Rising House Prices by housing agencies

 

I have chosen to do my project on the property boom that has shook the UK in the past 5 years. Some people may not believe this is an issue, but with the average house price now standing at  £169, 300, a rise of 91% in 5 years, its an issue most chose to ignore.

 

How my generation are supposed to own their own property is the question this project will look at. With the average 27 year old earning less then 20 thousand a year, it seems an impossibility. An under 25, earns, on average less then 15 thousand,, this makes buying a house even more statistically remote, pricing us out of all but 3 of England’s 388 council areas. We would need a mortgage of almost 6 and a half times our salary for our first home and this could be hampered even more by student debts. The average graduate debt is close to £10,000.

 

Teachers and nurses are particularly in danger of being priced out of this market. Anna O’Raw has been a primary school teacher for 3 years and currently earns £19, 000 a year. In the area of London where she lives, a 2 bedroom flat costs more then 250 thousand, and last year, a garage on her street sold for £70, 000.

 

This could be any one of us, ending up homeless despite our glamorous qualifications. And don’t think having a levels or a degree will save you from living it rough. Hidden underclass’s of highly educated people are sleeping on Britains  streets. Almost 50 % of the homeless questioned in a  survey by the charity Crisis, had GCS’s, 16% had A levels and 15% had a university degree.

 

Shocking as these figures may seem, its due to the lack of affordable housing that these people are where they are. Drugs & alcohol for some wasn’t even a factor, they are homeless because they cannot afford a home, without a home they cannot get a job, without a job they have no money and the cycle continues.

 

Think I’m exaggerating? Maybe making it sound a little far fetched to make the project seem more relevant? Think again. Only a matter of weeks ago, a trailer home, basically a slash between a caravan and a bungalow, sold for £100,000, 3 times as much as it cost to build just 2 years ago. The owner of this two-bed caravan admitted that ‘The property market is ludicrous’

 

But what is keeping the house prices so high? Well, housing may be expensive but borrowing is still cheap. Mortgage rates are at their lowest for years, This means people can afford much bigger mortgages than they could if interest rates were higher.

 

Low unemployment means people have few fears about taking on debt.

 

In many parts of the country, an overall shortage of housing is helping to keep prices high.

 

As a result, the gap between the selling price and the asking price has remained small. By 2011, the average 15% deposit in a house is expected to be £32,000

 

So what are the government doing to try to combat these alarming figures…umm actually not a lot. 2 years ago, the government promised £500m is to be made available to house essential workers, such as teachers. So far, the government has only invested £1.2 million. Another solution was the possibility of interest free loans for nurses and teachers, but if they get the loans, then other workers are going to Want them and so the question is, where does it all stop ?

 

A question no one yet can answer. The housing market may crash, but this could only happen there was a sudden drop in the employment rate, which is unlikely. The only thing we can guarantee is that if the market continues this way, the next generation will be paying £800,00 to live in a cardboard box, complete with free air conditioning, what a bargain.

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  Rising House Prices by housing agencies essay Brook Writers.