Industry leaders summoned to crisis meeting on first-time buyers

Graham_Devon

There is one solution to this.

That is, lend more. In turn, what that actually means, is risky lending, to people who will be overstretched from the word go.

If anyone has any other solutions which don't involve the prices of houses declining, that can actually be sorted right now (not building x amount of houses by 2035), then I'd like to hear them.

Thrugelmir

smeagold wrote: »

Irrelevent, theres a crisis meeting anyway so there must be a crisis, what will they do to keep house prices from falling?

Your comment is contradictory.

If house prices fall then FTB's will be better able to afford a property. As the required deposit will fall.

IronWolf

Its a crisis because all of those guys have multiple BTLs

FTBFun

Graham_Devon wrote: »

There is one solution to this.

That is, lend more.

Well, in the short term. In the long term its "build more houses".

HAMISH_MCTAVISH

smeagold wrote: »

, the proportion of first-time buyers under the age of 30 who are able to buy without parental help has fallen from 63% five years ago to 17%.

And yet prices as a national average today are hovering around 2006 levels.

So the price is the same as five years ago, yet the number of FTB's has fallen.

As price isn't the problem, I wonder what is.....

In the last three quarters of 2010, the proportion of mortgages granted to first-time buyers with deposits of less than 10% fell to two in 100, down from almost six out of ten in 2005.

Ahhh, I see.

Mortgage rationing rears it's ugly head once again.

The average age of an unassisted first-time buyer is now 37.

Treasury spokesman Lord Oakeshott accused mortgage lenders of being virtually ‘on strike’ when it came to lending to first-time buyers.

He said: “The bankers’ doors are shut to first-time buyers without a big helping hand from the Bank of Mum and Dad.”

No wonder there's a crisis meeting.

Those lending stats are a disgrace.

Graham_Devon

HAMISH_MCTAVISH wrote: »

And yet prices as a national average today are hovering around 2006 levels.

So the price is the same as five years ago, yet the number of FTB's has fallen.

As price isn't the problem, I wonder what is.....



Ahhh, I see.

Mortgage rationing rears it's ugly head once again.



No wonder there's a crisis meeting.

Those lending stats are a disgrace.

I'm worried.

Bring your head up out of the sand for a breath...you can pop it back in straight after

I do like it. Lending itself has major issues, insolvencies increasing, bad debt increasing, asset prices out of kilter with wages based on ever increasing lending.

Our solution to the problem of lending too much? Lend more. It's a disgrace that we should reign in excess lending. Lend MORE I say, and this time, do it proper, lend double the amount!

Hamish's solution to the problem is simply look at the figures at those who HAVE got a mortgage, disregarding the increasing numbers that can't and simply suggest theres no issue here, move along.

If I have a credit card problem, and I have reached my limits and am finding it difficult to make repayments, should I fix that, by getting another credit card?

julieq

When will the penny drop I wonder? You don't need first time buyers in a housing or any other market to sustain values.

The inevitable result of the increase in housing prices is that fewer people will be able to afford them, from the peak of 70ish % currently. That means that the most wealthy 70% of the country, reducing over time, will hold the housing stock and trade it between each other essentially as a function of imputed or real rent.

Which is the historical norm.

The solution isn't more lending - that simply fuels more inflation and is self defeating. If you want more affordability, build more houses.

julieq

And Graham, insolvencies are not increasing to anything like a level that indicates excessive lending. Not in the UK at least. Bad debt is extremely low. House prices don't have to relate to wages of those that can't afford them, only to those who can.

DervProf

Hamish : Property prices will rise, due to supply and demand, there's a property shortage in the UK.

Hamish : It's terrible that banks aren't lending enough to FTBers. They must lend more.

Hamish : Property prices have risen again :beer: (LR figures published today say otherwise, BTW).

So Hamish openly welcomes property price rises that will cause FTBers to need to save/borrow more, and the banks to lend more.

I suppose that's a bit like welcoming an increase in the price of food, because you have shares in the company that produces food (and you have enough food of your own in store). When some of us point out that rising food prices is a bad thing, you simply say "well, people will be able to eat if they can borrow enough from the banks". Problem not solved, but you're OK, and that's what matters, eh ?

adr0ck

FTBFun wrote: »

Well, in the short term. In the long term its "build more houses".

in the long term very few houses will be built

by 2018 say i reckon we will be building less than 50,000 a year max