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Captain Cavey

Most Young Scots Forced To Rent By 2020

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…must…contain ..Growing ….RAGE…… NOOOO TOO LATE.




Most young Scots forced to rent by 2020

The majority of young Scots will be forced to rent a home by the end of the decade because they cannot get a mortgage, according to a new analysis prepared for ministers

An analysis published by the Scottish Executive found the proportion of people aged under 35 renting from a private landlord has rapidly increased from 13 per cent in 1999 to 31 per cent a decade later.

By 2014 this group will overtake the number of young Scots with a mortgage and by 2020 more than half of under-35 households will be renting in the private sector.

The paper said a “significant barrier” is the high cost of deposits required to get a mortgage, with banks and building societies typically demanding 15 per cent of the house price up front.

Young people trying to save for a deposit face an additional burden as landlords are taking advantage of the situation by increasing rents, with the average bill now back at the same level as before the credit crunch.

But, despite the recent recession and collapse in the property market, the analysis concluded that Scots’ desire to buy their own homes is stronger than ever.

“The private rented sector has become an increasingly important form of tenure, especially for households under 35,” the report concluded.

“Although aspirations for home ownership remain, without assistance from parents or others, these households will struggle to accumulate sufficient savings for the level of deposit now required to become home owners.”

The paper made clear the “key problem” was the reluctance of financial institutions to lend as they attempt to repair their balance sheets following the credit crunch.

The number of mortgages approved in Scotland has fallen from 28,700 in the third quarter of 2007 to 7,600 in the first three months of 2009.

Although the market has since stabilised, the number of approvals remains below the level seen between 2000 and early 2008.

According to the analysis, the average age of first-time buyers who cannot rely on their parents for help with a deposit has increased from around 33 in 2006 to more than 36 in 2009.

This is reflected in figures showing the proportion of young Scots living in homes they have bought has fallen from 53 per cent in 1999 to 43 per cent in 2009.

More are being forced to rent instead, with the average young Scot paying their landlords nearly half their income in rent.

The report suggested little will change in the near future, with the Bank of England withdrawing the Special Liquidity Scheme for banks and the Financial Services Authority about to tighten the rules on lending.

A CML spokesman confirmed there was little prospect of a “turnaround”, leading to “entrenchment of these difficult conditions” for younger people.

Alex Neil, the SNP Housing Minister, said first-time buyers typically need a deposit of £25,000 and he will shortly unveil “radical” plans to increase the number of affordable homes for rent.

But David Cameron told the Prime Minister’s Questions the Government is in discussions with RBS and he was “convinced” these will result in more lending.

The concept of prices coming down to meet the ability to pay seems far too alien for these “experts”

Edited by Captain Cavey

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…must…contain ..Growing ….RAGE…… NOOOO TOO LATE.



The concept of prices coming down to meet the ability to pay seems far to alien for these “experts”

This concept is not alien to them. They are simply lying.

Read this in full - it'll change the way you read newspapers and watch TV forever. The world around us is built on big lies, and here's why:

"In the big lie there is always a certain force of credibility; because the broad masses of a nation are always more easily corrupted in the deeper strata of their emotional nature than consciously or voluntarily; and thus in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods. It would never come into their heads to fabricate colossal untruths, and they would not believe that others could have the impudence to distort the truth so infamously. Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and waver and will continue to think that there may be some other explanation. For the grossly impudent lie always leaves traces behind it, even after it has been nailed down, a fact which is known to all expert liars in this world and to all who conspire together in the art of lying." — Adolf Hitler , Mein Kampf, vol. I, ch. X

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Nice one!

What can you say? I had a chat with my girlfriend on the back of the seasonally adjusted Halifax figures - we'd both be in favour of a move abroad if prices stay high here, somewhere where my engineering talents can bag me some more money and we wont be mortgage slaves. To be honest even if prices do come down builds are of such poor quality, it's almost money down the drain.

Edited by guitarman001

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  • 284 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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