Right To Buy from 2016!

wotsthat

Graham_Devon wrote: »

Mr Muddle at his finest.

I don't think I've seen anyone on here pro council house building who is also suggesting we should sell them off.

Most who are saying we need council housing are saying it precisely because so many were sold off and we have such little stock today.

Let's not live in a fantasy land - building council houses goes hand in hand with selling them off. Any taxpayer funded house will, sooner or later, end up in the private sector and the transfer will probably be at a significant discount to market value.

We have too little stock of houses full stop. I think the root cause can be laid at the door of the Commissar for planning permission. We're at cross purposes because you think not enough council houses is a problem in itself and, of course, if the root cause is a lack of council houses then the solution is going to be to build more of them.

You're always going to have the wrong solution if you can't identify the correct problem.

Pobby

Back to basics. Whatever is said on here, the truth is that 30 or 40 years ago is was FAR easier to by a home. I am talking south east here. Maybe a few reasons.

Firstly building societies were just that. My goodness, how old fashioned. My first mortgage was based on firstly having a 10% deposit . Applying and scrutinised by the lender, and being put on a list to wait until the lender had enough funds. Seems reasonable to me.

Secondly, yes there was hpi. That in fact was in line with wage inflation.
As a young man i was starting out in a career I loved. Wage inflation and promotion soon rocketed my income.

Thatch and her cronies came along and deregulated the system of financing. That lead to a disaster by the end of the 80`s. Interest rates shot up. My then mortgage of a projected £400 a month ( based on a £58,000 mortgage went £700 ish including a rather disappointing endowment. Wow, stopped the market dead and I witnessed a good number of defaults.

At last the market settled . In comes Nu Labour and Browns not letting the market getting out of control again to which he did the opposite following Thatcherite policies.

Now I would have expected that the last crash would have sorted this but no. .5% base rates says to me that we were\ are in serious trouble but for some reason the Tories keep feeding the housing market with inflationary policies. Lack of building is just one.

If the free market had run its course then there would have been losers but perhaps that may have resulted in a more sustainable future. Now the future is very bleak for a number of my younger family in the south east.

I see no end to this but just to say, housing is a now a huge bubble and bubbles generally bu,,,,,,,,,,,,,,,,

Norman_Castle

https://www.gov.uk/government/news/historic-agreement-will-extend-right-to-buy-to-13-million-more-tenants

This does advantage some over others but the government needs to fund more social housing. A proportion of this funding can now come from individuals.

CLAPTON

Pobby wrote: »

Back to basics. Whatever is said on here, the truth is that 30 or 40 years ago is was FAR easier to by a home. I am talking south east here. Maybe a few reasons.

Firstly building societies were just that. My goodness, how old fashioned. My first mortgage was based on firstly having a 10% deposit . Applying and scrutinised by the lender, and being put on a list to wait until the lender had enough funds. Seems reasonable to me.

Secondly, yes there was hpi. That in fact was in line with wage inflation.
As a young man i was starting out in a career I loved. Wage inflation and promotion soon rocketed my income.

Thatch and her cronies came along and deregulated the system of financing. That lead to a disaster by the end of the 80`s. Interest rates shot up. My then mortgage of a projected £400 a month ( based on a £58,000 mortgage went £700 ish including a rather disappointing endowment. Wow, stopped the market dead and I witnessed a good number of defaults.

At last the market settled . In comes Nu Labour and Browns not letting the market getting out of control again to which he did the opposite following Thatcherite policies.

Now I would have expected that the last crash would have sorted this but no. .5% base rates says to me that we were\ are in serious trouble but for some reason the Tories keep feeding the housing market with inflationary policies. Lack of building is just one.

If the free market had run its course then there would have been losers but perhaps that may have resulted in a more sustainable future. Now the future is very bleak for a number of my younger family in the south east.

I see no end to this but just to say, housing is a now a huge bubble and bubbles generally bu,,,,,,,,,,,,,,,,

you memory of the facts is incorrect

there were major house price booms in 1972-3 and 1978-9

interest rates peaked in 1979-80

Thatcher didn't really have any real effect on these events

Never mind : never let facts get in the way of a good anti Thatcher rant.

Pobby

CLAPTON wrote: »

you memory of the facts is incorrect

there were major house price booms in 1972-3 and 1978-9

interest rates peaked in 1979-80

Thatcher didn't really have any real effect on these events

Never mind : never let facts get in the way of a good anti Thatcher rant.

Yes there were those 2 house booms. However I cannot emphasise enough the fast rise in wages.

1970, aged 21, £24 a week for 6 days. 1980, aged 31 and career on the go £200 per week for 5 days, oh yes and a fully funded company car. Even in the early 80`s a 3 bed terrace in Reading was little more than £20k hence I knew many singletons that were able to purchase.

michaels

Pobby wrote: »

Yes there were those 2 house booms. However I cannot emphasise enough the fast rise in wages.

1970, aged 21, £24 a week for 6 days. 1980, aged 31 and career on the go £200 per week for 5 days, oh yes and a fully funded company car. Even in the early 80`s a 3 bed terrace in Reading was little more than £20k hence I knew many singletons that were able to purchase.

Of course that was the result of rampant inflation that saw savings halve in value but hey it was good news for the few who bought houses, less than 50% oo in those days, and didn't lose their jobs and were able to live on next to nothing whilst mortgage payments took a much larger share of income than they do today.

Pobby

Recalling the early 80`s, I knew no one that lived on nothing or struggled. Those that wanted a car had one and many went to the pub a few nights a week.Our place at the tine was bought in !978 and certainly not a starter home. A mid Victorian bungalow with a good sized garden and a car port.

If I recall our mortgage varied at the time between £120 per month to around £160. Assuming an income of say £200 per week, 2 people, that was very doable. The figure of £100 per week was pretty low.

wotsthat

Pobby wrote: »

If I recall our mortgage varied at the time between £120 per month to around £160. Assuming an income of say £200 per week, 2 people, that was very doable. The figure of £100 per week was pretty low.

Pobby, it was very doable for you because your earnings were somewhat more than the average of £115/ week.

If houses were so cheap why did so few own?

Pobby

wotsthat wrote: »

Pobby, it was very doable for you because your earnings were somewhat more than the average of £115/ week.

If houses were so cheap why did so few own?

Good point. I may be very wrong about this but I wonder wether nearly all the friends that I had came from privately owned homes.

wymondham

wotsthat wrote: »

If houses were so cheap why did so few own?

the days before the obsession started?