Who should be able to buy?

headcone

dopester wrote: »

That doesn't mean much to me. Not if someone presents it in a way to say over 50% of home owners have no mortgage, and implying that has a bearing on supporting current values

I've owned shares in the past. Bought them without borrowing any money.

It didn't stop the my shareholdings in some companies rising, or sometimes falling, on any given day, by the actions of active buyers and sellers who were actively transacting in the market.

It may not mean much to you,but it means a lot to the just under 50% of people who live in their house Mortgage free :cool:

As for current values who cares?

Just Slightly more than 50% methinks.

jim83

Generali wrote: »

Slightly under 50% of houses have a mortgage.

How do we know this? I've just had a quick scout around and can't find any real statistics from recent times.

Best I can find is this poorly worded article from 2008 with an opening sentence to make a statistician's head spin, "36 per cent of Britons have a mortgage, while 26 per cent of UK homes are owned outright by home owners" (are we referring to the percentage of homes or the percentage of people who own them?)

barnaby-bear

HAMISH_MCTAVISH wrote: »

House ownership is already at 70% or so.... Far higher than many countries in Europe.

How much further is likely, possible, or desirable?

The european myth... ASTs and the tenure they offer is very different to the long term rental options available in many european countries. If your rental options are positive ones that suit your lifestyle that will skew your decision to buy in the UK outside of social/council tenancies it's very temorary and transitory - great for students/people who want to move not long term. German rental system great for long term family stability - rubbish if only on a temporary contract for a year.

headcone

barnaby-bear wrote: »

The european myth... ASTs and the tenure they offer is very different to the long term rental options available in many european countries. If your rental options are positive ones that suit your lifestyle that will skew your decision to buy in the UK outside of social/council tenancies it's very temorary and transitory - great for students/people who want to move not long term. German rental system great for long term family stability - rubbish if only on a temporary contract for a year.

Oh just more rubbish from the I can`t afford to buy brigade.

It gets boring.

baileysbattlebus

jim83 wrote: »

How do we know this? I've just had a quick scout around and can't find any real statistics from recent times.

Best I can find is this poorly worded article from 2008 with an opening sentence to make a statistician's head spin, "36 per cent of Britons have a mortgage, while 26 per cent of UK homes are owned outright by home owners" (are we referring to the percentage of homes or the percentage of people who own them?)

Here is a link.

Generali's figure is slightly out, but in the right area for the percentage of owner occupiers with a mortgage - depending on whether you look at as a % of all households or a % of owner occupiers who are mortgaged

http://www.communities.gov.uk/documents/housing/xls/141677.xls


6.6million mortgage free (45% of homeowners or 31% of all households)
7.9million mortgaged. (54% of homeowners or 37% of all households)
3.8million social renters (18% of all households)
2.9million private renters (12% of all households)

for England for 2008.

baileysbattlebus

FallenAngel9898 wrote: »

I was just going to say, where do they get the figure 11.1 million from (currently banded around in the media) ?, but I just saw the last bit of your quote saying 'England', guess the others are Scotland, N Ireland and Wales.

Yes it is just for England - though I could find the number of households for N Ireland, Scotland and Wales, for the different categories, owned, rented privately and socially rented, I couldn't find the info on the split of mortgaged/non mortgaged households.

carolt

baileysbattlebus wrote: »

Here is a link.

Generali's figure is slightly out, but in the right area for the percentage of owner occupiers with a mortgage - depending on whether you look at as a % of all households or a % of owner occupiers who are mortgaged

http://www.communities.gov.uk/documents/housing/xls/141677.xls


6.6million mortgage free (45% of homeowners or 31% of all households)
7.9million mortgaged. (54% of homeowners or 37% of all households)
3.8million social renters (18% of all households)
2.9million private renters (12% of all households)

for England for 2008.

Interesting. So only 37% of all households are benefitting from the current low interest rates on mortgages. (And some of those only marginally or not at all - the ones with tiny or fixed rate mortgages.)

Whilst 63% of households benefit not at all from this, but are actually harmed, as their savings earn less and the falling pound means higher inflation on imported goods. After all, it's not as though lower interest rates have trickled through to other sorts of non-mortgage borrowing - credit cards, loans and business borrowing have all gone up, rather than down.

Can someone remind me why we've put the base rate down to a 400-year low, again?

JonnyBravo

carolt wrote: »

Interesting. So only 37% of all households are benefitting from the current low interest rates on mortgages. (And some of those only marginally or not at all - the ones with tiny or fixed rate mortgages.)

Whilst 63% of households benefit not at all from this, but are actually harmed, as their savings earn less and the falling pound means higher inflation on imported goods. After all, it's not as though lower interest rates have trickled through to other sorts of non-mortgage borrowing - credit cards, loans and business borrowing have all gone up, rather than down.

Can someone remind me why we've put the base rate down to a 400-year low, again?

I'd guess it has as much, if not more, to do with the cost of lending for businesses as mortgage holders.

nearlynew

FallenAngel9898 wrote: »

To me the only reason is to stop the avalanche of repo's and the then inevitable bursting completely of the property bubble. At the moment I would guess hundreds of thousands of people who cannot remortgage because of lost equity have dropped off deals onto a cushy SVR, if base rate was at even an historical low of say 4%, pushing SVR's upto say 7%+, the falls in property prices that we have seen would be small beer as to what would happen then.

This is what the HPI cheerleaders meant 2 -3 years ago when they said "the government wouldn't let the market crash"

What they don't realise is that it cannot be sustained indefinitely.

mbga9pgf

Nope. Global forces influence rates just as much as the BOE do... I am a deflationist, but even I realise all this demand destruction is going to lead to some pretty hideous commodity inflation as GLOBAL (not necessarily when it suits the UK note) demand picks up with low initial productivity.