Tuesday, March 10, 2015

A strange and exceptional phrase

The disappearing property ladder

For millions of people under the age of 40 the property ladder has become a snake instead - unsettling and threatening, the very antithesis of the stability and security that a home ought to bring.

Posted by debtserf @ 07:53 AM (6999 views)
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11 thoughts on “A strange and exceptional phrase

  • Lol….nothing to do with btl..near zero rates …help to buy…fls

    Only to do with lack.of building

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  • We sold a house in 2007 and the Land Registry shows it has recently sold again for £5000 less. This is despite our buyer spending several thousand pounds on a quality replacement kitchen and bathroom etc. I notice several other properties in the (nice retirement) area have also changed hands at lower prices.

    We don’t all live in London!!!

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  • “For millions of people under the age of 40”. This number increments every year, I can remember when it was the under 30’s.
    Soon it will be “For everyone”

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  • No, I think she is right. If we could build houses without restriction, there would be natural suppliers filling the demands for housing and house prices would be reasonable as a result.

    Talk about interest rates or BTL is just the normal background noise.

    I can honestly say, if a political party comes out tomorrow with a single manifesto to solely build more houses, I will vote for them. I don’t care what their other policies will be. I only care about this single issue at this point.

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  • The idea that you need to speculate in property to have a decent chance of a good standard of living is appalling. We ignored the propaganda and waited until our family was complete and we had an anchor child in an excellent school before buying, and I sincerely hope that we only ever downsize. The disconnect between effort and reward is incredible – our standard of living is nowhere near what it would be if it income and input to the economy was what determined how well you live, not how much home equity you have

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  • uk ponzi scheme strikes again

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  • sibley's b'stard child says:

    Unfortunately we will need to wait for a critical mass of the electorate suitably p*ssed off enough for the gov of the day to do anything to rectify decades of selling the populace down the Swanee. At present there’s a sufficient % of voters more than happy with their gains.

    It may take 5, 10 or more years but when it does they’re going to get a kicking.

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  • : It’s simple – we’re not building enough new homes, and we haven’t done so for years.

    This just is not true. Yes, young folks are not getting on the property ladder, but not because of lack of houses but because house prices are way too expensive. Of course, demand and supply plays a role but house prices are first of all a derivative of the money supply. Clearly, banks are now lending against much higher salary multiples than 10 years ago. Stop that and you will have a natural ceiling on house price inflation. Of course there still is the matter of foreign money flooding in. The ground has to be a levelled playing field. Right now it clearly isn’t. The market is rigged. But hey – all it takes is for the next generation to finally wake up to this and demand change. It is beyond me how on earth interest rates can collapse without rents doing the same. This ‘generation rent’ silently accepts this nonsense. It is time for the masses to wake up. What would happen if all renters reduce their rental payments to match the interest the landlord would be getting on an equivalent 1 year fixed deposit investment, based on market value of a similar property advertised by the local estate agent? What can the ‘so called’ establishment do? Mass evict? Send water cannons? Nonsense. There is nothing they can do but accept the consequences. First, those highly leveraged BTL landlords will fail and this will cause prices to start falling. Next, foreign money will capitalize on capital gains made this far and start selling, too. This will cause a race to the bottom and the much needed cleansing. Yes, the BOE will need to save banks who are technically bankrupt because of the hole the house price collapse will create in their balance sheet. And yes, the government needs to bail out those who are mortgage prisoners because they paid too much for their homes. But so what – all this can be managed. And it will free the way to a better economic model. So folks, exercise your right and demand change. Make use of the potential that social media is giving you. Start a movement. Don’t wait for the establishment to sort this out. It will never happen.

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  • Seems like sellers are still getting asking price as the lady in my next street put her 3 bed house on market and within 1 day had 15 viewings and got the asking price..

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  • Never really understood the colloquial term “property ladder” .

    Perhaps I’m just too logical .

    Over the years I’ve had plenty of conversations with forty somethings who seem to believe that houses can keep going up forever .

    These were supposedly numerate people and no matter how I tried to explain they couldn’t understand it .

    I suppose most of them had no experience in buying shares or anything like that which would have illustrated to them that asset prices go up and down and only the debt remains .

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  • nothing about a speculative property bubble then. It’s as if the financial crisis never happened, nor the previous property downturns over the last 30 years.

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