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Debate House Prices


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Rightmove April +1.7%

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Comments

  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    DexterA wrote: »
    So a higher deposit is needed to buy a first time property? Which is often a tiny one or two bedroom flat (thanks for high density homes you labour idiots).
    yes, afraid so.

    if lending criteria is tougher now that means that a higher deposit is required. putting a deposit at the moment together is tough hence why there are a higher number of assisted FTBs now.
    DexterA wrote: »
    House price cheerleaders are wrong, unaffordable housing is bad for the country and the economy.
    of course higher house prices are bad for the people in general - i don't think many people would disagree with you.
  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    DexterA wrote: »

    House price cheerleaders are wrong, unaffordable housing is bad for the country and the economy.

    You have a point here, but it is what it is, so the point is surely to accept this reality and make the best of it.
    Affordable property abounds up and down the land - ok it may mean a trek to work, but so what, life was harder in other regards in the past, and now affordability and having to commute is a down side of living today, but it is unrealistic to expect EVERYTHING to always be getting better. We have better health, live longer, have nicer cars, endless entertainment, huge food choices - we can't have everything we want though. People used to up sticks and go to America for a better life - at least the ave Brit won't need to do anything quite so drastic.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 19 April 2011 at 1:49PM
    FTBFun wrote: »
    Well there's one way around that - build more houses.

    I do note however your choice of words on starter homes - what is wrong with a one or two bedroom flat as a first home?
    i think the point is that FTB's are older now and are looking at these properties with families. they may want larger properties.
    but the real point is that they're not older on average and that just more people are able to buy than 40 years ago so there will be people who have families and want to buy.

    the other question is why didn't they buy when they were younger...
  • ultrawomble
    ultrawomble Posts: 492 Forumite
    FTBFun wrote: »
    what is wrong with a one or two bedroom flat as a first home?

    Because they're crap. Communal living = designed for letting = inconsiderate neighbours.
  • ukcarper wrote: »
    Don’t you think that the fact that over 3x as many people go to university now than did in 1980 would have some effect of the number of people under 35 buying?

    See linton beat me to it.

    Yes. Do you understand what I mean when I say:
    Less younger people are buying, and this cannot be disputed.

    Some of this will probably be to do with University until they are 21ish. What effect this has on the figures I have, I am not sure. Many will have debt before even starting to work hindering their chances of buying before they are 25, and others will earn significantly more than the average person in their early 20s.

    You highlight another reason why non-granular "mean averages" are useless without context.
  • chucky wrote: »
    it's the deposit criteria that's the problem not the house prices
    Does a 10% deposit become easier to save if the house is cheaper?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Does a 10% deposit become easier to save if the house is cheaper?
    here we go again.... it's a different replay to my original post because he can't put together a coherent argument together to reply to it.
    chucky wrote: »
    DexterA wrote: »
    Increasing house prices aren't only bad for First Time Buyers.

    Increasingly parents are having to finance their children's purchase.

    High house prices are bad for society, Social mobility and many older folk.

    n-v15.02.11-table-two-assisted-ftbs.jpg

    Conservative lending criteria have led to lower LTV ratios and much greater dependence by FTBs on the bank of mum and dad. Those aged under 30 are now heavily reliant on parents and other relatives for financial support. We estimate that, in 2005, 38% of those aged under 30 required help with their deposit. Table Two shows that by 2009 an estimated 84% of FTBs in this group were assisted.
    it's the deposit criteria that's the problem not the house prices if you want to bring in bank of mum and dad into the discussion.

    the income multiple is about the same but the size of the deposit as a percentage of income has soared which is why assisted FTB's are higher.

    n-v15.02.11-table-one-typical-ftb-deposit-illustration.jpg
    btw - a 10% drop on a £100k house allows you to save £1,000 in your deposit you shouldn't be looking to buy a house if you're looking to gamble the risk of saving £1,000 when you buy it.
  • lemonjelly
    lemonjelly Posts: 8,014 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    ukcarper wrote: »
    Don’t you think that the fact that over 3x as many people go to university now than did in 1980 would have some effect of the number of people under 35 buying?

    See linton beat me to it.

    I actually think that uder 25's having limited housing benefit claims is likely to have a bigger effect. Less people living independently, less people with life skills, less people having the desire to get their own place.

    Increasing numbers in HE & FE has been fairly gradual imo - things like EMA may have affected a small minority over the past 2 or 3 years (but it will be interesting to see how that stops in 2 years when EMA goes completely).

    Over the past 6-7 years, HPI has meant that deposits for many have become little more than a pipe dream, especially for young singles. Those with debts have had (bizarrely) a better credit rating, and have been more likely to be able to get a mortgage. Sustaining repayments on the other hand...

    BTW, how long is this thread, arguing over a 1.7% change?:eek:
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Because they're crap. Communal living = designed for letting = inconsiderate neighbours.

    Exactly! That's why this billionaire only paid £136m for his flat, what a cheapskate he is.

    https://forums.moneysavingexpert.com/discussion/3182606
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • FTBFun
    FTBFun Posts: 4,273 Forumite
    Because they're crap. Communal living = designed for letting = inconsiderate neighbours.

    I see what you are saying - living in flats = scum. Best shoot everyone who does.
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