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The Masked Tulip

Middle Classes Worst Hit By Housing Slump

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Oh dear :rolleyes:

Middle Britain will be hit harder by falling house prices than the rest of the country, research shows.

It warns that on average almost £40,000, or more than £100 a day, will be wiped off the value of these homes this year.

A typical Middle Britain property will fall 18 per cent between January and December, according to the insurance firm AXA and the Centre for Economics and Business Research.

But the value of the 'average' home, worth £187,500, will drop by only 12.8 per cent.

Middle Britain is said to include those households with an income between £40,000 and £;100,000, typically in the South-East, South-West and the East.

It usually encompasses graduates with families, who have a mortgage and work in managerial or professional jobs.

The research says many Middle Britons risk going into negative equity - having a loan greater than the value of their home - especially those who bought houses recently.

The research comes as Michael Saunders, economist at the investment bank Citigroup, warned that the fall in prices could be worse than the Great Depression.

'The way things are going, this year's drop in house prices may even exceed the 1932 record.' That year, prices dropped 10 per cent to an average of £540.

Meanwhile, the consultancy Capital Economics believes that by the end of 2010, prices could be 35 per cent down from their peak last year.

Debt advice centres in its 'heartlands' have seen the number of inquiries rise by up to 500 per cent. Those on salaries as high as £70,000, nearly three times the national average, are seeking help.

Steve Folkard, head of pensions and savings policy at AXA, said: 'We expect a very tough 18 months for Middle Britain's housing market.

'Middle Britain may have managed to weather the storm before now, but that resilience is being seriously tested by the ongoing effects of the credit crunch.'

Falling house prices have caused property website Rightmove to coin a new phrase. 'Brickor mortis' is the paralysing condition caused by sellers refusing to lower prices as they don't accept their home's value has dropped. Buyers won't buy as they think homes will be cheaper in the future - or because they can't get a loan.

http://www.dailymail.co.uk/news/article-10...sing-slump.html

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Falling house prices have caused property website Rightmove to coin a new phrase. 'Brickor mortis' is the paralysing condition caused by sellers refusing to lower prices as they don't accept their home's value has dropped. Buyers won't buy as they think homes will be cheaper in the future - or because they can't get a loan.

:lol:

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Middle Britain is said to include those households with an income between £40,000 and £;100,000, typically in the South-East, South-West and the East.

So the middle's really kind of round the edge then?

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Debt advice centres in its 'heartlands' have seen the number of inquiries rise by up to 500 per cent. Those on salaries as high as £70,000, nearly three times the national average, are seeking help.

Hardly surprising when you look at the cost of buying houses recently. I very much doubt they'd be seeking help if they were renting, to be honest.

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Those on £70Kpa seeking help can only be idiots, if I had ever earned the equivalent to that at any time in my life, I would now be very well off, they have no excuse, we have no sympathy for those t*ssers, unless you are a Daily Idiot reader looking for Middle class welfare.

''Areas with the highest concentration of Middle Britons are Richmond upon Thames in London, Windsor and Maidenhead and Wokingham, Berkshire.''

These are not 'Middle Britain' areas by any stretch of the imagination, they are the most expensive parts of the UK, all in the top 10 - 20% price brackets.

This paper has lost the plot, not that it ever had any connection to reality in the 30 years or more that Ive read papers. Not so long ago they were suggesting that only the stupid wern't pilling into housing and debt.

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Guest DissipatedYouthIsValuable

I remember when £70k a year used to be a lot of money.

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Someone is confusing middle Britain and middle classes. The two are most definitely not the same. I give this journalist C-

Aspirational Britain? --- or is that too non-DM?

Next month?:- 'UK Property Unsaleable' ..........well 99% of it is.

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better for vendors to adjust the price downwards and secure a sell now, than try again in 6 months time. Brickor Mortis will give way to rapid decomposition by then...

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People spend what they earn - you just eat out more often, drink more expensive wine and, of course, drive a more expensive car. To many its all about keeping up with the Jones's and whilst thats affordable - its the house thats the killer in this case. Some friends of mine, both professionals on £60K, have a £500K mortgage - one loses their job - game over. There is no depth, no reserves and thats what is about to unfold.

Regards

SB

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I thought everyone had lots of equity, so a crash wouldn't affect them? Now, it seems this was a lie.

When will the people of Britain understand? The media have taken you for a ride. Now they are rapidly changing their minds.

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Someone is confusing middle Britain and middle classes. The two are most definitely not the same. I give this journalist C-

No its just the normal spin. Google the phrase and look at all the different definitions;

Middle Britain = our readers if you're a newspaper editor

Middle Britain = our voters if you're a politician

Middle Britain = our customers if you're flogging advice on inheritance tax

Middle Britain = the target if you're trying to get folk to be green

and so on.

The phrase "Middle Britain" is the b***ard son of a weasel's droppings that people twist to suit their self-interest.

Edited by Jadoube

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Middle Income Idiots spend what they earn

This thread should be called something else like "Lazy financial new money fools worst hit..."

People who are on above average income can easily negotiate discounts on holidays, cars, Hifi, SKY, laptops, broadband etc. maintaining appearances (if that's their bag) AND putting some money by and/or making capital repayments on the mortgage.

I honestly can't remember that last capital purchase we made for full asking price.

There's probably 2 families managing their finances well for each MEW crazed one. Its going to be really interesting watching the MEWERS crash and burn though.

Annoying that the sensible families are already being labeled 'predators' when they move in on the inevitable fire sales. They should be admired for their prudence, not criticised.

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The phrase "Middle Britain" is the b***ard son of a weasel's droppings that people twist to suit their self-interest.

Must admit it is the first time I've heard the term. I always though it was Middle England - perhaps the two are different?

However I did find this gem

http://www.timesonline.co.uk/tol/news/poli...icle2525576.ece

when the meejah were still in lurve with GB last autumn, how quickly Times change eh?

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Indeed, Scuseme and Steve 99...... I earn just under that and you would perhaps be amazed how little actually reaches my bank account after Laurel and Hardy and the council etc have had theirs and the pension fund (my pension is my pension) have had theirs. And 3.5x 70K will only get you a mortgage for 245K, which, to be frank, you'd be lucky to have got a 2 bed executive slave box for over the last couple of years. Just goes to show how f8cked the economics of this country are when 70K a) doenst mean you are super wealthy at the end of the month and B) cant even buy you a 3 bed semi in most of the country.

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Those on £70Kpa seeking help can only be idiots, if I had ever earned the equivalent to that at any time in my life, I would now be very well off, they have no excuse, we have no sympathy for those t*ssers, unless you are a Daily Idiot reader looking for Middle class welfare.

Agreed. I earn very well, support a partner, buy the food I want to eat etc. and yet still save 40% of my salary each month. Most of my spending is on fixed costs that I cannot control (council tax, insurance, rent etc.). So, people that get into deep trouble on similar wages must be absolutely p*ssing away huge amounts of discretionary income on god knows what. I suppose they are the people who buy new the cars I later buy second hand etc. How have we created a society where people behave like this?

Having said that, at least they will have had fun with their money, rather than having its value inflated away.

Edited by D'oh

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Must admit it is the first time I've heard the term. I always though it was Middle England - perhaps the two are different?

You've not been watching your telly sufficiently closely. Both terms exist, just depends whether the media want an audience in Scotland & Wales. You're right though, Middle England is the more favoured version - to the extent you might even call the politically correct one ;) That would certainly wind up anyone who thought they were part of middle England

I've had the joy of advising media on where to find both versions (geodemographically) - and the further joy of having anything analytical totally ignored to avoid spoiling the "popular image" of the programme.

Five different programme makers that have consulted me in the past two years. They all had a different view of what Middle England/Britain actually meant. Hence my derision for the term.

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People spend what they earn - you just eat out more often, drink more expensive wine and, of course, drive a more expensive car. To many its all about keeping up with the Jones's and whilst thats affordable - its the house thats the killer in this case. Some friends of mine, both professionals on £60K, have a £500K mortgage - one loses their job - game over. There is no depth, no reserves and thats what is about to unfold.

I've never understood this keeping up with the Jones'...or at least stopped understanding it at about the age of 15. Two people on 60k could comfortably afford a "normal" house...why not do that and have some security...then step up a bit.

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Those on £70Kpa seeking help can only be idiots, if I had ever earned the equivalent to that at any time in my life, I would now be very well off, they have no excuse, we have no sympathy for those t*ssers, unless you are a Daily Idiot reader looking for Middle class welfare.

''Areas with the highest concentration of Middle Britons are Richmond upon Thames in London, Windsor and Maidenhead and Wokingham, Berkshire.''

These are not 'Middle Britain' areas by any stretch of the imagination, they are the most expensive parts of the UK, all in the top 10 - 20% price brackets.

This paper has lost the plot, not that it ever had any connection to reality in the 30 years or more that Ive read papers. Not so long ago they were suggesting that only the stupid wern't pilling into housing and debt.

70k pa used to be a lot of money but now if you have kids a wife and a mortgage it just isn’t enough.. 100k minimum is now what’s required for a reasonable standard of living.

Too many people on this forum think it’s normal to live like a hermit, never eat out, not to take foreign holidays, save every penny, to drive a car that you wonder if it will start each time you get in it.. There is more to life than making every financial decision purely on how little you can spend..

Not everyone who eats out drives a nice car of takes a couple of holidays a year is up to there eyeballs in debt.

It is not unreasonable to expect to have a bit of disposable income left each month after working you’re **** off day after day.

PP

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70k pa used to be a lot of money but now if you have kids a wife and a mortgage it just isn’t enough.. 100k minimum is now what’s required for a reasonable standard of living.

Too many people on this forum think it’s normal to live like a hermit, never eat out, not to take foreign holidays, save every penny, to drive a car that you wonder if it will start each time you get in it.. There is more to life than making every financial decision purely on how little you can spend..

Not everyone who eats out drives a nice car of takes a couple of holidays a year is up to there eyeballs in debt.

It is not unreasonable to expect to have a bit of disposable income left each month after working you’re **** off day after day.

PP

£100k minimum?

I take it you have a very interesting definition of "reasonable standard of living". No wonder why so many people have massive debts these day.

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£100k minimum?

I take it you have a very interesting definition of "reasonable standard of living". No wonder why so many people have massive debts these day.

Looks like Posh Plumber takes the view that they would rather earn shedloads and be free to spend unthinkingly which is fair enough.

Personal choice would be to earn £100k, work hard to obtain the same goods and services as the PP for 70K and squirrel the rest away. I do accept that that probably involves 10 hours a week web searching, haggling in shops, switching providers, moving money between accounts etc. but I enjoy that kind of thing so its no hardship for me.

I probably should spend more time with the wife and kids though...

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70k pa used to be a lot of money but now if you have kids a wife and a mortgage it just isn’t enough.. 100k minimum is now what’s required for a reasonable standard of living.

Too many people on this forum think it’s normal to live like a hermit, never eat out, not to take foreign holidays, save every penny, to drive a car that you wonder if it will start each time you get in it.. There is more to life than making every financial decision purely on how little you can spend..

Not everyone who eats out drives a nice car of takes a couple of holidays a year is up to there eyeballs in debt.

It is not unreasonable to expect to have a bit of disposable income left each month after working you’re **** off day after day.

PP

Wow, I can do all that on less than half of that, what on earth are you wasting your money on?

If I earned £100,000 a year I would be already planning on taking some 'very' early retirement - and still eat out/go abroad on holiday and have a shiny new car regularly. Unless you are living in the world of the Ritz and Ferraris then £100,000 is alot of money.

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Yes, p'raps I should clarify, I do save huge amounts of money (compared to the national average). Sorry, and I drive an old car and live on beans etc (old habits die hard - 8 years a student, 3 years a postdoc). I guess my point was more to say the difference between earning say 70K and say 35K is not much more than 1K a month, not the 3K a month you might think, because some other b8ggers, mostly the two clowns, gets first dibs on it.

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70k pa used to be a lot of money but now if you have kids a wife and a mortgage it just isn’t enough.. 100k minimum is now what’s required for a reasonable standard of living.

Too many people on this forum think it’s normal to live like a hermit, never eat out, not to take foreign holidays, save every penny, to drive a car that you wonder if it will start each time you get in it.. There is more to life than making every financial decision purely on how little you can spend..

Not everyone who eats out drives a nice car of takes a couple of holidays a year is up to there eyeballs in debt.

It is not unreasonable to expect to have a bit of disposable income left each month after working you’re **** off day after day.

PP

Sadly it's this attitude that got this country into such a state in the first place.

We'd all like to have £100k a year. The trouble is the average UK salary is something like £24k, so what does one do to make up the shortfall?

You either work harder to earn more (which to me is much harder than scrimping - just how many jobs in the UK pay £100k pa or even 2x50k?) or you MEW to keep up appearances with everyone else who thinks you need £100k a year to get by.

This idea that working hard means you deserve expensive treats is a vicious cycle IMO.

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  • 395 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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