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mustrum_ridcully

Bbc Wales - Week In Week Out

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Never thought I'd see this but the BBC (albeit BBC Wales) are investigating the human cost of high house prices. The local news is saying that houses in Wales are more overpriced (wrt to wages) than London and Week In Week Out tonight (BBC1 Wales 10.45pm) is investigating the human cost.

To quote their blurb:

"Week In Week Out investigates the human cost of spiralling house prices, from first-time buyers struggling to get on the ladder to families left homeless after re-possession."

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Never thought I'd see this but the BBC (albeit BBC Wales) are investigating the human cost of high house prices. The local news is saying that houses in Wales are more overpriced (wrt to wages) than London and Week In Week Out tonight (BBC1 Wales 10.45pm) is investigating the human cost.

To quote their blurb:

"Week In Week Out investigates the human cost of spiralling house prices, from first-time buyers struggling to get on the ladder to families left homeless after re-possession."

Do you think that this is a real change in sentiment though?

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About time too - maybe the tide is beginning to turn. But the BBC just can't resist the nasty little sting in the tail -

"But it also talks to some winners in the rising property market, the new breed of investor freeing up equity in their homes for "buy-to-let" schemes."

How about "the over-borrowed parasites wrecking other peoples' lives"? Would be more appropriate.

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About time too - maybe the tide is beginning to turn. But the BBC just can't resist the nasty little sting in the tail -

"But it also talks to some winners in the rising property market, the new breed of investor freeing up equity in their homes for "buy-to-let" schemes."

How about "the over-borrowed parasites wrecking other peoples' lives"? Would be more appropriate.

Tell you what though hopefully there are still some welsh nationalists(fire-bombing division) about then it could become interesting.........

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freeing up equity

I assume they mean increasing their borrowing? :rolleyes:

Edited by Solvent Celt

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Once the public realises the damage that BTL does then the government will change the tax rules to make it less popular.

We haven't got there yet ....give it time.

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Once the public realises the damage that BTL does then the government will change the tax rules to make it less popular.

We haven't got there yet ....give it time.

I'll let people know what happens on the programme but I have a inkling that they might make that point today - maybe in a minor way ("look how others have made money") or in a more drastic way ("btl'ers have made money and pushed prices up").

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Tell you what though hopefully there are still some welsh nationalists(fire-bombing division) about then it could become interesting.........

Watched a great episode of South Park the other day. Loads of rich black celebs (Snoop Dog, Will Smith etc) moved into to the town, buying up the houses for holiday homes. They filled up the bars and drove up the real estate prices.

The residents tried to use the law to stop them, but the rich folk won (better lawyers). Enough was enough, so they decided to dress as ghosts to scare the intruders away.

This worked brilliantly, but only because the rich black people thought they were Ku Klux Klan :ph34r: Anyhow, they all moved out and everything returned to normal.

A lesson for the Welsh?

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Some strange shit there Jason....

In comparison, NS&I said a typical house in Wales in 1994 cost £39,952, and the time needed to save a £1,998 deposit for it was two-and-a-half years.

........

The average house in Wales costs more than £145,000, more than six times the average Welsh salary of £23,500. National Savings and Investments (NS&I) said rising house prices meant new buyers typically take four-and-a-half years to save a 5% deposit on a home (Just over 7K or £1611 a year!)

Now they say the average wage is £23,500 and people can only save £1600 a year???? Not being a tw@t here but if thats alls you can afford to save then you are PARTYING TOO MUCH!!!!

I earn 25K and I am saving £1000 a MONTH!!!! I am right on the bread line (and living with parents so I know I'm lucky) - but that's what it takes to get the house I want.

TB

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Some strange shit there Jason....

Now they say the average wage is £23,500 and people can only save £1600 a year???? Not being a tw@t here but if thats alls you can afford to save then you are PARTYING TOO MUCH!!!!

I earn 25K and I am saving £1000 a MONTH!!!! I am right on the bread line (and living with parents so I know I'm lucky) - but that's what it takes to get the house I want.

TB

Well, Teddy, as I'm sure you can appreciate not everyone can live free of rent and household bills, council tax etc. That's where most of the difference between your saving and theirs goes.

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Do you think that this is a real change in sentiment though?

Not a change in sentiment I wouldn't think. A recognition of the way that the wind is blowing. The thing about the media is that the way they seem so ahead of the pack is not by doing anything terribly clever, just getting in with the right timing, not when it is obvious that it is going to happen, but when it is about to happen, so that they were the ones that broke "the news". Its like know there is a tsnami coming and not warning anyone but sending down a camera man to catch the picture of thousands dying when it could have been hundreds. Amoral crap. Twice in the last week I have seen the words "if house prices don't crash" in a media report - not as a story, just buried in the small print as a factor to be considered. Far more interesting and potentially far more significant than a banner line.

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Well, Teddy, as I'm sure you can appreciate not everyone can live free of rent and household bills, council tax etc. That's where most of the difference between your saving and theirs goes.

I also earn about £25k, and save almost £1000/month, despite rent/bills/council tax, so I agree £1600 a year is a p*ss poor effort.

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OK time to report on my thoughts of the programme.

First of all well done to BBC Wales for actually daring to say that HPI may not be such a great thing.

Ok lets get the BTL bloke done and out of the way with, he appeared about 10mins into the programme after they'd made the point about high houseprices and FTBs now having to compete with BTL'ers. The interview with him was neutral but you could see he felt uncomfortable discussing the BTL stuff and he mentioned that buying the BTLs would help his kids pay for a house when they grow-up (first and last time he was shown).

In no particular order...

1st case 27 year old single woman with a reasonable salary (£25/7k). Usual FTB problems mentioned. In the end to be able to buy the house she wanted the mortgage company required her mum's name to be added to the mortgage (i.e. be liable for repayments if her daughter can't keep up with them). Baby boomer Mum comments at the end of the programme that houseprices are too high for FTBs.

2nd case 25 year old single mother. Basically has a decent enough job, gets into debt, can't meet her bills, gets pregnant ends up being evicted from her rented home. Days after giving birth has to register herself as homeless. She sees that the only way she'll 'get on the ladder' is if she gets a council house and buys through right to buy**. She ends up in some housing association commune type place.

** Apparently Welsh Assembly Gov. wants to suspend right-to-buy.

3rd case couple with several kids the had their house repo'd. He lost his job (or something), she got cancer, ran into debt, got a Carol Voderman type loan, couldn't keep up repayments. Two weeks after her operation for cancer they were repo'd, now live in 2/3 bed rented accomodation with 5 kids (I think) waiting for a council house.

Had a CAB worker saying how she sees a lot of cases of people getting into financial problems.

Housing Assoc. woman and programme complaining about lack of social housing, there used to be 300k council houses in Wales now there are 158k.

Even had a guy from the Principality BS saying that prices can't continue to grow at their present rate because of wages etc.

They mentioned the whole x6 average salary business and how in terms of prices v wages they're more expensive than London.

Last comment from the property econonmist (Ed Stansfield), the worrisome guy, was along the lines of "current levels of HPI are unsustainable and if they continue at their present rate there'd be disasterous consequences".

Was it bearish, yes and no, I think it was just telling the truth, didn't really go on about an HPC apart for Ed's comment right at the end but certainly did say that prices can't go up the way they are. All in all, they ought to show this programme in the rest of the UK just to let people know how much damage HPI is doing.

Hopefully they'll put something up about the programme later today or this week check out: http://www.bbc.co.uk/wales/weekinweekout/

EDIT: Knew I'd forget something, they also mentioned HIPs and were pretty much saying that it would be a good thing for buyers as they could look at the HIP before putting in an offer. One person who does surveys said that there is a risk that people with dodgy houses will try and put them on the market before HIPs come in.

Edited by mustrum_ridcully

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Well, Teddy, as I'm sure you can appreciate not everyone can live free of rent and household bills, council tax etc. That's where most of the difference between your saving and theirs goes.

Yes, people who have the luxury of living at home have it very easy.

For a modest flat in Wales:

£400 pm rent

£70 pm council tax (Band D in Wales but would be Band B in England)

£30 pm water rates

£40-50pm gas & electricity

£20 pm insurance

£10 pm telephone (£25 if you also have broadband)

£10 pm TV license

Add to that

£120pm food

£30pm car expenses (petrol, service, insurance) or bus journey to work

So £740 pm for the above

£25k salary = approx £1600 take home pm (excluding any pension payments)

Leaves £860, from which student loan payments are made, clothes are bought, odd night out is paid for, luxuries are bought, holidays are paid, etc.

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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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