Friday, May 20, 2011

News of buyer’s strike finally makes The Daily Mail

British first-time buyers fear they won't get on the property ladder until they are 40 - and a third have given up trying

"Britons do not think they will be able to afford to buy their first home until they are nearly 40 while nearly one third have given up trying to get on the property ladder. And new research shows that first-time buyers are also putting down average deposits of 23 per cent of their home's value, meaning someone buying a £160,000 property would have to save £36,800 for a deposit. The average person who does not yet own a home expects to have to wait until they are 38 before they can afford to buy, with that figure rising to 43 in London..."

Posted by mark wadsworth @ 11:46 AM (2355 views)
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21 thoughts on “News of buyer’s strike finally makes The Daily Mail

  • I’m more concered about the poor old banks and how their life plans are being restricted.

    Isn’t this all for the greater good, like everything else our government comes up with.

    I trust them unconditionally. I know you do too.

    Reply
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  • What a mess both Labour and BOE have made of things………

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  • “Housing Minister Grant Shapps said he recognised the ‘huge difficulties’ first time buyers often face due to the lack of large deposits. He added that £500million had been made available over the next two years for deposits on new build homes as part of the government’s Firstbuy Scheme. It is hoped this will help 10,000 people to get a foot one the property ladder.”

    An excellent use of government money in these difficult economic times. Not.

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  • The CML is trying to do it’s bit to help (LOL)

    “CML in talks with builders over increasing new-build LTVs”

    see http://www.mortgagestrategy.co.uk/economy/cml-in-talks-with-builders-over-increasing-new-build-ltvs/1031347.article

    “CML pushing for lenders to be able to offer advised sales” – The Council of Mortgage Lenders says it is confident it can overturn the proposal in the European mortgage directive that means lenders will not be able to offer advised sales…………..

    See http://www.mortgagestrategy.co.uk/distribution/cml-pushing-for-lenders-to-be-able-to-offer-advised-sales/1031352.article

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  • Only six per cent hope that prices will fall to make a home more affordable, and only four cent wil ask help from family and friends..

    Yes, sure…

    ..who on earth were these people surveying???

    Reply
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  • 41 in the SE and our best option is renting and continuing to live frugally and save, aiming to buy cash if prices fall. The main worry that savings institutions will go bust and the government be unable or unwilling to meet its deposit guarantees. Will be happy if I never have a mortgage. Failing that we are considering a yurt, though the idiotic planning regime would probably insist you put a concrete base on it, so it can be ‘permanent.’

    @HPW
    Sure but there’s no basis for viewing this as the fault of one party only, since governments of all (ie both) stripes have played the housing market for all it is worth. I reckon one could better blame the decimation of manufacturing, also enacted by both parties but more obviously by the Other Lot. Party politics is a facade.

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  • mark wadsworth says:

    NickB, HPW is right, Labour were several times more Home-Owner-Ist than any previous government.

    The current lot are under pressure to be “at least as Home-Owner-Ist as Labour” because that’s how you win elections, and I suspect that they are only picking up where Labour left off (although Home-Owner-Ism does slot in nicely with Tory thinking).

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  • Mark,
    Prove it. Also, with no manufacturing left, what is going to provide the basis for a ‘buoyant economy’ if not feel-good consumption, much of it on credit, propped up by high house prices? Services? What does it mean? Servicing what?
    N

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  • I also seem to remember that in the late 1980s/ early 1990s, labour were in favour of credit controls, which implies the Tories had got rid of them. Much of the credit explosion seeding, which we agree is the main cause of high house prices, was therefore sown under the Tories. Don’t get me wrong, I’m not saying labour were good in power, I’m saying that they were both dancing to the tune of the real powerbrokers in business and finance. Anyone who thinks the tories would have contstrained housing price inflation is sadly deluded.
    N

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  • mark wadsworth says:

    NickB, we have done this to death an re-written history a thousand times, for sure, the Tories almost inadvertently stumbled across Home-Owner-Ism in the 1980s – deregulating banks, selling off council houses etc, and it’s clear that Tories are the natural party of NIMBYs – to which John Major was a refreshing antidote, who merrily hiked interest rates, allowed banks to sort themselves out or go bust (BCCI, Barings).

    But it was Labour who took it to extremes, their house price bubble was three times as big and lasted three times as long as any other, they sold off just as many council houses, their regulation of banks was non-existent AND most importantly, this one of their key election messages: “Vote for us and your house price will go up even further”.

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  • Mark,
    Of course it was 3 times as big – there were no credit controls or other effective regulations left when they came to “power”!
    N!

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  • mark wadsworth says:

    NickB, and in the thirteen years they were in government, they never thought to reintroduce some limits? At its simplest, just cap resi mortgages at two times joint salary and 75% LTV?

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  • It could all be fixed by raising interest rates – that will bring house prices down to earth in a couple of months.

    Pity Mr Bean of the MPC doesn’t agree and wants to prop up house prices instead.

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  • letthemfall says:

    Come on mark w, can you imagine the Tories behaving any different were they in govt? Labour were well and truly roped into the Tory manifesto as far as big business and banking are concerned – “free” markets, let them get rich, we’ll all benefit. All cobblers, to use an economist’s technical term.

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  • mark wadsworth says:

    LTF, would the Tories have done things differently?

    Well, I can’t remember the Tories ever complaining about there being not enough new build, about house prices rising too fast, about Council Tax failing to keep pace with house price inflation, about interest rates being too low, banks lending too recklessly or anything.

    But it’s going a bit far to condemn them for a crime they probably would have committed had they had a chance, the fact is, they were NOT in government and that is the end of that. Now they ARE in government and are marginally worse than Labour in the Home-Owner-Ist stakes,which is an actual crime, end of discussion.

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  • @15 mw

    You need to remember the bursting of the dot com bubble, and the events of 2001 which gave the US a moral highground to launch it’s ‘initiatives’. Do you think that a puppet nation like Britain would have responded any differently under a Conservative administration, even if Major had still been at the helm?

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  • letthemfall says:

    mark w
    I just think it is pointless to blame a govt for certain actions which are more or less constrained by the economic zeitgeist. That’s why one can understand people not bothering to vote (though of course they should be spoiling their ballot instead).

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  • letthemfall says:

    A particular party in govt, I should say.

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  • mark wadsworth says:

    Dill: “Do you think that a puppet nation like Britain would have responded any differently under a Conservative administration, even if Major had still been at the helm?”

    Personally, no I don’t, I think they would have been the same, but that is not the point. Under English law, you can’t be convicted of a crime you would have committed but didn’t. The Tories are bad enough in real life, and to accuse them of things that Labour did is to woefully understate how THOROUGHLY AWFUL Labour were when in power.

    And the Lansley, Gove, Duncan Smith reforms seem to be heading tentatively in the right direction AFAICS.

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  • @19 mw

    Agreed on New Labour (Neo-Tory) but as I’ve said before, I’m apolitical. I tend to agree with other posters here that, regardless of political hue, they’ve all worshipped at the same altar even if singing from different prayer books. Things have to change.

    As for the Tory side reforms – these will only be effective if the country can actually create a resurgent private sector. Without that, they can do a lot of damage in the short term.

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  • letthemfall says:

    I don’t think we are understating the failings of Labour at all.

    I listened to the programme on R4 last night about the Russian revolution (only one of several that’ve been on), which quoted a writer who said that the condition of the Russian people is slavery – from the Czars on to the Bolsheviks (an opportunity for democracy missed). And now of course Russia is still pretty much under autocratic rule.

    So perhaps this country’s fate is to continue with what we have – a privileged minority kept in place by the hope of the majority that they may one day join them.

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