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Golden Age Of Home Ownership Is Ending

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Can't find a link relating to this story as yet.. could be interesting.

I wish it was a larger, in bold with clouds and swans type article. :ph34r:

I like your sig btw, Extraordinary Popular Delusions and the Madness of Crowd.

Edited by JMcLane

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The Hits just keep coming, Ha Ha i wonder what the Cunning plan is THIS time.........Keep houses expensive but cheap sub lets....Goverment take over BTL markets?

Mike

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Discussing this article right now on 5 Live

Feck me. 5 minutes or less and we're on to Cheryl Cole.

Shoot me now

Edited by juvenal

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The UK has just become too expensive to live in... if you could afford a home then you could more or less bear all the other punitive taxes and goods costing more than they do than in, for example, Europe or the US.

I think this ties in with my thread the other day about British people being priced out of their own country - which I can only see becoming much much worse in the coming years with the economic rise of India, China and elsewhere... some of those with wealth will come here to buy property... and some to those nations will be a great many to us...

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The UK has just become too expensive to live in... if you could afford a home then you could more or less bear all the other punitive taxes and goods costing more than they do than in, for example, Europe or the US.

I think this ties in with my thread the other day about British people being priced out of their own country - which I can only see becoming much much worse in the coming years with the economic rise of India, China and elsewhere... some of those with wealth will come here to buy property... and some to those nations will be a great many to us...

even a chinaman can recognise a sh*te yield when he sees one tho

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The UK has just become too expensive to live in... if you could afford a home then you could more or less bear all the other punitive taxes and goods costing more than they do than in, for example, Europe or the US.

I think this ties in with my thread the other day about British people being priced out of their own country - which I can only see becoming much much worse in the coming years with the economic rise of India, China and elsewhere... some of those with wealth will come here to buy property... and some to those nations will be a great many to us...

I was giving serious thought earlier on today to take on this job in Astana in Kazakhstan.... because of this!

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The Chartered Institute of Housing's wake-up call comes as figures reveal that in some parts of the country first-time buyers need to find deposits of £40,000. Photograph: Rui Vieira/PA

Britain's "golden age of home ownership" is coming to an end, and millions of young people face a lifetime of renting instead, a major housing organisation warns today.

The Chartered Institute of Housing is calling on the government to turn its attention urgently to the needs of more than three million households in the private rental sector.

Its wake-up call comes as figures reveal that in the most expensive parts of the country first-time buyers need to amass deposits of more than £40,000, almost double the average income, to have any chance of buying a home. Research released today by Hometrack, the property analyst, shows that in London a single person would need to earn more than £50,000 a year to obtain a mortgage for a two-bedroom flat at the bottom end of the market.

The CIH says home ownership is becoming an increasingly untenable aspiration for millions of Britons – marking the start of an immense cultural shift. Families who cannot save deposits or access mortgages are falling into a black hole in the market.

In a study released today, the CIH also calls for action to help the "in-betweens", who tend to earn more than £12,000 but less than £25,000. They are too well-off to stand a chance of obtaining social housing – which has a waiting list of 1.8 million – but too poor to make it on to the housing ladder. It claims shared ownership schemes, where people buy 50% to 75% of a property while a housing association buys the rest, are also out of reach.

Sarah Webb, CIH chief executive, says the "in-betweens" do everything the government asks - working and generally not claiming benefits - but not getting anything in return. "This idea that an Englishman's home is his castle gained momentum in the 1980s with right-to-buy, and then post the 1990s downturn when people saw owning a home as not just accumulating somewhere to live but also an investment," she said. "That home ownership is out of reach for a lot of people and we need to move to a situation where renting is a positive choice. A golden age of home ownership is coming to an end. The time has come to move away from the notion of 'right-to-buy' and 'wrong-to-rent'."

Webb said she was concerned by the lack of "policy focus" on this group. Government figures show four out of 10 homes in the sector are "non-decent", with problems such as damp, inadequate bathrooms and kitchens and broken windows. The CIH is calling for councils and housing associations to refocus their attention and consider "intermediate renting" schemes, which offer homes at below the market rate.

Richard Donnell, a director at Hometrack, said that, while the "long-term" aspiration for people around 30 was to own a home, increasing numbers believed it would not happen in the next three to five years. "The argument is that we are moving towards a more European model, where first-time buyers are in their late 40s and come in with 50% deposits."

According to David Orr, chief executive of the National Housing Federation, we are "in the midst of an unprecedented housing crisis" unparalleled in its breadth and depth.

A government spokesman said it had taken action to support the private rental sector but still wanted to support those who aspired to buy.

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Simple solution to this problem...... Let house prices fall to where young people can afford them again.

and quite simply that's the crux of the matter.

Without young people innovating, starting businesses, buying houses and raising families the UK is toast. At present far too much energies and finances go into bankrolling a niche of the >55's through BTL. Imo money is far more productive when concentrated in a younger demographic.

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The UK has just become too expensive to live in... if you could afford a home then you could more or less bear all the other punitive taxes and goods costing more than they do than in, for example, Europe or the US.

I think this ties in with my thread the other day about British people being priced out of their own country - which I can only see becoming much much worse in the coming years with the economic rise of India, China and elsewhere... some of those with wealth will come here to buy property... and some to those nations will be a great many to us...

The solution is a good dose of currency devaluation coupled with 20% per annum wage inflation. However, the rich won't like it up'em and the Government is determined to keep down wage inflation. I don't know why they want to keep down wage inflation, some nonsense about being competitive, but if we had 20% wage inflation and 20% devaluation, we'd all be able to afford the same stuff and individually a worker wouldn't cost anymore, but t the relative value of overpriced UK assets would fall.

Edited by Mikhail Liebenstein

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Its one of those situations where this won't be a problem in ten years time. House prices will have to fall.

In fact every way you look at this, its the only solution. You can't have a zombie housing market.

Edited by Sir John Steed

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and quite simply that's the crux of the matter.

Without young people innovating, starting businesses, buying houses and raising families the UK is toast. At present far too much energies and finances go into bankrolling a niche of the >55's through BTL. Imo money is far more productive when concentrated in a younger demographic.

Spot on. We won't get any real recovery until our young people are allowed to create it. Insane house prices only cause more jobs to be lost.

Higher house prices

leads to

increased cost of living

leads to

pressure on wages to keep up

leads to

less competitive workforce compared to lower paid foreign workers

leads to

more jobs moving overseas

eventually leads to

total economic collapse

The boomer's are not going to pull us out of this recession, they can't, they're retiring.

The more debt you pile on the young, the less they can pay for your house.

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The UK has just become too expensive to live in... if you could afford a home then you could more or less bear all the other punitive taxes and goods costing more than they do than in, for example, Europe or the US.

I think this ties in with my thread the other day about British people being priced out of their own country - which I can only see becoming much much worse in the coming years with the economic rise of India, China and elsewhere... some of those with wealth will come here to buy property... and some to those nations will be a great many to us...

+1

Correct. The UK is effectively a plutocracy: rule of the rich, by the rich, for the rich.

An essential cornerstone of plutocracy is the impoverishment of of other social groups and the destruction of social mobility and opportunity: the working class has already been effectively destroyed in this country, now we're going to see increasing taxes, less opportunity and a vastly higher cost of living for the middle class as well.

With regards to property..its obvious to the wealthy that theres little more capital growth to be squeezed from a property market thats vastly overpriced...but what a jackpot if you can get rental yields in excess of that you might get on bonds or shares..and so much less volatile as people will always need a roof over their heads: housing as AAA+ asset class.

This is the commoditisation of property, serving the social and economic aims of the plutocracy: I see the current mortgage drought as part of plan to screw more money from working people...young people who get trapped in the rented sector are going to stay trapped there as rent is so expensive in the UK, it will consume a large enough proportion of their income to ensure that they keep running to stand still...and when (if) they have kids it'll make sure they don't have funds to get them into a good school (by paying or moving to a decent catchment area), and thus another potential bright generation is denied the ability to better itself.

Since the 1980's our society has seen s destruction of social mobility and a huge redistribtion of wealth from ordinary people to the very rich, the banking crisis being the most stunning smash and grab robbery in history: the process is now gathering speed, its all very depressing.

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Simple solution to this problem...... Let house prices fall to where young people can afford them again.

Concise and to the point.

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Research released today by Hometrack, the property analyst, shows that in London a single person would need to earn more than £50,000 a year to obtain a mortgage for a two-bedroom flat at the bottom end of the market.

I've been fortunate to buy in market lows.

Even then I don't recall single people having their own home as being 'normal'.

I do remember feeling a tad bitter that I had to really stretch to borrow £15k to buy a house when the bloke working next to me had a mortgage of around £6k. I'd spent 4 years not going out, not having holidays etc etc.

When I see how much 'young people' p1ss up the wall on being permanently drunk, off their t1ts, trolling round the globe, PCP car contracts every 36 months, all singing all dancing mobile phones, cinema, Nandos etc etc I can only smile at what they think 'normal' is.

Honestly, most 20-30 yr olds today seem to be almost infantile. I think that's far more depressing than whether the avge. house price is £160k, £300k or £70k

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Guest BetterOffOnBenefits

I heard this discussed briefly on 5 Live last night and as usual they trotted out the same old bilge....."what's wrong with renting? Most of Europe rent. Why are the British obsessed with ownership?

errr, because I don't want a 1950's cooker and boiler, tartan wallpaper and a carpet which still has w**k stains on from the previous tenant?

Stop telling me that I should do what the German's do!!!!! In Spain they toss goats off bell towers but I don't want to do that either!!!!!

The dumb **** presenters glossed over the real issue - we wouldn't have to rent, if houses returned back to sane levels, along with bank lending.

They also failed to mention (yet again) that Britain has the most unfair tenancy laws in Western civilisation.

So there are 2 BIG reasons for not renting, wilfully glossed over.

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When I see how much 'young people' p1ss up the wall on being permanently drunk, off their t1ts, trolling round the globe, PCP car contracts every 36 months, all singing all dancing mobile phones, cinema, Nandos etc etc I can only smile at what they think 'normal' is.

What else are they going to spend their money on? Buying the average house at £170k with a £35k deposit? :unsure:

I cannot say as I blame the young for pissing their money up the wall, especially after seeing how well I've been rewarded for being prudent. Given my time over again I think I'd join the hand-to-mouth TV zombies myself, that or emigrate to a real country.

There is fvck all in this country for the young, fvck all.

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I've been fortunate to buy in market lows.

Even then I don't recall single people having their own home as being 'normal'.

I do remember feeling a tad bitter that I had to really stretch to borrow £15k to buy a house when the bloke working next to me had a mortgage of around £6k. I'd spent 4 years not going out, not having holidays etc etc.

When I see how much 'young people' p1ss up the wall on being permanently drunk, off their t1ts, trolling round the globe, PCP car contracts every 36 months, all singing all dancing mobile phones, cinema, Nandos etc etc I can only smile at what they think 'normal' is.

Honestly, most 20-30 yr olds today seem to be almost infantile. I think that's far more depressing than whether the avge. house price is £160k, £300k or £70k

I think it's more likely that young people have simply given up. No hope left...... what would you do?

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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