CHAMPAIGN OR SHAM-PAIN?
With all the talk of celebrating the recent 12 month house price rise one needs to reflect on the idea of celebrating too early. All of us have to live somewhere and its a given that in a free market it should be your choice of owning or renting your home. This situation is the same for start up or existing businesses with their shop, office or factory building.
With the highstreet clearences due to the online trading, larger super markets selling everything and out of town (centre) shopping malls do we convert all to housing? This shrinking of available outlets to shoppers and employment opportunities leads to higher use of transport to gain what you need or stay at home awaiting a delivery van of some sort.
BRIDGE THAT GAP!
One of the most alarming situations must be for those who bought their first home face when thinking of trading up to a larger property. The gap has widened to such an extent that £100,000 on top of what you receive has to be found to fund the difference.
With prices up 11 per cent year-on-year, around 10 times average wage growth, who’s going to be lucky enough to get an increase in income to relate to the gap you need to fund. Estate agency Savills recently claimed that the average house price will rise by 26% in the next five years. With the latest data from Nationwide showing house prices rose by 0.8 per cent in August, the 16th consecutive monthly increase. Its estimated that the average UK home will have tripled in price to £800,000 by 2040, a prominent think tank has claimed.
WHEELBARROWS & DEPOSITS
Maybe at these rates of increased values we will see a return of a wheeled barrow being used to deliver a cash proof of deposit as it will need to be that large. I for one do not know any twenty something who has saved a rate equal to the increase and also saved enough for their pension and had a good time down the pub on an average weekend.
Its the same for the newly selfemployed in the UK. They have more than just a deposit to consider. Opening stock, assets needed to assist in their operations along with marketing and other necessary expanses.
TO DRINK OR NOT TO DRINK?
When you add up all the statistics, price rises and son on related to today’s house prices they should be seen as divisive and dangerous for our UK economy. These above inflation price rises widens the gap between rich and poor, young and old, north and south. The situation is not for a slug of Champaign as its socially divisive and economically dangerous for all.
Our future is balanced between robbing the next genrations of the chance to buy their home or seek self satifaction in saying cheers as one drinks down our “SHAM-PAIN” as its just another economic false dawn. Even those who have enjoyed seeing the value of their home increase are now beginning to worry about how their children will be able to afford a home.