The Housing Crisis (UK)

[Raven]

Agreed.”nothing safer than bricks and mortar” is a saying in the uk and rightly so as it’s proven to be over the years.
The system needs to change and I’d be ok with that but as @Jippy said earlier I’m not sure how you do that without fecking over loads of first time buyers who would immediately experience negative equity.

Tell that to the millions of people who lost everything in 2008. It feels like history is repeating itself and that we're in a property bubble again.

 

[The Purley King]

Tell that to the millions of people who lost everything in 2008. It feels like history is repeating itself and that we're in a property bubble again.

It’s a question of time as is the case with most investments , of which a house is the biggest thing most people will ever “own”.
If you have the financial ability to stick it out you’ll be fine but if not then it’s catastrophic.
Which is why suddenly dropping the value of houses isn’t really an option or a lot of people will be screwed.

 

[4bars]

Sorry I disagree with fuxking over those who have a BTL as a pension as if they sink into negative equity as they surely will then the “asset” they own and was implicitly implied by numerous governments was a good idea then the asset becomes a millstone around their neck (and a liability for whoever inherits)
Don’t get me wrong I think it needs changing and I don’t have an answer but crashing property prices overnight is unlikely to be a good solution

Is not to feck over the BTL for shits and giggles. Is not that I want people to suffer. Is that if you make me choose between a collective that can afford to buy a second house vs a collective that they can't and even they will have a more miserable retirement for me is a no brainer

the optimal solution is that everybody wins, but is impossible on the short term, and while it is being fixed on the long term (if ever), more people are being fecked over with no options

 

[4bars]

Young people are way too interested in avocados and Netflix memberships these days to save any money and that’s the real issue here, not that houses cost around 10x their annual salary.

10x.... lucky you. not even before taxes

 

[SilentWitness]

I'm always put off by the lack of a front garden. Front door can open up to practically a main road, no bushes or trees to conceal your morning routine of standing at the living room windows naked and howling.

And apparently a double bedroom now means you can squeeze a double bed in it and feck all else. And people don't have things that they need to store anymore. I must've missed that memo.

Whenever I've been to a new build estate they look grim. Same cars and same people living in them with the same haircuts. It's like you've walked onto the set of an over budget average netflix show.

I'm currently in this boat. I actually have a decent deposit saved up but don't really feel all that keen on buying a house with one income in this economy. Although I'm aware even that puts me in a better position than a lot of people right now

Now I feel bad because I have a partner. I was more just taking the piss because it should be easy (or at least easier than it is) to buy if you're single. Congrats for saving up a good deposit though, we are in the same boat kind of. Have deposit and savings ready to go, just not sure what to do with it yet.

 

[11101]

Is not to feck over the BTL for shits and giggles. Is not that I want people to suffer. Is that if you make me choose between a collective that can afford to buy a second house vs a collective that they can't and even they will have a more miserable retirement for me is a no brainer

the optimal solution is that everybody wins, but is impossible on the short term, and while it is being fixed on the long term (if ever), more people are being fecked over with no options

But even if you're OK with choosing to screw BTL owners that means the lenders also get screwed over. You cant pick and choose which houses lose their value, and when the lenders start going under the whole economy comes crashing down. What you'd be doing is in essence purposely recreating 2008.

 

[Mogget]

Now I feel bad because I have a partner. I was more just taking the piss because it should be easy (or at least easier than it is) to buy if you're single. Congrats for saving up a good deposit though, we are in the same boat kind of. Have deposit and savings ready to go, just not sure what to do with it yet.

Not to make you feel worse but I actually only have a good sized deposit because my dad died. Sadly I think that's what it's going to take for a lot of millenials to get on the ladder. I doubt I'd be anywhere close to buying a property without that

 

[Red in STL]

Yes. Apologies. I was using someone else's figures as the average. I always balk when I see "average" salaries sometimes being discussed on TV as I know in huge swathes of the country it is certainly NOT average.

Would you agree it is more than one factor? House price inflation (and rental inflation) have gone crazy but expectations are also perhaps not realistic too. Are people leaving uni and straight after moving out of the parental home? If so, that decision will screw you for life when it comes to getting on the property ladder.

I bought my first house in 2008 for £ 141,000 with my fiancee (now my wife). She wasn't working at the time. I was on a salary of £ 18,000 p.a. but had some savings largely due to living at my parent's house for longer than I thought I would.

I do agree there's more than one factor, as I posted earlier the root of the problems today lie in political decsions made 30 years ago, expectations are different now and demographics have changed, there is now more of a need for single occupancy places which has led to houses being divided up in to flats

 

[SilentWitness]

Not to make you feel worse but I actually only have a good sized deposit because my dad died. Sadly I think that's what it's going to take for a lot of millenials to get on the ladder. I doubt I'd be anywhere close to buying a property without that

sorry to hear that mate. Indeed, it's a really rough market.

 

[4bars]

But even if you're OK with choosing to screw BTL owners that means the lenders also get screwed over. You cant pick and choose which houses lose their value, and when the lenders start going under the whole economy comes crashing down. What you'd be doing is in essence purposely recreating 2008.

No, i always said that in 2008 instead of giving the money to the banks they would give it to particulars. You get people free of debt and they can pay the banks that they dont get under

As I said on several posts, I said that the government should implement safeties in case that the people would not be able to pay. If they bailed out the banks without batting an eye, I don't see how they couldn't do that

Again, this is in lalala land. I know the solution doesn't lay there and is far more complex that I can even comprehend, let alone be the solution finder, but the reality is that if we want this to be fixed, some eggs will be broken yes or yes to cook the omelette. How many, difficult to know, but there are a lot of people already suffering and it seems to me that we care more about the possibility of a maybe suffering of landlords than the real suffering that an entire generation and the ones to follow or they will not have a place to live when they arrive at retirement age or they will need to work till they physically can't because they still need to pay rent to a poor landlord, bless his/her heart we would not want them to have negative equity