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Britain 'gives Up' On Home Ownership

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http://uk.finance.yahoo.com/news/Britain-gives-home-ownership-tele-2788265787.html?x=0

Britain 'gives up' on home ownership
Myra Butterworth, 11:35, Friday 4 March 2011
Britain is ‘giving up’ on its dream of being a nation of home owners as figures show two out of five first-time buyers do not expect to step onto the property ladder until they are at least 40 years old.
It is the latest evidence of buyers struggling to purchase their first home after concerns were raised earlier this week that the typical age of a first-time buyer could soon increase from 37 to 44.
The most recent alarming findings by property website Globrix.com also suggested one in 12 never expect to buy a home while a quarter said they are relying on their parents to provide at least 20 per cent of their initial deposit.
A lack of mortgage finance is the main hurdle for buyers
as lenders demand increasingly larger deposits for the best rates.

Nothing to do with the fact that, compared with labour related renumeration, the cost of living due to the bankster subsidies or the biggest fact of them all: houses are about 30-40% overvalued.

The main hurdle is PRICE. Houses are TFE.

Edited by Realistbear

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It's not a problem if we're moving to a German model where people don't own homes. I've been hearing for decades about how much better that is. I deal with international customers and was in Germany recently and when I asked the guy I was dealing with (mid 40's) he told me he'd never owned his house and never wanted to.

If this really the end of civilisation?

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It's not a problem if we're moving to a German model where people don't own homes. I've been hearing for decades about how much better that is. I deal with international customers and was in Germany recently and when I asked the guy I was dealing with (mid 40's) he told me he'd never owned his house and never wanted to.

If this really the end of civilisation?

But German renters have proper tenancy protection...... no sign of that in laissez-faire Britain......

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Nothing to do with the fact that, compared with labour related renumeration, the cost of living due to the bankster subsidies or the biggest fact of them all: houses are about 30-40% overvalued.

The main hurdle is PRICE.

It is simply AMAZING how people just CANNOT see that it's the bloody PRICE!!! :angry: :angry: :angry:

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Don’t be silly RB of course it's the fact you can no longer take on huge amounts of unsustainable debt.

House prices are completely fair value IMO, in-fact they are probably 40% undervalued right now.

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It is simply AMAZING how people just CANNOT see that it's the bloody PRICE!!! :angry: :angry: :angry:

These are the facts.

1. In 19th century Britain houses were dirt cheap. The ratio of house prices to average incomes was a bit over x1 in rural areas and a bit less than x1.5 in urban areas. Furthermore there was hardly any "local authority" housing or rent controls to make the idea of home ownership any less appealing. But despite this owner occupancy remained below 10%. The reason was because credit for house purchases, apart from a few embryonic friendly societies, was virtually non existant.

2. During the 20th century credit in the shape of mortgages became more and more widely available, and home ownership grew from 11% in 1900 to over 70% in 2000. But over the course of the 20th century house prices in relation to average earnings became more and more expensive, sure there were ups and downs, but the overall trend was clearly up.

In other words owner occupancy consistently grew as houses became more expensive. Why? Because credit became more and more widely available.

So the facts say that it's not house prices that drives home ownership, it's credit availability.

Edited by silver surfer

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These are the facts.

1. In 19th century Britain houses were dirt cheap. The ratio of house prices to average incomes was a bit over x1 in rural areas and a bit less than x1.5 in urban areas. Furthermore there was hardly any "local authority" housing or rent controls to make the idea of home ownership any less appealing. But despite this owner occupancy remained below 10%. The reason was because credit for house purchases, apart from a few embryonic friendly societies, was virtually non existant.

2. During the 20th century credit in the shape of mortgages became more and more widely available, and home ownership grew from 11% in 1900 to over 70% in 2000. But over the course of the 20th century house prices in relation to average earnings became more and more expensive, sure there were ups and downs, but the overall trend was clearly up.

In other words owner occupancy consistently grew as houses became more expensive. Why? Because credit became more and more widely available.

So the facts say that it's not house prices that drives home onership, it's credit availability.

That is fair enough - up to a point. Today house prices ARE driving credit availability. It is simply because they got too high - that credit has receded.

So at the moment:

House prices > driving credit availability > which in turn is driving house prices.

The perfect loop.

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But German renters have proper tenancy protection...... no sign of that in laissez-faire Britain......

Christ that's a minor detail if it's all that stands between tenancy being ok and being the end of the World.

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Christ that's a minor detail if it's all that stands between tenancy being ok and being the end of the World.

I don't think it's minor at all. It's not just that you've got the possibility of being kicked out for no reason - it's that the landlord can use it as a bargaining tool. Even if they're a decent one, you know it and they know it.

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But German renters have proper tenancy protection...... no sign of that in laissez-faire Britain......

Thatcher (the evil bitch) and her Tory hatchet men tore up and destroyed all the UK's common sense rental/tenancy laws & contracts which had been devised to counteract landlord greed and 'rackman' type exploitation!

Such as fair rents - a council inspector would come round if you complained to assess your rent to be paid if landlord tried it on.

(The rent the inspector said flat etc was worth was then legally binding on the Landlord )

Edited by erranta

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  • 312 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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