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Ft - The Plight Of First-Time Buyers

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I couldn't find this referenced in the forums but thought it worth a read (dated 16th Feb) ... I have even posted my comments on there:

*** SNIP

I am a potential first time buyer who at 37 (was my 37th birthday on 16th Feb just gone!) has modest savings for a deposit (all relatively instant access spread across a number of vehicles [iSA, metals, shares, cash]) but I will sit out of the currently insane housing market due to unrealistic pricing until sensible non-bubble prices are reached. Personally I think houses are more than 20% overvalued (more like 30%) when compared with the average wage and unfortunately this was allowed to "bubble up" during the noughties with lax lending standards (led by government policy), too low interest rates for too long (by the supposedly independent BoE but my guess would be led by government policy to create a "feel-good factor" for the debt dependents who were happily MEW-ing away against their ever-inflating "asset") and banksters working on a profit/bonus motive (pure greed).

What needs to be done to help FTBers (and particularly the younger who have not had as long as to save up the rightly substantial deposit required) is to allow the market to function normally and off its' own back. All government "fiddling" is doing is delaying the pain to the vendors and putting it onto the buyers. It will not be easy to remove the market supports as the vested interests involved have their rather large mouths close to the ears of powerful people (politicians / media) but remove them they must and allow our young adults to get on with their lives building careers, families and communities.

The mortgages of today and tomorrow evermore should be set where a 25% deposit is mandatory and a lending level of no more than 4x proved annual income or 3x joint proved annual income (i.e. no more liar loans) with interest only outlawed (unless a very temporary relief measure due to illness / loss of job). Then let house prices without government assistance find their own level.



Has anyone else seen this? 4 from 5 bearish comments plus mine (obviously!).

They ask "What do you think can be done to help first-time buyers? Should anything be done?" at the end of said article.

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  • 311 Brexit, House prices and Summer 2020

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