Mainstream media article says it's not lending, its prices.

Graham_Devon

Finally!

http://www.guardian.co.uk/money/blog/2011/feb/28/northern-rock-first-time-buyer-mortgage

The real elephant in the room is house prices. Although they have fallen 0.9% over the past year, according to Land Registry figures, it is not nearly enough to make property affordable for most first-time buyers. While the average salary in the UK is just £26,510, the average price of property is still more than six times that at £163,177.

Until something is done to address this disparity, prospective buyers will remain as tenants.

Is the penny dropping?

Bullfighter

Exactly.

There are only 2 inputs to house prices:

1. Wages
2. Credit

Guess which has ballooned to fuel the 6x average earnings house prices?

HINT: It's not wages.

1984ReturnsForReal_2

Bullfighter wrote: »

Guess which has ballooned to fuel the 6x average earnings house prices?

Just tell us the answer.

RexBanner

Graham_Devon wrote: »

Is the penny dropping?

There's none so blind... so I won't bet on the penny dropping among many with a vested interest in ridiculously high house prices til the writing/eviction notice is on their wall.

For the rest of us though teh signs are increasingly clear.

In fairness to teh Guardian it hasn't been the worst in terms of property !!!!!! and middle-class house-price obsession, and their Money editor Patrick Collinson has written some good stuff on the social benefits of sensible house prices.

As someone too young to take an interest in teh last crash it's interesting to take a watching brief as things unfold.

undetterred

Graham_Devon wrote: »

Finally!

http://www.guardian.co.uk/money/blog/2011/feb/28/northern-rock-first-time-buyer-mortgage


Is the penny dropping?

163k relates to every corner of the UK?? seen some right c rap on my door step for 60k,yet 130k gets something decent.

Graham_Devon

undetterred wrote: »

163k relates to every corner of the UK?? seen some right c rap on my door step for 60k,yet 130k gets something decent.

No.

That's why it's called an average.

undetterred

Graham_Devon wrote: »

No.

That's why it's called an average.

What the average of your post count per day?

System

I don't disagree that houses are expensive, but there were massively more FTBers a few years back when prices were considerably higher.

So how can it be entirely down to prices?

Shakethedisease

Getting the credit to pay for the prices ?

AD9898_2

Joeskeppi wrote: »

I don't disagree that houses are expensive, but there were massively more FTBers a few years back when prices were considerably higher.

So how can it be entirely down to prices?

I think the main reasons were bad lending/borrowing coupled with carpet bombing by the media/VI's that property only ever goes up, get on the ladder before you're priced out etc.. It had a big effect IMO.

Going back to the article, it's nice to see that the elephant in the room has been finally spotted, how it was ever missed in the first place is a complete mystery.

I think in the end it's just down to greed. Take Hamish for example, he cheers from the rooftops at any article or set of figures that point to rising prices, yet we know for absolute certainty that if he were a 25 year old FTB'r he'd want prices to fall.

geneer

Joeskeppi wrote: »

I don't disagree that houses are expensive, but there were massively more FTBers a few years back when prices were considerably higher.

So how can it be entirely down to prices?

Oh I don't know Joescampi. I suppose its possible that the powers that be have decided that bringing down the global financial systems and causing economies to nosedive might not be a good thing after all.