensive properties benefited less.

However Gordon Brown saw it as a subsidy to the property owning 'middle class', or a 'middle class perk' and so abolished the tax relief in 2000 during Blairs period.

[armsid]

I agree with John MIRAS was the way to go but as he pointed out Brown did not like it and abolished it how many more of his policies have led to monetary problems in this country pensions come to mind

[TIGHTCHOKE]

8 hours ago, armsid said:

I agree with John MIRAS was the way to go but as he pointed out Brown did not like it and abolished it how many more of his policies have led to monetary problems in this country pensions come to mind

Poor old PRUDENT Prudence, he really was only a logistical and monetary genius in his OWN mind!

[Mungler]

House prices are all about supply and demand. I think the government throttle supply through ancient planning laws and every once in a while they relax some aspect of planning to let more through.

Higher house prices give everyone a sense of wealth and confidence and people go out an consume - all the better if the consume proportionately more uk products than foreign.

Theres demand for houses as replacement existing homes, new / first time buyers and for the rental market.

What people forget is that someone over here legitimately on a work visa, in their 20’s and looking to earn, save and then return to their land with their pockets full, still needs somewhere to live whilst in this country. Following on, around the south east and london there’s always been a strong demand for rental properties and with that landlords looking for properties to rent.

All of the above pushing demand and with supply into key areas being quite limited.

[Jaymo]

17 minutes ago, Mungler said:

House prices are all about supply and demand. I think the government throttle supply through ancient planning laws and every once in a while they relax some aspect of planning to let more through.

Higher house prices give everyone a sense of wealth and confidence and people go out an consume - all the better if the consume proportionately more uk products than foreign.

Theres demand for houses as replacement existing homes, new / first time buyers and for the rental market.

What people forget is that someone over here legitimately on a work visa, in their 20’s and looking to earn, save and then return to their land with their pockets full, still needs somewhere to live whilst in this country. Following on, around the south east and london there’s always been a strong demand for rental properties and with that landlords looking for properties to rent.

All of the above pushing demand and with supply into key areas being quite limited.

We also have the mentality that our homes are always considered to be ‘appreciating assets’. When in fact it’s really just a place of function, just like your car. 
 

[oowee]

45% top rate of tax 🙂 What happens next. Surely not such an early defeat?

[TIGHTCHOKE]

Stand by for her FIRST "U TURN"   

[henry d]

Bad idea? Who would have thought it?

[TIGHTCHOKE]

No Scrapping of the 45p rate then!

[Mice!]

10 hours ago, oowee said:

45% top rate of tax 🙂 What happens next. Surely not such an early defeat?

Is that higher or lower than it was?

There was something mentioned last week about previous PMs and 40% was mentioned. 

I've never concerned myself with what the higher tax rates are because they wouldn't affect me.

[henry d]

On 02/10/2022 at 09:12, Jaymo said:

We also have the mentality that our homes are always considered to be ‘appreciating assets’. When in fact it’s really just a place of function, just like your car. 
 

I think of it more as an asset for my daughter after we have died, however I have to agree with Mungler's idea of confidence and wealth, we got an enormous boost by getting on the property ladder when prices were reasonable, 3 years later and they were bonkers. Our £19K house sold for £38K but other houses in the area went up too, so no real gain just a feeling that we had almost doubled our money. 

[Lloyd90]

1 hour ago, Mice! said:

Is that higher or lower than it was?

There was something mentioned last week about previous PMs and 40% was mentioned. 

I've never concerned myself with what the higher tax rates are because they wouldn't affect me.

You don’t pay tax or cash in hand? 👀🤣

 

 

[Jaymo]

3 hours ago, Mice! said:

Is that higher or lower than it was?

There was something mentioned last week about previous PMs and 40% was mentioned. 

I've never concerned myself with what the higher tax rates are because they wouldn't affect me.

Same as before. For earners over £150000. 
Below that you have your other two tax brackets of which 40% is the upper one. 

[Penelope]

https://countrysquire.co.uk/2022/10/03/the-neville-tax-dilemma/

[Mice!]

4 hours ago, Jaymo said:

Same as before. For earners over £150000. 
Below that you have your other two tax brackets of which 40% is the upper one. 

I thought so, but wasn't sure, not something I'm likely to be troubled with 😅 not unless I really hammered the O/T

[oowee]

8 hours ago, Mice! said:

Is that higher or lower than it was?

There was something mentioned last week about previous PMs and 40% was mentioned. 

I've never concerned myself with what the higher tax rates are because they wouldn't affect me.

It's the first U turn. It's the first nail in her coffin. It's the first step, and a large one at that, towards a new PM. Her reputation is mortally wounded. Now how can we blame the EU?

[Mice!]

1 minute ago, oowee said:

It's the first U turn. It's the first nail in her coffin. It's the first step, and a large one at that, towards a new PM. Her reputation is mortally wounded. Now how can we blame the EU?

I doesn't make sense to turn around after just a week, it makes it seem like any decision that's challenged could be overturned.

[oowee]

1 minute ago, Mice! said:

I doesn't make sense to turn around after just a week, it makes it seem like any decision that's challenged could be overturned.

👍 It just does not make sense. To propose a policy where we all pay for the highest earners to have their tax reduced. To publish a policy, against advice, (sacking the adviser in the process) that will spook the market and that has no explanation and analysis behind it. To go through the process without consulting your team and carrying them with you.

She is a liability. 

[Sussexboy]

23 minutes ago, oowee said:

👍 It just does not make sense. To propose a policy where we all pay for the highest earners to have their tax reduced. To publish a policy, against advice, (sacking the adviser in the process) that will spook the market and that has no explanation and analysis behind it. To go through the process without consulting your team and carrying them with you.

She is a liability. 

Sometimes I find myself agreeing with you sir!

[Mice!]

38 minutes ago, oowee said:

👍 It just does not make sense. To propose a policy where we all pay for the highest earners to have their tax reduced. To publish a policy, against advice, (sacking the adviser in the process) that will spook the market and that has no explanation and analysis behind it. To go through the process without consulting your team and carrying them with you.

She is a liability. 

Certainly seems like it.

[ditchman]

2 hours ago, Sussexboy said:

Sometimes I find myself agreeing with you sir!

i wish people called me sir.....make a nice change

Edited October 3, 2022 by ditchman

[Jaymo]

56 minutes ago, ditchman said:

i wish people called me sir.....make a nice change

Come on, we know you like it when we call you ‘fluffy wuffy bunnykins’ 🥰