OnionTerror Posted May 30, 2011 Share Posted May 30, 2011 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. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted May 30, 2011 Share Posted May 30, 2011 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. Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted May 30, 2011 Share Posted May 30, 2011 Beeb. Meh. 4,000 people polled, probably in London or another big city does not make for a good representation of the nation. Quote Link to comment Share on other sites More sharing options...
KingBingo Posted May 30, 2011 Share Posted May 30, 2011 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. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted May 31, 2011 Share Posted May 31, 2011 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'? Quote Link to comment Share on other sites More sharing options...
KingBingo Posted May 31, 2011 Share Posted May 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
200p Posted May 31, 2011 Share Posted May 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
GordonBrownSpentMyFuture Posted May 31, 2011 Share Posted May 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
General Melchett Posted May 31, 2011 Share Posted May 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
KingBingo Posted May 31, 2011 Share Posted May 31, 2011 [ 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. Quote Link to comment Share on other sites More sharing options...
The Ayatollah Buggeri Posted May 31, 2011 Share Posted May 31, 2011 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... Quote Link to comment Share on other sites More sharing options...
funinhounslow Posted May 31, 2011 Share Posted May 31, 2011 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... Quote Link to comment Share on other sites More sharing options...
hpc-craig Posted May 31, 2011 Share Posted May 31, 2011 (edited) 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 May 31, 2011 by hpc-craig Quote Link to comment Share on other sites More sharing options...
John The Pessimist Posted May 31, 2011 Share Posted May 31, 2011 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 that's when a 10 year old asks his best mate to tell a girl he fancies her FFS! Quote Link to comment Share on other sites More sharing options...
silver surfer Posted May 31, 2011 Share Posted May 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 31, 2011 Share Posted May 31, 2011 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? Quote Link to comment Share on other sites More sharing options...
scottbeard Posted May 31, 2011 Share Posted May 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
winkie Posted May 31, 2011 Share Posted May 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
silver surfer Posted May 31, 2011 Share Posted May 31, 2011 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! Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted May 31, 2011 Share Posted May 31, 2011 http://www.bbc.co.uk/news/business-13575857 Lucky them. I';m sure there are more that, once on there, as terrified of being stuck with a weight round their neck that will crippled them financially for a decade or more. Quote Link to comment Share on other sites More sharing options...
koala_bear Posted May 31, 2011 Share Posted May 31, 2011 R4 now (8.33-8.37am) Guy from IPPR vs VI "High house prices are the problem" "UK has too much mortgage debt as part of the economy..." [/Quote] Quote Link to comment Share on other sites More sharing options...
cool_hand Posted May 31, 2011 Share Posted May 31, 2011 "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. Quote Link to comment Share on other sites More sharing options...
57percent Posted May 31, 2011 Share Posted May 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
winkie Posted May 31, 2011 Share Posted May 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
scrappycocco Posted May 31, 2011 Share Posted May 31, 2011 The beeb have been property ramping for years, perhaps still are. If your locked out head on over to the beeb, they'll fix you up. Quote Link to comment Share on other sites More sharing options...
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