El Cid Posted January 2, 2017 Author Share Posted January 2, 2017 "Right-to-Buy"? Yes. So my mortgage will be for £65k instead of £100k, £45k with a pension that I can cash in. Link to comment Share on other sites More sharing options...
biotechpete Posted January 2, 2017 Share Posted January 2, 2017 My old house in staveley was recently sold for that very figure (maybe 4 months back). And it had been done up very nicely too judging by the pics on right move. I'm not saying every house, but Staveley isn't typical. The average house price is more than 11 times the average salary. Even taking Yorkshire and Humber region, the average house costs over £150k. Link to comment Share on other sites More sharing options...
El Cid Posted January 2, 2017 Author Share Posted January 2, 2017 The UK Labour Government introduced the Child Trust Fund, with an intended £500 of Government money paid into the account; to give children a better start to their adult life. Link to comment Share on other sites More sharing options...
smithy266 Posted January 2, 2017 Share Posted January 2, 2017 I think it started to go downhill with the buy-to-let mortgages, so those with a bit of cash could buy up cheaper houses and rent them out, making less houses for first time buyers. Might be wrong.... Link to comment Share on other sites More sharing options...
tinfoilhat Posted January 2, 2017 Share Posted January 2, 2017 I'm not saying every house, but Staveley isn't typical. The average house price is more than 11 times the average salary. Even taking Yorkshire and Humber region, the average house costs over £150k. I'm no mathmagician but if the average price is £150k there must be loads less than that? You would also be forgiven for thinking those sub £100k houses would go quickly. They don't you know. ---------- Post added 02-01-2017 at 23:18 ---------- I think it started to go downhill with the buy-to-let mortgages, so those with a bit of cash could buy up cheaper houses and rent them out, making less houses for first time buyers. Might be wrong.... You're very probably right. Link to comment Share on other sites More sharing options...
Robin-H Posted January 2, 2017 Share Posted January 2, 2017 I think it started to go downhill with the buy-to-let mortgages, so those with a bit of cash could buy up cheaper houses and rent them out, making less houses for first time buyers. Might be wrong.... The National Housing and Planning Advice Unit did some research into this in 2008. They concluded that the introduction of BTL mortgages in the third quarter of 1996 has led to an increase in house prices although they state that it is important to note that the impact is small in relation to the effect of household growth, the size of the housing stock, mortgage interest rates, and changes in disposable income. They estimate that by the second quarter of 2007 BTL mortgages had led to a 7% increase in house prices since 1996. This however is quite a small increase compared to how much house prices increased between 1996 and 2007. They say that this increase would have added £13,000 to the cost of the average home over this period, which could potentially have priced some people out of the market, however a quick look at the stats online show that the average house price increased by £130,000 between 1996 and 2007 (from £54,000 to £184,000) so it certainly wasn't a major factor. Link to comment Share on other sites More sharing options...
unbeliever Posted January 3, 2017 Share Posted January 3, 2017 Yes. So my mortgage will be for £65k instead of £100k, £45k with a pension that I can cash in. You sure you want to destroy your pension? Link to comment Share on other sites More sharing options...
Olive Posted January 3, 2017 Share Posted January 3, 2017 The National Housing and Planning Advice Unit did some research into this in 2008. They concluded that the introduction of BTL mortgages in the third quarter of 1996 has led to an increase in house prices although they state that it is important to note that the impact is small in relation to the effect of household growth, the size of the housing stock, mortgage interest rates, and changes in disposable income. They estimate that by the second quarter of 2007 BTL mortgages had led to a 7% increase in house prices since 1996. This however is quite a small increase compared to how much house prices increased between 1996 and 2007. They say that this increase would have added £13,000 to the cost of the average home over this period, which could potentially have priced some people out of the market, however a quick look at the stats online show that the average house price increased by £130,000 between 1996 and 2007 (from £54,000 to £184,000) so it certainly wasn't a major factor. Interesting. It always seemed to me that the various factors that might have contributed to the rampant rise in house prices in that decade, even when added together, didn't quite account for the massive price inflation. It's as if the very fact that they were rising was leading to more rising (if you get what I'm saying!). So people saw what was going on, thought "I'd better buy myself a house before they get even more expensive", the banks got giddy and lent 100% plus mortgages, and so on. Like a housing gold rush. Link to comment Share on other sites More sharing options...
Guest makapaka Posted January 3, 2017 Share Posted January 3, 2017 I'm not saying every house, but Staveley isn't typical. The average house price is more than 11 times the average salary. Even taking Yorkshire and Humber region, the average house costs over £150k. Just because the average house price is £150k doesn't mean that's what people need to buy a house though is it. Using your earlier example of £84k lending capacity for a single person on average wage - With a deposit of £6k they could get a house for £90k which is doable in sheffield. As I said it's difficult but not impossible. Link to comment Share on other sites More sharing options...
unbeliever Posted January 3, 2017 Share Posted January 3, 2017 Just because the average house price is £150k doesn't mean that's what people need to buy a house though is it. Using your earlier example of £84k lending capacity for a single person on average wage - With a deposit of £6k they could get a house for £90k which is doable in sheffield. As I said it's difficult but not impossible. Precisely. One's first rung on the property ladder will likely not be an "average" house but a below average house. Once equity is built up and hopefully earnings increase though life, the first house can be sold to finance a deposit for a better house. That's why it's called a ladder. I'm on my 3rd house. My first was in Wybourne and my second in Hillsborough. Link to comment Share on other sites More sharing options...
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