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Poll Time, Is Anyone Moving Up The Ladder?

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so what do you think, Family homes only seem to be selling to people moving sideways, geographically and not up the ladder.

But that is just to me.

I tend to agree with Mervin King that no to low wage inflation will break the ladder in the housing market.

If (as he stated in 2003) this would lead to prices crashing as people realised it is still too early to say.

I think they will

Comments please :)

Intrigued to hear thoughts..

We were promised a crash when people saw that the ladder was broken..

So is it broken?

Is the ladder broken in the middle as much as it is at the bottom.?

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There are people moving up the ladder. Anyone who owned property before the madness set in and who also took advantage of the ridiculously low rates offered by lenders to repay mortgages early.

We're moving to a family home from a 2 bed flat (via STR for flexibility). Old mortgage on flat before we sold was reduced by over-repayment to £20,000 from £280,000. New mortgage (£350,000) is reasonable - £200 per month more than we currently pay in rent. We lose, of course, the potential capital gains on the STR fund once that's been used as deposit. On balance we are happy to re-enter the market.

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Family homes only seem to be selling to people moving sideways, geographically and not up the ladder.

I tend to agree with this statement which is trading 'like for like' and simply carrying inflation across to a new property at no additional cost (other than legals). What I am not seeing is people trading up - the gaps between the rungs are now too large.

With few FTBs to feed the bottom of the market, and no one able to afford the top-end properties being sold by those wishing to downsize, I see stagnation followed by significant price corrections.

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I tend to agree with this statement which is trading 'like for like' and simply carrying inflation across to a new property at no additional cost (other than legals). What I am not seeing is people trading up - the gaps between the rungs are now too large.

With few FTBs to feed the bottom of the market, and no one able to afford the top-end properties being sold by those wishing to downsize, I see stagnation followed by significant price corrections.

My sister moved "up the ladder" but so did her mortgage!!. Now has double the mortgage!.

We needed to move "up the ladder" but the gap is too big hence we are renting! and will be for some time yet I think.!!

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Hi all

We've decided they best course of action is not to move up now. Rather, save now and wait for the differential to reduce, it's all about timing.

Killerbee

Up the bees

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The gap between the first and second step of the ladder in my area is roughly £60,000, very difficult to save that sort of money when you have a high % of your net income servicing your existing mortgage.

Your average 35 year old ftb is going to be in his late 40's by the time he can afford the second step into a family property.

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Thing is- If I buy, I wont be starting in a traditional FTB place- I intend to just buy a place that I can stay in for a long time- this is because I am 32 but my partner is 45 so we have to jump a few rungs.

Problem is that at the moment- there is no-where that fits this criteria as its too expensive- so we are stuck!

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Happy with what I have got, extra space in a similar area gives me:

-Higher Council Tax

-Bigger debt

-Less disposable income

-Less savings

-Bigger fuel bills

-More housework

-More furniture to buy

-More DIY

More space means you will collect more useless rubbish, and the extra money spent could be lost forever.

A small house will hold as much happiness as a big one. ;)

Edited by winkie

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As is common in ladder design, the property ladder is composed of two vertical shafts connected by a series of horizontal rungs.

In the case of the property ladder, the two vertical shafts are house price inflation and wage inflation.

Unfortunately the wage inflation shaft has not been seen for a few years.

Surely only the brave would try climbing half a ladder?

frugalista

A small house will hold as much happiness as a big one. ;)

And with a higher happiness density!

frugalista

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A few years ago if you'd asked me what I wanted I would hve said 5 bedrooms, 2 bathrooms, 3 reception rooms and a huge garden. Now I have rented and lived in that property it is not what i'm looking for at all, I'd be more than happy with a 4 bed semi with low council tax and a cleaner ! Renting has saved me a fortune !!!

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Happy with what I have got, extra space in a similar area gives me:

-Higher Council Tax

-Bigger debt

-Less disposable income

-Less savings

-Bigger fuel bills

-More housework

-More furniture to buy

-More DIY

More space means you will collect more useless rubbish, and the extra money spent could be lost forever.

A small house will hold as much happiness as a big one.

This post has been edited by winkie: Yesterday, 06:30 PM

Brilliant post!

G.

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  • 301 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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