Tuesday 22 July 2014

Oh, so they've finally noticed? "Young priced out of a home"

From The Daily Mail (this was today's headline):

The number of young homebuyers has plunged to a record low.

A tiny 3 per cent of house sales last month were to those aged 18 to 30, down from 12 per cent last August. The stark figure shows how stagnant wages, rising property prices and tougher rules for borrowers are squeezing the young out of the market. It comes despite Government efforts to stimulate more purchases through its Help To Buy scheme.

Of course they are suffering from typical Homey amnesia.

This is actually the normal situation in unregulated land markets.

The only reason why previous generations could rent and buy cheaply was because of rent controls and mortgage restrictions, with easily available council housing for those with low or irregular incomes.

If you get rid of those things - which Thatcher and Blair did - we go back to the old ways where the poor get poorer, the rich get richer and there is a sharp divide between those old enough to have "got on the property ladder" and those young enough to be eternally shafted (broadly speaking, the divide is between those born before 1970 and those born later).

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