House-price affordability is absent nowadays except for the wealthy minority, unless huge mortgage loans are taken out by everyone else needing to borrow to buy.
This cannot be right or proper.
This problem is running out of control in all regions of Britain. It’s called the un-affordability problem. It affects probably more than half of the house-buying population!
Why is it that those in regular employment on average earnings simply cannot afford adequate housing, whether to rent whilst saving or to buy?
The newspapers have been covering this serious dilemma for many moons now yet the plight of the lack of affordability remains with us.
Is it because those whom have ascended several rungs of the property ladder themselves are the ones making the policy for affordable housing? It does seem that there is a certain credibility to this accusation.
It seems that those in the position of making the big decisions on what to do about this problem have seen that they themselves are benefiting from long term capital value appreciation and low interest rates and so it’s all too easy to let things stay as they are. This is like pulling up the drawbridge and leaving those left outside the castle to be forced to fend for themselves. It leaves those without the ability to save enough to buy even a basic house for themselves out in the cold.
Not doing much to address this problem is demonstrably not good enough. It is clear from all the statistics which loudly speak for themselves.
Not dealing with the house affordability issue is leaving those without enough capital practically defenceless.
Unless somebody ‘up the ladder’ so to speak, flags this problem in a stark and prominent way, the drawbridge mongers are going to get a way with their shoddy tactics.
Having spent my whole career in housing and property related matters I have crafted, using my valuable experience, the primary solution to this dilemma and published it online.
Policymakers have been writing in the press. They have had innumerable meetings.
Policymakers have been on television but the house-price problem continues.
The answers are not in reducing interest rates, nor in mass producing hundreds and thousands of more un-affordable houses. it’s not by providing 50% shared-ownership schemes, it’s not indeed by advancing near 100% mortgages, extending the repayment period beyond 25 years, reducing stamp duty or, indeed, offering extra help to first-time buyers to be able to borrow enough to bridge the gap in their finances.
The one common denominator to all these clearly failed policies is that they do not resolve un-affordability vis-à-vis the house-price crisis. House prices themselves have stayed un-affordable to most middle incomers and especially to first time buyers.
Let’s hope soon there is a meeting of minds on how this vital issue may at last be resolved. It must be resolved for the sake of the post-brexit evolution of our economy across the whole country.
There is a positive and pragmatic way to deal with this crisis.
For more information about what it is that I am advocating must be done, please see:
The bank of mum and dad is one of UK’s biggest mortgage lenders
L&G’s research, based on a poll of 1,600 parents
A million more youngsters to live with parents, says Aviva
By Brian Milligan
Personal Finance reporter
Peter Hendry, Author:– The House Price Virtuoso Solution previously The Hendry Solution