Monday, 15 July 2013

Passive Pads

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!

No comments:

Post a Comment