Housing market stuck at the second leg

Wookster

First we were told it was FTBs that were holding up the market, apparently now its folks on the second rung of the "ladder." It seems the housing market is in need of permanent support. Perhaps even a bailout.

http://www.telegraph.co.uk/finance/personalfinance/houseprices/9919021/UK-housing-market-is-stuck-on-the-second-step.html

It is quite astonishing that no one is prepared to say that extremely high prices make moving unaffordable!

MacMickster

Low interest rates don't seem to be helping businesses borrow the money that they need to start up or expand.

Time therefore to increase interest rates significantly, scrap the schemes to support house prices and let the market do its job.

bigmoe66

Even though I have just purchased a property I do hope that house prices do not go up right away. We really do need wages to go up first. I feel that there is a bit of making up to do in this department.

Carl31

bigmoe66 wrote: »

Even though I have just purchased a property I do hope that house prices do not go up right away. We really do need wages to go up first. I feel that there is a bit of making up to do in this department.

You need money to raise wages, something this country hasnt got

Hence high hp are unsustainable

In fact, higher ir would prob lead to higher wages, but obviously higher mortgage costs. There is no fits all soloution, something has to give somewhere, something that is currently out of balance with the rest of the economy......

chucky

Wookster wrote: »

First we were told it was FTBs that were holding up the market, apparently now its folks on the second rung of the "ladder." It seems the housing market is in need of permanent support. Perhaps even a bailout.

http://www.telegraph.co.uk/finance/personalfinance/houseprices/9919021/UK-housing-market-is-stuck-on-the-second-step.html

It is quite astonishing that no one is prepared to say that extremely high prices make moving unaffordable!

How many legs down are we going to have mate?

I'm still waiting for the first leg down...

Itismehonest

Wookster wrote: »

First we were told it was FTBs that were holding up the market, apparently now its folks on the second rung of the "ladder." It seems the housing market is in need of permanent support. Perhaps even a bailout.

http://www.telegraph.co.uk/finance/personalfinance/houseprices/9919021/UK-housing-market-is-stuck-on-the-second-step.html

It is quite astonishing that no one is prepared to say that extremely high prices make moving unaffordable!

Yes & no. It's not all pricing.

Having watched the market in my local area for a number of years a lot of the problem can be laid at the door of BTL who purchase the FTB type property.
They aren't selling a property themselves so the stock of homes isn't circulating. When they do sell they are not buying (either up or downsizing).
It's very much the same as the second home problem in that it blocks out FTB but also has a knock-on effect up the chain.