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It's Okay, House Prices Have Become More Affordable

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Channel 4 News

Jon Pain, managing director at Cheltenham & Gloucester, said: "This is clearly a bit of a relief for first-time buyers, who have struggled with the rapid house price inflation we have seen in recent years.

"These borrowers need help, however. Lenders will need to be increasingly innovative to find alternative ways of prudently helping first-time buyers overcome the barriers of getting a foot on the housing ladder."

I don't know where to start with how wrong this is...

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People spent an average of 47.6% of their take-home pay on a mortgage for an averaged priced property in the UK during the last three months of 2005, down from 49% during the previous quarter, according to lender Cheltenham & Gloucester.

LOOK!!!!!! They're 140bp more affordable!!!!

That is a relief!

Edited by LivingTheDream-JustLikeLeedsUtd

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Channel 4 News

Jon Pain, managing director at Cheltenham & Gloucester, said: "This is clearly a bit of a relief for first-time buyers, who have struggled with the rapid house price inflation we have seen in recent years.

"These borrowers need help, however. Lenders will need to be increasingly innovative to find alternative ways of prudently helping first-time buyers overcome the barriers of getting a foot on the housing ladder."

I don't know where to start with how wrong this is...

Nationally, over 2005 mortgage arrears have increased by 23.3% , personal debt rose by 10.2% , and repossession actions entered grew by 48.2% from 2004.

Bankruptcies are increasing at the highest level ever.

Personal debt has risen by 52% in the last 5 years, whereas wages have risen by approx 25% in the same period.

Regardless how much equity there is in a house it's just a figure, debt must be paid.

Obviously a wall must be hit at some point, when it does the homes will have to be sold for whatever they can make, even if it is well below the EA estimates.

When this happens, aren't the BTLs only ones to gain as these folk have to live somewhere & the rent will probably be paid for by Social Benefits?

So BTL is the way to go?

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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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