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Why is property unaffordable for even the relatively well-off among the population?

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Comments

  • Because of the fractional reserve banking systeml. Which Martin Lewis is doing nothing to tell you about.

    Watch 'Money as Debt' and then watch 'Money as Debt II', on Youtube. Watch the film 'The Secret of Oz' (you can normally find this on Google Video.)

    Strangely enough, Martin seems happy for you to carry on working for the rest of your life, struggling to make ends meet, just so that a handful of incredibly rich counterfeiters (bankers) can stay incredibly rich.

    To put it even more simply: the banks don't have most of the money they claim to have. If their customers were to try to withdraw even ten percent of their total savings, the banks would collapse and demand a 'bail out'.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    All these students, 50% going to Uni - that's an increased need for housing... housing that sits empty half the year.

    There were:
    - LLs who bought a 3-6 bed house for student shares
    - Parents who bought their kid a house while at Uni, to share with 1-2 others to pay for it
  • ILW
    ILW Posts: 18,333 Forumite
    Because of the fractional reserve banking systeml. Which Martin Lewis is doing nothing to tell you about.

    Watch 'Money as Debt' and then watch 'Money as Debt II', on Youtube. Watch the film 'The Secret of Oz' (you can normally find this on Google Video.)

    Strangely enough, Martin seems happy for you to carry on working for the rest of your life, struggling to make ends meet, just so that a handful of incredibly rich counterfeiters (bankers) can stay incredibly rich.

    To put it even more simply: the banks don't have most of the money they claim to have. If their customers were to try to withdraw even ten percent of their total savings, the banks would collapse and demand a 'bail out'.

    And your practical alternative would be.........?
  • setmefree2
    setmefree2 Posts: 9,072 Forumite
    Mortgage-free Glee!
    MrPThomas wrote: »
    Why is property still unaffordable for even the relatively well-off among the population?

    My question is really as the global crisis gets worse and worse, why are UK house prices not following the rest of the world and crashing?

    The USA, Ireland and other places are seeing half price houses why not the UK yet?

    Because there is a shortage of housing in the UK because builders are not allowed to build on the green belt.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    ReadingTim wrote: »
    More recently, a lack of credit means it has temporarily ground to a halt, but when the money starts to flow again (and it will), the machine will whirr into its ever upward action.

    Who is going to supply this "credit" ?
    The property landscape in the UK has changed forever

    Maybe you've just witnessessed the end of an era.
  • ILW
    ILW Posts: 18,333 Forumite
    Thrugelmir wrote: »
    Who is going to supply this "credit" ?



    Maybe you've just witnessessed the end of an era.

    Think the era only lasted about 15 years or so, trouble is that people then assumed it was the norm.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    ILW wrote: »
    Think the era only lasted about 15 years or so, trouble is that people then assumed it was the norm.

    Rules on capital requirement reserves for banks were progressively relaxed from the early 70's onwards. Basle 3 implementation is deferred to 2018 so ultimately will span around a 50 year period.
  • ILW
    ILW Posts: 18,333 Forumite
    Thrugelmir wrote: »
    Rules on capital requirement reserves for banks were progressively relaxed from the early 70's onwards. Basle 3 implementation is deferred to 2018 so ultimately will span around a 50 year period.

    I cannot remember 125% no deposit mortgages being available in the 80s. May be wrong though.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ILW wrote: »
    I cannot remember 125% no deposit mortgages being available in the 80s. May be wrong though.

    The amount of available credit has increased significantly. The actual lending multiple is irrelevant. Other than to reduce risk on the overall lending book. Statisically banks base their overall lending books on an average of 3 to 3.5 earnings. Not everybody borrows the maximum that they can.
  • ILW
    ILW Posts: 18,333 Forumite
    Thrugelmir wrote: »
    The amount of available credit has increased significantly. The actual lending multiple is irrelevant. Other than to reduce risk on the overall lending book. Statisically banks base their overall lending books on an average of 3 to 3.5 earnings. Not everybody borrows the maximum that they can.

    So maybe easily available credit should not be considered the norm, but a bit of a recent blip.
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