Thursday, July 10, 2008

Home ownership ‘out of reach’ for average earners

Times Online

House prices may be tumbling but the dream of home ownership is all but over for couples on modest incomes, as mortgage lenders demand heftier deposits, according to new figures.

Posted by becky @ 07:33 AM (1195 views)
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12 thoughts on “Home ownership ‘out of reach’ for average earners

  • so basically prices need to come down in order for ‘average people’ to buy property

    bizarre situation where average people are financially marginalised………simply unsustainable and outrageous really

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  • it_is_going_with_a_bang says:

    Yes thats exactly right. Oh and what does Gordon Brown think about all this? That he’s right man to steer us through this and no doubt keep prices where they are.

    What a nice smug man he is.

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  • it_is_going_with_a_bang says:

    It’s funny how one minute everyone says the economy is sound and we have histrically low interest rates etc etc ( which in reality there are about ok in my opinion )

    Then you turn the page and everyone is screaming how “high” the rates are and the government should do something. Which I guess is a tought one to act on when you’ve just told everyone how good things are and how low rates in reality are.

    I don’t think its so much a case of injecting money anymore. The simple fact is Banks don’t believe people are going to be able to pay it back anymore. Nobody wants to underwrite a mortgage of 100% to a fruit picker anymore.
    It’s good old fashioned “can you afford it and prove it” thats killing the market. As indeed it should. Genuine affordability should dictate house prices NOT immigration, lack of housing or any other excuse.

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  • Never forget that it’s not enough for homes to be affordable to those on average incomes – they need to be affordable to those who earn significantly less than the average as well.

    Studies like this simply highlight the fact that house prices are at unsustainable levels, and that a modest ‘correction’ is not going to cure the problem.

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  • Those in housing have been completely away with the faries for the past few years.

    We all knew it was a bubble….we all knew it was going to burst.

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  • It’s funny how one minute everyone says the economy is sound and we have histrically low interest rates etc etc ( which in reality there are about ok in my opinion)

    ….no they aren’t. The economy is extremely vunerable, due to the huge mountain of debt – both secured and unsecured.

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  • i remember the 90`s says:

    Its to there advantage that they can`t get on a moment ,or they would miss a better opertunity in 18 months plus and although lending won`t be anyway near what lunacy it was it will go back to something like 3.5 times 5% deposit imo in the meantime keep saving for that deposit.

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  • This has been happening for years at one time it only required the income of one person to buy a family home and keep the family now it requires two incomes and it’s still not enough. Face it this country has been getting poorer for a long time it’s just been masked by cheap credit.

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  • David Smith Aged 17 And A Quarter. says:

    No Taffee. It just shows that prices have to go up don’t they? So that more houses, (or waterfront flats, particularly in Manchester and Leeds), are built and more people ‘get on the housing ladder’. The profits will then be retained by the builders as well and invested back in the market for the benefit of the public. This is why the builders have such healthy balance sheets and Barrets this morning on Radio 4 weren’t talking about the need for government to intervene in the market.

    Or am I misunderstanding the situation?

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  • matt_the_hat says:

    Lets all remember as well that average earnings are not what the average person takes home, this has been heavily skewed by russians city people etc. I’d like to see the median statistic instead, that would give a grimmer picture, i.e. 20/80 rule – 20% have 80% of the wealth

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  • So many good and realistic comments above, one has to wonder how the Country got into such a state unhindered.
    This is brilliant though as house prices will have to come into line wth genuine affordability and then wage demands will not need to escalate. Very simple GB and AD.
    There is a downside though : Housing may become affordable and available to most, but the cost of living and maintaining is becoming prohibitive.
    One way or the other all costs have to be reasonable to create ‘stability’.

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  • matt_the_hat @9 “Lets all remember as well that average earnings are not what the average person takes home, this has been heavily skewed by russians”

    True and their take home, if you will, is considerably higher because Gordon Brown as said that because they do such a good job for little ol’ UK PLC that they don’t have to pay any of those nasty taxes that ordinary citizens of Blighty do.

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