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Barriers To Homeownership Dividing Britain, Youth Say

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People would not want to own if the system was changed so as to make it more beneficial to rent.......there a quite a few things they could do to encourage more people to want to rent.....why don't they do that? ;)

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The only thing that's stopping me buying a house is the price. I could afford to buy one now but I don't fancy tying up a lot of money in an illiquid, depreciating, asset. I expect prices to fall to around 50% of peak bubble prices by the end of the decade. When they do I'll probably buy, unless it looks at the time like they're going to go considerably lower than that.

As for Mr Prisk :lol::lol::lol:.

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The only thing that's stopping me buying a house is the price. I could afford to buy one now but I don't fancy tying up a lot of money in an illiquid, depreciating.

Me and you both Bruce.

I'd rather take a 50% hair cut and see house prices collapse than put money in the pockets of the bankers/baby boomers. Fec 'em.

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(Reuters) - Most young Britons say rising barriers to home ownership are dividing the country socially and economically, and one in five has abandoned the dream of ever owning a property, a survey by mortgage provider Halifax said.

Over 70 percent of 8,051 survey respondents said the country was being split between those who could and those who couldn't buy a home, which in the long run could impact neighborhoods, families and the job market, the Lloyds Banking Group-owned (LLOY.L) lender said on Monday.

The respondents, aged between 25 and 40, said the effects included leaving their generation without sufficient resources for retirement, affecting social mobility and widening the country's wealth gap.

House prices rose steeply in Britain from the late 1990s until the global financial crisis broke in 2008, and they have been kept high by a combination of factors, including historically low interest rates and shared ownership schemes.

The number of Britons renting privately is at its highest level since the 1990s at 22 million households, the survey said, with many unable to afford to buy a home due to the chunky deposits needed, a lack of mortgage loans and stagnant incomes.

Thirty-six percent of respondents said that they would like to buy a home but did not think they would ever be able to, the survey said.

Halifax also said that 70 percent of respondents did not believe, or were unsure that government plans to support homebuyers would help the market. In March, finance minister George Osborne announced plans to provide and guarantee billion of pounds in housing loans, which critics say could drive property prices higher still.

Housing Minister Mark Prisk said there had been 4,000 reservations under the guarantee scheme and urged others looking to buy a home to participate.'

Typo... Must be 2.2million households, unless they class those with mortgages as renting privately from the bank.

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The only thing that's stopping me buying a house is the price. I could afford to buy one now but I don't fancy tying up a lot of money in an illiquid, depreciating, asset. I expect prices to fall to around 50% of peak bubble prices by the end of the decade. When they do I'll probably buy, unless it looks at the time like they're going to go considerably lower than that.

As for Mr Prisk :lol::lol::lol:.

Yes... and I am trying hard to understand the mind of some guys who bought a £3m pads with £2m mortages when they could have got £1m houses mortgage free.

Edited by easy2012

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Housing Minister Mark Prisk said there had been 4,000 reservations under the guarantee scheme and urged others looking to buy a home to participate.'

and they're the unlucky ones if buying at the top of a creaking and unsafe London housing market and nearly as unlucky if buying elsewhere in Britain.

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people were saying this about London and SE in 2007 and 2008 ... and now there is FLS to help support prices.

Prices dropped in london in 2008...I saw it with my own eyes.

Only when the 0.5% interest rates and Q.E. kicked in did the 'recovery' start :lol::lol::lol::lol:

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Debt junkies, very sad.

Might be to do with the thought that they have to be at certain address or the house price always go up thinking - the bigger the better.

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People would not want to own if the system was changed so as to make it more beneficial to rent.......there a quite a few things they could do to encourage more people to want to rent.....why don't they do that? ;)

Yes, long term renting could so simply be made a hugely more realistic option for most people, that the only plausible explanation for them not doing so is that they don't want it to be an option.

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people were saying this about London and SE in 2007 and 2008 ... and now there is FLS to help support prices.

There was a significant drop in London prices after the peak but maybe it's fair to say they seem to have bounced back? but it's taking an extreme level of government support along with foreign investment and heavily coordinated media hype just to keep them at this level. It's creaking and groaning like never before. The rivets are starting to shake and loosen, steam's coming out all over the place. As quick as the government puts one wheel back another falls off.

These days at the prices most average people currently buying in London can be considered to be unlucky even if prices don't drop. Of course for the price insensitive rich it's a different matter.

Edited by billybong

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Yes, long term renting could so simply be made a hugely more realistic option for most people, that the only plausible explanation for them not doing so is that they don't want it to be an option.

Totally agree.......the question is why? ;)

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The number of Britons renting privately is at its highest level since the 1990s

Interesting.

"Since the 1990s" isn't that long, and it rather suggests a reason might be HPI. When we had HPI (or expectation of HPI) nearly everyone who could buy did so, and the number of renters fell to just those with no choice. Now HPI is no longer widely expected, more people choose to rent.

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Totally agree.......the question is why? ;)

These things happen slowly. Give it time.

'twas 1977 when the rent act killed off the private rentals market. It wasn't 'til the 1988 Housing Act it could begin to revive. 11 years when all you could get in the open market was a 'license', and just trust your borderline-gangster landlord not to fill the room he said was yours with 15 other people, as the license permitted him to do.

Edited by porca misèria

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  • 239 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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