Thousands trapped on first rung of housing ladder

DervProf

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 as people struggle with unemployment and mortgage repayments.

No.

The UK housing market is linked to credit availability.

Times are now not so good, and the property market is suffering. This is partly due to unemployment and the wider economy, but is mainly due to lack of "easy credit". I bet that if 95%+ mortgages were back on the market, and widely available, we'd see a pick up in the property market for a while (until prices were increased to a level where 95% mortgages are not enough). We'd also see an improvement in the wider economy, and with the jobs market, due to the knock on effects of an improved property market. So, it seems that 95%+ mortgages are a no brainer. Well they aren't, because as we have seen, an over reliance on debt is not the sign of a strong economy. See Greece, Spain etc for examples of this. OK, personal debt in the UK is different to sovereign debt, but the principles are the same.

Percy1983

olly300 wrote: »

I'm glad your credit record was squeaky clean so you could get such a mortgage. Most people's weren't from 2000-2007 and mortgages where very easy to come by.

Plus I'm glad you aren't facing the threat of redundancy. Lots of people I know in all sectors are worried about job security.

There is a threat of redundancy but being one of the best in my department I have survived so far.

As for the credit file all I have done is keep up with payments, if somebody can't manage that then maybe they should be bumped down the list.

Rochdale_Pioneers

For the people described in the OP who are stuck unable to upgrade there are others like me stuck unable to move. Prices have fallen here in Teesside and currently sit below the balance of my mortgage.

I would like to move. I don't need to move. I would like not to get £10k in debt and have nothing to put towards a rental/new property, so I'm not selling until either my mortgage balance is below viable sale prices, or prices have risen again.

On the latter front I'm not hopeful. The only things selling round here appear to be cash transactions. House identical to mine has finally sold having been empty for 2 months going for 30% less than the original owners paid for it. They apparently had to move, so took a £30k haircut. Barratts - who part exed it off them - have also taken a £20k haircut.

You can argue that this is the market price so accept it and sell up. No. If thats the price people are willing to pay, then I'm not selling. Because I can't afford to.

Sapphire

thescouselander wrote: »

Yes, I'm one of these people. We have a small 3 bedroom house and would like a bigger one. The problem is the difference in price is high enough to put us off even though we have considerable savings and the capacity to take on a much bigger mortgage. The idea of having to pay 3% stamp duty is a major disincentive too. It just doesn't seem value for money so we'll stay put for now.

Owning a three-bedroom house, do you actually need a bigger house?

Seems to me that many people's expectations in this country these days are unrealistically high.

I'd like to own a splendid Regency house, but wouldn't aspire to one unless I had the means to do so (without borrowing).

Sapphire

Jimmy_31 wrote: »

During the boom i could have bought a house without a deposit.

I chose not to because the price of a house was too high.

High house prices caused all the problems you see in the housing market today.

High house prices happened because the banks started giving out stupid amounts of money to people.

As far as i can see, its all been one big con to get people in the maximum amount of debt possible.

More like this country doesn't have going for it any more in the way of money-making enterprises, so during labour's tenure the sale of homes was turned into big business (aka the property market) to provide a temporary fix, make individuals feel good about themselves and gain labour votes.

homelessskilledworker

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 as people struggle with unemployment and mortgage repayments. This is the reason why you, Mr Devon, and other idiots on here, only cheer on bad economic news, as it fits your sickening hidden agenda of stealing a house from a distressed seller.

So I will try again!

How is cheap affordable housing going to make people homeless?

Now give us an answer without the name calling and rant.

homelessskilledworker

Sibley wrote: »

Sorry,

Spelling might be dodgy this week. I'm in Amsterdam.

Bit jetlagged.

Yes, Imaginary flights can have that effect, what time are you going to the imaginary red light district?

homelessskilledworker

julieq wrote: »

Next time you take me to task for being rude to you Graham, I'm going to remind you of the thread in which you resorted to a poor ad hominem because you're too thick to understand that when it's 9pm on Saturday in Amsterdam, it's Sunday morning in Thailand.

Yes JulieQ, you had better give him a mental disorder like you do with every other bear poster, thats if you have not already.