Mortgage and unemployment

[Pixxie7]

People who have been made unemployed because of Covid should be entitled to help with their mortgage if they have to go onto UC.

A house price “correction” in this country would solve a lot of problems. I wouldn’t want to see anybody in negative equity of course, so perhaps wages need to rise whilst house prices stay steady. A roof over your head is a human right, it shouldn’t cost as much as it does.

@8dayweek @Whatamesssss

Yes From what I recall they lived in central London so because the rents are high then they would get a housing element of UC - still disgraceful though as the tax payer isn't there to fund someone on £70k living in an area like that. They should live within their means like everyone else does

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@MsPeachh how on earth are salaries going to rise in this environment?

I agree house prices are too high, but that is largely due to government policy and protecting house prices at all costs. The only way a house price correction could happen is many many people in negative equity.
The government absolutely has to bear some responsibility for this.

I was still in primary school when the 90s recession hit, but I remember how hard it was for so many, and my parents having to do whatever they could do keep the house (dad working full time in RAF then working around his shifts as a taxi driver, mum doing whatever job she could).

The thing is, a lot of those roles that previously could have been taken on to enable people to get by won't be available precisely because of the restrictions enforced on us by government. It's a total shit show. And yes, ideally everyone would be compelled to have redundancy insurance when they take out a mortgage, but that's not the case and we have to deal with the fact that many many people won't be covered.

Anyone thinking this is great news for house prices needs to take a good look at themselves.

@LittlePickleHead

My parents also worked 2-3 jobs in the 90s recession - the problem is these days its not so much the lack of jobs but also many people are not interested in working more than 1 job - there is a whole different work ethic at play these days. This is very much a generation of now now now that don't plan for the what bad things might happen and prioritise their latest must haves over having a financial buffer - eg redundancies, illness etc. I don't recall us having the latest phones, TV, Sky packages, foreign holidays, clothes every 5 minutes that is so prevalent these days?

@ivfbeenbusy I do get your point though I think that is stereotypical generalisation (e.g. I've always worked and have had multiple jobs where necessary, across all industries. I'm 39). the phones, TVs etc analogies that you mention above aren't really comparable as they were a) either not available at all or b) comparatively far more expensive so less available to most people.

My point is that in a situation where there are not even enough jobs around for every person to have 1 each, how are people going to work multiple when needed?

We can't throw millions of people to the wolves as say 'well you bought too many avocados so it's your own fault'

At the very least, the implication of that is huge on everybody else and will be damaging to every person in the UK (if you want to think of it selfishly)