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Household Finances At Breaking Point, Says Shelter

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Household finances at breaking point, says Shelter

Rising bills and high housing costs are pushing many household budgets "to breaking point", with one in 11 people worried they will not be able to afford their rent or mortgage this month, according to research from Shelter.

The housing and homelessness charity said it was currently seeing a "stream of cases" of families who had been unable to cope with mounting rent or mortgage payments, and added that some of them "could face the very real prospect of losing their home this year".

The warning comes days after a report from the Resolution Foundation thinktank indicated that more than a million homeowners could be at risk of defaulting on their mortgages and losing their properties in the wake of even a small rise in interest rates. Meanwhile, a recent survey carried out by Which? found that rather than paying off their debts, around 13 million people paid for Christmas by borrowing more money.

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Tired of these stories, nobody's losing anything, nobody who owns a home that is (stuff everyone else: the saver, taxpayer, the renter). The taxpayer will bail them out again, we all know that's how it works now.

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Building 100k council houses per year for the next 5/6 years would solve this crisis - in fact Shelter would no longer be needed.

There is plenty of greenfields out there that can be bought for £10k per acre, the cost of building a terrace (materials) is about £60k.

Wouldn't cost the government a thing since they would be saving 20 Billion a year in housing benefits.

the government don't want to since they are on the landlord & banks side.

Shelter don't want this [lower rents/house prices] either as it makes them redundant.

Edited by Gone to Ireland.

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the cost of building a terrace (materials) is about £60k

I keep hearing similar figures quoted on this forum, but that could only be true if you provided all the labour and built a whole street of terraces. Sub out the trades and the cost in the South-East (not London) rises to about £1000-1100 per square metre for an average quality self build, and that's excluding any land price costs.

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I keep hearing similar figures quoted on this forum, but that could only be true if you provided all the labour and built a whole street of terraces. Sub out the trades and the cost in the South-East (not London) rises to about £1000-1100 per square metre for an average quality self build, and that's excluding any land price costs.

The cost of building here is Ireland is about €1000/sqm average, so you could have a 72sqm terrace for £60k materials inc. labor.

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The warning comes days after a report from the Resolution Foundation thinktank indicated that more than a million homeowners could be at risk of defaulting on their mortgages and losing their properties in the wake of even a small rise in interest rates.

Won't bankers like HSBC and RBS etc, funders/partners of that group including the Resolution Foundation, offer funding help to these people.

Shelter should at least make enquiries.

Which could even do some research on it.

http://

www.cloresocialleadership.org.uk/Funders-and-Partners.aspx

Edited by billybong

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Shelter need to decide whether they support lower prices and if not, why not.

I had a twitter exchange with Robbie de Santos, a shelter employee who wrote a report a while ago concerning(amongst othee ideas) the benefits of shared ownership on as extreme a basis as 12% dual-income(!). He said he was pro-low housing costs after I asked him directly.

I get the impression that a prevailling political mindset is required to work for Shelter.

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Lower housing costs, or lower house prices?

As we now know, house prices can be pushed up to infinity by manipulating the home loan rates and conditions to increase affordability. So you can have low housing costs with very high prices, supported by government spending, nationalised banks, benefits and subsidies. All the policy makers are focused on pursuing this path. It makes HPC virtually impossible. We will see HtB mk3-mk10 before the decade is out. Sub zero IRS, subsidies for house prices. What or who will stop government from doing this? The whole thing has been marked as too big to fail.

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Lower housing costs, or lower house prices?

As we now know, house prices can be pushed up to infinity by manipulating the home loan rates and conditions to increase affordability. So you can have low housing costs with very high prices, supported by government spending, nationalised banks, benefits and subsidies. All the policy makers are focused on pursuing this path. It makes HPC virtually impossible. We will see HtB mk3-mk10 before the decade is out. Sub zero IRS, subsidies for house prices. What or who will stop government from doing this? The whole thing has been marked as too big to fail.

Well organized rent strikes might make the landlords & bankers think twice. ;)

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