Mortgages and Interest Rate Rises

[HiVis]

I remember my first house and thinking 9,% was normal.

Today's world is as a result of another Bank of England feck up they kept intrest rates to low for too long after the recession giving folk the wrong perception that they could buy property, grab loans that were probably way out of their league.

Many could end up with difficult decisions now as the payback rises .

Forgetting the mad Truss era, if anyone thought the rates would stay that low forever, they were bonkers or badly advised it's been coming for years.

I see the European and USA banks are also under fire.. for simalair poor decision making, and the madness of their quantative easing policy... Which simply masked the debts.

I see we're not using era in its truest sense here

[HiVis]

In the last year alone, house prices have risen by 14% while earnings have FALLEN by 1%.

It is incredibly hard to get onto the housing ladder. The average house price in the UK is 294k. The average salary is around £26k. It has got insane but it's OK, because young people just need to work harder

the average salary is more than £26k.

But yes, your point is valid. There is a disconnect between average house prices and average earnings.

[The Bloop]

I can't find it at the moment, but there's a clip of Jeremy Vine illustrating on his TV show how the market has changed in the last 20 years or so.
I may be slightly out with my figures but back then an average property would cost about 4x the average salary, whereas now the figure is about 10x.
It doesn't just affect the ability to afford a mortgage, but also the ability for a renter to save for a deposit.

[OurManFlint II]

I can't find it at the moment, but there's a clip of Jeremy Vine illustrating on his TV show how the market has changed in the last 20 years or so.
I may be slightly out with my figures but back then an average property would cost about 4x the average salary, whereas now the figure is about 10x.
It doesn't just affect the ability to afford a mortgage, but also the ability for a renter to save for a deposit.

Because the renter is paying some other guys mortgage, who then brags he owns two homes with no mortgage.

[LeningradCowboy]

Because the renter is paying some other guys mortgage, who then brags he owns two homes with no mortgage.

Buy-to-let landlords are parasites. Incredible to think that they were enabled by a Labour chancellor.

[bobh]

Buy-to-let landlords are parasites. Incredible to think that they were enabled by a Labour chancellor.

True, but the sorry state of housing can be traced back to the right-to-buy of council houses over 4 decades ago.

[Vindec]

The problem is due to house prices increasing because interest rates were so low. Now interest rates are higher repayments on mortgages to fund the higher house prices have become unsustainable.

[OurManFlint II]

The problem is due to house prices increasing because interest rates were so low. Now interest rates are higher repayments on mortgages to fund the higher house prices have become unsustainable.

Property prices almost globally been going up, since time began, only 1 inevitably in life! Sure some bumps but only 1 trend on that graph no matter how you dress it. Regardless of interest rates!
Same with buy to let, not a unique UK issue, global.

[LeningradCowboy]

True, but the sorry state of housing can be traced back to the right-to-buy of council houses over 4 decades ago.

Why?

[SLUDGE FACTORY]

Why?

A million houses flogged off and not replaced

That's why

[A Quiet Monkfish]

A million houses flogged off and not replaced

That's why

So a 'million' households bought the house they were renting. How does that push prices up ?

[SLUDGE FACTORY]

So a 'million' households bought the house they were renting. How does that push prices up ?

A million houses taken out of public ownership

Increasing the pressure on housing across all tenures

The Tories try to twist the whole policy as a win win but for those working in housing , especially at the front end the results were a disaster and things have never recovered

Those renting out housing were of course quids in as Thatcher and her housing policy meant that was the only option left

It was made more attractive by the removal of protected rents and short term contracts

Recently things have backfired which is a shame for the decent landlords out there as you know

But that's what happens when the free market gets involved

[Eric the Half a Bee]

A million houses taken out of public ownership

Increasing the pressure on housing across all tenures

The Tories try to twist the whole policy as a win win but for those working in housing , especially at the front end the results were a disaster and things have never recovered

Those renting out housing were of course quids in as Thatcher and her housing policy meant that was the only option left

It was made more attractive by the removal of protected rents and short term contracts

Recently things have backfired which is a shame for the decent landlords out there as you know

But that's what happens when the free market gets involved

One thing that tends to get overlooked is that there is always a demand for social housing for a variety of reasons. If someone dies in social housing, that property gets used by someone else who needs it. If they've bought it, it won't be.

Social housing is that scarce that it's easier for those who need it to claim housing benefit and rent from any unscrupulous landlord (and let's not forget the government voted against making it law that all rented properties should be properly habitable). Those with money buy up more and more property and rent it. The economic divide continues to widen.

[SLUDGE FACTORY]

One thing that tends to get overlooked is that there is always a demand for social housing for a variety of reasons. If someone dies in social housing, that property gets used by someone else who needs it. If they've bought it, it won't be.

Social housing is that scarce that it's easier for those who need it to claim housing benefit and rent from any unscrupulous landlord (and let's not forget the government voted against making it law that all rented properties should be properly habitable). Those with money buy up more and more property and rent it. The economic divide continues to widen.

I admire old folks who refused to buy council properties but give it back for others to have a home

Now if for every council home sold a new one was built to replace it then that would be great ......but it never happened

It was a great way of bribing the voters and also weakening the economic base of local councils ....for the Conservative party it was win win

[Eric the Half a Bee]

I admire old folks who refused to buy council properties but give it back for others to have a home

Now if for every council home sold a new one was built to replace it then that would be great ......but it never happened

It was a great way of bribing the voters and also weakening the economic base of local councils ....for the Conservative party it was win win

2015 Conservative manifesto - reintroducing 'right to buy', promising to replace every social house sold.

Guess how many were replaced...

[SLUDGE FACTORY]

2015 Conservative manifesto - reintroducing 'right to buy', promising to replace every social house sold.

Guess how many were replaced...

Minus 1768

[Heathblue]

A lot of older people appear to have completely lost touch about the reality of house prices in the UK, they in turn vote for politicians who won't do anything about it.

This older person has a 30 year old son living at home, I can unequivocally assure you, I haven't lost touch of the reality of house prices I don't vote for any politician, you will be older one day, I'd hope that those who come after you do not carry over your resentment.

[Eric the Half a Bee]

Minus 1768

Let's say every house wasn't replaced. At one point I remember the figure stood at zero. Fancy lying in a manifesto....

[SLUDGE FACTORY]

Let's say every house wasn't replaced. At one point I remember the figure stood at zero. Fancy lying in a manifesto....

In Wales the right to buy was ended about ten years ago ?

About time

Ffs a council or housing association home is yours to RENT until your run into a few million or you snuff it

Not to buy once you are given it by the council then sold as soon as you can for money or given to your kids

[blue matt]

In Wales the right to buy was ended about ten years ago ?

About time

Ffs a council or housing association home is yours to RENT until your run into a few million or you snuff it

Not to buy once you are given it by the council then sold as soon as you can for money or given to your kids

Having worked for the council in the early 90's, who was to blame for the people buying the houses ? I know you blame the government ( you would as they were Tory ) But doesnt the person who purchased the house have to take some of the blame ? ? they snapped them up, many with the idea to sit on it till the amount of time has past and they could sell it on for a tidy profit, then they of course purchased a nice brand new car and went back into rented housing

[Doucas]

This older person has a 30 year old son living at home, I can unequivocally assure you, I haven't lost touch of the reality of house prices I don't vote for any politician, you will be older one day, I'd hope that those who come after you do not carry over your resentment.

If my generation doesn't improve things for younger people and the most vulnerable then I'd hope/expect younger generations to be furious at us.

But saying that when it comes to home ownership my generation hasn't had it easy, the boomers have.

[goats]

Let's say every house wasn't replaced. At one point I remember the figure stood at zero. Fancy lying in a manifesto....

Tony bliar? Up there with bo jo for sure

[SLUDGE FACTORY]

Having worked for the council in the early 90's, who was to blame for the people buying the houses ? I know you blame the government ( you would as they were Tory ) But doesnt the person who purchased the house have to take some of the blame ? ? they snapped them up, many with the idea to sit on it till the amount of time has past and they could sell it on for a tidy profit, then they of course purchased a nice brand new car and went back into rented housing

The government for using tax payers money to entice people to buy

The people who showed their selfish side .....Thatcher loved that .....by buying them

[SLUDGE FACTORY]

Tony bliar? Up there with bo jo for sure

He was indeed

Thatcher in a suit

[A Quiet Monkfish]

A million houses taken out of public ownership

Increasing the pressure on housing across all tenures

The Tories try to twist the whole policy as a win win but for those working in housing , especially at the front end the results were a disaster and things have never recovered

Those renting out housing were of course quids in as Thatcher and her housing policy meant that was the only option left

It was made more attractive by the removal of protected rents and short term contracts

Recently things have backfired which is a shame for the decent landlords out there as you know

But that's what happens when the free market gets involved

Developers sitting on land banks. Huge profits on new build, compared to cost of actually putting up jerry-built houses. Also prices pushed sky high because of help-to-buy etc. [20-40%] . In Wales that was a loan for up to 75%, so you can buy a £400k house for £100k investment. I don't suppose the Govt. considered that developers would inflate house prices as a result, but then the govt. never thinks .. 'what if......'