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Telegraph: Lending main obstacle for buyers, causing Brits to "give up"
HAMISH_MCTAVISH
Posts: 28,592 Forumite
http://uk.finance.yahoo.com/news/Britain-gives-home-ownership-tele-2788265787.html?x=0Britain is ‘giving up’ on its dream of being a nation of home owners as figures show two out of five first-time buyers do not expect to step onto the property ladder until they are at least 40 years old.
It is the latest evidence of buyers struggling to purchase their first home after concerns were raised earlier this week that the typical age of a first-time buyer could soon increase from 37 to 44.
The most recent alarming findings by property website Globrix.com also suggested one in 12 never expect to buy a home while a quarter said they are relying on their parents to provide at least 20 per cent of their initial deposit.
A lack of mortgage finance is the main hurdle for buyers as lenders demand increasingly larger deposits for the best rates.
Alarming figures indeed.
This mortgage famine is ruining the prospects of an entire generation of FTB's, who are instead doomed to enriching their landlords.
..
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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Britain is ‘giving up’ on its dream of being a nation of home owners as figures show two out of five first-time buyers do not expect to step onto the property ladder until they are at least 40 years old.
The 'dream' was realised about 20 years ago. The stats show that levels of home ownership have actually been pretty static for the last couple of decades (see Figure 6 of the PDF below) at around 70% owner-occupation.
http://www.bis.gov.uk/assets/bispartners/foresight/docs/land-use/jlup/06_urban_land_and_property_ownership_patterns_in_the_uk.pdf0 -
Home ownership has been declining for the last few years.
It's likely peaked, as without an increase in lending, there's no way to reach those highs of owner occupancy again.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
The fact home ownership costs have nearly tripled in the last 15 years is probably a major factor.Truth always poses doubts & questions. Only lies are 100% believable, because they don't need to justify reality. - Carlos Ruiz Zafon, The Labyrinth of the Spirits0
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Mrs_Arcanum wrote: »The fact home ownership costs have nearly tripled in the last 15 years is probably a major factor.
No they haven't.....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
.....only doubled0
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by 2.1354767660
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ultrawomble wrote: ».....only doubled
No they haven't.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Home ownership has been declining for the last few years.
It's likely peaked, as without an increase in lending, there's no way to reach those highs of owner occupancy again.
It could be argued that the peak was caused by the 100-125% mortgages - if so, those 75%ish owner-occupier levels may never be repeated again given that such lax lending is unlikely to be repeated in the near future.0 -
Average valuation offered for our old house in 96 was £165,000. Following the death of my Mother in 2002 we were offered £450.000 subject to planning permission. Eventually sold in 2004 for £400,000 so not exactly tripled but well over double in 8 years. House we purchased is still worth over 20% more than we paid in 2004 (wisely have less than 40% mortgaged).
Thing is, wages have not doubled in that time.Truth always poses doubts & questions. Only lies are 100% believable, because they don't need to justify reality. - Carlos Ruiz Zafon, The Labyrinth of the Spirits0 -
HAMISH_MCTAVISH wrote: »No they haven't.
OK. Houseprices have doubled and wages have gone up also. The house price : earning ratio has gone up from ~3 to ~4.5 and mortgage repayments as a %age of income are about the same - but on the back of a 0.5% base rate.0
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