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Dave Beans

"first-Time Buyers Fear Lock-Out"

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http://www.bbc.co.uk/news/business-13575857

Two-thirds of young people without their own home believe they have no prospect of getting on the property ladder, a survey has suggested.

But 77% of them still aspire to home ownership, the poll of 4,000 non-homeowners for the Halifax found.

An increase in the rental sector could widen the wealth gap between homeowners and non-homeowners, the report concluded.

Higher deposits and tougher lending criteria have put off some buyers.

However, the report for the Halifax, one of the UK's largest mortgage providers, said there was "undue pessimism" among potential first-time buyers who feared having a mortgage application declined.

Some 47% of those surveyed, who did not own their own homes, said they would like to save for a deposit but had no spare cash to do so.

Nearly half of those who described themselves as having a realistic plan to buy within the next three to five years said they were unable to put aside enough for a downpayment.

However, Stephen Noakes, commercial director of Halifax Mortgages, told the BBC that the days of 100% mortgages were over.

But he said that mortgages for those offering a 5% deposit could come back to the market, and there were options such as shared equity schemes that could assist those trying to get on the property ladder.

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http://www.independent.co.uk/life-style/house-and-home/property/britain-to-become-a-nation-of-renters-2291072.html

But a separate report published yesterday by the Institute for Public Policy Research think-tank warned of the risks involved in allowing a mortgage free-for-all. The report argues that one of the reasons house prices are so high is that it is too easy for buyers to raise mortgages they can barely afford.

They suggest that the Government should introduce rules to restrict the size of a mortgage to 90 per cent of the price of a property, and three-and-a-half times the household's annual income. They argue that this would prevent another housing bubble.

The IPPR plan would require first-time buyers to save up thousands of pounds towards a deposit on their first home, as young couples were forced to do a generation ago – but the Halifax survey suggests that they are unlikely to do it, because they do not think the banks or building societies will lend to them anyway.

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Two-thirds of young people without their own home believe they have no prospect of getting on the property ladder, a survey has suggested.

And by young they mean anyone under about 36.

But its OK. The mums on welfare in a house the taxpayer bought them will have 4 kids by 4 different fathers and will provide the next generation.

Visited my home town last weekend. Loads of new executive homes had been put up, lovely properties. The developers could not sell them without lowering the price, so sold most to to the local housing association, now they are full of these slags who have never done a days work in their lives and have zero control over their kids. The future of Britain is going to be hellish.

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And by young they mean anyone under about 36.

But its OK. The mums on welfare in a house the taxpayer bought them will have 4 kids by 4 different fathers and will provide the next generation.

Visited my home town last weekend. Loads of new executive homes had been put up, lovely properties. The developers could not sell them without lowering the price, so sold most to to the local housing association, now they are full of these slags who have never done a days work in their lives and have zero control over their kids. The future of Britain is going to be hellish.

Where is 'home'?

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Where is 'home'?

One of those 'seaside towns' we have been hearing about lately on the south coast.

Old folk leave London, sell a house for a million and think nothing of overpaying by the sea.

Best mate of old still lives there, is an estate agent no less.

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The young priced out FTBrs I know are making the most of their freedom currently. Fearful of lockout was 2005-2007. Not now.

They are working in low paid jobs, some even with a degree. Those on higher salaries are fearful or stressed out from work, and not ready to commit to a house purchase. If this is the new paradigm, for the next 5-10 years, house prices aren't going anywhere.

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And by young they mean anyone under about 36.

But its OK. The mums on welfare in a house the taxpayer bought them will have 4 kids by 4 different fathers and will provide the next generation.

Visited my home town last weekend. Loads of new executive homes had been put up, lovely properties. The developers could not sell them without lowering the price, so sold most to to the local housing association, now they are full of these slags who have never done a days work in their lives and have zero control over their kids. The future of Britain is going to be hellish.

http://www.youtube.com/watch?v=PSROlfR7WTo

(Note: The audio's a little out of sync)

Unfortunately the rest of the movie doesn't live up to expectations (seemingly wanting to appease the very people it seeks to ridicule) but this opening scene has it bang on.

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They just had this twunt on the Toady prog on R4, Neither him nor the useless interviewer Adam (Shaw?) made any mention of prices being too high or them being priced out. Not good for my blood pressure.

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[

Unfortunately the rest of the movie doesn't live up to expectations (seemingly wanting to appease the very people it seeks to ridicule) but this opening scene has it bang on.

That was a movie?? Looks more like a hard hitting factual documentary to me.

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And on the same day the Torygraph predicts that house prices will rise 15% by 2015, it also reports that £60bn of mortgages have been switched to IO.

There's somewhat of a disconnect there, surely? Unless they're predicting a 15% increase by 2015, followed by a 75% decrease by 2040...

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However, Stephen Noakes, commercial director of Halifax Mortgages, told the BBC that the days of 100% mortgages were over.

But he said that mortgages for those offering a 5% deposit could come back to the market, and there were options such as shared equity schemes that could assist those trying to get on the property ladder

Well he would say that wouldn't he?! How long can they avoid saying lower prices will help first time buyers? Anyone with integrity would advise buyers to steer well clear of "shared equity" scams. Restricting mortgages to 3.5x a single salary would restore some sanity to prices, albeit at the expense of those who filled their boots with i/o liar loans over the past decade. 

I also thought the film Idiocracy was a bit of a lost opportunity. After that strong beginning it did lapse somewhat. But the start was right on the money...

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Higher deposits and tougher lending criteria have put off some buyers.

But it's mostly down to the fact that house prices are over priced to start with

Edited by hpc-craig

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Some idiot from Halifax on R5 this morning at 07.43. People can't buy because they have to save for a deposit and a "fear of rejection"!!!!!! (exact words)

He then started to peddle some cr@p about 88% of applicants for mortgages being successful etc. There was only the briefest mention of house prices.

Fear of rejection :rolleyes: that's when a 10 year old asks his best mate to tell a girl he fancies her FFS!

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It's a prescient article. Owner occupancy is currently falling and will keep falling for a generation or more.

Almost everyone loses. House prices will fall (which will spoil the retirement expectations of BTL landlords) but a mortgage famine and sensibly high deposit requirements will mean more long term renters (which will spoil the living/family expectations of school leavers and graduates).

Who wins?

The wealthiest few percent plus better paid public sector workers with decent pensions. For everyone else living standards slowly decline.

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They just had this twunt on the Toady prog on R4, Neither him nor the useless interviewer Adam (Shaw?) made any mention of prices being too high or them being priced out. Not good for my blood pressure.

thats because no-one in the media IS priced out.

And as good "reporting" is normally interviewing each other, then how can they know that most people earn under 25K?

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Owner occupancy is currently falling and will keep falling for a generation or more.

I don't see how anyone can make a 30 year forecast on anything.

30 years ago was 1981. Could anyone reasonably have predicted anything happening today then, in the housing market or elsewhere? How can we predict 2041?

Owner occupancy rates will probably fall for another 18 months. Beyond that is speculation.

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Two-thirds of young people without their own home believe they have no prospect of getting on the property ladder, a survey has suggested.

Only because they perceive it to be a ladder.....when they see it is only a first rung that is hard to get on to and off of they will have a different belief about the true benefit. ;)

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I don't see how anyone can make a 30 year forecast on anything.

30 years ago was 1981. Could anyone reasonably have predicted anything happening today then, in the housing market or elsewhere? How can we predict 2041?

Owner occupancy rates will probably fall for another 18 months. Beyond that is speculation.

Take your point, but in 1981 I'd just graduated with a (not particularly good) economics degree. It was a terrible time and the generally accepted view then was that things were getting worse and in 30 years we'd be in dire straits. So actually the 30 year view from 1981 was more accurate than the shorter term predictions!

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"Higher deposits and tougher lending criteria have put off some buyers."

Why can't the BBC or Halifax say the obvious, high prices are putting off buyers, why is it always about the amount of debt you can't put yourself in?

Why is this news?

Some 47% of those surveyed, who did not own their own homes, said they would like to save for a deposit but had no spare cash to do so.

I have a very large deposit and I still can't afford to buy a home (that I would want to live in).

A correction is long overdue.

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I don't understand how rents can be rising.

With housing benefit cuts, job cuts, wage cuts, large disposable income cuts ... how can rents be rising?

Only the already rich are benefiting from this 'downturn' and they wouldn't be in the rental market anyway.

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I don't understand how rents can be rising.

With housing benefit cuts, job cuts, wage cuts, large disposable income cuts ... how can rents be rising?

Only the already rich are benefiting from this 'downturn' and they wouldn't be in the rental market anyway.

...IMO the priority for governments if they want fairness and to get housing markets moving, operating in a healthy way again is to sort the excessive high rents situation out...it will kill talent, kill confidence and kill all motivation. ;)

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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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