BBC: Where property prices are set by what local people earn

Sarah1Mitty2

There is very little chance of hitting the 2% target without more hikes, property is affected whether targeted or not, property matching local earnings is a great goal because then people have more to spend in the real economy.

Yellowsub2000

If mortgage is set by 3.5X earnings then house prices need to get back down to there too

MobileSaver

Yellowsub2000 said:

If mortgage is set by 3.5X earnings then house prices need to get back down to there too

Over a million people in the UK manage to buy a property every single year, even in the current climate.

So the obvious answer for those complaining they can't afford to buy is for them to either buy something cheaper or instead better themselves to improve their earnings. Why should the rest of us be brought down to the lowest common denominator?

housebuyer143

MobileSaver said:

Yellowsub2000 said:

If mortgage is set by 3.5X earnings then house prices need to get back down to there too

Over a million people in the UK manage to buy a property every single year, even in the current climate.

So the obvious answer for those complaining they can't afford to buy is for them to either buy something cheaper or instead better themselves to improve their earnings. Why should the rest of us be brought down to the lowest common denominator?

I do feel that many first time buyers have unrealistic expectations, wanting to purchase a 3 bed semi as thier first house or larger, all done out immaculate etc. 
It's called a ladder for a reason and people need to have realistic expectations when buying their first place if they don't have the money to buy what they are dreaming of. 

If we ignore the south east it is very possible to get on the housing ladder if people set their sights a little smaller initially.

jimbog

Yellowsub2000 said:

If mortgage is set by 3.5X earnings then house prices need to get back down to there too

Not necessarily. Mortgage terms can now be up to 40 years.
Also there's nothing that says that  everyone should be able to buy a house wherever they want

Sunsaru

May I remind people that this thread is about a local scheme to help local people get on the ladder not a debate about people's wet dreams.

[Deleted User]

MobileSaver said:

Yellowsub2000 said:

If mortgage is set by 3.5X earnings then house prices need to get back down to there too

Over a million people in the UK manage to buy a property every single year, even in the current climate.

So the obvious answer for those complaining they can't afford to buy is for them to either buy something cheaper or instead better themselves to improve their earnings. Why should the rest of us be brought down to the lowest common denominator?

It's really sad that people think this is acceptable.

After the war a lot of affordable housing was built. Much of it on green belt. Fossil fuels were cheap. I'm the 80s prices started to get silly, and people who already owned a house increased their stealth dramatically.

Now the attitude is that young people are "unrealistic" and entitled, because they don't have the opportunities their parents had. Worse still, a lot of the problems they face are due to older generations. Climate change, 13 years of hard austerity, no social housing, hardly any house building, rampant NIMBYism, brexit... The list goes on.

It's not at all wrong to want the same opportunities your parents and grandparents had. It's not at all wrong to be angry that they pulled up the ladder after they climbed it.

born_again

So going by the 1st example used on the BBC site.
Flat price £215.000
Just what sort of wage is the buyer on to get a mortgage for a flat? Taking it that their are on their own. (no partner mentioned)
@ £40K & a 4X mortgage that is a shortfall of £55K Which would be one hell of a deposit.

Good idea. Except the 10 years to get it done..
Just council could have built the property & rented it out to local tenants under the same agreement a lot faster.

Altior

It's a good rant, rigolith. However, this trend of property/asset inflation is mirrored across almost all western developed economies. The common denominators are next to zero interest rates, vast money printing leading to the devaluation of fiat currency, the monumental increase in state debt and mass immigration. And more recently, the quest for 'net zero'. 

Now, a proper long term increase in the cost of borrowing would most likely see a 'correction' in house price vs income multiples, however the population as whole are unlikely to tolerate it. They didn't even tolerate the relatively trivial increases so far since late last year. So, 'we' are stuck with this, and can only use the options that are available to us at the time. And yes, it will likely include some sacrifices and compromise. Which, to be honest, it always has.  

Gavin83

It’s also worth pointing out that there isn’t an option that doesn’t result in some category of people seriously losing out.

If house prices massively dropped the real losers would be recent FTBs or those with large amounts remaining on their mortgages. You could get situations where large numbers of people have mortgages twice the value of their house which would cause chaos.

Ideally house prices would never have risen as much. But they have and now with the situation we’re in it’s basically impossible to reverse it. 

House prices will never drop by any notable amount and in all honesty I’m glad of it.