ubermaus Posted April 30, 2015 Share Posted April 30, 2015 Landlords are not a collective group. They are in competition with each other. This competition means that the market price is determined by supply and demand. If prices go up due to a shortage, more people buy into the market because they see a potential profit, they then undercut the existing players in order to gain market share. It's basic economics 101. Supply and demand. I'm not disagreeing with the basic definition of supply and demand. But more renters flooding the market, not enough houses being built and no rental controls is a recipe for disaster. ---------- Post added 30-04-2015 at 11:30 ---------- Well all the new immigrants seem to be able to find homes. If they cant then they don't have to work in London - they could move somewhere else. Sheffield property is quite cheap. Rotherham is cheaper. like this? http://www.theguardian.com/society/2012/apr/24/tory-westminster-council-tenants-derby Link to comment Share on other sites More sharing options...
RonJeremy Posted April 30, 2015 Share Posted April 30, 2015 I'm not disagreeing with the basic definition of supply and demand. But more renters flooding the market, not enough houses being built and no rental controls is a recipe for disaster. ---------- Post added 30-04-2015 at 11:30 ---------- like this? http://www.theguardian.com/society/2012/apr/24/tory-westminster-council-tenants-derby Absolutely. If people want to move they can. Obviously they shouldn't be forced to, as Grant Schapps says, but if they want to they can. Try to ignore the Grauniad's bias and mischief making. Link to comment Share on other sites More sharing options...
Cyclone Posted April 30, 2015 Share Posted April 30, 2015 I said to quote in full: Yep, if you want a snapshot of inflation look at the prices of milk and bread. That's right. You said Yes to the question I asked, did you think milk prices were legally linked to inflation. Link to comment Share on other sites More sharing options...
ubermaus Posted April 30, 2015 Share Posted April 30, 2015 That's right. You said Yes to the question I asked, did you think milk prices were legally linked to inflation. I said to quote in full: Yep, if you want a snapshot of inflation look at the prices of milk and bread. ---------- Post added 30-04-2015 at 11:54 ---------- quite an interesting article: http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/11410509/When-will-a-loaf-of-bread-cost-21.html Link to comment Share on other sites More sharing options...
Cyclone Posted April 30, 2015 Share Posted April 30, 2015 You were answering a question, and you answered with a positive. Link to comment Share on other sites More sharing options...
ubermaus Posted April 30, 2015 Share Posted April 30, 2015 That's right. You said Yes to the question I asked, did you think milk prices were legally linked to inflation. milk is linked to deflation and inflation not 'supply and demand'. Link to comment Share on other sites More sharing options...
RonJeremy Posted April 30, 2015 Share Posted April 30, 2015 milk is linked to deflation and inflation not 'supply and demand'. What? .... there are no market forces on the price of milk??? Link to comment Share on other sites More sharing options...
psynuk Posted April 30, 2015 Share Posted April 30, 2015 (edited) stop, blithering on about the price of milk! Landlords are not a collective group. They are in competition with each other. This competition means that the market price is determined by supply and demand. If prices go up due to a shortage, more people buy into the market because they see a potential profit, they then undercut the existing players in order to gain market share. It's basic economics 101. Supply and demand. But that's simply not true, it's applicable to milk and coal and loads of other stuff but it's not applicable to housing. houses, weather it be purchase price or rental cost just don't get any cheaper because of supply and demand. The prices just continue upwards. It could be like that, but it's not Edited April 30, 2015 by psynuk Link to comment Share on other sites More sharing options...
ubermaus Posted April 30, 2015 Share Posted April 30, 2015 What? .... there are no market forces on the price of milk??? If grocery prices had increased at the same rate as house prices since 1971, then: A 4-pint carton of milk would cost £10.45 A chicken would cost £51.18 A bunch of 6 bananas would cost £8.47 A box of 6 eggs would cost £5.01 A loaf of sliced white bread would cost £4.36 A leg of lamb would cost £53.18 The average weekly expenditure on food for a family of four would be £453.23. Link to comment Share on other sites More sharing options...
Cyclone Posted April 30, 2015 Share Posted April 30, 2015 (edited) milk is linked to deflation and inflation not 'supply and demand'. Don't be ridiculous. ---------- Post added 30-04-2015 at 15:38 ---------- stop, blithering on about the price of milk! But that's simply not true, it's applicable to milk and coal and loads of other stuff but it's not applicable to housing. houses, weather it be purchase price or rental cost just don't get any cheaper because of supply and demand. The prices just continue upwards. It could be like that, but it's not It is like that, but supply is limited and demand ever increasing. That's why it appears to be always upwards. Re:blithering on, it's a comparison, an entirely valid one. ---------- Post added 30-04-2015 at 15:40 ---------- If grocery prices had increased at the same rate as house prices since 1971, then: A 4-pint carton of milk would cost £10.45 A chicken would cost £51.18 A bunch of 6 bananas would cost £8.47 A box of 6 eggs would cost £5.01 A loaf of sliced white bread would cost £4.36 A leg of lamb would cost £53.18 The average weekly expenditure on food for a family of four would be £453.23. What's your point? Inflation on house prices has been higher than on groceries, yes. Both are affected by market forces, supply and demand. Unfortunately the supply of houses is limited. Edited April 30, 2015 by Cyclone Link to comment Share on other sites More sharing options...
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