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Young Unable To Get On Property Ladder

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http://www.newsletter.co.uk/news/Young-unable-to-get-on.6685125.jp

FIRST-time home buyers in Northern Ireland are still shut out of the housing market because property prices remain too high for them to purchase.

Despite massive falls in the price of homes, the province is the least affordable part of the UK outside London for people trying to get on the property ladder, a comprehensive survey has found.

....

The province and London were the only regions in which houses were out of reach to first-time buyers (FTB) in all local authority areas within the region.

London has 30 such authorities, while Northern Ireland has 26 local authority councils, all 56 of which were found to be too expensive.

....

London and Northern Ireland were well removed from the average across the UK, where 40 per cent of local authority districts were deemed affordable for the average FTB. This was a sharp improvement on 2007, when only six per cent of council areas across the UK were classified affordable, but it represented less than half the proportion of affordable local authority districts in 2000 (82 per cent).

London has the highest average incomes in the UK, but its property remains out of reach because house prices are by a clear margin the highest in the UK.

The average house price paid by first-time buyers in Northern Ireland dropped from £122,422 in 2009 to £112,971 last year.

Still too expensive!

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Halifax FTB mortgage affordability Report Dec 2010

The Media are always accused of spin, but I have to wonder if we are looking at the same report. He seems to refer to the Halifax Affordability Report for FTB'ers, linked above. They bring this out at the end of every year.

Main points in this report is that Affordability has, ever so slightly improved for the UK as a whole.

But lets look at NI.

In last years report (2009) the NI average price paid by a FTB'er was £122k. Over £11k (8%) cheaper than the UK average, but still the 5th most expensive region of the UK.

In the latest report (2010) the average price paid by a FTB'er in NI has fallen by 7% to £112k. This is now over £25k (18%)cheaper than the average UK FTB'er house. It is now actually fallen to the 6th most expensive region of the UK.

The Newsletter goes on to say:

Despite massive falls in the price of homes, the province is the least affordable part of the UK outside London for people trying to get on the property ladder

This is clearly not the case. The report lists the Regions of the UK that are more expensive, for FTB'ers than NI.

Yes, as mentioned in the Newsletter this includes greater London.

However it also includes the

the South East

the South West

East Anglia

and West Midlands

Interestingly the report also lists the situation back in 2000.

At that stage Bold NI was the 4th most expensive region in the whole UK with only

South East

South West

East Anglia

more expensive than NI for FTB'ers.

The average NI FTB'er house was only 12% cheaper that the UK average in 2000. It is now 18% cheaper

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You know... I am fed up saving for a snotty house! New years resolution is to keep a decent deposit and get to enjoying life. The way housing has gone has led to the young putting their lives on hold and wasting many of their best years.

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this survey, that survey ...

the important point made about this is that FTBers (which IMO for a healthy market is the younger generation of 18-28yr olds) have been outpriced in the housing market. Others have made the point in the past that a 'FTBer is a FTBer regardless of age' but lets be realistic here, do we all want MTG's up until our pension ages??? God help us all if that is the case. That is on average 10-15 yrs more than the previous generations of home buyers.

The average age of a FTB has increased ... due to affordability. Mortgage terms have increased from a normal 25yr max term to anything up to 40yr term ... to accomodate increased prices. These, amongst other factors influence the figures about affordability on modern day surveys against surveys of the past. In many ways it is not a like for like survey IMO.

Go out and complete a survey of every 18-28yr old in employment and I guarantee that a very small percentage of them could afford to enter the housing market as it currently stands.

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I don't see why anyone would be rushing into the housing Market at present. I'm paying 450 pm for a semi detached house with garage in a handy location.

Earning decent money but sure what would 450 get me in mortgage terms? Not much.

Happy to save a few quid for deposit should prices ever get to what I think is reasonable.

Until then I will be enjoying my holidays and money.

I am genuinely thankful that I didn't buy in 08.

and I get the feeling some day I will be saying I'm glad I didn't buy on 2010/2011

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Earning decent money but sure what would 450 get me in mortgage terms? Not much.

This is where so many people get it wrong. They will turn around and tell you that everyone has to start somewhere. You cannot expect to start in your perfect house. What irritates the life out of me is when these people bought their first home with a small deposit and a low paid job and they expect me to start in the same place with a big deposit and a well paid job. If you try and say that they accuse you of snobbery or the likes.

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This is where so many people get it wrong. They will turn around and tell you that everyone has to start somewhere. You cannot expect to start in your perfect house. What irritates the life out of me is when these people bought their first home with a small deposit and a low paid job and they expect me to start in the same place with a big deposit and a well paid job. If you try and say that they accuse you of snobbery or the likes.

The baby boomers seem to have hooverd up everything and are now demanding more.

Derry amazes me. Where the money comes from i can't fathom. There must be a mega factory of well paid jobs that I can't see.

Or more realistically people bought houses in culmore in 1999 for 70k and now think they are rich cause they were worth 250k 2 years ago.

I would be amazed if any estate agent has sold anything other than a handful of houses in last few months.

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The baby boomers seem to have hooverd up everything and are now demanding more.

Derry amazes me. Where the money comes from i can't fathom. There must be a mega factory of well paid jobs that I can't see.

Or more realistically people bought houses in culmore in 1999 for 70k and now think they are rich cause they were worth 250k 2 years ago.

I would be amazed if any estate agent has sold anything other than a handful of houses in last few months.

Im from Derry too. Its a joke around here. Poeple still think its the boom years and are asking crazy rpices.

I rang about a house on friday. I asked what was the lastest offer. She said nothing. I asked if it had any offers as it had been on since august. She said yes £120,000 which had been accepted but the buyer had to pull out and now the seller wont take anything less than asking price (£140,000)

Do they honestly expect anyone to offer £140,000 when £120,000 was accepted not that long ago?

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Slightly OT, but ...

London has 30 such authorities, while Northern Ireland has 26 local authority councils, all 56 of which were found to be too expensive.

Population of London at a guess ~10M, population of NI ~1.7M

... I don'k think I need to do the maths for you.

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Im from Derry too. Its a joke around here. Poeple still think its the boom years and are asking crazy rpices.

I rang about a house on friday. I asked what was the lastest offer. She said nothing. I asked if it had any offers as it had been on since august. She said yes £120,000 which had been accepted but the buyer had to pull out and now the seller wont take anything less than asking price (£140,000)

Do they honestly expect anyone to offer £140,000 when £120,000 was accepted not that long ago?

I can't see things changing too much anytime soon.

With low rates and no real need to sell. It will remain a fudge for a while yet.

Only annoying thing is inflation eating into cost of living and savings. But u can be sure I'm not taking a £30k bet against inflation when I don't have to.

In Derry you would need to be a taxi man to afford a decent house it would seem.

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I can't see things changing too much anytime soon.

With low rates and no real need to sell. It will remain a fudge for a while yet.

Only annoying thing is inflation eating into cost of living and savings. But u can be sure I'm not taking a £30k bet against inflation when I don't have to.

In Derry you would need to be a taxi man to afford a decent house it would seem.

A big problem too is more or less zero new houses on cityside also. And a bit of new building in waterside in recent years, but id be sceptical of some of this stocks desirability in a few years time.

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The shinners will ensure plenty more 3 bed semis are built for all those single mothers. skeoge bypass I'm sure will all be social housing.

Hard to beat your tax ensuring others are well housed, while I work to maybe one day use my own money to buy a 3 bed semi.

Apolgies. I'll leave my right wing views at the door from now on.

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The shinners will ensure plenty more 3 bed semis are built for all those single mothers. skeoge bypass I'm sure will all be social housing.

Hard to beat your tax ensuring others are well housed, while I work to maybe one day use my own money to buy a 3 bed semi.

Apolgies. I'll leave my right wing views at the door from now on.

don't get me started on the "free ride" that the single mum teenagers have in this country....if it was a bit harder to get by if you have a child and you didn't get handed a new flat when you turn up pregnant then they might keep their legs closed quicker....rant over :P

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don't get me started on the "free ride" that the single mum teenagers have in this country....if it was a bit harder to get by if you have a child and you didn't get handed a new flat when you turn up pregnant then they might keep their legs closed quicker....rant over :P

I took part in a presentation in a Secondary school a few years back. It was to a 5th form class, I'll not go into the details but during it we went around the room asking each of them what they would like to do when they left school.

I kid you not, one of the girls said "nah im not gonna work ... i'm not gonna do nothin, im gonna have a baby next year and get a house" ... with aspirations like that and with the government funding it, theres not much hope for change.

I think that the rental prices here are actually higher than they should be because the government is funding up to £500 approx in housing benefit per month for ppl in this situation. With the benefit reforms and likely reduction of this funding it will be interesting to see what impact this has on the rental costs per month.

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I think that the rental prices here are actually higher than they should be because the government is funding up to £500 approx in housing benefit per month for ppl in this situation. With the benefit reforms and likely reduction of this funding it will be interesting to see what impact this has on the rental costs per month.

Totally agree, the bottom end of the rental market and alot of BTL businesses are held up artificially by benefits. The cheapest place I can find usually is £450/month for a miserable place, £550 for a great flat when £650 (Incl rates) will get you a house.

Citizens Wage and free stuff for baby care are amongst a few radical ideas. Its this trying to determine 'need' which is tripping everyone up. The real problem is interest bearing loans that require a people pyramid scheme, that is driving gov't to encourage children production. They are just disappointed that the children of benefit users don't take out loans to buy houses (except more recently!), they just tend to stay on benefits too.

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  • 309 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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