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Bbc & House Price Recovery

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Two stories today on the BBC:

'Bankruptcies rise to new record': http://news.bbc.co.uk/1/hi/business/4406434.stm

'UK house price recovery continues' : http://news.bbc.co.uk/1/hi/business/4403734.stm

Also released were the latest debt statistics from Credit Action, UK. Since the turn of the century, in just over 5.5 years, based on figures available at 1st November 2005:

- Total UK personal debt has increased by £521bn (86%) from £609bn to £1,130bn

- Total secured lending on homes has increased by £445bn (90%) from £494bn to £939bn

- Total consumer credit lending has increased by £76bn (66%) from £115bn to £191bn

- Total credit card debt has increased by £23.9bn (75%) from £32bn to £55.9bn

- Base Rate has decreased by 1.0% from 5.5% to its current rate of 4.5%

- Average house price has increased by £89,868 (93%) from £96,340 to £186,208

- Average earnings have increased by £5,077 (28.5%) from £17,803 to £22,880

So going, back to the BBC report on the 'house price recovery', what the heck is going on? Why are people behaving like total loons and taking on even more debt when the economy is slowing, inflation is rising and house possessions increasing?

Have people in the UK totally lost the plot or are they just complete credit junkies? If this goes on, the under-30's in this country are assigned to the trash bin in terms of any viable financial future. How much longer is this farce going to drag on for?

I think this ridiculous situation has sparked a turning point in the younger generation - I call it 'Age Rage' i.e. what is the point of trying to become independent and save for a future when even a first-time home is utterly beyond your means, thanks to the BTL fiasco? Why not just blow your meagre salary on drink and consumer fixes and live for today instead? Not exactly a great foundation for the future of the good ship UK plc though, eh?

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I love this comment:

"A spokeswoman for the DTI said there was no special reason for the overall increase in insolvencies. She said it could be "peoples' circumstances, attitudes to debt or the availability of credit."

Hahahaha, who are these jokers?

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based on figures available at 1st November 2005:

- Total UK personal debt has increased by £521bn (86%) from £609bn to £1,130bn

- Total secured lending on homes has increased by £445bn (90%) from £494bn to £939bn

- Total consumer credit lending has increased by £76bn (66%) from £115bn to £191bn

- Total credit card debt has increased by £23.9bn (75%) from £32bn to £55.9bn

- Base Rate has decreased by 1.0% from 5.5% to its current rate of 4.5%

- Average house price has increased by £89,868 (93%) from £96,340 to £186,208

- Average earnings have increased by £5,077 (28.5%) from £17,803 to £22,880

WOW! :blink:

Edit: I've forwarded this page to a few of the papers, maybe seeing it ilaid out in a simple black and white form will make then think..........?

Edited by libitina

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Those figures are kind of scary.

So what happens next?

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  • 302 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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