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41pc think they will never get on the housing ladder

2 replies

AnalyticalChick · 21/09/2018 23:03

This is an interesting story in the Telegraph. According to new analysis, 41% of people in the UK now feel they will never be able to afford to buy a home because of unaffordable prices. It looks like those who are priced out are gradually becoming politically important, and that government policy should therefore start to move against continued artificial elevation of house prices - which is only fair.

www.telegraph.co.uk/business/2018/09/20/priced-41pc-think-will-never-get-housing-ladder

OP posts:
FunkyHeroCat · 22/09/2018 10:32

It's not all the government's fault (and I say this as a long term Labour voter). Interest rates set by the Bank of England have been kept artificially low for a long time to try to stave off a worse recession, but have had the unwanted side effect of making housing more expensive as people can afford lower payments.

However, interest rates are coming up now, very slowly so that recent home buyers aren't immediately plunged into negative equity. At the same time, government actions like the extra stamp duty for 2nd and subsequent house purchases are also starting to bite.

Brexit will also mean that many Europeans will move back to Europe - but should have no effect on non-Europeans. Businesses moving their headquarters to Europe will lower the value of real estate and housing in the areas where those businesses have been.

The combined effect means that house prices in areas where house prices are many times the average wage, like London, will come down, as well as house prices eventually in areas where a lot of the business has moved to Europe, like the North East (eventually).

More people will be able to get on the housing ladder (if they've got jobs) at that point.

FunkyHeroCat · 22/09/2018 10:35

If the councils were keeping up with their obligations to build new housing of course, it wouldn't be an issue!

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