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MSE News: House prices up at fastest rate for three years
Comments
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And the 'no chance generation' trying to buy now...
Nonsense.
Affordability is well below the long term average for new purchasers today, who are paying just 27% of earnings compared to a long term average of 38%, and a peak of 68% in 1990.
It has rarely ever been cheaper to buy a house than it is today.“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 -
Well labour did a pretty good job of allowing prices to go through the roof dooming millions of youngsters to a lifetime of cripplingly high mortgages and rents.
Labour shamelessly pandered to the vested interests of the boomer generations. Drunk on the nectar of cruises, homeowner's dinner parties, and landlordism, they fiddled while the lives of the young were mortgaged to the banks.0 -
HAMISH_MCTAVISH wrote: »Nonsense.
Affordability is well below the long term average for new purchasers today, who are paying just 27% of earnings compared to a long term average of 38%, and a peak of 68% in 1990.
It has rarely ever been cheaper to buy a house than it is today.
How about all the people who aren't purchasers because they are totally priced out Hamish? Paying more in rent than those richer than them are paying in mortgages?
Property isn't cheap, it is out of the reach of most hard working families who are on a normal salary and dont have a parent ready to stump up for their deposit.0 -
HAMISH_MCTAVISH wrote: »Nonsense.
Affordability is well below the long term average for new purchasers today, who are paying just 27% of earnings compared to a long term average of 38%, and a peak of 68% in 1990.
It has rarely ever been cheaper to buy a house than it is today.
You're not living in the real world mate.0 -
In my area, the chronic shortage of FTB-suitable housing is maintained by the ever-increasing numbers of houses that are BTL. Terraced houses are advertised for sale for a couple of weeks, then disappear and reappear as "To Let". Sellers aren't getting the prices they "want" and decide to let out the property instead. Quite a few houses are offered for sale AND to rent at the same time. First come, first served!
Mortgage repayments are only marginally more expensive than local rents (for starter homes) and literally hundreds are being built. But as they are overpriced by £20-40k, buyers are in negative equity as soon as they buy. If they have to move on for work etc., they let the property out rather than take a big financial hit.
People moving into the area and FTBs have to rent as the housing stock is predominantly rentals and not available on the market.
It's a vicious circle brought about, not by rising/falling prices per se. But by the fact that houses are now seen as INVESTMENTS rather than HOMES."Cheap", "Fast", "Right" -- pick two.0 -
ruggedtoast wrote: »How about all the people who aren't purchasers because they are totally priced out Hamish? Paying more in rent than those richer than them are paying in mortgages?
.
If they're paying more in rent than they would on a mortgage, then they simply should not be priced out.
They are instead "mortgage rationed" out.
And that, my little toasty friend, is why mortgage rationing is so pernicious.
The wider availability of credit is the great equaliser, that enables the common man to compete with the landlords and hoarders of capital to build assets for themselves instead of buying those assets for others.“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 -
I am just about to put a house up for sale in a relatively expensive part of Surrey/South London. It's a perfectly ordinary, middle of terrace, not in very good nick and with a small garden.
Estate agent's valuation? £350k
I know I should be dancing with joy and obviously I'm not displeased, but I'm also totally shocked and not entirely comfortable. To my mind, this is stupid money. I worry for my own children and where this will all end.0 -
To my mind, this is stupid money.
It's simply the inevitable result of demand exceeding supply.
The only solution, if you want lower prices, is to build more houses.
We've tried rationing mortgages and that didn't work, rents just soared to record highs instead, while house building fell to 100 year lows making the housing shortage worse.“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 -
I can see the argument from both sides.
Mortgage repayments are very often cheaper than renting these days, so in that respect buying is much cheaper - plus you have an asset at the end of it, unlike rent which you see no return on.
But it is true that many people find it terribly hard to raise the deposit for a house. So it's a double-edged sword.0 -
But it is true that many people find it terribly hard to raise the deposit for a house. So it's a double-edged sword.
And that is exactly what HTB is curing.
Restoring functionality to a dysfunctional mortgage market.
The historically normal, prudent and sensible 5% deposit is returning.“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
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