UK housing crisis: how did owning a home become unaffordable? | opinions of EU members welcome

[313ghazi]

I came across this very interesting interactive article in the Guardian about the history of UK housing and how it's come to the state it's in. Currently in many places in the UK, the average family house costs 7-8 times the average income. The model for mortgages has been re-worked to take into account HOUSEHOLD incomes, ie the incomes of two partners.

UK housing crisis: how did owning a home become unaffordable?

Buying a house is off-limits to many thanks to rising rents, pay freezes and a lack of affordable homes. But it hasn’t always been this way. What went wrong?

www.theguardian.com

I think there are lessons for Pakistan in this, as well as other developing countries. Social housing is essential in driving wealth creation and keeping money from falling into the lazy property industry. I'd love to know the experiences of social housing members from the EU have? I know Germany has a particularly good model.

 

[TheSnakeEatingMarkhur]

I came across this very interesting interactive article in the Guardian about the history of UK housing and how it's come to the state it's in. Currently in many places in the UK, the average family house costs 7-8 times the average income. The model for mortgages has been re-worked to take into account HOUSEHOLD incomes, ie the incomes of two partners.

UK housing crisis: how did owning a home become unaffordable?

Buying a house is off-limits to many thanks to rising rents, pay freezes and a lack of affordable homes. But it hasn’t always been this way. What went wrong?

www.theguardian.com

I think there are lessons for Pakistan in this, as well as other developing countries. Social housing is essential in driving wealth creation and keeping money from falling into the lazy property industry. I'd love to know the experiences of social housing members from the EU have? I know Germany has a particularly good model.

I feel like prices in UK are gonna go down.. we are looking to buy house through mortgage but still work in progress..

 

[Invicta]

I feel like prices in UK are gonna go down.. we are looking to buy house through mortgage but still work in progress..

I came across this very interesting interactive article in the Guardian about the history of UK housing and how it's come to the state it's in. Currently in many places in the UK, the average family house costs 7-8 times the average income. The model for mortgages has been re-worked to take into account HOUSEHOLD incomes, ie the incomes of two partners.

UK housing crisis: how did owning a home become unaffordable?

Buying a house is off-limits to many thanks to rising rents, pay freezes and a lack of affordable homes. But it hasn’t always been this way. What went wrong?

www.theguardian.com

I think there are lessons for Pakistan in this, as well as other developing countries. Social housing is essential in driving wealth creation and keeping money from falling into the lazy property industry. I'd love to know the experiences of social housing members from the EU have? I know Germany has a particularly good model.

The UK market is over inflated it will be more so now that people have realised working from home can work. This means a lot of people will move out of London so expect the property prices outside greater London area to go up.

I have been saying this for a long time though that the property market is due a crash. It has to --- as of now it is unaffordable for new buyers to get on the property ladder. When I bought my house it was £180,000 that was really expensive at the time. Equal sized properties now are selling over £500k. This is not sustainable in the long run.

 

[313ghazi]

I bought a house in a nice sought after suburb and it took years of savings to get into the ladder. The gap between average income and property prices has shot up beyond all reason.

We need more social housing to take the heat out of the rental market. That will mean more properties on the market and eventually lower prices. We also need more house building in general tbh.

 

[Invicta]

I bought a house in a nice sought after suburb and it took years of savings to get into the ladder. The gap between average income and property prices has shot up beyond all reason.

We need more social housing to take the heat out of the rental market. That will mean more properties on the market and eventually lower prices. We also need more house building in general tbh.

You are spot on and the article you attached also defines the problem very accurately. The UK government in all its wisdom introduced Help to Buy which inflates property prices they also willingly have given a stamp duty exemption on properties up to a certain value. All this combines triggers inflation in the market.

The house building drive that is continuing is good but it is no where near the rate where supply outstrips the demand. Unfortunately the demand will remain constant as affordability is now the main problem, in my area a one bed studio flat is selling for £230k. A 2 bed house is going for £290k how is one supposed to afford these properties.

I wanted to buy a second property but I am waiting for the property market to crash - either that or future generations will have to just rely on private renting for the rest of their life.

 

[Ali_Baba]

The problem is that the UK goverment does not want a house market price crash, so it introduced the Help to Buy scheme to ramp up demand, and also the stamp duty holiday..

It has also encourage mortgage terms of 40years etc.

House Prices in the UK will never crash - ever... there is to much riding on it now. They will increase massively areas out of London now, for sure..

If it looks like there is not enough demand for houses, then the goverment will find another way of ramping up demand.

 

[Capt. Karnage]

It's always cheaper to rent than buy.

 

[yuba]

My dad first brought his house in the 70s for i think 2000 pounds it a 4 bedroom end of street terrace and now easily 350 thousand. Because im back and to from the states because of a family buisness i thought i get a house so my dad could rent his house out . 17 years ago i paid 95 000 for this three bedroom detached house in a nice area now a house over the road went for 420 000 pounds and these houses are small the third bedroom over the stairs and tiny . Being 40 miles from London helps house prices but what i can get for this in the states is stupid. What are first time buyers meant to do how will they get the deposit together. When i was young a working class man could work and buy his house no more the professionals have a hard time forget the working class. Lots of south asians including my cha cha brought houses and rented them out and now laughing. A sikh family friend had over 80 houses in his name and was so down to earth . Either build on green belt land or pay 50 year mortgage .

It's always cheaper to rent than buy.

maybe i not sure rent here for a family home is 800 to 1200 pounds my 15 year mortgage on 95 000 house with 40 000 down was 600 pounds and this house would be on or over the 1200 mark

You are spot on and the article you attached also defines the problem very accurately. The UK government in all its wisdom introduced Help to Buy which inflates property prices they also willingly have given a stamp duty exemption on properties up to a certain value. All this combines triggers inflation in the market.

The house building drive that is continuing is good but it is no where near the rate where supply outstrips the demand. Unfortunately the demand will remain constant as affordability is now the main problem, in my area a one bed studio flat is selling for £230k. A 2 bed house is going for £290k how is one supposed to afford these properties.

I wanted to buy a second property but I am waiting for the property market to crash - either that or future generations will have to just rely on private renting for the rest of their life.

A second home is always a way to either keep as a pension or to help kids out . I live in states but am thinking of buying because it is a good market in this country

 

[yuba]

I bought a house in a nice sought after suburb and it took years of savings to get into the ladder. The gap between average income and property prices has shot up beyond all reason.

We need more social housing to take the heat out of the rental market. That will mean more properties on the market and eventually lower prices. We also need more house building in general tbh.

That is so true especially as thatcher sold so many council homes to tenants but the loss was not replaced with new council homes

 

[kingQamaR]

Uk needs this property housing growth continues as it drives its large chunks of its economy. look around you in London every where there’s buildings or flats going up. Whose buying them ? every one in uk love owing there own homes or rental reasons!!!! biggest problem landlords, in my opinion. This demands now outstrips the supply especially in the London regions. And Up north outside there inner crappy immigrant cities areas , those middle class English area housing prices are similar to London ones.

 

[yuba]

I came across this very interesting interactive article in the Guardian about the history of UK housing and how it's come to the state it's in. Currently in many places in the UK, the average family house costs 7-8 times the average income. The model for mortgages has been re-worked to take into account HOUSEHOLD incomes, ie the incomes of two partners.

UK housing crisis: how did owning a home become unaffordable?

Buying a house is off-limits to many thanks to rising rents, pay freezes and a lack of affordable homes. But it hasn’t always been this way. What went wrong?

www.theguardian.com

I think there are lessons for Pakistan in this, as well as other developing countries. Social housing is essential in driving wealth creation and keeping money from falling into the lazy property industry. I'd love to know the experiences of social housing members from the EU have? I know Germany has a particularly good model.

I heard in germany it has always been more about renting then buying your own home .Britain always

Uk needs this property housing growth continues as it drives its large chunks of its economy. look around you in London every where there’s buildings or flats going up. Whose buying them ? every one in uk love owing there own homes or rental reasons!!!! biggest problem landlords, in my opinion. This demands now outstrips the supply especially in the London regions. And Up north outside there inner crappy immigrant cities areas , those middle class English area housing prices are similar to London ones.

Birmingham the middle class areas are expensive but my friend brought a home in Darlington and was a lot cheaper compared with the southeast

 

[Constantin84]

It's always cheaper to rent than buy.

Renting is a waste of ones money, buying is not.

 

[313ghazi]

It's always cheaper to rent than buy.

In the UK its actually not. My mortgage payment is less than I could get if I rented the house. The buy-to-let scheme has created so many mini landlords, all renting out property at the minimum price of thier mortgage repayment + Estate agents fees.

So you can buy a property and borrow 95% of the property value from the bank. You can then hire an agency to find you tenants, collect rent and manage the property. You set the rent at the cost of the fee + your mortgage repayment as a minimum. You sit back and in 15-20 years time someone else has paid off your mortgage and now the house is yours and the rental income pure profit.

 

[Ali_Baba]

Mortgage lenders prepare to launch ultra-low 5% deposit deals

Several big high street names have already confirmed their intention to take part in a new UK Government-backed 5 per cent deposit scheme, which was unveiled in the recent Budget.

www.dailymail.co.uk

It is starting again - now 95% mortgages.

House prices will never crash in the UK - too many vested interests. Dont waste your life wasting for a crash - buy what you can afford and move on with life.

 

[xyxmt]

In the UK its actually not. My mortgage payment is less than I could get if I rented the house. The buy-to-let scheme has created so many mini landlords, all renting out property at the minimum price of thier mortgage repayment + Estate agents fees.

So you can buy a property and borrow 95% of the property value from the bank. You can then hire an agency to find you tenants, collect rent and manage the property. You set the rent at the cost of the fee + your mortgage repayment as a minimum. You sit back and in 15-20 years time someone else has paid off your mortgage and now the house is yours and the rental income pure profit.

while themselves living in a rental property?