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Realistbear

Abbey Admit Vast Majorit Of F T Bs Are Staying Away

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http://www.moneyextra.com/news/news-first-time-038032.html

First time buyers put plans on the back burner

Fears over house prices and the state of the economy have convinced almost
two-thirds
of first time buyers (FTBs) to delay their first step on the property ladder, according to new research from Abbey Mortgages.

What is really surprising is that there are still FTBs in the marketplace ready to buy. The use of the word "fear" is appropriate. As fear grips the market a severe and prolonged crash is inevitable.

How much longer are the Vis going to deny it? Will Halifax season and adjust this weeks data to show HPI still rising despite all of the evidence to the contrary (falling mortgage applications, 5 months in a row of falling prices, RICS bleak reports, reposession rates soaring etc..).

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First time buyers put plans on the back burner
Fears over house prices and the state of the economy have convinced almost
two-thirds
of first time buyers (FTBs) to delay their first step on the property ladder, according to new research from Abbey Mortgages.

Do they really put plans on the back burner or maybe the reality is they simply can't afford over-inflated prices anymore even if they want to as cheap credit & 100% mortgages have now vanished?

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Do they really put plans on the back burner or maybe the reality is they simply can't afford over-inflated prices anymore even if they want to as cheap credit & 100% mortgages have now vanished?

I think its more likely to be due to the financial climate rather than the average FTB suddenly realising what a rip off houses have become.

If the 100-125% loans were out there...they would still be buying in droves.

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Of course, we all know what this means for the few houses that have "SOLD-subject to Contract" signs posted?

Without the bottom feedres the chains will lock up and the market will freeze until someone begins some huge discounts to get things moving again. The problem for many awaiting the Spring resets is that they don't have the time to wait.

It is well and truly GAME OVER for Gordon's great HPI-MEW-BTL folly.

:( *

_________

* :)

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69% are worried about prices falling. To be honest, I'm surprised it's that high, it really underlines the speed of change in sentiment nowadays. Prices only started falling a few months ago, and with most people pretty financially unaware these days, I wasn't expecting such a rapid change of sentiment from the sheeple. This crash is going to be fast and deep. I reckon as much 20% this year.

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err FTBs have been priced out for a couple of years now, with BTL taking up the slack. Well thanks Abbey for the non-news.

Shame that BTL is also priced out now :lol:

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err FTBs have been priced out for a couple of years now, with BTL taking up the slack. Well thanks Abbey for the non-news.

Shame that BTL is also priced out now :lol:

Abbey doing a bit of lobbying in the hope of some Darling tax breaks or stamp duty reductions.

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Abbey doing a bit of lobbying in the hope of some Darling tax breaks or stamp duty reductions.

more likely Abbey pre empting an announcement in the next few days that they're retracting from the FTB market for "the good of the kids" :blink:

Edited by Converted Lurker

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I'm minded to think that even if a load of FTBs did suddenly decide, "Oh, it's time to buy!" there would be a lot of surprise at the amount of banks who simply wouldn't lend to them.

I get the feeling that they're looking at the price reductions through the eyes of someone who has all buying options available to them during 'boom-time'. But with the 125% mortgage disappearing, 100%ers slowly vanishing and banks demanding larger deposits, you might not even be able to buy the house that's fallen from £120k to £60k if you don't have savings to back your position up.

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Well Im sorry to wade into a conversation of deep speculation but I can tell you, as a first time buyer in waiting, I am aware of the financial uncertainty both in the job market and the housing market currently. My partner and I are waiting to see where prices go and are currently very happy to sit out the storm in key worker rented housing and wait for a sense of realism to FINALLY be felt in the market place.

I wouldnt agree that if the 100-125 percent mortgages were still available people would still be running out to buy because I suspect that the sort of person who goes for that level of mortgage has debts to pay off with the extra percentage and is assuming that house prices will only ever go up. Its been a while now that the press have talked about the possible fluctuations in prices and as a child of a family who went bankrupt and lost their home in the early '90s, I am pleased that the press has finally dropped the New Labour "miracle economy" spin. In the current climate I suspect that those people who are debt ridden are all too aware of their financial situation and while they used to see property as the way out they dont anymore.

I might add that as much as many members of HPC enjoy mocking the younger citizens for their financial misgivings, I would like to remind people just how impressionable young people are when it comes to following a path laid out by people older and wiser than them, ie if a bank manager is happy to lend surely thats all fine then? While that isnt my own story (above reason should shed light as to why) I dont blame some of the younger debt ridden generations. I do however wonder what would have happened to the baby boomer generations if their parents had been so obsessed with a their children having a university education (despite leaving with hideous debts) and then when they did leave uni the borrowing culture they emerged into had have been as liberal and mismanaged as today.

These last few years have only left me wondering if the tories in my life were right to be afraid of a labour government and why oh why the generations who have nurtured my moral growth have not ensured some proper regulation of the banking system and the east agents. I suspect that soon enough I will be reading the forums of a website entitled www.thenexticeage.com where people who could have effected change just bitch about all of those of their generation who they have come to be jealous of for being richer than they are, and similarly slag off the kids of the time for not being very sensible when it comes to recycling.

Edited by JustinC

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69% are worried about prices falling. To be honest, I'm surprised it's that high, it really underlines the speed of change in sentiment nowadays. Prices only started falling a few months ago, and with most people pretty financially unaware these days, I wasn't expecting such a rapid change of sentiment from the sheeple. This crash is going to be fast and deep. I reckon as much 20% this year.

Oh come on.

The fall in house prices has been headline news in the tabloids and on the TV news OFTEN in the last few months. And if it hasn't directly been "house prices fall" its been "credit crunch".

"most people pretty financially unaware these days"? Maybe, but you would have to have been living on Mars not to have noticed what has gone on in the last few months!

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Oh come on.

The fall in house prices has been headline news in the tabloids and on the TV news OFTEN in the last few months. And if it hasn't directly been "house prices fall" its been "credit crunch".

"most people pretty financially unaware these days"? Maybe, but you would have to have been living on Mars not to have noticed what has gone on in the last few months!

What you say is true, but a huge number of people seem to dismiss these reports in favour of their own "evidence". Unless they see house prices literally falling in front of their eyes they don't join the dots. "They aren't dropping around here" isn't just a cry of the house owner in denial, it's the opinion of may buyers who simply don't understand that prices don't start dropping in the Estate Agency windows.

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Oh come on.

The fall in house prices has been headline news in the tabloids and on the TV news OFTEN in the last few months. And if it hasn't directly been "house prices fall" its been "credit crunch".

"most people pretty financially unaware these days"? Maybe, but you would have to have been living on Mars not to have noticed what has gone on in the last few months!

Totally agreed, most people i speak to are well and truly aware of the credit crunch, and are a little aware of the creeping pain it is causing for people, but most of them also agree that the problem was an American one which has caused a nock on effect here.

In fact, most of them seem to think that everything would have been rosy if it wernt for those damn yanks!

I am living in the Matrix, i come to HPC for some sanity amongst the economically unwashed i meet everyday.

I would like to thank you all, you are my opiate.

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I wouldn't underestimate the speed and size of this fall.

The banks will not lend unless thier is a comfortable deposit and the valuation is on the low side. Bent solicitors, LR and developers are aware the fraudlent manipulated prices/land banks have reached the public domain.

There has been massive social pressures for years on younger members of society to 'Get On That Ladder', hell parents even stumping up the cash for deposits etc.

Those parents should remember the last crash where NE was abound, but memeories are short, but not short enough. I don't think you would find anyone advising buying now, that isn't on a %'age.

Memories of the last housing crash are now fresh in everyones mind, Labour tax and spend is raising it's ugly head from years of 'Disguised/False' growth figures. PFI and Bank bailouts broad siding that precious fiscal policy out the water and inflation threatening to go loopy.

(No wonder GB was so gittery that Tony wouldn't go...)

Sure you can point at unemployment figures and inflation figures, but include those that are 'In-Capcitated' and real daily costs, theres only so much smoke you can have blown up your a***.

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Even if the average FTB'er wanted to buy they couldn't - many towns and cities like mine are on average earnings multiples for the average house of 9 or 10 times. Now that all lenders are requiring a substantial deposit and the average person (HPC members aside) already has some kind of debt, how the hell are they going to be able to buy?

My question is why would they want to?

A big part of the stupidity we are witnessing in this country is that many millions of people still believe they must buy. This is as big of a piece of the overall HPI pie as "Liar Loans", sub-prime et al.

So to all you FTBers out there, here is a simple message: There is no shame in renting, and no sense in living beyond your means in a futile attempt to buy a property.

Despite all the well-meaning advice you will get from parents, friends, and people on this site, there is only one question you need to ask when considering whether to buy any property.

Will the monthly installments on a repayment mortgage for such a property exceed what I could rent it for by more than 10%???

If the answer is "yes", you should not buy.

And anyone who tells you different is either an estate agent, a moron, or someone who wants you to enjoy the same life of financial slavery that they have endured.

So consider yourselves fully educated in buying homes courtesy of the XYY Man. Now go out and enjoy your life and forget about this home owning folly until such time as it's cheaper to buy that property you want rather than to rent it.

And that time will come...

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  • 297 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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