Wednesday, May 30, 2007
Mortgage misery for young couples
Daily Mail: Nation of mortgage slaves among Britain's young couples
Massive mortgages are turning a generation of young couples into wage slaves, it has been claimed.
A report warned that the spiralling price of housing means Britain is in danger of becoming the "grossly divided" society of have and have-nots not seen since Victorian times.
Posted by becky @ 11:35 AM (34 views) Add Comment
12 Comments
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1. Scott said...
What a pity they cannot bring back other things from Victorian times; more police powers, stricter schools, workhouses for the underclass riff-raff, and so on.
2. shipbuilder said...
"Without their own home, many will have to live with their parents, rent at vast expense or live in "studentstyle" house shares, even in their thirties."
Rent at vast expense? Rents here in NI are about 1/4 the monthly cost of the mortgage and getting lower. A £400K bungalow with 2 acres of land in the country just outside Belfast is about £650/month fully furnished, rates included. What's that about the 'misery of renting', then?
3. Darren said...
Oh look, somebody has made the jump from 18% of take home pay to 75%, i thought that real figures weren't allowed to be published ..... ?
That is of course the reality of course somewhere around 65-75% of take home pay, if prices go up anymore and they are then it will be 75-85%, this will happen in around 2 years, could anyone tell me exactly why they think a price correction will not happen?
4. bidin'matime said...
"The preliminary findings from the universities' 18-month study of 18-to 40-year-olds says the cost of buying a home will create a "grossly divided society last seen in the 19th and early 20th century".
Is this an unintentional acknowledgement of the K-wave? Prepare for a 'lost generation'...
5. Papabear said...
What I find interesting with articles such as this (and there are more and more of them each day) is that the overwhelming majority of people commenting are basically supporting the idea that a HPC would be a good thing. I find that comforting and hope that the UK population hasn't turned so greedy not to realize that a divided society is a bad thing!
6. japanese uncle said...
This is about risk associated with capitalism, isn't it? People love capitalism in the UK, without knowing anything about possible alternative arrangements, socialism/communism being nothing more than dirty words. Sadly the overwhelming majority without any insider info/educated opinions/knowledge are destined to lose in this silly hopeless game. This misery is just what they wished for, unfortunately.
7. Ticktock said...
People love capitalism in the UK
Not everyone JU. The manufactured illusion of consensus in Britain can make it seem that way, and it may be more than peoples job is worth to speak out for now, but discontent and disillusionment is extreemly widespread and growing. While everyone feels rich there will be little reaction, but a big storm is developing for sure.
The extent and nature of the 'blowback' is, of course, impossible to predict, but the emporer clearly has no clothes, and attempts to pretend otherwise look increasingly desperate to me.
Even the 'average Joe' seems to have noticed the 'strange' reporting of the BBC in recent years. When the British propaganda system is run as poorly as it seems to be at present, who knows what else people might start to question?
8. nearly30 said...
Good article this - will take some time before it gets to it's calamatous peak.
Love the bit about 'bonded generation' - that's what i've always feared.
Perversly - the cost of even the cheapest home is so now out of reach of the youngest FTB that the market has spared a good many people from the debt trap.
It's those who buy now [in their 30s] or have bought and have families that are really going to suffer - not the younger stay at home generation.
The KIPPERS and IPODDERS are [in relative terms of debt] somewhat spared the trauma if [sorry when] the bubble(s) bursts.
9. The Capitalist said...
Debt is slavery of the free...you make choices or abdicate that task to Big Brother (ie a centralised conrolled economy - step forward Mr Brown)
10. enuii said...
What did everyone ever expect to happen, as soon as it became accepted practice that 2 salaries were deemed acceptable at full multiples on a mortgage application.
Once this became the 'norm' prices were bound to rise to fill that 'norms' full realisation, as the economy cools then the trouble will start.
11. rich said...
@japanese uncle
What possible alternative arrangements are you talking about?
Capitalism is a fact of life. It wasn't invented in the 80s. There were markets long before there were philosophers or economists to worry about them, and no other system of distributing labour has come close to beating it for efficiency.
12. japanese uncle said...
This subject is too huge to address with a head under the influence of alchohol, as I am now in.
Market principle and competition is in the economic textbook, but does not exist in the real world, because of
the asympetry of knowledge and information held by big boys and that held by men on the street. The latter is
the party destined to be exploited, as we see everywhere.