eric pebble Posted July 5, 2010 Share Posted July 5, 2010 High house prices 'putting off first-time buyers'. Nearly three-quarters of potential first-time buyers have given up hope of ever owning their own home, a survey suggested today. Around 70% of people who do not own a property said they abandoned plans to buy one in the UK because of high house prices, according to foreign exchange group Moneycorp. A third of first-time buyers also said they were wary of getting on to the property ladder because of the volatility of the UK market. http://www.thisislondon.co.uk/money/article-23851419-third-of-first-time-buyers-give-up-hope-owning-own-home.do Quote Link to comment Share on other sites More sharing options...
Deckard Posted July 5, 2010 Share Posted July 5, 2010 (edited) Repeat after me: this is sustainable, this is sustainable, this is sustainable, this is ... Edited July 5, 2010 by VoteWithYourFeet Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted July 5, 2010 Share Posted July 5, 2010 One of the comments below the story is priceless There are many 1 or 2 bed flats/apartments available which would be an ideal place to start to get a foot on to the property ladder. Yes it's very difficult to buy a house first time at around £200k so why not save up enough for a deposit on a flat around £120k and work your way up from there. My wife and I bought our first place 3 months ago and we just worked really damn hard and cut-back on a lot of things. We moved to supermarket own brands, did less driving, less eating out, stopped drinking, etc. <b>Where there's a will there's a way</b> I do hope they'll be happy when they're trapped in their flat by negative equity. I'm sure it will be very cosy trying to bring up a kid/kids there. Or when they find they can't pay the mortgage and lose the flat and the deposit they worked so damn hard to amass. "get a foot on the property ladder", "work your way up", "where there's a will there's a way"... flippin' Pollyannas. Quote Link to comment Share on other sites More sharing options...
DeepLurker Posted July 5, 2010 Share Posted July 5, 2010 Shame the article is dated 1st July - pretty pointless to add a comment now along the lines of "the FTBers are thinking of buying abroad - well done to all the homeowners, you've chased the next generation away" Quote Link to comment Share on other sites More sharing options...
jareth Posted July 5, 2010 Share Posted July 5, 2010 Nearly three-quarters of potential first-time buyers have given up hope of ever owning their own home, a survey suggested today. I would read that as 'Nearly three-quarters of potential first-time buyers have given up all sense of proportion, a survey suggested today.' Quote Link to comment Share on other sites More sharing options...
Roseland69 Posted July 5, 2010 Share Posted July 5, 2010 Check out some of the comments. Some of them need a slap. Apparently if you simply buy own brands from the supermarket and stop going out so much you will soon be able to afford to buy your own home. If there's one thing I hate above all else, is people trying to make out high prices aren't a problem - and that the problem is people are just too lazy/cheap/spendthrift to afford a home and they need to buck up their ideas! FFS. Not surprised though, it is the Evening Standard. The biggest property ramping rag that ever was. Quote Link to comment Share on other sites More sharing options...
plummet expert Posted July 5, 2010 Share Posted July 5, 2010 Repeat after me: this is sustainable, this is sustainable, this is sustainable, this is ... Are you a Dalek with too many BTL's? Best to offload them to another race/planet very soon I would suggest. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted July 5, 2010 Share Posted July 5, 2010 At these prices, youre not buying a house, youre paying someone elses pension. Think anyones going to pay your pension? Quote Link to comment Share on other sites More sharing options...
chubba Posted July 5, 2010 Share Posted July 5, 2010 Whereas anyone who ignored the same advice about negative equity and interest rates 18 months ago has seen a 10% increase in prices and paid off a tiny bit of the interest on the loan. They have a foot on the ladder and are about to get shafted so hard they fall off. FTFY Quote Link to comment Share on other sites More sharing options...
Riedquat Posted July 5, 2010 Share Posted July 5, 2010 Whereas anyone who ignored the same advice about negative equity and interest rates 18 months ago has seen a 10% increase in prices and paid off a year and a half of their mortgage. They have a foot on the ladder and are working their way up. Hahaha! I do enjoy a good chuckle, thanks. Quote Link to comment Share on other sites More sharing options...
Mal Volio Posted July 5, 2010 Share Posted July 5, 2010 Whereas anyone who ignored the same advice about negative equity and interest rates 18 months ago has seen a 10% increase in prices Not here. Quote Link to comment Share on other sites More sharing options...
red Posted July 5, 2010 Share Posted July 5, 2010 Whereas anyone who ignored the same advice about negative equity and interest rates 18 months ago has seen a 10% increase in prices and paid off a year and a half of their mortgage. They have a foot on the ladder and are working their way up. 'llub'... I do believe you're talking 'tihs'... Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 5, 2010 Share Posted July 5, 2010 Repeat after me: this is sustainable, this is sustainable, this is sustainable, this is ... It's not sustainable Quote Link to comment Share on other sites More sharing options...
spongeh Posted July 5, 2010 Share Posted July 5, 2010 Whereas anyone who ignored the same advice about negative equity and interest rates 18 months ago has seen a 10% increase in prices and paid off a year and a half of their mortgage. They have a foot on the ladder and are working their way up. Not round here they're not - Only showing 4 house sales for the whole of this year so far out of the 100s for sale. Looking at the land registry data it also looks like prices round here are back to around the 2004 level and still falling. House 1 Transaction history: Sale price Date Change AER £181,000 27-01-2010 3.4% 0.6% £175,000 09-06-2004 - - House 2 Transaction history: Sale price Date Change AER £186,000 30-04-2010 4.2% 0.7% £178,500 27-08-2004 - - Quote Link to comment Share on other sites More sharing options...
lets get it right Posted July 5, 2010 Share Posted July 5, 2010 Repeat after me: this is sustainable, this is sustainable, this is sustainable, this is ... There is a process in place at the moment which, I am afraid, means it is sustainable. The proportion of people that own property is falling and the fact the younger generation is priced out is not acting as a brake - AT ALL - on the housing market. This is very unpalatable - and against the conventional wisdom on here - yet the facts seem incontrovertible. Maybe in 20 years time, the aspiration for a young person to own a house will be the exclusive province of the rich - or those who inherit from the current generation of property owners. Your generation is being shafted from every direction, yet you appear to have no will to act collectively. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted July 5, 2010 Share Posted July 5, 2010 My wife and I bought our first place 3 months ago and we just worked really damn hard and cut-back on a lot of things. We moved to supermarket own brands, did less driving, less eating out, stopped drinking, etc. Why do it? Live like paupers, miserable, penny pinching life just to buy some grotty little box that EAs dare to ascribe a French name to: Un Apartment. If those stupid dumb-ahrss sheeple had learned to JUST SAY NO and others like them did likewise this bloated bubble of a housing market would have long since popped. Quote Link to comment Share on other sites More sharing options...
Monkey Posted July 5, 2010 Share Posted July 5, 2010 this really, really ******* annoys me, i AM a FTB. i like to think i have become sensible and logical. i do not see the point of buying a property (regardless of size/number of rooms/ type/price) when interest rates are as low as they are. as this will mean over the next 2 years (ok i can get a fixed mortgage) the price to service my mortgage will rise. my pay is expected not to (i am private sector) rise at the same or higher levels. this coupled with other stuff i buy increase in price (Food, Petrol, taxes, etc) means my affordability is wrong. but aside from that, i want a sensible mortgage, 3-4x so i am not streaching myself now, and then finding i can not repay when i get hit with higher IR's, i do not have a large deposit avaliable, nor do i want more than 90% LTV, these are values that have gone, and greed and stupidity has taken over. I dont see the point of getting myself into debt upto my eyeballs, then realising that 3,4,5 years down the line i have no hope of ever owning (you only own when you have paid your mortgage in full) my own home, i dont want years of sleepness nights wondering if i can eat, or put petrol in my car so i can afford this dream of owning. i dont want ot fear every knock on the door is a bailiff wanting to take my stuff away. i WILL own my own home, but only when sensiblilty has returned to the market and this country, we have for too long (myself included) indulged on the mountain of easy credit avaliable, we have to now face the music. it always makes me laugh when people find out the rebuild cost of their house in a total loss disaster, and its always a hell of alot less than what they paid for it. the price of the house should be closer to that price, and not a pie in the sky, finger in the air figure that some twac*nt in a shiney suit thought up /rant Quote Link to comment Share on other sites More sharing options...
Deckard Posted July 5, 2010 Share Posted July 5, 2010 The proportion of people that own property is falling and the fact the younger generation is priced out is not acting as a brake - AT ALL - on the housing market. This is very unpalatable - and against the conventional wisdom on here - yet the facts seem incontrovertible. Patience dear boy, patience Quote Link to comment Share on other sites More sharing options...
Pent Up Posted July 5, 2010 Share Posted July 5, 2010 Whereas anyone who ignored the same advice about negative equity and interest rates 18 months ago has seen a 10% increase in prices and paid off a year and a half of their mortgage. They have a foot on the ladder and are working their way up. Let's just hope they sold in January 2010 and moved back into rented! Or it's sainsburys basic baked beans for life! Quote Link to comment Share on other sites More sharing options...
ingermany Posted July 5, 2010 Share Posted July 5, 2010 There is a process in place at the moment which, I am afraid, means it is sustainable. Not so sure about that. Perceived volatility is an issue, more so than cost. People will buy at any price providing they get credit and think the price will rise. However, now it is sinking in that 30-40% losses from here are possible. Add to that the fact that the very modest dead cat bounce has been bought with about £1.3trillion in government spending on bank bailouts, liquidity schemes and mortgage purchases, and I think the writing is on the wall. Government just won't keep spending on that sort of scale in order to temporarily put a floor under prices. Government intervention in 2008 has probably put a lot of buyers off because they know what the government gives it can also take away. People realise that this moment has arrived, so even those with cash are reluctant to take the risk. Once the graph goes negative again I think it will just fall and fall. Quote Link to comment Share on other sites More sharing options...
red Posted July 5, 2010 Share Posted July 5, 2010 There is a process in place at the moment which, I am afraid, means it is sustainable. The proportion of people that own property is falling and the fact the younger generation is priced out is not acting as a brake - AT ALL - on the housing market. This is very unpalatable - and against the conventional wisdom on here - yet the facts seem incontrovertible. Maybe in 20 years time, the aspiration for a young person to own a house will be the exclusive province of the rich - or those who inherit from the current generation of property owners. Your generation is being shafted from every direction, yet you appear to have no will to act collectively. What 'process'? There's only so much manipulation that can occur before a correction. Low IRs etc. have merely postponed the inevitable. The market cannot be sustained by the odd rich, cash-buyer at the top - it needs support from the bottom of the 'pyramid'. From where I'm looking, we've got a limping housing market (very low volumes/approvals) that has produced a bull trap that's now run out of steam against a backdrop of rising unemployment, an economy on the brink of a double dip and the very real prospect of a long and painful period of deflation. What facts do you have that prove we have a sustainable, healthy market? Do tell... Quote Link to comment Share on other sites More sharing options...
the_fluid Posted July 5, 2010 Share Posted July 5, 2010 The news comes after a survey by the Halifax suggested that first time buyers cannot afford to buy a home in 92% of towns in the UK. No, not todays news but from 26 January, 2005. Comments are as depressingly true today as they were back then. Ever get the feeling you've been cheated? Quote Link to comment Share on other sites More sharing options...
Aidan Ap Word Posted July 5, 2010 Share Posted July 5, 2010 Buying own brand products and not going out and driving less (how the heck can I do that when 80% of the driving i do is getting to work) and not drinking (I spend maybe 15 GBP on alcohol in a month anyway) ... would save me ... taaaaddddaaaa ... about 150 GBP/month maximum. The 150 GBP/month would insulate me from about 1% increase in interest rates ... and to get to the 15% deposit I need (that's about 45k here) to buy anything that would make a long term place to *live in* at 150 GBP/month that's a hell of a long time. Which planet do these people live on that they think I am dumb enough to think that is a reasonable strategy for the future? Sucks to that idea. Quote Link to comment Share on other sites More sharing options...
200p Posted July 5, 2010 Share Posted July 5, 2010 Buying own brand products and not going out and driving less (how the heck can I do that when 80% of the driving i do is getting to work) and not drinking (I spend maybe 15 GBP on alcohol in a month anyway) ... would save me ... taaaaddddaaaa ... about 150 GBP/month maximum. The 150 GBP/month would insulate me from about 1% increase in interest rates ... and to get to the 15% deposit I need (that's about 45k here) to buy anything that would make a long term place to *live in* at 150 GBP/month that's a hell of a long time. Which planet do these people live on that they think I am dumb enough to think that is a reasonable strategy for the future? Sucks to that idea. Try cutting out internet, might save you another £10,000 over 30 years. Every little helps! Quote Link to comment Share on other sites More sharing options...
Johnny Storm Posted July 5, 2010 Share Posted July 5, 2010 (edited) Which planet do these people live on that they think I am dumb enough to think that is a reasonable strategy for the future? Sucks to that idea. So is your strategy to keep wasting money renting, while house prices stay the same or go up, praying they go down more than you have lost in rent? Or that they increase less than the money you save each year towards a deposit? Trust me that doesnt work either, been there done that. Edited July 5, 2010 by Johnny Storm Quote Link to comment Share on other sites More sharing options...
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