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Bbc This Morning Affordable Homes

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http://www.bbc.co.uk/news/live/business-30635686

07:31: Affordable Homes? BBC Breakfast
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Richard Jenkins of credit firm Experian is on Breakfast talking about some new research on home affordability. It will shock no-one that London and the South East has the biggest proportion of people who can't afford a home. The surprise is the South West. Outsiders buying second homes have driven up prices, making it less affordable for locals he says.

It was shocking news apparently lots of people don't earn enough to buy. A true revelation, although I don't think they dared mention the solution might be lower prices.

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notice other hotspots like the Lake district, North Yorkshire, the Cotswolds :huh:

the wish for higher wages to 'pay' for overpriced houses is a little simplistic - isn't that inflationary?

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the wish for higher wages to 'pay' for overpriced houses is a little simplistic - isn't that inflationary?

And hasn't the BoE said it will raise IRs if wage rises are too large - thus killing house prices in the same move?

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notice other hotspots like the Lake district, North Yorkshire, the Cotswolds :huh:

the wish for higher wages to 'pay' for overpriced houses is a little simplistic - isn't that inflationary?

House prices need to come down.......even at national minimum wage working full time would not come close to purchasing anything, many low paid jobs have no opportunity for promotion. There would be absolutely no way a deposit could be saved earning ~£13k a year and paying rent in a bedsit.

Average wage say £26k.....the sums don't add up, lower the price of buying in the area where you work and then they might.

Edited by winkie

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There must be some mistake. BBC also reporting Halifax statement that 2014 saw the biggest number of first time buyers since 2007.

The report also points out that:

  • Estimated (lol!) 22% increase in FTB over 2013
  • Average FTB deposit dropped by 7% in 2014
  • Mortgage payments average 32% of disposable income in 2014 as opposed to 50% in 2007, when interest rates were significantly higher.
  • House prices rose an average of 9% in 2014.

What could possibly go wrong in this utopian new la-la land? And what happened after 2007 for that to be the benchmark of their comparisons?

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But wait, with all these homes now being so affordable, how come the Daily Mirror are reporting this:

http://www.mirror.co.uk/money/three-four-mortgage-borrowers-could-4923593

Three in four mortgage borrowers could be in danger if interest rates rise

Lovely report, even showing a picture of a bloodied debt zombie crawling along to make his next mortgage payment. All goes swimmingly until this line:

Finally, an interest rate rise may have some less obvious effects. Many landlords are paying off a buy-to-let mortgage. If the Bank Rate rises, they may find it harder to pay the monthly sum. This could lead them to hike rents or even default on their mortgage leaving tenants potentially homeless.

Good luck with that, piggies :lol:

Edited by Fully Detached

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Just a reminder to the meeja, VI's and the indiocracy at large:

"affordable/əˈfɔːdəbəl/adjective - inexpensive; reasonably priced."

The English language is quite clear on the usage for this adjective, to put UK housing anywhere near this adjective is a sick joke, when the average wage , as mentioned by my peers above, can no longer afford to purchase the average house within a reasonable and sensible margin, the housing cost is not affordable.

I do wish they would stop doing this.

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Just a reminder to the meeja, VI's and the indiocracy at large:

"affordable/əˈfɔːdəbəl/adjective - inexpensive; reasonably priced."

The English language is quite clear on the usage for this adjective, to put UK housing anywhere near this adjective is a sick joke, when the average wage , as mentioned by my peers above, can no longer afford to purchase the average house within a reasonable and sensible margin, the housing cost is not affordable.

I do wish they would stop doing this.

The new Taylor Wimpey estate near me had an allocated affordable housing section of two terraces of 2-bedroom homes priced at £295k each, when the county's average wage is £25.5k

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The reason that I'm renting, and have been since 2006, is not affordability, it's value for money............ but that's just me, others may wish to spend the maximum amount they can beg, borrow, or steal on a house.

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The new Taylor Wimpey estate near me had an allocated affordable housing section of two terraces of 2-bedroom homes priced at £295k each, when the county's average wage is £25.5k

A good example of the damage done to the English language by those that desire to obfuscate their scam behind the words, affordable to whom exactly, local drug dealers on zero tax or bankers? Let's be generous and say that a fair multiple of wage is 3 times, that would make those "affordable" to anyone earning roughly 98k per year at any sensible lending margin.

The figures do not add up and this will crash so badly and so resoundingly that these fly your kite prices will seem unbelievable in the very near future.

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The reason that I'm renting, and have been since 2006, is not affordability, it's value for money............ but that's just me, others may wish to spend the maximum amount they can beg, borrow, or steal on a house.

Here is the key...Value for money for me too.

My Landlord spends about half my rent on stopping the house falling down...but he has no loans on it so even that is paying for some cruises every year.

Some people would be peed off about me paying for his cruises...but those same people arent peed off about me making a few bob on selling them some shelves now and then.

You see, my LL has BOUGHT to let.

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Richard Jenkins from Experian. Is ge in the data analytics or the credit referencing area? Some 'research' to sell - improve your credit rating by buying your credit report so one can borrow more ?

Anyway if it is on BBC breakfast it will be some filler. Does anyone actually turn on the television at this time ?

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There must be some mistake. BBC also reporting Halifax statement that 2014 saw the biggest number of first time buyers since 2007.

The report also points out that:

  • Estimated (lol!) 22% increase in FTB over 2013
  • Average FTB deposit dropped by 7% in 2014
  • Mortgage payments average 32% of disposable income in 2014 as opposed to 50% in 2007, when interest rates were significantly higher.
  • House prices rose an average of 9% in 2014.

What could possibly go wrong in this utopian new la-la land? And what happened after 2007 for that to be the benchmark of their comparisons?

Average payments will be for the whole cohort...25, 30 year mortgages included.

A fall in the average means, by a quick fag packet calc, that demand for mortgages that are now more expensive, is way down.

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notice other hotspots like the Lake district, North Yorkshire, the Cotswolds :huh:

the wish for higher wages to 'pay' for overpriced houses is a little simplistic - isn't that inflationary?

I think they implied this was due to rich people wanting a holiday home and/or retirement home.

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This sort of thing drives me mad - stating things we have all known for ages as if they're news. And the presenter almost invariably failing to ask or state or ask the obvious - in this case that prices are too high and should not be propped up by any wretched, cynical, vote-seeking government's intervention.

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The longer this goes on the more a crash is inevitable.

Even if mortgage rates were 0% I don't think the prices are sustainable in most of the country.

In Cambridge a bog average house will cost you £400k.

Over 25 years that is £1.5k a month in repayments at 1%

Or £2.3k a month at 5%

That requires 25 years of continuous employment with no gaps and to be in the top 10% of earners for all that time.

Is that realistic? Or desirable? I'd hate to be a mortgage slave far more than I dislike living in a smallish house.

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The longer this goes on the more a crash is inevitable.

Even if mortgage rates were 0% I don't think the prices are sustainable in most of the country.

In Cambridge a bog average house will cost you £400k.

Over 25 years that is £1.5k a month in repayments at 1%

Or £2.3k a month at 5%

That requires 25 years of continuous employment with no gaps and to be in the top 10% of earners for all that time.

Is that realistic? Or desirable? I'd hate to be a mortgage slave far more than I dislike living in a smallish house.

The VI spin so far this January suggests to me that we are now accelerating down the rabbit hole at an exponential speed and loss of control. I'll expect to be proven wrong, but right now it feels like we are right on the cusp of a monumental drop in prices.

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This sort of thing drives me mad - stating things we have all known for ages as if they're news. And the presenter almost invariably failing to ask or state or ask the obvious - in this case that prices are too high and should not be propped up by any wretched, cynical, vote-seeking government's intervention.

Hear, hear.

Would I be correct in saying that you are, like me, an ex Conservative voter?

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The VI spin so far this January suggests to me that we are now accelerating down the rabbit hole at an exponential speed and loss of control. I'll expect to be proven wrong, but right now it feels like we are right on the cusp of a monumental drop in prices.

Yep, all the indicators are that this is now an inevitability, the problem is they have a few months of spin and financial trickery to cover it up at least until the election, it's truly at a turning point and I am quite concerned about where this could now head. My guess is that the merest sniff of an IR rise will be the nod to the 4 horseman to saddle up. Maybe an "event" before then will trigger it, who can tell.

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BBC bought at the peak, what do you expect.... Most households can quite easily take a 20% fall as long as their repayments remain the same...would benefit renters.....it is only the highly leveraged bought at the top and multi- homeowners that are crying....an investment can go down as well as up...

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Yep, all the indicators are that this is now an inevitability, the problem is they have a few months of spin and financial trickery to cover it up at least until the election, it's truly at a turning point and I am quite concerned about where this could now head. My guess is that the merest sniff of an IR rise will be the nod to the 4 horseman to saddle up. Maybe an "event" before then will trigger it, who can tell.

Yes, although the spin now is so absurd that I really am not convinced that they have the required level of control to keep pulling off successful tricks. At some point the unintended consequences must surely take them by surprise, and it feels like that point is really quite close now (or maybe it's the flu meds I'm on, these things have me flying).

As to your second point, yes it's worrying, but what can you do? Even if those of us in mostly cash get completely wiped out, the sun will still rise in the morning, and most of us HPC visitors will be much, much better mentally equipped to deal with any situation that arises than your average HPI obsessed Joe Public. I'm not going to spend the second half of my life worrying about it like I did the first.

If we're going in chaps, good fortune to you all :)

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It gets to the point where you have saved up a big amount and you reflect on the effort you put into those savings then you think about the big windfall going to a homeowner from your labours and the big commission going to an EA and you think nah F**k it. I would rather just rent and wait this shit out.

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