How much would you need to save a month to buy a house within 10 years?

It is true that if you made contributions of £200 a month into a stocks and shares Isa, (i.e. put aside earnings of £2,400 p.a.) and aimed for a realistic yearly return of 4pc after fees, you’d reach your goal of £40,000 in nine years.
If your partner did the same, this could be £80,000.

In addition, if house prices were to fall over the same period, you could suddenly find yourself well poised and ready to buy a comfortable place to start owner occupation in. Unfortunately, there are quite a few ‘ifs’ in this scenario!

The main obstacle to achieving this is house prices themselves which, even at the lower end of the house-ownership spectrum, are out of reach for a large number of hopeful owner occupiers. This obstacle could however be removed using relatively straightforward improvements in the way that privately owned properties are marketed.

The present ‘government’ idea of trying to get prices to reduce is by building many more housing units but this idea is fundamentally flawed. The reason is that the effect of doing it would be marginal on price. Why? Because unless upwards of 10% of the total number of currently built starter homes were constructed, little or no effect on house-prices themselves would be felt.

If you do the maths it becomes clear that it would be impossible to build enough, even over a full ten years. You would be talking about building in excess of ten times the number of new units currently being built each year for at least the next ten years!

By deduction, and please notice that however seemingly implausible it is, the right conclusion can only be that the current methods of marketing all properties is what needs to be changed. It is the one thing that is highly inefficient and old fashioned and improving that is the key to achieving the desired result.

Reform the way privately owned houses are bought and sold by making the process open, fair, and efficient because this is the key.

Doing this would bring the prices of starter homes back within the reach of first-time buyers and they would no longer have to borrow the eye-watering amounts that are currently stopping the majority of those whom wish to, from ever becoming owner-occupiers.

To find out how this could be done, please go to:

The Hendry Solution: Full details of our proposals for properly reforming all housing markets in England and Wales.

Peter Hendry, Consultant in Housing Valuation

About Peter Hendry

The Hendry Solution is a new open market technique for equalising buy and sell prices within all markets. It was originally conceived to correct the anomalies plaguing the UK housing marketplace. This method of resolving the housing crisis remains to be put to the test. The author recommends that it should now be thoroughly tested and evaluated. Proprietary rights reserved.   Having retired I now wish to give something of significant value back to the property industry and the service in which I have spent my whole career.   I qualified as a General Practice Surveyor (RICS) in 1974 (in valuation) and have gained wide-ranging experience since that time, particularly in issues surrounding residential property valuation and house marketing. Having ceased practice as a Chartered Surveyor some while ago, I resigned my membership of the RICS to be in a better position to give advice concerning how to improve the workings of individual housing markets around Britain. The internet has turned out to be a good place to publish information about this because it is a world-wide platform allowing everyone interested to see details of the changes/improvements which I have been advocating ought to take place. I have researched how to make improvements to the operation of all local housing markets across England and Wales after observing the house-price stagnation of 1969, the hyper-inflation that followed in 1972 and the successive but cyclical house-price booms following that; leading to the sudden and prolonged house-price growth stagnation after the 2008 global financial crisis. This resulted in a severe reduction in sales volumes for a significant number of years thereafter and it still affects most local housing markets to this day. I have been in communication with the RICS, the NAEA, The Law Society and my local MP about my research, explaining the need for estate agents to change the way they have historically marketed houses in order to resolve this problem. I argue that the continuing stagnation in market activity coupled with the lack of general affordability following the financial crash, could still be substantially ameliorated if my proposals were to be fully debated and the resulting conclusions which they point to were implemented. The effect of not doing anything of significance to improve the buying and selling processes across all the UK housing markets continues to have a de-stabilising effect on the whole of the nation's economy by causing a stagnation in house sales completions. This is, of course, a very important and substantial part of the whole economy and therefore warrants careful consideration. The time to take corrective action is right now, although such action is now also somewhat overdue. I would welcome sharing your thoughts on these new proposals using this blog site.

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