Tuesday, May 19, 2009
40% from peak already
ITV1: Tonight :The Property Waiting Game
Jonathan Maitland meets those desperately seeking a recovery in the property market, including separated couples forced to live together because they can't sell their homes.
Posted by doomwatch @ 09:27 AM (1161 views) Add Comment
12 Comments
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1. peter_2008 said...
Why can't they make a TV programme focus solely on people who are desperately seeking a CRASH in the property market?
Anyway, my point is that couples who have a loose attitude towards relationship and commitment tend to have an even looser attitude towards financial control. The paradox is that any responsible and intelligent couple is unlikely to buy a house with combined income, because they should understand the huge risk involved.
Within my social network, most of couples involved in combined purchasing eventually broke up. In contrast, the ones had separate finance arrangement are actually together!
2. george monsoon said...
Peter, I agree with your first comment that there is no take on the FTB position.
Our voice should be heard.
3. mark wadsworth said...
To be fair, that programme on BBC2 last week with the presenter lady with the very big wavy hands* did talk to a few 'young people' who said they'd like to see prices fall and stay low. But they played this down as some sort of weird aberration.
They even let a land value tax campaigner on (Toby Lloyd of Compass) but they put him up against Rose Millard and once he started talking about implied subsidies to home ownership they just cut him off.
* Property Watch with Kate Silverton, if you hadn't guessed.
4. theboltonfury said...
I guess it depends where you live. Things still stuck at peak (or near enough) where we have our eye on
5. uncle tom said...
The only person interviewed in the program who was a prospective market entrant was someone who already had £150k in the bank - hardly typical..!
Really should have included some discussion with an ordinary young FTB couple with typical earning power, struggling to put together a deposit, trying to find somewhere they can afford, and worrying that their hard saved cash might then evaporate..
..should also have pointed out how people who have entered the market in the last five years now have very few opportunities to upsize, due to over-indebtedness and lack of equity; thereby leaving the top end of the market bereft of buyers.
6. peter_2008 said...
On second thought, obviously, ordinary young FTB would not make any good TV, because the TV programme would be like this:
The presenter, “Today, we are meeting a young FTB, who earns a modest £20k a year and do not rely on Bank of Mum and Dad or inheritance from dead relatives.”
(Scene cut from studio to street) The presenter, “So, how are you going to finance your purchase, Mr FTB?”
The FTB, “No, I ain’t. The house price is still too flipping expensive!”
The presenter, “What a loser you are!”
The End…
That programme will last shorter than RightMove’s TV commercial.
7. mark wadsworth said...
@ UT, "should also have pointed out how people who have entered the market in the last five years now have very few opportunities to upsize, due to over-indebtedness and lack of equity; thereby leaving the top end of the market bereft of buyers."
They did touch on that, but instead of saying "This is why we should never have let house prices rise so ridiculously high" they said "This is why we have to try to reinflate the housing bubble". They also mentioned the sell-to-renter who was on Property Watch last week (the blond guy who'd renting a flat in King's Road, Chelsea).
Apart from that, it did seem like a Rightmove commercial.
8. japanese uncle said...
Whether they provide TV programmes focused on people who are desperately seeking a CRASH, or not, what will be destined to happen in the property market will hapen sooner rather than later, as all the rationales indicate.
9. george monsoon said...
There is no inflluence or money to be made, promoting a housing crash, unfortunately for me.
Peter, I love your mock interview.
The facts of this situation are simple
FTB needs 20 to 25k deposit on the smallest of dwellings. With current living costs and the economic climate as it is, how long would it take to realistically save 25k?
Most house transactions are part of a chain. At the bottom of the chain is the FTB.
FTB cannot buy the bottom link in the chain (a basic 2 up 2 down). said owner of the 2 up 2 down cannot now move because they cannot sell their house. The house they were interested in cannot be bought, leaving the owner of that house without a sale, and so on.. and so on...
Desperate sellers reduce the asking price of the property, or take the house off the market.
Down down.. deeper and down....
10. Neil B said...
"separated couples forced to live together because they can't sell their homes"
NO - SEPARATED COUPLES CHOOSING TO LIVE TOGETHER BECAUSE THEY WON'T LOWER THEIR ASKING PRICES
11. braindeed said...
The very fact that there is even a small development of the counter 'price rises are good argument’ has to be good. Program makers are all aware of the controversy that such an argument would create – don’t forget making money is the game.
Give it just a little time – bugle-addled media types were doing too well with property porn to think ‘outside the box’.
Once one does it, there’ll be an avalanche.
Did anyone else see Jayne Moore’s take on the bank Heads avarice last night?
It seems so peculiar that it’s taken so long to get the pitch-forks out – seems Sir Fred is ‘holed up’ in Monaco…..poor b*st*rd.
12. uncle tom said...
Neil B,
The problem these people have is that they can't lower the asking price below the outstanding mortgage, because the mortgage lender will veto the sale if the funds aren't there to repay the mortgage.
If the featured couple are also maxed out on their plastic, and no have means of borrowing to cover a shortfall, then they really have little choice but to either sit it out (probably for many years) and try to get to like each other again; or walk away, let the house go to repo, and go for bankruptcy.
My guess is that one of them will find someone new to shack up with, and walk out on the deal. The other will then have to find a new partner to help pay the mortgage, or get a lodger.