Tuesday, Oct 17, 2006

First-time buyers (FTBs) will have to wait longer to get on the ladder

TimesOnline: First-time buyers left stranded as house prices rise by 11 per cent

The article just sums up how little thought goes into reports on the property market. Rightmove data would indicate house price inflation (HPI) has returned to double digit growth. The report then states that FTB will have to wait longer to get on the ladder. Spot the mistake? Now to my laymans understanding if the average house price is approaching 200K and seeing 10%+ growth and the average wage is around 25K seeing an increase in-line or slightly above inflation then HPI will continue to outstrip the other massively and the FTB will be extinct and no amount of waiting a little longer by FTBs will make a jot of difference.

Posted by denzil @ 09:30 AM (447 views)
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1. sirgoogle said...

Its really very simple.

In the world of the VI (newspaper editors) there is no need for FTBs. The BTL and STB will buy all the property up anyway and keep the capital growth going. The BTL actually need the FTB not to buy any more houses - they want them to Rent from the BTLers instead.

Ergo no HPC. It can go on for ever can't it?

The result of this will be Victorian England with some super rich renting out property to the masses, all of whom are on the breadline.

Tuesday, October 17, 2006 09:56PM Report Comment
 

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