As
we fast approach the 5th anniversary of the start of the banking
collapse, it is evident that the biggest impact to the common person has been
the housing market.
From
a buying perspective, the average age of a first time buyer is now 37 given the
demands of raising a deposit to meet lending criteria. Property analysts Oxford
Economics predict that by 2020, the average deposit required for a first time
buyer will be £100,000!
Whilst
I do not agree with the banking philosophy of 5 years ago (the only criteria to
borrow money was “are you breathing?”), the U turn that banks have made with
lending money is nothing short of staggering.
The
upshot of all of this is an inflated (more like bloated) rental market, with
the BBC’s latest report confirming that 33% of the UK is now unaffordable for low
to middle income families (from a rental perspective).
The
housing market is an issue that won’t go away and the Government’s ‘Help To Buy’
Scheme is anything but.
Outside
the box thinking from Westminster is required……not something they are famed
for!
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