As we all know housing is less affordable now than it used to be. Nowadays, a lot of people lose their homes and need to use a sell house fast schemes because they can no longer afford to pay their mortgage due to over stretching themselves. Salaries have not risen in line with house price rises. On average a house bought in 1959 would have more than quadrupled in price by 2009.
I read today that according to Halifax property is less affordable than it was 50 years ago and house prices have risen by about 2.7% a year. This means that salaries would have to increase proportionately. However, we all know that this is not the case and is why so many people have been forced to sell their homes using sell house fast schemes recently. These forced sales are a result of property booms which have increased house prices as much as 8-10% in some areas.
The introduction of the right to buy policy in the 80’s and the buy to let market in the early 90’s as well as 100-110% mortgages for first time buyers fuelled the property market and led to some meteoric price rises. It’s interesting to note that owner occupation increased from 43% in 1961 to 68% in 2008. This is in contrast to privately rented homes, which fell from 33% to only 14% over the same period.
However, it could be said that these innovations contributed to it’s downfall too. Property investors over leveraging themselves through buy to let investment and first time buyers buying more than they could afford. We all know by now that the reason why the credit crisis took place in the first was because bankers were trading sub-prime mortgages that could never be paid back because mortgage lenders were giving credit to people who could not afford it.
This naturally fuelled the sell house fast market as more people lost their jobs and needed a quick house sale to avoid losing their homes.
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