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House Prices: Eight In 10 Homes Out Of Reach Of Families On Average Wages

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http://www.theguardian.com/money/2014/jun/25/house-prices-out-reach-shelter-housing-crisis

Fewer than two in every 10 homes for sale in England are affordable for working families on average wages. And in some areas, would-be buyers are priced out completely, even if they can raise a sizeable deposit, according to figures from Shelter that underline the extent of the housing crisis.

Rocketing house prices in some regions, combined with stagnant wage growth, have combined to push homes out of the reach of buyers, so much so that in more than half the country fewer than one in 10 of the suitable homes on the market was affordable to families who could put a typical 18% deposit towards their purchase.

"When a family looking to buy their first home searches a whole town for a place to live and finds nothing they can afford, it's clear we're not just facing a housing shortage: it's a full-blown drought," said Campbell Robb, chief executive of Shelter.

The latest figures from the Office for National Statistics put the average price of a home in England at £271,000, although the headline figure disguises big regional differences.

Shelter's research, based on the asking prices of all homes listed for sale on property website Zoopla on a single day in April, assumes that homebuyers can borrow up to 3.4 times the average local income to finance a purchase and that couples with children will typically be earning one full-time and one part-time salary.

On this basis, the charity said there were 14 local authority areas in London where not a single two-bedroom or larger property was affordable to a typical family, and in 13 there were no one-bedroom homes within reach of the average first-time buyer.

The affordability crisis is, unsurprisingly, greatest in London, where prices have risen by almost 20% over the past year. Shelter found that in all 32 of the capital's boroughs fewer than 10% of homes were affordable to couples with children. For single buyers, this figure extended to the entire south-east and south-west.

Shocking, I mean if only people where highlighting the problem.

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I think the aim is to make houses totally unaffordable, making price discovery impossible. Then home owners can pretend for ever to be 'rich' without market or economic reality destroying the fantasy.

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8 out of 10 homes are now unsellable.

8 out of 10 owners now living on planet la la land.

8 out of 10 homes being over-valued by EAs just to get them on their books.

8 out of 10 estate agents trying to cash in on tax payer hand outs.

10 out of 10 bankers to blame.

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I think the aim is to make houses totally unaffordable, making price discovery impossible.

The aim is to take as much of your disposable income as possible ( and generate as much tax revenue from house sales as possible), it's the same for any business.

I don't care if they try and do this but not using tax payers money, government subsidies and 0.5% interest rates.

The game has been rigged in favour of the banks.

It will take a 2nd collapse and a very public humiliation/prosecution of those involved in this fraud before changes are made and the bankers are re-regulated.

Correct me if I am wrong but as far as I can see it we have a situation where politicians have massive unearned untaxed income in their london 2nd homes, We have ex-politicians taking highly paid jobs at banks. We have a banker in charge of setting interest rates. We have banks living off tax payers money and worst of all, printed money that I suspect will never be paid back. We have a V.I. media ramping property so they can profit from their untaxed unearned income. Shelter/Houses ( i.e. one of everyone's basic needs ) are an "investment" now ( The media is not allowed ramped shares and profit from it (which is an investment) so why houses ? ) We have British houses being sold to foreign investors and so called British politicians doing nothing about ( ask yourself why ? ) We have a publicly funded body, the BBc, which in my opinion is massively biased towards ramping property. We have government backed banks lending money to investors ( aka BTL idiots ) so they can out price young families. We have scheme after scheme after scheme to try and prop up house prices. We have unlimited immigration ( despite what they say ) to try and keep what looks to me like a pyramid scheme going.

The whole thing adds up to a group of people who refuse to accept reality, that prices at 50% too high and to act in the best interest of the other 69 million people in the country.

Unless something changes a 2nd collapse is inevitable. I suspect it's already started.

If the government wanted they could stop this in a week, that's why I'll never vote tory ever again, that's why i'll be voting UKIP regardless of their polcies.

Edited by TheCountOfNowhere

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In a recent survey 8 out of 10 owners preferred Pedigree CHUM

Community Housing Unaffordable Mostly

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I think the aim is to make houses totally unaffordable, making price discovery impossible. Then home owners can pretend for ever to be 'rich' without market or economic reality destroying the fantasy.

Yes, but in another decade there won;t be many homeowners.

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Shocking, I mean if only people where highlighting the problem.

Lower interest rates,increase the price, make it easier by paying the interest only.....skies the limit.

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Lower interest rates,increase the price, make it easier by paying the interest only.....skies the limit.

well, apart from the pension time bomb...no returns = no annuity.

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Lower interest rates,increase the price, make it easier by paying the interest only.....skies the limit.

Decrease disposable income, risk collapsing your currency/government/country through money printing unsustainable borrowing.....there is a limit, that limit was reached in 2007, these new attempts to push prices back to that limit are electioneering and as such should be deemed fraudulent and illegal if you ask me.

Edited by TheCountOfNowhere

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Have just forwarded the article to the relative who told me I needed to move (with wife and 2 toddlers) to a cheaper area of the country. I really would like to know what the job prospects are like in the 20% of England that is affordable.

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Have just forwarded the article to the relative who told me I needed to move (with wife and 2 toddlers) to a cheaper area of the country. I really would like to know what the job prospects are like in the 20% of England that is affordable.

empty-office.jpg

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So, for everyone who actually works, all their "disposable" income will have to be spent on housing. That means no money for shops, no money for any kind of luxuries, goodbye Amazon, goodbye Carpetright, goodbye John Lewis, goodbye Waitrose (sorry but generation rent can't pay your fancy prices). No money for the welfare state, NHS but more than half the country reliant on benefits. Those in work actually shrinking because there are no jobs and it doesn't pay to work.

Will there come a time when there is hardly anybody working/everyone doing zero hours/minimum wage jobs and everyone is reliant on benefits, being paid housing benefit and tax credits from printed money to pay foreign landlords and foreign companies to be able to rent a shoebox/part time minimum wage job from them in their own country?

Edited by fru-gal

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So, for everyone who actually works, all their "disposable" income will have to be spent on housing. That means no money for shops, no money for any kind of luxuries, goodbye Amazon, goodbye Carpetright, goodbye John Lewis, goodbye Waitrose (sorry but generation rent can't pay your fancy prices). No money for the welfare state, NHS but more than half the country reliant on benefits. Those in work actually shrinking because there are no jobs and it doesn't pay to work.

Will there come a time when there is hardly anybody working/everyone doing zero hours/minimum wage jobs and everyone is reliant on benefits, being paid housing benefit and tax credits from printed money to pay foreign landlords and foreign companies to be able to rent a shoebox/part time minimum wage job from them in their own country?

well, all those reasons are why the interest rate "tool" was one the Government could use to control booms and busts...sadly, we are in a very long bust and the tool of lowering rates doesnt boost demand as borrowers suddenly have spare disposable...as you rightly point out, people convert that extra cash into bigger mortgages..

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So, for everyone who actually works, all their "disposable" income will have to be spent on housing. That means no money for shops, no money for any kind of luxuries, goodbye Amazon, goodbye Carpetright, goodbye John Lewis, goodbye Waitrose (sorry but generation rent can't pay your fancy prices). No money for the welfare state, NHS but more than half the country reliant on benefits. Those in work actually shrinking because there are no jobs and it doesn't pay to work.

Will there come a time when there is hardly anybody working/everyone doing zero hours/minimum wage jobs and everyone is reliant on benefits, being paid housing benefit and tax credits from printed money to pay foreign landlords and foreign companies to be able to rent a shoebox/part time minimum wage job from them in their own country?

Thiis seems to be the way it has gone. We need the supply of houses to out strip demand to give ordinary people a descent life. But this will never happen with unlimited immigration. Well that's not quite true. When Britain gets into such a mess that people are starving in the street then immigrants will stop coming here.

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Thiis seems to be the way it has gone. We need the supply of houses to out strip demand to give ordinary people a descent life. But this will never happen with unlimited immigration. Well that's not quite true. When Britain gets into such a mess that people are starving in the street then immigrants will stop coming here.

We need to stop the immigration, regulate the bankers, hammer down the cost of living, invest in real jobs, cut the public sector to the bone.

How do government normally achieve this:

WAR.

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here we are back to 2003.

In those days, you could simply go the "new" route and see an IFA and organise a liar loan.

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Shelter's research is based on looking at the asking price on Zoopla on one day in April. Are they having a laugh? There is much more in-depth research on the forum!

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We need to stop the immigration, regulate the bankers, hammer down the cost of living, invest in real jobs, cut the public sector to the bone.

How do government normally achieve this:

WAR.

With people of all races living here war could be a big problem. May end up like what's happening in Iraq with a civil war. Lee Rigby could be the start of what's to come. I hope not. Some times I'm glad I am 50 with my best years behind me.

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Yes Ash4781, Shelter don't do themselves many favours imo (I am pretty skeptical of them tbh). On one hand prices are unaffordable, on the other they have a policy position to encourage shared ownership on as little as a 12.5% basis, joint income to boot. 200 years of work to repay in full. I asked the person at Shelter responsible for the report (Robbie de Santos, see my @cheeznbreed Twitter feed around 5th September last year) where the dosh for subsequent portions of the house was to come from, he said benefits or downsize to outright owned home. What planet are these people on?

Edited by Joan of The Tower

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With people of all races living here war could be a big problem. May end up like what's happening in Iraq with a civil war. Lee Rigby could be the start of what's to come. I hope not. Some times I'm glad I am 50 with my best years behind me.

Yeah, I think it is an issue and the rise of UKIP is just the start of it. If the country's in as big a mess as we think then it will just get worse and worse,

On one hand we have a government telling us that there are 1500 ( or whatever the number was ) "British" "ISIS" terrorists who could terrorise us ( aka we will go to war and use this as an excuse and I can assure you if they are ISIS supporters they are not British ) and they are the one's letting them in the country !!!! Something seems wrong to me.

BTW. is ISIS the new made up name for the bogeyman ? I'm not sure to tell my children "al queda's going to get you or make it ISIS now".

They also tell us they can't track these people....meanwhile they can track the location and origin of every cow in the country. :lol:

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I wish I could subscribe to the view that 'what cannot be sustained won't be' but I think in medium term timescales it probably will be. You can't cancel the apocalypse but you can keep putting it off.

This and the last government have staked their whole 'economy' around house prices. What many on here don't seem to realise is that the 'market' for housing is very different to that for say, haircuts. There is no reason why we won't move towards a society where those who have housing pass it on, their offspring either renting in fun shared houses or saving cash at home, and those who don't spend more and more of their salaries on substandard housing, topped up by benefits.

Debt as a share of GDP isn't that high, I don't see why this won't happen over the next sat 25-30 years. There's no law of economics saying that prices must adjust to become affordable or that wages must rise. The only real prospect for change is major reform of law/policy which despite a bit more talk recently, still seems aeons off.

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Yeah, I think it is an issue and the rise of UKIP is just the start of it. If the country's in as big a mess as we think then it will just get worse and worse,

On one hand we have a government telling us that there are 1500 ( or whatever the number was ) "British" "ISIS" terrorists who could terrorise us ( aka we will go to war and use this as an excuse and I can assure you if they are ISIS supporters they are not British ) and they are the one's letting them in the country !!!! Something seems wrong to me.

BTW. is ISIS the new made up name for the bogeyman ? I'm not sure to tell my children "al queda's going to get you or make it ISIS now".

They also tell us they can't track these people....meanwhile they can track the location and origin of every cow in the country. :lol:

I live for the day all races, all backgrounds, all religions all people join together in beautiful harmony form an angry mob and beat the shit out the the banksters who have been robbing them for centuries.

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