Saturday, May 26, 2007
The only possible way most low to moderate earners are going to get on to the property ladder?
Firstrung: Is shared ownership the only way onto the firstrung for many first-time buyers in the future?
Shared equity and part-buy, part-rent schemes will be the only way many of tomorrow's first time buyers will be able to afford a home, according to a group of housing experts who met in Manchester recently. The National Housing Federation is calling for the government to invest more resources in flexible home ownership schemes to help people on salaries of around £25,000 to £30,000. Speaking at the conference of Affordable Home Ownership Providers, Helen Williams, assistant director, National Housing Federation, said: "To hope for a fall in house prices is unrealistic in the current housing market. Shared equity deals or part-buy, part rent schemes are the only possible way most low to moderate earners are going to get on to the property ladder
6 Comments
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1. paul said...
2 things Ms Williams needs to note:
1. "To hope for a fall in house prices is unrealistic in the current housing market." Well actually, to hope that house prices will keep going is more unrealistic.
2. £35k-£30k is not "low to moderate income". It's nearly double the middle-quartile (mean) income in the UK.
2. Scott said...
What complete and utter bollocks!
3. headmelter said...
well said Paul.
4. Scott said...
What's next? College boys become rent boys in order to save up for the future? Thousands more quit careers to become landlords? Man murdered neighbour for house? I said this kind of thing would happen. The articles are becoming more extreme towards the bitter end, but you can only squeeze a cow's tit so hard.
5. confused76 said...
There is a big confusion here... "To hope for a fall in house prices is unrealistic in the current housing market"
but who cares?
In this environment renters are subsidized by landlords
a) yields are lower than rates
b) landlords may not know but they carry loads of market risk (for a lower yied than gilts!??!!)
so even without hoping for a house price fall renters are better off.
Then for punters who are relying on infinite house price appreciations... good luck to them and watch out against the dangers of debt leverage
6. Converted Lurker said...
I'm with you on this Paul, v.disappointed in these comments from the NHF (of all people). So many approach this problem from the wrong way, the mindset that prices have increased by 300% in a decade, but couldn't possibly fall back 35%, stuns me with its stupidity