Mortgages and Interest Rate Rises

[North Cardiff Blue]

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.

That's life, I remember my Dad saying my mortgage was crazy back in the 80s and that he wouldn't be able to sleep, four moves in six years, a couple of job switches to earn what I needed and I was where I needed to be by thirty. Just get on with it no matter what party is in it will be tough but the quicker you get on and up the property ladder the better!

[jon1959]

It was obviously to stimulate the economy, in itself, offering someone who may have rented for many years the opportunity to buy their own house at a discount isn't a bad thing to do.

I agree they should least 50% should have been replaced, and there should have been strict rules on who could buy, not uncles, sons and daughters, and council workers buying to make a big profit.

As always the idea was good, but as always some people will spot the opportunity to make a fast buck!

Councils typically borrowed money to build council housing over a 60 year repayment period - at relatively low interest rates via the Public Works Loans Board. When they had to sell at a massive discount under the Right To Buy they still had to carry on repaying the original loan, and under the subsidy rules that applied up to 2012 the (reduced) capital receipt was not available to reinvest in new housing.

The effect was that remaining tenants had to cover the shortfall in rental income and there was less money available for services, repairs or home improvements. Tenants who continued to rent subsidised tenants who took advantage of the Right To Buy!

I don't know if that was the intention of the Thatcher government. It was a populist policy with little attention to the small print or the future impact on council housing specifically, or the wider housing supply and affordability problem. The effect was to reduce supply, standards and access to housing. I don't blame people who took advantage of the Right To Buy - but it was a case of private gain vs the public good.

[jon1959]

https://www.theguardian.com/money/20...e-figures-show

The average new monthly rent outside London has passed £1,000 for the first time, figures show, with tenants in Great Britain now typically paying 25% more than they were at the start of the Covid pandemic.

Meanwhile, the London rental market is continuing to speed ahead of the rest of the country: annual rental growth in the capital was running well ahead of inflation at 17.2%, said the firm, with the average monthly bill passing £2,200 for the first time last month. That would cost the average tenant moving into a new home an extra £3,895 a year.

Across Great Britain as a whole, the average monthly rent rose 11.1% year-on-year in April to reach a new high of £1,249 – the second-highest figure for rental growth across the country on record. Overall, rents across the country have leapt 25% since the eve of the pandemic.

[North Cardiff Blue]

Councils typically borrowed money to build council housing over a 60 year repayment period - at relatively low interest rates via the Public Works Loans Board. When they had to sell at a massive discount under the Right To Buy they still had to carry on repaying the original loan, and under the subsidy rules that applied up to 2012 the (reduced) capital receipt was not available to reinvest in new housing.

The effect was that remaining tenants had to cover the shortfall in rental income and there was less money available for services, repairs or home improvements. Tenants who continued to rent subsidised tenants who took advantage of the Right To Buy!

I don't know if that was the intention of the Thatcher government. It was a populist policy with little attention to the small print or the future impact on council housing specifically, or the wider housing supply and affordability problem. The effect was to reduce supply, standards and access to housing. I don't blame people who took advantage of the Right To Buy - but it was a case of private gain vs the public good.

Interesting, good reply, I didn't know all of that, I still think the idea in principle was good but on a much smaller scale, from a lot of the replies, it seems like it was abused, and lots of family members, brothers, sister's, uncles, aunties, son's and Daughters etc took advantage and made a profit. I like the idea of hard-working people being given the chance to buy their own homes. Maybe the discounts were too high, somewhere in the middle should have worked.

I am not sure how, but somehow council workers in the housing sector made a killing aswell, I know a few with ordinary paid jobs and multiple ex-council house portfolios, I suppose they were in the right place at the right time, with insider knowledge.

[North Cardiff Blue]

Yes

I know plenty of people who refused to buy their council house and some have now passed on and the house is lived in by another family who needed it

If its a free country to make the choice to buy a council house its also someone's right to stay there and pay rent

I admire people who have done that . I think it's a decision to be lauded .

I don't think many people didn't buy a house on moral grounds, it's more likely they didn't want the responsibility, and felt it may impact them in later life with less chance of benefits and free care costs if they owned an asset or had pensions or cash saved up.

People often fall into one camp or the other, they are not moral guardians, I'm not having a go at them either it's up to everyone to make their own decisions on what they feel suits them best.

[Doucas]

It won't your lot is greedier than ever but most lack the work ethic that the older generations had, you'll just continue to sulk and cry it's not fair, to give me a political party that will tax the wealthy more, and give more to me!

Lol did you copy the top comment from a dailymail article and paste it here?

Yes so greedy my lot, wanting things like shelter, food and heat, unbelievable!

So house prices have outpaced wages for 40+ years because young people don't work hard enough? How have you figured that one out?

Just another shining example of the older generations completely losing touch with reality.

[blue matt]

I am not sure how, but somehow council workers in the housing sector made a killing aswell, I know a few with ordinary paid jobs and multiple ex-council house portfolios, I suppose they were in the right place at the right time, with insider knowledge.

alot of council building grants inspectors had a few, it was as if they had cash burning a hole in their pocket

[North Cardiff Blue]

Lol did you copy the top comment from a dailymail article and paste it here?

So house prices have outpaced wages for 40+ years because young people don't work hard enough? How have you figured that one out?

Just another shining example of the older generations completely losing touch with reality.

No, they outpaced inflation because there is a shortage and people have started to use them as an investment, often as a more effective type of pension. In fairness, they've probably outpaced inflation since the 2nd world War.

The two points are separate, you come across as a little bit spoilt and woe is me, just get on with it and stop crying about how hard it is, because it's only going to get harder, that's the way the world is going, it's fight harder or get left behind.

Some of your generation are hard-working and conscientious, I've come across some really decent young twenty-somethings, but there are quite a lot like you that seem to want it on a silver platter bleating on about how much easier it was for us when in reality you haven't got a clue what it was like. As my boss told me don't come moaning in here, as 50% don't care if you're having a tough time and 50% are glad.

[Doucas]

No, they outpaced inflation because there is a shortage and people have started to use them as an investment, often as a more effective type of pension. In fairness, they've probably outpaced inflation since the 2nd world War.

The two points are separate, you come across as a little bit spoilt and woe is me, just get on with it and stop crying about how hard it is, because it's only going to get harder, that's the way the world is going, it's fight harder or get left behind.

Some of your generation are hard-working and conscientious, I've come across some really decent young twenty-somethings, but there are quite a lot like you that seem to want it on a silver platter bleating on about how much easier it was for us when in reality you haven't got a clue what it was like. As my boss told me don't come moaning in here, as 50% don't care if you're having a tough time and 50% are glad.

So you're admitting that young people have had it harder when it comes to house pricing?

The world's getting harder so just accept it? Incredible logic.

Buying a house was easier for your generation, this isn't an opinion, it's a fact.

Me buying my house 8 years ago was easier than it would be to buy my house now. This again is a basic fact.

Want it on a silver platter? How have you worked that out? Most people my age want to work, but in return for that we expect to be able to afford the basic necessities in order to live, how greedy.

That last quote shows the utter selfishness of people a certain age and mindset and is the reason why the UK is in such a sad state.

I think you're the spoilt one.

[SLUDGE FACTORY]

No, they outpaced inflation because there is a shortage and people have started to use them as an investment, often as a more effective type of pension. In fairness, they've probably outpaced inflation since the 2nd world War.

The two points are separate, you come across as a little bit spoilt and woe is me, just get on with it and stop crying about how hard it is, because it's only going to get harder, that's the way the world is going, it's fight harder or get left behind.

Some of your generation are hard-working and conscientious, I've come across some really decent young twenty-somethings, but there are quite a lot like you that seem to want it on a silver platter bleating on about how much easier it was for us when in reality you haven't got a clue what it was like. As my boss told me don't come moaning in here, as 50% don't care if you're having a tough time and 50% are glad.

There is absolutely no question it was easier to buy a house 20 years ago

And there is absolutely no question society these days is far more selfish , cut throat and people are trying to undercut each other and back stab

Thatcher started it , the bitch

[ToTaL ITK]

When i moved to Sweden the newspapers (no interweb back then) were full of available apartments (flats). If you went to have a look , the owner was almost begging you to take it. Roll forward to the 2000's. You have to beg steal or borrow to get on a waiting list that
could be 5-7 years long to get a rental. Greed

[North Cardiff Blue]

So you're admitting that young people have had it harder when it comes to house pricing?

The world's getting harder so just accept it? Incredible logic.

Buying a house was easier for your generation, this isn't an opinion, it's a fact.

Me buying my house 8 years ago was easier than it would be to buy my house now. This again is a basic fact.

Want it on a silver platter? How have you worked that out? Most people my age want to work, but in return for that we expect to be able to afford the basic necessities in order to live, how greedy.

That last quote shows the utter selfishness of people a certain age and mindset and is the reason why the UK is in such a sad state.

I think you're the spoilt one.

It's harder of course, but it was harder for me to buy one than my Dad, that's life, work hard and a little bit of luck you'll get on, don't and you won't it's up to you

[North Cardiff Blue]

There is absolutely no question it was easier to buy a house 20 years ago

And there is absolutely no question society these days is far more selfish , cut throat and people are trying to undercut each other and back stab

Thatcher started it , the bitch

Agree on both, my point to Doucas was his generation won't be nicey nicey and help the next generation out more, they will be more cutthroat than ours!

As for Thatcher, she probably did give it a push-on, but capitalism was already alive and kicking.

[Doucas]

Agree on both, my point to Doucas was his generation won't be nicey nicey and help the next generation out more, they will be more cutthroat than ours!

Based on what?

From what I see in my own friendship groups , work colleagues and social media apps where there's not many older people the overwhelming consensus is to make things better for others rather than focus on whats best for themselves. You can see this in voting patterns.

[blue matt]

Agree on both, my point to Doucas was his generation won't be nicey nicey and help the next generation out more, they will be more cutthroat than ours!

Every Generation, Blames the one before, and all of their frustrations, come beating on your door


Well said Mike

[blue matt]

Based on what?

From what I see in my own friendship groups , work colleagues and social media apps where there's not many older people the overwhelming consensus is to make things better for others rather than focus on whats best for themselves. You can see this in voting patterns.

The funny thing is though, as you get older, your views slightly change, I always thought that my generation would be the one to change the world, it didn't, now we have people of your generation ( and yourself ) Wishing mine dead

[SLUDGE FACTORY]

The funny thing is though, as you get older, your views slightly change, I always thought that my generation would be the one to change the world, it didn't, now we have people of your generation ( and yourself ) Wishing mine dead

Only Tories

[JamesWales]

Based on what?

From what I see in my own friendship groups , work colleagues and social media apps where there's not many older people the overwhelming consensus is to make things better for others rather than focus on whats best for themselves. You can see this in voting patterns.

They just have a different opinion on how to make things better for future generations, a lot of which is based on experience.

With respect, you seem to think we can have everything with no costs, and you also seem to think that everyone in this generation is worse off than everyone in the last. I'll bet anything you have it far far better than my parents for example. People were much less healthy, died younger, saw family members die younger, lived in damper colder and far more cramped housing. A holiday was a week by the British seaside.

I agree with you on the need to sort out housing, but it's not easy - you will have to sacrifice some of your pro immigration or pro environment policies if you really want to make a difference in that respect

[Eric the Half a Bee]

They just have a different opinion on how to make things better for future generations, a lot of which is based on experience.

With respect, you seem to think we can have everything with no costs, and you also seem to think that everyone in this generation is worse off than everyone in the last. I'll bet anything you have it far far better than my parents for example. People were much less healthy, died younger, saw family members die younger, lived in damper colder and far more cramped housing. A holiday was a week by the British seaside.

I agree with you on the need to sort out housing, but it's not easy - you will have to sacrifice some of your pro immigration or pro environment policies if you really want to make a difference in that respect

So if our country is so much better off than it was a generation ago, how come there's more poverty, less people being able to get on the property ladder and more working people reliant on benefits?

[SLUDGE FACTORY]

So if our country is so much better off than it was a generation ago, how come there's more poverty, less people being able to get on the property ladder and more working people reliant on benefits?

13 years of Conservatives

[Doucas]

They just have a different opinion on how to make things better for future generations, a lot of which is based on experience.

With respect, you seem to think we can have everything with no costs, and you also seem to think that everyone in this generation is worse off than everyone in the last. I'll bet anything you have it far far better than my parents for example. People were much less healthy, died younger, saw family members die younger, lived in damper colder and far more cramped housing. A holiday was a week by the British seaside.

I agree with you on the need to sort out housing, but it's not easy - you will have to sacrifice some of your pro immigration or pro environment policies if you really want to make a difference in that respect

I don't know where you got the thought from saying I think we can have things without a cost. I've never once said this.

I just don't think it's radical to build affordable housing for all. There are solutions but as a country we repeatedly vote against them to prop up house prices.

The hardest worker I know has worked full time since he was 16, often doing 12 hour days including holidays such as Xmas. He can't afford to buy a house, he can barely afford rent. How is that ok?

I on the other hand made his yearly wage in a couple of days a few years ago on AMC stock, i just sat on my ass. I should have had to pay more taxes.

[Vindec]

So you're admitting that young people have had it harder when it comes to house pricing?

The world's getting harder so just accept it? Incredible logic.

Buying a house was easier for your generation, this isn't an opinion, it's a fact.

Me buying my house 8 years ago was easier than it would be to buy my house now. This again is a basic fact.

Want it on a silver platter? How have you worked that out? Most people my age want to work, but in return for that we expect to be able to afford the basic necessities in order to live, how greedy.

That last quote shows the utter selfishness of people a certain age and mindset and is the reason why the UK is in such a sad state.

I think you're the spoilt one.

Things are very hard for young people undoubtedly. But from my own experience they always have been. When I bought my first house in 1971 it cost exactly 10 times my annual salary. Then there was a situation when Building Societies would only lend 2.5 times annual income and wouldn't take spousal income into account. We were also confronted with far higher interest rates of around 17% but we did get tax relief on the repayments.

Where young people have it particularly tough these days is in the job market. When I was young you could virtually walk into a decent job with very few, if any qualifications if you had 5 O levels for example. If you had a degree the world was literally your oyster. However then, unlike now, only 2% of school kids got into University whereas the figure is now close to 40% meaning degrees in the main have become less use in the job market. Also in the 1960's and earlier you were literally on the scrapheap at 11 if you failed the 11 plus but of course there were apprenticeships for those that failed that could give them a decent but not great income with a career structure..But thankfully the 11 plus no longer exists but was an issue many had to deal with back in the day.

Also I think expectations these days are very much greater. A phone, car and other things that are regarded as necessities these days were luxuries back in the day. I'm so old I even remember the days when the ambition of every male in the family was to put food on the table and pay rent. I remember the days when conversations between women commented on so and so's husband by saying they were good (or bad) providers. Now the Benefits system helps. Women mainly didn't work as there were no careers for women but again that's changed for the better, thankfully

So let's not get hung up on the fact that things are more difficult for young people now than they were then. That might be true in some respects but it's always been difficult.

[North Cardiff Blue]

I don't know where you got the thought from saying I think we can have things without a cost. I've never once said this.

I just don't think it's radical to build affordable housing for all. There are solutions but as a country we repeatedly vote against them to prop up house prices.

The hardest worker I know has worked full time since he was 16, often doing 12 hour days including holidays such as Xmas. He can't afford to buy a house, he can barely afford rent. How is that ok?

I on the other hand made his yearly wage in a couple of days a few years ago on AMC stock, i just sat on my ass. I should have had to pay more taxes.

"I on the other hand made his yearly wage in a couple of days a few years ago on AMC stock, I just sat on my ass (no suprise there). I should have had to pay more taxes."

Did you declare this gain, did you pay any tax, what type of tax, and how did you pay it, what percentage rate did you pay?

If it was such a big amount why didn't you give some of it to your hard-working friend so he could buy a house?

I thought you were a socialist.