Is it much harder to buy a house in the UK?

NullDrone

I have been reading american books on house investment as there was very little books on the subject in the UK, which makes me think that the UK is a much harder place to buy houses, is that the case because banks are not so willing to lend out money? I have found banks that lend out 95% mortgages though.

I am wondering, why is it that in the US there's much more books on the subject? I assumed nobody would write about it when there's no opportunity to buy here, in the US they have foreclosures, but over here you rarely get a repossession, i've been searching online but even there it's not that much cheaper than most houses, they also have many more search sites in the US.

People that are rich have connections to find houses and they buy out as many as they can to increase the prices, the banks and the super rich own so many houses throughout the UK that I guess nobody bothered to write books as it wasn't possible to succeed. What is the reason there's not many books on the subject?

All I see on the subject here is phil spencer. http://www.amazon.co.uk/How-Your-First-Home-Sell/dp/0091935377/ref=sr_1_1?ie=UTF8&qid=1446387285&sr=8-1&keywords=phil+spencer

Or this http://www.amazon.co.uk/How-Property-Auction-Buy---Let/dp/1845285239/ref=sr_1_1?ie=UTF8&qid=1446387380&sr=8-1&keywords=house+investment

It could also be that houses aren't willing to lend out money hence why house prices go up, then nobody can actually sees it as worth it to buy a house.

HappyMJ

If you have a repossession in the UK and there is a shortfall the shortfall is recoverable from the debtor.

In the US you can walk away from a property in negative equity and the shortfall is not recoverable.

It's personal opinion really. If you can get a good deposit...i.e at least 10% and have such good credit that the mortgage rate offered is less than the average rate of 3.5% then buying can usually but not always be much cheaper than renting.

Banks are more than willing to lend to people they consider a good risk so for most people on average wages/salary, with a deposit, it's quite easy to buy an average house. It's harder for those on less than average wages trying to buy a property which is larger than average or is in the more expensive areas of the UK...but that's life. You want the bigger house or the nice area you need to earn the money and you pay for it.

booksurr

so 4 months on and you are still asking about books and still showing no evidence of advancement in your researches
https://forums.moneysavingexpert.com/discussion/5266151

there are more books in the US because people over there need more hand holding, and there are are more [STRIKE]scammers[/STRIKE] writers who are cashing in on such naivety.

your conspiracy theory that "the rich" are the cause of your inability to buy in the UK belies why you are in a problem of your own making. Generations of UK graduates start out in life on a pittance and yet somehow still manage to end up owning their own property and raising their own families quite successfully in the UK

chris_m

booksurr wrote: »

there are more books in the US because people over there need more hand holding, and there are are more [STRIKE]scammers[/STRIKE] writers who are cashing in on such naivety.

I suspect that the somewhat larger market in the US, both for property and for books, will also be a reason for there being more books.

benjus

HappyMJ wrote: »

If you can get a good deposit...i.e at least 10% and have such good credit that the mortgage rate offered is less than the average rate of 3.5% then buying can usually but not always be much cheaper than renting.

Seems to be the case in many parts of London that renting is cheaper than buying. If I were to buy the last flat I rented in London I would have to raise a 35% deposit (almost £150k) to keep the monthly payments the same as what I paid to rent it. So as many others have done, I moved out to a cheaper area to buy a place.

agrinnall

The UK is in position 37 in Wikipedia's list of countries by home ownership, 1 position above the USA, so no, I don't think it's harder to buy a house in the UK.

https://en.wikipedia.org/wiki/List_of_countries_by_home_ownership_rate

[Deleted User]

Aww Conspiracy theories are so much more interesting than reality when you are young. Agrinnal, you're spoiling the OPs fun! He/She has probably spent the time since their last post thinking this one up.

G_M

booksurr wrote: »

so 4 months on and you are still asking about books and still showing no evidence of advancement in your researches
https://forums.moneysavingexpert.com/discussion/5266151

if you look at the OP's other posts you'll see he's been too busy to do research on this over the last 4 months.

There are just so many other important issues to enquire about, like world war 3 etc.

Gingernutty

Foreclosure is repossession.

A bank forecloses on a mortgage and the title reverts to the bank evicting the owner (or the owner's tenants).

There's a growing industry of security companies which specialise in evicting occupiers, securing the properties and patrolling the emptied properties.

It's far easier to evict and the turnaround between foreclosure and auction is far faster.

ETA:

http://foreclosures.bankofamerica.com/

https://www.homepath.com/

https://www.foreclosure.com/repo_homes.html

http://www.realtor.com/foreclosures/Norwood-Young-America_MN

http://www.bizjournals.com/sacramento/print-edition/2013/05/31/bank-of-america-habitat-for-humanity.html

http://www.realtytrac.com/real-estate-guides/how-to-buy-foreclosures/bank-owned-homes/

Ozzuk

NullDrone wrote: »

But you didn't give a counter argument, rather you made an appeal to ridicule, which is a classic example of anti intellectualism.

https://en.wikipedia.org/wiki/Anti-intellectualism

You are rude, I never insulted you, you should be careful what you say online, some people have means and ways of finding those who cross them (just a hint). :T

Out of curiosity, what would you do if you found them? Hit them with your keyboard?

Lenders are a lot more thorough with their checks/questions than a few years ago. It used to be very easy to secure a mortgage, the interviews I've been through recently to secure funding took 1.5 hours on average and was more akin to a personality profile. Still, if it helps protect people it isn't a bad thing.

The actual process of buying/selling a house needs overhauling though, personally I think solicitors should be paid more than they are, EAs should get less and there should be more financial commitment/penalties if people change their mind before exchange (or exchange subject to searches/survey rather than after).

Owain_Moneysaver

A quick check on Rightmove affordability calculator:

Income £12k per annum (ignoring tax and pension deductions, but also ignoring tax credits and other in-work benefits, so roughly equivalent to a person on £6.70 per hour minimum wage, 35 hours a week, 52 weeks a year.

Deposit of £10,000.

Property price £67,000 - £84,000 made up of a £10,000 deposit, plus a £57,000 - £74,000 mortgage. Typical monthly repayments at 4.15% over 25 years £306 - £397 per month.

Rightmove suggests the following numbers of properties might be affordable.

In Edinburgh, 4 terrace houses and 75 flats. Not many, but this is a capital city.

In London, 20 flats are 'available' although these are mostly auction guide prices and we know they're likely to be exceeded.

In Kent, 339 flats available.

In Oxfordshire, 13 flats available. Mostly shared ownership or over-50s schemes.

In Yorkshire, 2000+ flats and 4500+ terraced houses.

In Newcastle-upon-Tyne, 300+ flats and 100+ terraced houses.

A couple, both on minimum wage, who together might be able to afford £124,000 - £157,000 would have a wider choice in many areas outside the south-east.