Yet there are millions working full-time who don’t earn enough for a mortgage in 100k property bit will probably pay twice mortgage costs on rent.a Tory wet dream
Here’s a story for you all. I live in China and my wife told me that some of her colleagues, normal middle school teachers in state schools in a small inland city, had bought a house in England. They did it through some agency because they had some money kicking around and thought it would be a decent investment. Interest rates in China are never very high and a decent section of the population are pretty cash rich with not much to do with it.
Also British law positively encourages this type of thing.
Being a property journalist in the UK must be one of the easiest jobs going. Just don’t forget to update the numbers when you copy and paste this story every month.
Well this seems sustainable….how is this not a bubble that will not burst one day….and when it does heaven help us as its us plebs that can’t affird a house who will pay for it…again
The depreciation of our pound, gives us the illusion life is good.
Will prices drop in the near future or do I bite the bullet and just buy now?
Why is it so hard to get a mortgage on what is widely sold as an appreciating asset?
If I want to get approved a mortgage I need to have a deposit, good credit and few monthly outgoing to prove I can make repayments on a loan for what everyone says is an asset that is only going to increase in price.
If I want to go out and get a car on finance that is going to depreciate rapidly, especially if new it’s a piece of piss even with a low deposit and questionable credit scores.
May have over simplified it or simply misunderstood but the whole thing seems fucked.
My house has gone from £450k to £650k in 4 years. I’m rich!!
… apart from the fact that houses the next level up have also gone up 40% so if I ever want to upsize I’m screwed.
That’s the thing older generations won’t get. I’m fortune enough to be making just over 20k a year on a low rent area but still living at home. My grandparents got a mortgage at 2.5x the man’s wage and the women’s wage wasn’t even taken into account back then, even 5x my wage won’t get me a place here. Literally the only way my mother afford her last place and the one she’s going for now is how the council offer huge discounts if you’ve lived there for 5 years.
Something has to give.
Borrowing for Mortgages are given out on a salary to house price ratio.
If real wages are worse now than 2008, yet house prices higher then ever, this is going to reach a serious point where no one can afford to buy so who will they be sold to
Housing bubble financial market crash , that’s how the rich get richer with cash .
I wonder how many of those are first time buyers. I don’t know why people would MOVE house right now (and I know people that are).
There is a house in Oxford that sold at auction for £200,000.
*It has no roof.*
The fire-damaged husk of a building costs more than ten times what I earn in a typical year. It’s bananas.
I earn well over the median income for the UK, my wife is pretty much bang on median.
We bought a 2 bed flat for exactly this (£354k) last year and that was the absolute maximum of our mortgage.
Only reason we could is because she had a big chunk of deposit from inheritance. I’m from a working class background so no inheritance or help from parents for me. I’d saved a little bit but it was only 10% of our whole deposit.
My two thoughts on this is that I shouldn’t have had to struggle so much to buy a flat when our household income is in the top half of UK earners and also how the fuck is anyone else supposed to manage? It’s completely and utterly despair inducing.
My parents 4 bedroom semi detached house in the Surrey Country side was £90k in the mid 90s. They also bought a 1 bedroom flat for my granny to live in when she emigrated over here in 2001 and as I said, working class non-university graduates (although both have now done open university courses).
And here I struggle to sell my Croydon Flat 2 Bedroom 3 mins walk from the Station next to Kindergarten property for 265k -.-
[deleted]
We’re waiting to complete on a house at 400k which we had the offer accepted for in January… The house across, which is the same archetype and age, has sold for 420k over the weekend. Absolute madness that we’re essentially 20k better off without lifting a finger (fully aware it’s not 20k in real terms due to fees but still).
I feel incredibly lucky that I managed to get on the ladder a few years ago before this absolute shitstorm
I’m going to stick my neck out and say the tories are in a death spiral when it comes to home ownership. They’ve set the standard, and they’ve used taxpayers money to let it rip. But the problem for them is they need the prices to keep going up. Ignoring the fact this is unsustainable for one moment, we now look at how these price increases are forcing out first time buyers. How wages in the UK just cannot support the cost. And now we have inflation, and a cost of living crisis to further compound things. So more and more will have no choice other than to RENT until prices go DOWN. In other words THE flagship tory policy – basically the only one keeping them in power – namely home ownership, is in decline. Worse still for them, the only way to reverse this decline is to either increase wages, lower taxes, or lower the price of housing. The have no scope to do ANY of these. In fact, even worse still, inflation is putting huge pressure on them to increase interest rates. Something that would make their death spiral spin even faster.
Forget this rubbish headline insinuating that people are cueing up to by £350k properties. This is GARBAGE. Yes, landlords may be doing it, but not people on an average wage of less than £30k p.a and currently experiencing the highest cost of living increases since the 70’s further compounded by the highest levels of taxation since WW2…..
So landlords – including many from all over the globe – are buying up huge swathes of UK property. And here we now come to the crux of the problem for the tories – the UK landlords ALREADY vote tory. Therefore as their portfolios increase, this isn’t going to matterhorn jot at the polling station. And as for the non UK landlords, we’ll, try and get them to the polling booth Tory HQ?
Finally, we come to the ones either forced to pay rent, or purchase a property and live in perpetual fear this could all go wrong at any moment.
Sunak may smile, but he isn’t very happy….
Communities, councils and the government should do more to create social housing. Grants for public sector or key workers, building schemes (using tax payers money)…etc etc
It doesn’t have to be the old council house system all on one estate either. I’d feel much better paying tax if I knew it was being invested in affordable homes for people who needed it. Rather than the current set of vultures who use tax payers pots to fund their little cash grabs and contracts they hand out to their mates.
But for this to happen you will need to ignore the media during the next election and vote for a party that would adopt this approach.
It’s depressing that the only way I’m likely to be able to afford a house is to either settle for a partner so that I have dual income and can afford something, or wait until my parents die if I want to buy solo. I earn more than the UK average and have good earning potential in my field, but I’m nowhere near being able to afford something that’s ~£350k.
My partner has decided to move in the last month or so.
Our house, that we purchased in 2018 cost us £165,450
We recently put it up for sale with a max value of £240K
We accepted the offer at £246K, we chose this house as they removed the tolls on the Severn Bridges and where we were from became totally unafforable,
Now we have less money and she wants to move back and we are looking at VERY SMALL three bedroom houses (Two Bedrooms and a room so small you can’t fit a single bed in it) for Upwards of £300,000….
When we bought our house in 2018 I was constantly hearing about how impossible it was to get on the housing ladder, We managed it as one person (Nurse) and the other person (Student) by living on the cheapest food possible, not upgrading anything (Phone, computers etc) and basically living like we had absolutely no money plus selling things (Like my car) to fund everything that went forward.
I’ll be honest it was pretty miserable for the 18 or so months we did that but we had enough at the end to put down a 10-12% deposit.
With small starter houses (Which is what we are looking at) going for £290 to £300K and us looking to move down sizes to go to a nicer area I can’t help but remember when we first moved in to a bigger three bedroomed house in the same area in 1998 for £80,000.
I was too young to be earning then but my parents wage only slightly increased since that time and since 2005 I’ve earned between 20-25K in every job and every time they never even got the cost of living increases.
How people are expected to rent a flat round here for £650-700 then pay bills (Probably bringing them to £1200/1300) and then save for an actual mortagage and be happy is almost impossible.
To hear corporations and foreign investors are basically buying up property is fucking mental to me, especially when its inflating the housing market so much that houses SELL the moment they go on the market.
My house sold without anyone even viewing it in person becasue they were so worried it would be sold by the end of the viewing phase
All those russian buyers quikly spending what little currency they have before putin gets em to buy russia currency.
Problem is, in the UK we don’t protest enough about shit like this.
In France for instance, if petrol goes up a few cents, people are out in the streets with placards.
We Brits just bend over and take it, quite frankly.
I had to leave London and move to Dubai to be able to buy a house in the UK. Something really wrong about that statement. Its ridiculous.
25 comments
Yet there are millions working full-time who don’t earn enough for a mortgage in 100k property bit will probably pay twice mortgage costs on rent.a Tory wet dream
Here’s a story for you all. I live in China and my wife told me that some of her colleagues, normal middle school teachers in state schools in a small inland city, had bought a house in England. They did it through some agency because they had some money kicking around and thought it would be a decent investment. Interest rates in China are never very high and a decent section of the population are pretty cash rich with not much to do with it.
Also British law positively encourages this type of thing.
Being a property journalist in the UK must be one of the easiest jobs going. Just don’t forget to update the numbers when you copy and paste this story every month.
Well this seems sustainable….how is this not a bubble that will not burst one day….and when it does heaven help us as its us plebs that can’t affird a house who will pay for it…again
The depreciation of our pound, gives us the illusion life is good.
Will prices drop in the near future or do I bite the bullet and just buy now?
Why is it so hard to get a mortgage on what is widely sold as an appreciating asset?
If I want to get approved a mortgage I need to have a deposit, good credit and few monthly outgoing to prove I can make repayments on a loan for what everyone says is an asset that is only going to increase in price.
If I want to go out and get a car on finance that is going to depreciate rapidly, especially if new it’s a piece of piss even with a low deposit and questionable credit scores.
May have over simplified it or simply misunderstood but the whole thing seems fucked.
My house has gone from £450k to £650k in 4 years. I’m rich!!
… apart from the fact that houses the next level up have also gone up 40% so if I ever want to upsize I’m screwed.
That’s the thing older generations won’t get. I’m fortune enough to be making just over 20k a year on a low rent area but still living at home. My grandparents got a mortgage at 2.5x the man’s wage and the women’s wage wasn’t even taken into account back then, even 5x my wage won’t get me a place here. Literally the only way my mother afford her last place and the one she’s going for now is how the council offer huge discounts if you’ve lived there for 5 years.
Something has to give.
Borrowing for Mortgages are given out on a salary to house price ratio.
If real wages are worse now than 2008, yet house prices higher then ever, this is going to reach a serious point where no one can afford to buy so who will they be sold to
Housing bubble financial market crash , that’s how the rich get richer with cash .
I wonder how many of those are first time buyers. I don’t know why people would MOVE house right now (and I know people that are).
There is a house in Oxford that sold at auction for £200,000.
*It has no roof.*
The fire-damaged husk of a building costs more than ten times what I earn in a typical year. It’s bananas.
I earn well over the median income for the UK, my wife is pretty much bang on median.
We bought a 2 bed flat for exactly this (£354k) last year and that was the absolute maximum of our mortgage.
Only reason we could is because she had a big chunk of deposit from inheritance. I’m from a working class background so no inheritance or help from parents for me. I’d saved a little bit but it was only 10% of our whole deposit.
My two thoughts on this is that I shouldn’t have had to struggle so much to buy a flat when our household income is in the top half of UK earners and also how the fuck is anyone else supposed to manage? It’s completely and utterly despair inducing.
My parents 4 bedroom semi detached house in the Surrey Country side was £90k in the mid 90s. They also bought a 1 bedroom flat for my granny to live in when she emigrated over here in 2001 and as I said, working class non-university graduates (although both have now done open university courses).
And here I struggle to sell my Croydon Flat 2 Bedroom 3 mins walk from the Station next to Kindergarten property for 265k -.-
[deleted]
We’re waiting to complete on a house at 400k which we had the offer accepted for in January… The house across, which is the same archetype and age, has sold for 420k over the weekend. Absolute madness that we’re essentially 20k better off without lifting a finger (fully aware it’s not 20k in real terms due to fees but still).
I feel incredibly lucky that I managed to get on the ladder a few years ago before this absolute shitstorm
I’m going to stick my neck out and say the tories are in a death spiral when it comes to home ownership. They’ve set the standard, and they’ve used taxpayers money to let it rip. But the problem for them is they need the prices to keep going up. Ignoring the fact this is unsustainable for one moment, we now look at how these price increases are forcing out first time buyers. How wages in the UK just cannot support the cost. And now we have inflation, and a cost of living crisis to further compound things. So more and more will have no choice other than to RENT until prices go DOWN. In other words THE flagship tory policy – basically the only one keeping them in power – namely home ownership, is in decline. Worse still for them, the only way to reverse this decline is to either increase wages, lower taxes, or lower the price of housing. The have no scope to do ANY of these. In fact, even worse still, inflation is putting huge pressure on them to increase interest rates. Something that would make their death spiral spin even faster.
Forget this rubbish headline insinuating that people are cueing up to by £350k properties. This is GARBAGE. Yes, landlords may be doing it, but not people on an average wage of less than £30k p.a and currently experiencing the highest cost of living increases since the 70’s further compounded by the highest levels of taxation since WW2…..
So landlords – including many from all over the globe – are buying up huge swathes of UK property. And here we now come to the crux of the problem for the tories – the UK landlords ALREADY vote tory. Therefore as their portfolios increase, this isn’t going to matterhorn jot at the polling station. And as for the non UK landlords, we’ll, try and get them to the polling booth Tory HQ?
Finally, we come to the ones either forced to pay rent, or purchase a property and live in perpetual fear this could all go wrong at any moment.
Sunak may smile, but he isn’t very happy….
Communities, councils and the government should do more to create social housing. Grants for public sector or key workers, building schemes (using tax payers money)…etc etc
It doesn’t have to be the old council house system all on one estate either. I’d feel much better paying tax if I knew it was being invested in affordable homes for people who needed it. Rather than the current set of vultures who use tax payers pots to fund their little cash grabs and contracts they hand out to their mates.
But for this to happen you will need to ignore the media during the next election and vote for a party that would adopt this approach.
It’s depressing that the only way I’m likely to be able to afford a house is to either settle for a partner so that I have dual income and can afford something, or wait until my parents die if I want to buy solo. I earn more than the UK average and have good earning potential in my field, but I’m nowhere near being able to afford something that’s ~£350k.
My partner has decided to move in the last month or so.
Our house, that we purchased in 2018 cost us £165,450
We recently put it up for sale with a max value of £240K
We accepted the offer at £246K, we chose this house as they removed the tolls on the Severn Bridges and where we were from became totally unafforable,
Now we have less money and she wants to move back and we are looking at VERY SMALL three bedroom houses (Two Bedrooms and a room so small you can’t fit a single bed in it) for Upwards of £300,000….
When we bought our house in 2018 I was constantly hearing about how impossible it was to get on the housing ladder, We managed it as one person (Nurse) and the other person (Student) by living on the cheapest food possible, not upgrading anything (Phone, computers etc) and basically living like we had absolutely no money plus selling things (Like my car) to fund everything that went forward.
I’ll be honest it was pretty miserable for the 18 or so months we did that but we had enough at the end to put down a 10-12% deposit.
With small starter houses (Which is what we are looking at) going for £290 to £300K and us looking to move down sizes to go to a nicer area I can’t help but remember when we first moved in to a bigger three bedroomed house in the same area in 1998 for £80,000.
I was too young to be earning then but my parents wage only slightly increased since that time and since 2005 I’ve earned between 20-25K in every job and every time they never even got the cost of living increases.
How people are expected to rent a flat round here for £650-700 then pay bills (Probably bringing them to £1200/1300) and then save for an actual mortagage and be happy is almost impossible.
To hear corporations and foreign investors are basically buying up property is fucking mental to me, especially when its inflating the housing market so much that houses SELL the moment they go on the market.
My house sold without anyone even viewing it in person becasue they were so worried it would be sold by the end of the viewing phase
All those russian buyers quikly spending what little currency they have before putin gets em to buy russia currency.
Problem is, in the UK we don’t protest enough about shit like this.
In France for instance, if petrol goes up a few cents, people are out in the streets with placards.
We Brits just bend over and take it, quite frankly.
I had to leave London and move to Dubai to be able to buy a house in the UK. Something really wrong about that statement. Its ridiculous.