Thousands trapped on first rung of housing ladder

brit1234

HAMISH_MCTAVISH wrote: »

Other than fees, every single one of these issues revolves around banks absurdly tight lending criteria.

Lending Criteria is fine, it was irresponsible lending that caused the bubble. For me with £55k saved it is high prices stopping me from buying.

It all gets down to Price nothing else.

BigAunty

Some appear to be trapped on any rung.

Just viewed a lovely property today, a 3 bed terraced house bought for 350k at the height of the bubbly boom where they are seeking in excess of 300k for it. However, we also viewed in the same area a detached bungalow with a double garage and huge garden, two 5 bed properties and one 4 bed for either similar or less money they are hoping for in the same area.

So they are trapped too because they understandably want to mitigate their losses but I think they will be stuck there unless they accept that they need to take a 75-85k loss on it, not 20-40k.

MrRee_2

Or they just don't sell it .......... you gave the price some credibility by viewing the property in the first place.

brit1234

MrsRewired wrote: »

In the UK the housing market is intricately linked to the economy and jobs, hence when times are good the house prices rise, while oppositely when they are bad prices crash

I argue differently. The so called good times were fueled by mass unsustainable debt which housing was the main contender. It was when that housing bubble popped the bad times happened.

System

Ooh, 2nd time buyer perks, yes please

Graham_Devon

Like it Hamish.

FTB's can afford it. Just can't get the product allowing them to afford it.

Ergo, they can't afford it. Bravo.

What other product would you suggest people can afford, just can't get the loan?

Would you suggest actually everyone can afford BMW M5's....they just can't get the loan? Would you suggest everyone can afford a round the world holiday, just the nasty banks won't give them the credit for it? Would you suggest everyone can afford new 3 piece suits, they just can't find the finance for it?

What you are basically suggesting is that people could afford the repayments on a product which doesn't exist. That's great. But it's fantasy stuff.

At the end of the day, they can't buy the house because they don't have the money and no one is willing to lend them the money based on their finances. Hence, they cannot afford it, no matter what fantasy scenario product you dream up.

Sibley

You only have to cast your memory back to when banks lent money easily.

10 buyers to every property and they were getting gazumpted.

Sit it out home owners. The good times will return.
That's what everyone knows and that's why we won't drop our house prices.

nearlynew

Sibley wrote: »

You only have to cast your memory back to when banks lent money easily.

10 sellers to every property and they were getting gazumpted.

Sit it out home owners. The good times will return.
That's what everyone knows and that's why we won't drop our house prices.

10 sellers to every property?

What does that mean?

Graham_Devon

Sibley wrote: »

You only have to cast your memory back to when banks lent money easily.

10 sellers to every property and they were getting gazumpted.

Sit it out home owners. The good times will return.
That's what everyone knows and that's why we won't drop our house prices.

Gazumped.

Gazumpted sounds like it's been numptied.

Jimmy_31

Sibley wrote: »

You only have to cast your memory back to when banks lent money easily.

10 sellers to every property and they were getting gazumpted.

Sit it out home owners. The good times will return.
That's what everyone knows and that's why we won't drop our house prices.

Is the mrs filling in for you.