Saturday, February 13, 2016

People farming, UK style

Under-35s in the UK face becoming permanent renters, warns thinktank

Nine out of 10 Britons on modest incomes under the age of 35 will be frozen out of home ownership within a decade, according to a study from a leading thinktank that lays bare the impact of surging property prices on the young ... The thinktank, chaired by the former Conservative cabinet minister David Willetts, said that in 1998 more than half of people aged 16-34 living in households with incomes between 10% and 50% of the national average were buying their own homes. The percentage had dropped to 25% in 2013-14 and was on course to be 10% across the UK as a whole by 2025. In London it is forecast to be just 5%

Posted by quiet guy @ 12:37 PM (5028 views)
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8 thoughts on “People farming, UK style

  • Because they are unwilling to move to less trendy parts of town and are overly fussy.

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  • @Libertas

    A question for you: do you think housing costs in the UK have risen substantially or not over the last 40 years? Evidence to back your answer would be appreciated.

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  • Libby if that was true then the less trendy parts of town would have to have spare capacity.

    There will be a mass council flat building in 30 years time to house these renters and save housing benefit.

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  • Libby if that was true then the less trendy parts of town would have to have spare capacity.

    There will be a mass council flat building in 30 years time to house these renters and save housing benefit.

    Reply
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  • quiet guy, actually, housing costs have plummeted in terms of mortgage costs with rates as they are. However, the normal middle class stomping grounds, very limited in geographic scope actually, are now rapidly overwhelmed by rapid population increases. However, there are huge pockets of cheap places even in London that are affordable but spoilt brats refuse to move there.

    Yes, prices will keep rising and the middle classes voted for bleeding heart Liberals who have plunged us headlong into having no border controls, and so they will have to either join UKIP and support Eurosceptic Tories or put up with living in an ex Council house or a seedy side of town that they will nonetheless regenerate if folk will move there.

    I know plenty of folk who refuse to buy because they would rather rent a room in a shared house in Zone 2 than buy a studio flat in Zones 4 or 5 that they will be able to sell in five years time to upgrade to a house.

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  • You are very funny libby. Those spoilt brats eh. Their fault that a place commanding 2-3x av income is now 10-15.

    you advocate a ponzi or greater fool theory.

    The social immobility caused be house prices where the average family cant afford an average price home is frankly ridiculous.

    Yep go put them in a 1 bed stinky flat under the flight path of heathrow. They should count themselves lucky.

    Even if you were right the differential between your fictional affordable appartment and your fictional house price will increase so the next “step” on the ladder would be unattainable. Oh yes ofc we have negative IRs round the corner so the banks will plead with us to take the mortgage and pay us to do so.

    You have no contingency in your “analysis”. Perhaps a spike in irs will happen not because of a lacklustre performance but because of a good old sterling crisis ?

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  • @6
    “the differential between your fictional affordable appartment and your fictional house price will increase so the next “step” on the ladder would be unattainable.”

    Yep, it’s time to bring Libby’s old chestnut out of the cupboard once more for a good airing…

    Libby’s Economic Theory of HPI

    Annual wage rises of 3.5% creates annual house price inflation of 10.5%

    Example
    Price of small apartment in slummy part of town = £150,000
    Purchased on 3.5x salary of approx £37,000
    After 15 years mortgage is paid off
    Apartment is now worth £670,000

    Occupant now has deposit of £670,000 and looks to move

    Price of house in good part of town 15 years earlier = £350,000
    House is now worth £2,235,000
    Mortgage needed to trade up: £1,565,000
    After wage rises of 3.5% over 15 years, salary now = £61,000
    Salary multiple of mortgage now needed = 25x

    Economics Fail.

    QED

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  • Ed we must be missing something… I know regeneration of the slummy part and people downsizing from the nice parts…thats it !!

    Everyone who would love to trade up and enough peeps to match by downsizing will. Result – libby dystopia. Who knows maybe the people could downsize and swap with the peeps in the regenerated areas.

    Hold on… I just saw pinky and perky flying out the window. Ofc if there is a downmove libby will trumpet that as a last chance to get in…buy now while stocks last.

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