Wednesday, Mar 03, 2010
Home ownership to become a luxury..?
BBC News: Home ownership to decline, say lenders
The CML said private ownership would continue to be undermined by a lack of new homes and mortgage rationing.
"For the foreseeable future, the picture of continuing constraint in the flow of housing supply, and indeed housing finance supply, looks difficult to avoid," the CML said.
"The effect of this is likely to be that first-time buyers will continue to face significant deposit challenges to enter the market, and that the trend of falling home-ownership that had already begun before the credit crunch will continue."
Posted by debtfree @ 05:03 PM (1198 views) Add Comment
17 Comments
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1. estrader said...
But on a brighter note, house prices and rents are going up.
2. mark wadsworth said...
That's the hidden agenda of Home-Owner-Ism - to reduce the number of homeowners, to subsidise existing housing "wealth" and to concentrate it into an ever smaller number of hands.
And it would appear to be succeeding. The good news is, we are a (sort of) democracy, so as there are fewer and fewer homeowners, there'll be more people who are up for something new.
3. debtfree said...
mark wadsworth,
couldn't agree more. I think its game over for the younger generation unless they or their parents are filthy rich.
"Private Home Ownership' a thing of the past for many.
4. mick rupert said...
If it really, really has to be the case that home ownership is a thing of the past as is suggested, then surely we can have some decent rental rules to protect the interests of renters?
5. paul said...
We really should be looking for a hung parliament resulting in currency crisis to force the government's hand in setting a more sustainable interest rate.
Otherwise the new party will pick up the home-ownerist reins with gleeful self-interest.
6. debtfree said...
This is a transcript of a speech given March 20, 1969 by Dr. Richard Day, an insider of the "Order", whose credentials are given in an interview with Dr. Dunegan.
The moderator in the final taped interview with Dr. Dunegan is Randy Engel, National Director, US Coalition for Life. It's interesting to note that Dr. Dunegan "spilled the beans" in 1988. According to the bio information, Dr. Day died shortly thereafter, in 1989. It could be a coincidence since Dr. Day was elderly when he died.
"The cost of housing and financing housing would gradually be made so high that most people couldn't afford it. People who already owned their houses would be allowed to keep them but as years go by it would be more and more difficult for young people to buy a house. Young people would more and more become renters, particularly in apartments or condominiums. More and more unsold houses would stand vacant. People just couldn't buy them. But the cost of housing would not come down."
"You'd right away think, well the vacant house, the price would come down, the people would buy it. But there was some statement to the effect that the price would be held high even though there were many available so that free market places would not operate. People would not be able to buy these and gradually more and more of the population would be forced into small apartments… small apartments which would not accommodate very many children. Then as the number of real home-owners diminished they would become a minority."
Conspiracy loon or just a coincidence ?
It's not like it was published last week, and even if it was a crackpot or even a lie, it's pretty spot on.
7. cynicalsoothsayer said...
Nah, house prices will drop and the younger (under 40) generation will get to buy whilst the BTLers will burn, stuck between negative equity and falling rents.
8. letthemfall said...
"That's the hidden agenda of Home-Owner-Ism - to reduce the number of homeowners, to subsidise existing housing "wealth" and to concentrate it into an ever smaller number of hands. "
Or more generally, that is the agenda of the rich - to hang on and add to their wealth at the rising expense of the majority. This is what happens when taxation is not progressive, or, in the case of the rich, compulsory.
9. Mike said...
You still need first time buyers or investors to start or end a sale chain. So I disagree that houses will purely become luxury items. I don't believe there are an endless supply of investors who can keep buying those properties that FTB's would have bought.
10. enuii said...
Codswallop, a decent rise in interest rates will cure everything that is wrong with the UK housing market.
It's an artificial bubblegum market that will burst and leave a sticky mess over the faces of these who blew too hard.
11. debtfree said...
@9
peolple have been saying that for years on this website and even after the worst financial crisis since the depression, houses are still expensive. A nuclear finance bomb has gone off and all it's done is chinked the armour of the uk property market. It can be hard sometimes to face the truth.
12. estrader said...
@10 - The truth? You mean the desecration of the £Pound, Ultra-low interest rates, Britains growing budget deficit, Inflation...all for the sake of making property appear to be a sound investment. Brilliant.
13. layers said...
@10 - I agree. I've been predicting this for nearly 10 years, and f@@k all has happened. What seemed to be bl@@dy obvious to me is NOT the reality of the system, and I'm beggining to think that IRs could well be kept where they are regardless of what happens w a hung parliment, or any other 'crises'. Afterall, who ever heard of QE for crying out loud?! If it suits 'them' they'll just create something else to keep the illusion/reality going.
I think it's time to seriously look at repossed houses as a viable way to own one's house at a more reasonable price.
Oh, and the economy rebounds according to City AM - well they would say that.
14. letthemfall said...
Maybe it is because an economic bomb has gone off that this artificial situation is persisting. And it must be artificial in that prices are above value, which only has meaning in the context of earnings. Only two things can maintain current prices. Either debt must be supported into the future (impossible to do indefinitely I would have thought), or wealth (and thus housing) must be concentrated more and more into the hands of a few. Even the 2nd won't keep prices high forever, but long enough to see most of us out. Inequality is what it's all about now. How else could the bankers get away with their arguments, for which even the word specious is not enough?
15. nomad said...
@11. "The truth? You mean the desecration of the £Pound, Ultra-low interest rates, Britains growing budget deficit, Inflation...all for the sake of making property appear to be a sound investment. Brilliant."
Or, alternatively, to win an election.
I don't see how this country can remain so isolated from market forces. House prices have plummeted everywhere else, here they have received unheard of support. I don't see how this can last.
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