Jon Gout wrote:Yes, back when most home owners owned only one, they cost hardly anything, and mortgages were handed out to anyone who asked. Back when people could buy a house at the age of 19 with just a few bob for a deposit instead of having to pay extortionate rents to multiple property owners while trying to scrape together a deposit until they're in their 30s. Everyone would prefer that, but we're not in a position where it's going to suddenly happen again without major changes to how things work. I know both points are true, but that doesn't mean you have to accept them instead of working out ways of tackling them. A defeatest attitude never solves a problem.
This problem is caused by a number of factors, Jon
- Population increase outstripping housing supply
- The creation of a large low wage rate sector
- Interest rates being almost zero for a decade, people therefore turning to income from property for a better rate of return
- The destruction of our pension industry. people therefore turning to income from property for a future income in old age
- Graduates coming out of university with £50k debts
- Lack of new housing
Successive governments (of both parties) are largely responsible for the factors listed above. The result now is that market forces have created an over inflated property market. As it happens, the market is slowing down, but property is still barely affordable for first time buyers.
Now we have a situation where it is very difficult for any government to redress the balance. The horse has bolted when it comes to population growth. All governments love big business and globalism, so they aren't going to rock the boat when it comes to the low wage economy. Interest rates are dictated by external forces.
They could make pensions attractive again & a proper investment for old age
They could sort out the student fee fiasco
They could build more houses - preferably on the brown belt.
But will they? I wouldn't bet on it.