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Realistbear

Gordon's Boom Pushes Half Of Young Workers Out Of Market

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http://business.timesonline.co.uk/tol/busi...icle2599670.ece

From The Times

October 6, 2007

Housing boom pushes half of young workers out of market

Judith "Judy" Heywood, Deputy Property Editor
Half of young workers are priced out of home ownership because the house price boom has pushed even modest properties out of their reach in hotspots in London and the South West of England.
Even in cheaper areas, such as Yorkshire, the North and the Midlands where prices have stalled, a starter home with two or three bedrooms is commonly out of reach, according to a new Hometrack affordability study, which finds a quarter of new buyers in the UK have been priced out.
The South West has the greatest proportion of young households priced out of the market (34 per cent) followed by London (31.5 per cent) and the South East (30.2 per cent).
Young buyers in Kensington must now spend 9.2 times their annual income to buy a two or three-bedroom home, while those in Camden must pay 7.1 times, and those in North Cornwall, 6.9. The UK average is 4.3....../
Richard Donnell, director of research at Hometrack, said that rents had been depressed by the growing buy-to-let market.

A true social and economic crisis. I wonder if the electorate are beginning to wonder if they should reward Mr. "Boom but no bust" Brown with 5 more years running the country-------------down?

At least BTL will be the first to suffer as rents crash and greedy LLs are forced to sell at massive discounts and even face bankruptcy. Perhaps even this class of people will no longer support the man that gave free reign to their dream of wealth creation based on cheap and easy credit?

Edited by Realistbear

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Guest DissipatedYouthIsValuable
http://business.timesonline.co.uk/tol/busi...icle2599670.ece

From The Times

October 6, 2007

Housing boom pushes half of young workers out of market

Judith "Judy" Heywood, Deputy Property Editor
Half of young workers are priced out of home ownership because the house price boom has pushed even modest properties out of their reach in hotspots in London and the South West of England.
Even in cheaper areas, such as Yorkshire, the North and the Midlands where prices have stalled, a starter home with two or three bedrooms is commonly out of reach, according to a new Hometrack affordability study, which finds a quarter of new buyers in the UK have been priced out.
The South West has the greatest proportion of young households priced out of the market (34 per cent) followed by London (31.5 per cent) and the South East (30.2 per cent).
Young buyers in Kensington must now spend 9.2 times their annual income to buy a two or three-bedroom home, while those in Camden must pay 7.1 times, and those in North Cornwall, 6.9. The UK average is 4.3....../
Richard Donnell, director of research at Hometrack, said that rents had been depressed by the growing buy-to-let market.

A true social and economic crisis. I wonder if the electorate are beginning to wonder if they should reward Mr. "Boom but no bust" Brown with 5 more years running the country-------------down?

At least BTL will be the first to suffer as rents crash and greedy LLs are forced to sell at massive discounts and even face bankruptcy. Perhaps even this class of people will no longer support the man that gave free reign to their dream of wealth creation based on cheap and easy credit?

If you consider the 3X salary option to be realistic and have a look on Rightmove for 2-3 bed places (potentially small family homes) in my area of DT2 + 5miles, you get 3 mobile homes and an ex-council runt in the 120-140k price range.

Learning another language and emigrating to productive economy seems far more rational.

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If you consider the 3X salary option to be realistic and have a look on Rightmove for 2-3 bed places (potentially small family homes) in my area of DT2 + 5miles, you get 3 mobile homes and an ex-council runt in the 120-140k price range.

Learning another language and emigrating to productive economy seems far more rational.

I din't think I would be considering re-emigrating after just 2 years back in the UK but having spent the last week or so in the US the thought is becoming imprinted in my mind. We will get our HPC but the aftermath will be so ugly that our once great country will be characterised by years, if not decades, of austerity to pay for Gordon's binge. Stoy Hayward just released their BDO report and they are calling recession in the business world. Credit is locking down and the housing market is about to go over the edge dragging everything else with it.

I think we could see some huge drops in house prices THIS side of Christmas. Not the pathetic 2.3% drops reported by RM but 5% plus MoM.

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in order for there to be house price drops, there needs to be buyers- if your report is right, we're all fracked, except those of us who have saved and have little or no debt.

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If you consider the 3X salary option to be realistic and have a look on Rightmove for 2-3 bed places (potentially small family homes) in my area of DT2 + 5miles, you get 3 mobile homes and an ex-council runt in the 120-140k price range.

Learning another language and emigrating to productive economy seems far more rational.

Well my portuguese has come a long way since I was first sent to Brazil for all my project work. Everytime I get back I just wish I was there.

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Gordon Brown, not feeling well, having had another one of those Nicolai Ceausescu moments like he did at the Rugby World Cup, and concerned about his mortality goes to consult a psychic about the date of his death.

Closing her eyes and silently reaching into the realm of the future she finds the answer: "You will die on an English holiday."

"Which one?" Brown asks nervously.

"It doesn't matter," replied the psychic. "Whenever you die, it will be an English holiday".

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Guest anorthosite
Gordon Brown, not feeling well, having had another one of those Nicolai Ceausescu moments like he did at the Rugby World Cup, and concerned about his mortality goes to consult a psychic about the date of his death.

Closing her eyes and silently reaching into the realm of the future she finds the answer: "You will die on an English holiday."

"Which one?" Brown asks nervously.

"It doesn't matter," replied the psychic. "Whenever you die, it will be an English holiday".

The English don't have a monopoly on hating Brown, most of us Scots think he's an embarassment too.

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in order for there to be house price drops, there needs to be buyers- if your report is right, we're all fracked, except those of us who have saved and have little or no debt.

In any market, when there are zero buyers - ie no demand, then it matters not what the supply

is like - the price will plummet rapidly towards zero.

I get the impression that we are seeing something like this happening.

Precious little demand, except for a few mad people, desperate to get

on the ladder at any cost - and abundant supply.

With one million households paying their mortgage by credit card

(due to financial pressure), with mortgage rates rising up to 8-12 %

- irrespective of interest rates - and with 20% of homewners coming

off fixed 2 year rates over the next six months....

well, anything could happen.........

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to pay for Gordon's binge.

I can't see how Greenspan dropping he Fed's rate to 1% and the Bank of England thus not being able to raise rates sooner is entirely Gordon's fault.

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I can't see how Greenspan dropping he Fed's rate to 1% and the Bank of England thus not being able to raise rates sooner is entirely Gordon's fault.

..is Greenspan back at the Fed.... :ph34r:

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in order for there to be house price drops, there needs to be buyers- if your report is right, we're all fracked, except those of us who have saved and have little or no debt.

We have savings and no debt. Now we just need to hold onto our jobs. Luckily, mine is reasonably safe but you never know..... :unsure:

P.s I am telling porkies. I owe under 1k on a card (0%). If this rate disappears, I will pay it off in full.

Edited by Buffer Bear

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in order for there to be house price drops, there needs to be buyers- if your report is right, we're all fracked, except those of us who have saved and have little or no debt.

I think you may have inadvertantly (or not) hit a VERY good point here!!

If the stats currently show a small, but very significant drop in prices, we should be extremely worried about what the future holds!

"in order for there to be house price drops, there needs to be buyers"

Price drops are collated from sales information.

Sales which will be slowing rapidly.

Sales will be achieving much lower prices.

Credit tightening will prevent many sales.

You have me wondering, price drops, as recorded, are born probably months ago, when to many (though not HPC regulars) the market was still tickedy boo!

The stats show falls - these were going to be many needed/necessary/too far gone to pull-out type purchases.

These sales were the information base for stats, to which we have seen some sobering headlines.

They were also, largely pre-credit tightening (ie mortgage probably pre-arranged).

From this I have to conclude, that as things get more severe, as they are daily, these stats will get very scary, very, very quickly, the kind of line on a chart that ends up in text books for years to come.

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From this I have to conclude, that as things get more severe, as they are daily, these stats will get very scary, very, very quickly, the kind of line on a chart that ends up in text books for years to come.
In any market, when there are zero buyers - ie no demand, then it matters not what the supply

is like - the price will plummet rapidly towards zero.

I bloody well hope so muhahahahah!

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Nice to know that they look after the new generation innit?

Edited by stuckmojo

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