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325k families trapped who can't afford to move

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Anecdotal, but maybe worthwhile.  Around my neck of the woods (north herts), my wife talks to other mothers.  They basically extend what they have, as either the chain fell through multiple times and they've had enough, or the next step is simply unaffordable.

Popcorn time.

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What I find quite astonishing is that there's nothing new in this.

I lived in N London in the 1980s and wanted to move out and up after a period of rising prices but it simply wasn't possible; the price gap was too large and I had no intention of ploughing money into moving or, and more likely, increasing the mortgage substantially. I stayed and sold out and moved north.

Of course it's 30 years ago and no one remembers these things. Furthermore as many have said on here: who are the FTBs who will buy your 3 bed semi when you want to move up anyway - even i you have the means? FTBs have virtually vanished and the whole chain is locked up. The only way this will work is lower rates and more lax lending standards and I would assume that we're at the end there. 

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Stagnant and unreliable wages with little room for promotion only means people have maxed out their income on debt outstanding, interest rates on the floor......only those who can benefit from a cash windfall will be able to move....there is no longer a housing ladder.;)

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47 minutes ago, canbuywontbuy said:

This will surely limit job opportunities for millions of people...another "benefit" of high house prices.  The madness never ends.

Exactly, and if you do move it costs you 10s of thousands in fees .

So much for a flexible work force.

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5 hours ago, canbuywontbuy said:

This will surely limit job opportunities for millions of people...another "benefit" of high house prices.

Yes, for other countries were the work goes. A business would merely, for example, need to find a person in the top 0.99 percentile for their skill.

As opposed to find a person in the top 0.99 percentile who can't move anywhere without requiring massive amounts of cash or more debt, is already tied to lots of debt, and / or would require you to subsidize their living at massive UK inflated prices.

The choice is obvious http://monitor.icef.com/2014/07/russia-announces-new-investments-in-higher-education-and-study-abroad/

http://www.scmp.com/comment/insight-opinion/article/1596142/brics-countries-investment-education-will-change-world

We are so F***ed. The sooner the HPI / Baby Boomer / QE / NIRP / Banker BULL SH*T wares off the better.

Edited by Arpeggio

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5 hours ago, crouch said:

What I find quite astonishing is that there's nothing new in this.

I lived in N London in the 1980s and wanted to move out and up after a period of rising prices but it simply wasn't possible; the price gap was too large and I had no intention of ploughing money into moving or, and more likely, increasing the mortgage substantially. I stayed and sold out and moved north.

Of course it's 30 years ago and no one remembers these things. Furthermore as many have said on here: who are the FTBs who will buy your 3 bed semi when you want to move up anyway - even i you have the means? FTBs have virtually vanished and the whole chain is locked up. The only way this will work is lower rates and more lax lending standards and I would assume that we're at the end there. 

It is nothing new and I am just about old enough to remember the late 80s in London when people talked house prices all the time. A crucial difference however is that this boom has lasted so much longer - pretty much 20 years in London. 

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34 minutes ago, Ah-so said:

It is nothing new and I am just about old enough to remember the late 80s in London when people talked house prices all the time. A crucial difference however is that this boom has lasted so much longer - pretty much 20 years in London. 

Yes it has,just over two business cycles.The crash will take out that gain and a bit more for the hell of it.Dead ahead.

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I remember the internet bubble,late 90's.It was incredible to see how many people began trading tech names that hd never touched a share in their lives.

 

As others have said,this Ponzi has gone bigger,deeper and longer than any other I can think of in history.Via the implicit guarantees,everyone has some skin in the game.

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