Joseph Rowntree Report States Mortgage costs for first time buyers reached 1990 peak

adr0ck

see report

http://www.jrf.org.uk/knowledge/findings/housing/1933.asp

it also states that we need to build 220,000 new homes a year between now and 2021....were currently building 150,000.....therefore if we carry on as we are then in 15 years time we'll have an under supply of over 1 million homes!!!!!!

which way will prices go then?

note we already have an undersupply!!!!

lynzpower

Well, it all depends doesnt it.

I personally would like to see a system in place where people are penalised for having property that is far too big for thier needs. Any more than one spare bedroom, and thats it, it should cost you via taxation.

TJ27

I think they do that sort of thing on Jersey? If you're a couple with one child and you move there for work, then you are only allowed a two bed house for example.

Good idea really.

lynzpower

do they really TJ, will look into that

dunstonh

I read last month that it was getting close to 1990 levels. The peak before the last property crash.

There may be a shortage but a crash would do wonders for that with many mortgaged buy to lets going into arrears and getting repossessed with a load more trying to get out while they can.

Its a tough call and no-one knows. All the signs are there that its a bubble. Is bubble going to burst, slowly deflate or remain where it is, that is the question which no-one on this planet can answer.

Gorgeous_George

dunstonh wrote:

There may be a shortage but a crash would do wonders for that with many mortgaged buy to lets going into arrears and getting repossessed with a load more trying to get out while they can.

Poppycock!

If BTLers sell/get repossessed, FTBers may well buy the house at a knock-down price, but...

...where do the renters go?

Lack of housing is NOT caused by BTLers. It may be caused by people having more than one home such as holiday homes. It is not caused by BTLers.



GG

martyn4764

Gorgeous_George wrote:

FTBers may well buy the house at a knock-down price, but...

...where do the renters go?

Er, they become FTB's?

Gorgeous_George

lynzpower wrote:

Well, it all depends doesnt it.

I personally would like to see a system in place where people are penalised for having property that is far too big for thier needs. Any more than one spare bedroom, and thats it, it should cost you via taxation.

People who own houses that are too big have mortgages that are too big and money tied up that is too high. They eventually get hit by IHT.

However, I suggest

1) No Stamp Duty when downsizing

2) Allow the elderly to own a 2 bed house and not be means tested for care homes/benefits.



GG

Gorgeous_George

martyn4764 wrote:

Er, they become FTB's?

Only if you believe that all renters want own a house. Many people choose to rent because it's cheaper, more flexible and less hassle.

My BTL cost me less than £20K and I had people lining up to rent the place at £75 per week.

SOME people choose to rent.



GG

F_T_Buyer

And what about those 2nd homeowners (who don't rent out their 2nd house)? What about the hundreds of thousands of derelict/empty properties?

Infact, we have more properties now per head than at any time since WW2. The housing supply is mostly because of people speculating on house prices; including those who want to live on their own.

If housing is in such short supply, why has rent lagged house prices and in comparison, so cheap?

j-baby-scotland

This is old news... a problem long brewing...


http://news.bbc.co.uk/1/hi/england/4365130.stm
http://england.shelter.org.uk/advice/advice-6497.cfm